Corona’s impact on TV Manufacturing Industry

China is deemed to be the manufacturing powerhouse and is the third-largest electronics producer in the world. In the wake of the Coronavirus industries worldwide have thereby realized their total dependence on China for basic components and the current scenario only brings us to the conclusion that we are in for a rude awakening.

But what does this mean for the Tv manufacturing Industry? Let’s have a look:

1. Manufacturers like us who import components from China were prepared for the Chinese Lunar New Year vacation gap but since the government announced extended vacation there’s a lot of chaos and tensions prevailing considering delays in the factory openings.

2. The workers in China aren’t willing to work and the Chinese companies aren’t ready to risk anything either. While we are covered with stocks and components, they can only be of help till a limited time period.

3. This in turn will cause a humongous delay in shipments and disrupt the production plans of the Tv as well as Mobile industries.

4. As of now the situation has caused mild tremors but the magnitude of this can only be determined when the shutdown ends 8th February which can also be extended.

5. In 2002-03 when SARS pandemic had occurred it lasted for 9 months, so if Corona lasts for a few weeks we can work around it but if it lasts for months then that would be a huge roadblock for manufacturers worldwide.

6. Even when this situation cools down there is fairly any guarantee of the business getting back on track as swiftly as it should as thousands of factory workers on Lunar New Year holidays may struggle to get back to work next week due to travel restrictions.

7. The outbreak has definitely brought the manufacturers worldwide to a production halt creating a lump in their plans and if prolonged would result in difficulty to mitigate any production loss and hurt their financial performance in 2020.

8. The impact of this outbreak shall also narrow the consumers buying confidence and shall affect the economy across industries.

 Arjun Bajaj, Director, Videotex International