Impact of COVID-19 on Global Electronics Industry

Impact of COVID-19

As per recent information from the survey, 40 percent of the worldwide electronics manufacturers and retailers surveyed reported they believed that consumer electronics were likely to be the most impacted industry due to the coronavirus (COVID-19) pandemic. The epidemic of the COVID-19 has made the electronics industry under pressure owing to the company’s slowdown, state or city lockdowns, and lack of the workers throughout the world. China is known for the electronics industry’s supply chain, with the presence of corporations basing that has massive factories in the country. China-based manufacturers are continuously panic related to the disordering linked to the COVID-19 that include delay manufacture for weeks of final-product consumer electronics. Shipping delays from China can cause several negative impacts for manufacturers based in North America, Europe, India and other areas that depend heavily on inputs from China in order to manufacture finished electronics products in their local factories. Further, detain in raw material delivery are leading towards the increasing break of the factory that leads to higher average costs and lower financial performance.

China is the main centre of this plague with the greatest number of positive coronavirus cases declared in the city of Wuhan. China is known to be the manufactory of the world with its unrivalled manufacturing base. This pandemic has caused a massive strain on the sectors that depends on imports from China for their production. The industry that has suffered the most owing to this plague is the electronic industry, given its dependency on Chinese manufacturers and suppliers. According to the study, almost 18% of India’s merchandise imports are from China.

Major electronics companies have shown their impacts due to COVID-19 globally. Companies have already declared that it would not meet earlier announced sales estimates for the first quarter. The company also delayed the launch of various products due to this pandemic outburst. Research by the American Chamber of Commerce in Shanghai (AmCham Shanghai) found that two-thirds of US businesses operating in China expect demand to be lower as a result of COVID-19 due to lack of enough staff.

Although, the effect of the COVID-19 on the import & export of electronics due to the organization’s deceleration in the first quarter is avoidable. According to stats, the first quarter is the slowest period every year for the electronics business all across the globe. Although the results for the second quarter rely heavily on the recovery from the rollout from the pandemic COVID-19. Many packages and testing plants in China have decreased or even closed their operations due to the lack of workers. This has created a cutthroat for electronic manufacturing companies.

Amongst the Coronavirus pandemic, India can be considered as a recommendable substitute for manufacturing all range goods. The Indian government will have to work on the ability of the manufacturing sector to set India as a feasible alternative for manufacturing. There are preferable manufacturers and suppliers in the digital signage fragment like Sunshine Display System who already leading from front with their exceptional digital signage solutions, Led wall, Video wall, Led Display, Led Screen reducing the import dependency in the process from international organizations.

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