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Wilbur Ross Slammed for Claiming Coronavirus Could Spur Wave of US Jobs

Commerce Secretary Wilbur Ross suggested Thursday that the coronavirus outbreak in China might offer an unexpected benefit for the U.S. economy: It could encourage American manufacturers in China to return to the United States.

“I think it will help to accelerate the return of jobs to North America. Some to U.S., probably some to Mexico as well,’’ Ross told Fox Business Network.

The new virus, from the coronavirus family, has paralyzed business in China. The industrial hub of Wuhan and other Chinese cities are on lockdown. China has reported more than 7,700 cases and 170 deaths.  <READ MORE>

Commerce secretary: China virus could bring jobs back to US

Commerce Secretary Wilbur Ross suggested that the viral outbreak in China might offer an unexpected benefit for the U.S. economy: It could encourage American manufacturers in China to return to the United States.

WASHINGTON — Commerce Secretary Wilbur Ross suggested Thursday that the viral outbreak in China might offer an unexpected benefit for the U.S. economy: It could encourage American manufacturers in China to return to the United States.

“I think it will help to accelerate the return of jobs to North America. Some to U.S., probably some to Mexico as well,’’ Ross told Fox Business Network. <READ MORE>

COVID-19 Coronavirus And Complex Supply Chains

The COVID-19 coronavirus has the world’s business system in a spin. Economists tend to downplay it as not terribly big in comparison to the huge global economy. For specific families, of course, it’s a tragedy. But the mild economic consequences of economists’ back-of-the-envelope economic analyses likely understate the magnitude of the harm to business activity.

Consider a variety of specifics, not because any one is large, but because taken together they highlight the world’s supply chains.

Bosch CEO Volkmar Denner said that he is concerned about the supply chain. China has the company’s largest number of employees after Germany. <READ MORE>

Coronavirus and Your Global Supply Chain – Part 2 – Rising Panic

Manufacturers are beginning to panic.

Two weeks ago, I wrote about the Coronavirus with, at that point 100 deaths, and the beginning of shipping and logistics issues with all products coming out of China. Since then, the crisis has geometrically progressed and nearly 1000 people have died, and 40,000 infected people are being treated. The infection has spread worldwide, to include Silicon Valley where I live.

No vaccine is currently available.

In parallel with the spread of the virus, Chinese New Year celebrations across the globe were banned or subdued as governments recommended against public gatherings. Chinese factory closures for the holiday were extended until today, Feb 10 or longer, depending on the perceived threat. Airlines including American, United, and Delta have suspended flights. Restrictions on ship dockings are rising. <READ MORE>

Asia Pacific air cargo industry traumatized by Coronavirus

The calamity could not have happened at a worse time for Pacific Rim airlines, airports, and Asia Pacific shippers.

Since the Novel Coronavirus (2019-nCoV) Outbreak emanated in the Far East, it should come as no surprise that its disruptive impact on global logistics struck there first. Analysts agree that the one transport mode most facing the greatest challenges now and in the foreseeable future is the air cargo industry.

Andrew Herdman, Director General of the Association of Asia Pacific Airlines (AAPA), notes that regional cargo carriers are strictly following established guidelines developed by the International Civil Aviation Organization (ICAO), in consultation with the World Health Organization (WHO), the International Air Transport Association (IATA) and Airports Council International (ACI), covering the management of public health events.

But he takes issue with a number of governments that have nevertheless introduced various measures including travel advisories, border entry restrictions and quarantine requirements. <READ MORE>

Prices will spike due to coronavirus supply shock

Mati Greenspan predicts consumer prices will spike, due to China’s COVID-19 shut down in production … and you should consider buying Bitcoin. Apple, Samsung, Microsoft, Google, IKEA, Peugot, Renault Tesla, Airbus, Hyundai and even Google have all shut down factories and offices in China recently due to the coronavirus.

The impact on supply chains stretches beyond products made entirely in China, to the many components made there too. Many essential products from pharmaceuticals to electronics are now in short supply.

Rosemary Coates Executive Director of the Reshoring Institute explained the issue in Logistics Management. <READ MORE>

Coronavirus Is a Data Time Bomb

So far, less than 0.0008 percent of the humans on Earth have been diagnosed with the coronavirus known as COVID-19. But thanks to the circulation of disease and capital, the whole world has been affected.

Chinese manufacturing cities such as Wuhan, the epicenter of the outbreak, are intimately entangled with the supply chains of the entire world. That means that both the disease and the containment measures enacted to control it (take, for example, the quarantine still in place for 70 million people) will have a dramatic effect on businesses across disparate industries. <READ MORE>

How the New Coronavirus is Affecting Engineering Projects

Experts warn of international fallout and lasting impact.

“What does it have to do with the price of tea in China?” is a facetious retort when someone introduces seemingly irrelevant matters into an ongoing conversation.

Today, the menace of the novel coronavirus (2019nCoV) cast its shadow far and wide over conversations about manufacturing and engineering projects.

Currently, strictly in terms of fatality and infection, China is paying the heaviest price. Per WHO’s situation report dated February 10, there has been 40,000 confirmed cases, with 900 deaths in China. These numbers are expected to climb as new cases emerge.

As the world’s factory floor, China is also paying a price with its unavoidable shutdowns of major manufacturing hubs, such as Hubei province, home to the epicenter of the virus outbreak.

In the age of connected economy and global supply chains, everyone has something to lose when China pays a high price, the experts warned. <READ MORE>

Coronavirus situation presents no shortage of things to worry about within the global supply chain

When a major, global pandemic like the Wuhan, China coronavirus takes hold, it is, at once, alarming, scary, uncertain, and a whole host of other things, to be sure. And that is being made more and more clear as the days goes on and the number of those impacted, or, tragically dying, continues to head up, coupled with reports of coronavirus spreading to different parts of the world truly makes things even worse.

When a major, global pandemic like the Wuhan, China coronavirus takes hold, it is, at once, alarming, scary, uncertain, and a whole host of other things, to be sure.

And that is being made more and more clear as the days goes on and the number of those impacted, or, tragically dying, continues to head up, coupled with reports of coronavirus spreading to different parts of the world truly makes things even worse.

From a logistics and supply chain perspective, while things are still very early, it stands to reason that the impact on all things trade, shipping, and moving freight is already quite significant. That was beyond clear in a Wall Street Journal article, entitled: “Coronavirus Closes China to the World, Straining Global Economy.”  <READ MORE>

China plant-closing cascade may cost automakers 1.7 million cars

Forget about clinging to hopes that China, the world’s largest car market, will recover from its unprecedented two-year slump anytime soon.

Expectations were already bleak as the year began, with IHS Markit predicting a 10 percent drop in first quarter production. Now, the influential research firm sees a scenario in which the coronavirus spreading rapidly across the country triggers a cascade of plant closings that lasts into mid-March and reduces output by more than 1.7 million cars — a decline of another 32 percent.

China’s car sales already were heading for their lowest level in at least five years before the outbreak forced authorities to lock down the epicenter city of Wuhan. Now, it’s unclear when consumers will come back to showrooms as 14 provinces and cities that accounted for almost 70 percent of the country’s gross domestic product shut businesses and factories until at least the second week of February. <READ MORE>

From eyeglasses to backpacks, Bay Area firms scramble as coronavirus closes Chinese factories

This should have been a good February for Zenni Optical. The Novato eyewear company aired its first Super Bowl ad, starring 49ers tight end George Kittle, this month.

But some people who watched the ad and went online to order glasses got this message: “Due to mandatory business closures in China, standard delivery will extend to 21-28 days. Express and priority shipping will not be available. We apologize for any inconvenience.” <READ MORE>

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