Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The spread of COVID-19— and ensuing containment measures—has wreaked havoc on global supply chains, according to a new survey of US-based manufacturing and non-manufacturing companies by the Institute of Supply Management (ISM).


More than 55pc of companies surveyed by ISM noted longer lead times when sourcing components from China. At the time of the survey, manufacturers in China reported operating at 50pc capacity and with only 56pc of their total workforce.


Over 80pc of US respondents believed their businesses would be affected by the disruptions COVID-19 is causing around the world, while 75pc have already been hindered by transportation restrictions. 


Around 44pc of respondents—of which 23pc presently have disrupted supply chains—don’t have a contingency plans to address the problem, while nearly half of everybody surveyed found moving their goods within China was difficult.


According to Thomas W. Derry, ISM’s chief executive officer, the survey results signify a “lengthy recovery to normal operations” for impacted companies In fact, around 16pc of companies surveyed by the institute revised and lowered their earnings guidances.


ISM indicated it will update the survey, which was conducted between Feb 22 and March 5 among 628 US-based respondents, as it continues monitoring the virus’s evolving impact on global supply chains.


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