Technology services company Probrand is warning IT buyers to prepare for an upcoming product shortage as a result of factories in China closing following the Coronavirus outbreak.
Factories in China are currently shut for Chinese New Year and will now remain closed for another two weeks as the Chinese government has banned employees from returning to work until February 10.
The shutdown will have a significant effect on the IT supply chain, with delays and disruptions to the manufacturing process expected to trigger severe stock shortages.
Ian Nethercot, supply chain director at Probrand, said: “China is the main supplier of electronics, so there will no doubt be major disruptions and delays for the rest of the world when purchasing IT. Unplanned shutdowns will cause supplies to dry up which will no doubt cause prices to increase.’’
‘‘Also consider that, when factory workers eventually do return, they will be under a great deal of pressure to handle a huge back-log of orders. The need for increased output could potentially jeopardise the quality of goods”
“While there’s nothing buyers can do to avoid it, being prepared is the best form of defence in order to minimise any effect on the business.”
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