The repercussions of COVID-19 on the global manufacturing supply chain are expected to worsen over the coming months, a London based firm said.
Infiniti Research predicted the peak of the impact of coronavirus would occur mid-March.
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"This would consequently prompt companies to temporarily curb assembly and manufacturing in the US and Europe," it said.
Over the past decade, global companies resorted to practices such as lean manufacturing, offshoring, and outsourcing in an effort to bring down supply chain costs. But such cost cutting measures indicate that when there is a supply chain disruption, manufacturing will stop quickly because of a lack of parts.
"Furthermore, as the number of departures from Chinese ports shows a steep decline (by at least 20%), we should brace for a major effect on manufacturing worldwide."
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