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.
