“We see
no material impact
on our economy,”
Larry Kudlow,
National Economic
Council Director,
told Fox Business Network.
Not so,
according to
a new survey
released by
the Institute for
Supply Management
( ISM ).
Conducted
between
February 22
and March 5.
The 628
respondents
represent U.S.
manufacturing
( 52% )
& non-manufacturing
( 48% )
organizations.
81%
have revenues
of less than
US$10 billion.
73%
of respondents
are in supply
management.
Highlights:
Over 60%
of companies
that ordinarily
travel to China
have no plans
to do so over
the next
six months.
47% say travel
to other
international
areas is
subject to
extra scrutiny
or limitations
( mainly Korea,
Italy, Japan,
"Europe",
Hong Kong
and Singapore ).
Almost 75%
of companies
reported supply
chain disruptions
as a result of
COVID-19,
More than 80%
of companies
expect to
experience
some impact
because of
COVID-19
disruptions.
“The story
the data tell
is that companies
are faced with
a lengthy recovery
to normal operations
in the wake of
the virus outbreak,”
said Thomas Derry,
CEO of ISM.
“For a majority
of U.S. businesses,
lead times
have doubled,
and that shortage
is compounded
by the shortage
of air and ocean
freight options
to move product
to the United States
— even if they
can get orders filled.”
"We're seeing
that organizations
who diversified
their supplier base,
after experiencing
tariff impacts,
are potentially
more equipped
to address
the effects
of COVID-19
on their
supply chains,"
said Derry.
China manufacturers
reported operating
at 50% of capacity,
with 56% of their
normal staff.
More than 44%
of respondents
do NOT have a plan
to address supply
disruption from China
62% are
experiencing
delays in
receiving orders
from China.
48% are
experiencing
delays
moving goods
within China.
46% report delays
loading goods
at Chinese ports.
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