Data Loading...
weekly Supply Chain COVID update V3a Flipbook PDF
weekly Supply Chain COVID update V3a
123 Views
19 Downloads
FLIP PDF 1MB
supply chain management
COVID-19 IMPACT REPORT
MAY 4 2020
1
Manufacturers and National Trade Partners Reporting Impact as a Result of COVID-19
354
Ninety of 354 being tracked have been impacted, this is a reduction of 3 firms since last week (an increase of 7, and a decrease of 10).
tracked
90 impacted
2
Specific Attention to Closures and Delays All projects with any equipment, material or services from the below should verify current status with suppliers. *Note: New additions as of 4-27-2020 are in bold. • We are beginning to see some “rolling” openings of previously closed / impacted facilities in Asia and Canada, some of which is offset by additional closings in newly impacted factories in the US or in MX. • Airfreight costs have significantly increased and bookings are very restricted.
AIRFREIGHT COSTS ARE UP
• While not a Supply issue, Nucor has reported that because of temporary decreases in demand, plant utilization has dropped from 90%+ to 70%. Nucor is retaining its “no layoff” policy. • Closures of Canadian (Quebec & Ontario) manufacturing plants are broadly affecting our supply chain, from light fixtures, steel, mechanical equipment and millwork.
• Closures of Mexican manufacturing plants are impacting the supply chain relative to cement production, tile and window treatment. • Statewide closures are specifically affecting manufacturing in NY, PA, IL and CA. • Overseas detailing and engineering are affecting steel and curtain wall subcontractors. Service providers in Southeast Asia and India are the most widely affected. • A trend is beginning to appear that companies closed and deemed nonessential are more heavily focused on architectural and finish trades.
3
North American Supply Chain Impacts • Some North American manufacturers have scaled back or suspended production temporarily in response to COVID-19. • Local stay-at-home orders, social distancing, and self-quarantine policies are beginning to have an impact on available labor for factory and field operations. ◊ In particular, some smaller lighting manufacturers have temporarily shut down production facilities, depending upon their location and local public health policies.
4
Workforce Impacts Trade Partners are reporting a reduction in available workforce; however, in some areas where government agencies have closed “non-essential” projects, we have seen labor increases on the “essential” projects as companies work to keep their forces employed.
• Many companies are petitioning local authorities for “essential business” designations as they provide products and services in support of other segments essential designees (e.g. healthcare, infrastructure construction).
SOME NORTH AMERICAN MANUFACTURERS HAVE SCALED BACK OR SUSPENDED PRODUCTION
5
Worldwide Supply Chain Impacts • Chinese Supply Chain; Many manufacturers are reporting that their supply chains from China have returned (or restored) production and are operating at 70% - 80% capacity. Caution lights have been seen around transportation issues (e.g. ocean, rail, trucking, border crossings).
CHINA PRODUCTION AT 70%-80%
• European Supply Chain. Continues to experience slow movement with the exception of Italy, which is still experiencing a countrywide shutdown.
ITALY EXPERIENCING COUNTRYWIDE SHUTDOWN
KEVIN JENKINS VP & General Manager (704) 512-8918 [email protected]
ROBERT BAIRD VP & Operations Manager (404) 379-5618 [email protected]
TIM COLLINS Procurement Mgr. & Account Exec. (404) 274-5962 [email protected]
BRIAN CONNELL Higher Ed Account Executive (404) 379-7102 [email protected]
BRIAN CHEEK Sr. Procurement Agent (678) 725-0387 [email protected]
RICHARD LEFTWICH Preconstruction Manager (404) 293-9838 [email protected]
ZACH OLSEN Special Projects Div. Manager (404) 991-0764 [email protected]
GARY SWIDORSKI Business Development Mgr. (404) 274-4911 [email protected]
AJ BARGOTI Account Executive (770) 560-3350 [email protected]
SCOTT EDWARDS Account Executive (678) 725-6058 [email protected]
BEN SOUSA Healthcare Account Executive (615) 207-9477 [email protected]
THERESA SCHROEDER VP, Community & Citizenship (404) 272-7389 [email protected]
Turner is monitoring the rapidly changing market conditions in order to effectively answer your questions and support you in your business. Please contact any of the members of our leadership team for information.
3495 Piedmont Road | Building 11, Suite 700 | Atlanta, Georgia 30305 www.turnerconstruction.com | 404.504.3700