How COVID-19 Has Affected Manufacturing Unit?

Manufacturing units are the major driving force of any nation. The manufacturing sector accounts for a total of 16% of the global GDP, as of 2018. But with COVID becoming a pandemic, it has not only brought our lives and routine to a standstill but the businesses have to deal with a massive hit. Of all the industries that have had their operational cycle topsy turvy because of COVID-19, the worse has happened with the manufacturing units around the world. The production and operation of the factories have been hit. The supply chain has gone haywire.  

How grievous is the impact?

The COVID-19 originated in the nation, known for its massive manufacturing units, China. The lockdown that followed also stopped these units from production and derailed the supply chain to an adverse amount. The global FDI declined and economies around the world had to suffer the brunt. As part of the United Nations Conference on Trade and Development, the global FDI has shrunk by 5% to 15%, prominently because of the manufacturing sector.  

In today’s blog, we are going to talk about how the different process manufacturing industries have been hit by the COVID-19- 

There has been an acute shortage of medical devices and pharmaceutical components. The USA is one of the leading nations for manufacturing Pharmaceuticals and medical devices. But it is now facing a dearth of raw materials. The raw materials are sourced from China whose operating cycle is working at a relatively low speed due to the COVID outbreak. This has thus led to a major shortage of supply. 

How different industries have been affected?

The spread of novel coronavirus has forced the market to remain shut and again. China is the major supplier of raw materials such as pigment and additives for the paint and coating industry has resulted in the recession. Furthermore, the surge in the price of petrochemical-based raw materials has been an even bigger blow to the paint and coating manufacturing units.  

With the shutdown of the major offline stores across the globe there has been a sharp decline in the cosmetic manufacturing industry. The decreased demand and the shortage of the workforce have severely hit the supply chain. Therefore, this halt to the production and supply of non-essential products has further profoundly affected the cosmetic manufacturing industry.  

Supply chain problems and decreasing workforce continue to haunt the food and beverage manufacturing industry. Panic buying amongst the consumers has derailed the supply chain management in the food and beverage industry. This has thus affected the production. 

But there’s always a solution. In this case, you can simplify and bring stability to your manufacturing business by streamlining and automating the process with a cloud-based ERP solution like Acumatica.  

What is Acumatica?

Acumatica is a leading cloud-based ERP. It has been hailed as one of the proficient systems for streamlining and simplifying business processing.

How can Tayana Solutions help?

We have Acumatica experts for quick, easy, and smooth implementation of Acumatica for your business.

We, at Tayana, also have planned, designed and created an Acu Process manufacturing system. It is a solution build on embedded ISV that can be customized to the industry-specific requirements for efficient business production. With our effective cloud ERP solution in place, right from your finances, accounts, sales, and supply chain, every aspect will be simplified for a higher return on investment.

Reach out to Tayana’s APM experts for a customized solution, today!