Impact of COVID on manufacturing

Effect of COVID-19 on manufacturing plants?

1.     2020 arrived with the unbelievable pandemic disease ‘COVID-19’ proving the threat to the entire mankind and life.

2.     The arrival of ‘COVID-19’ has impacted everything on earth.

3.     Impact on manufacturing sector was huge.

4.     COVID is a transmission which is transmitted rapidly amongst human beings.

5.     Industry especially small scale and medium scale are fully dependent on the man-power utilization.

6.     With the arrival of COVID, all the industries stopped their working. This impacted their revenue.

7.     I.T industry was running on work from home basis. But work from home was not possible in manufacturing. All the small scale and medium scale industries need manpower for their daily activities.

8.     People are required to run the machines in the manufacturing field in the small-scale industry. In absenteeism of the people, daily production was stopped. It also impacted the daily sale. Also, the manpower is required for logistics. Hence, in absenteeism of manpower, it was not possible to run the logistics. This had an impact on logistics.

9.     Small scale and medium scale had reduced sales in the financial years. It also affected their customers which indirectly affected the market. Ex. A small scale industry supplying the parts required for air-compressor was unable to run due to absenteeism of people. Due to this, they were unable to dispatch the parts to their HVAC customer. This resulted in the drop in production of compressors. It further affected the production and sale of ‘A/C’ at their customer end. Since parts are not supplied at a time, they are not been launched in the market hence it affected the entire supply chain line of manufacturing.

10. Due to drop in sales, many manufacturing plants are reducing their manpower.

11. Since the logistics were affected, many foundries had a shortage of raw material. Fixed cost was almost the same.

12. As many machines were not used during the lockdown period, it increased the maintenance cost later.

13. As there was lesser man-power due to COVID restrictions, it imposed much stress on people to work more.

14. Reduction in the cash flow was the biggest impact on all manufacturing plants.

15. Drop in the sales resulted in a drop in the revenue and it further had an impact on the economy.

16. COVID resulted in all the manufacturing sector to use technologies to cope up with the situation.

17. Industries who were less dependent on the manpower, who had started using the 4.0 technology and automation for their daily production work had less impact on COVID.