An Update on COVID-19..
Although globally we are a long way from being out of the woods, it looks like cases are on thedecline in China where this bugger kicked off. News reports of a pending pandemic were quickly followed by predictions on a global economic crisis. It’s hard to know what information to believe, but we like this quote from Dr Michael Ryan (Executive director, WHO Health Emergencies Programme)…
"All predictions are important. Most predictions are wrong. And I think we must be careful with that."
For now, lets keep calm and carry on!
Like many other businesses, we are heavily reliant on China for production. Although other countries offer alternative supply chain solutions, China is by far the most vertically integrated. Whereas other manufacturing countries rely on China for raw materials and parts. It’s easy to make garments in Vietnam, but 60% of their fabric comes from China… Therein lies the predicament… From the good news desk, a week ago the Chinese Chamber of Commerce reported that 97% of the top 500 manufacturers in China had reopened for business. Of those they had over 66% of their workforce back.
These numbers will have improved in the last week too, looks like we are almost back to business as usual… Here’s hoping for a speedy global solution and recovery!