Research Firm Takes Stock of COVID-19 in Key AreasApril 22nd, 2020 by Tara Taffera
Analysts at ABI Research published a white paper analyzing various industries and the potential impacts of COVID-19. [DWM] breaks it down in a few key areas including transportation and logistics, manufacturing and smart automation, including technology used in homes.
First, on the manufacturing side, the report says, “the impact is both global and unpredictable, and the supply chain shock it is causing will most definitely and substantially cut into the US $15 trillion worldwide manufacturing revenue currently forecasted for 2020.”
In the long term, manufacturers will need to conduct an extensive due diligence process, as they need to understand their risk exposure, including the operations of their supplier’s suppliers.
“To mitigate supply chain risks, manufacturers not only need to be flexible and not source components from a single supplier, but also, as COVID-19 has highlighted, should not source from suppliers in a single location,” the white paper states.
Turning to technology, the impact from the spread of COVID-19 is compelling people to spend more time in their homes, so products that focus on technology within the home will grow, such as automation. Smart locks and smart doorbells/video cameras can enable deliveries to be placed in the home or another secure location directly, or monitored securely on the doorstep until the resident can bring them in—all important factors as the world continues to practice social distancing measures even after the virus’ wake.
Voice control is integral to smart home adoption as well. “Any additional drive and incentive for voice control in the home will help drive awareness and adoption for a range of additional smart home devices and applications,” according to the report.
In the areas of transportation and logistics, ABI Research makes some predictions as well.
In the short term, “there has been a 4 to 6-week delay in shipments for cargo sourced from China. Other markets from Vietnam to Mexico often rely on Chinese components and raw materials, creating a knock-on effect to the supply chain, including transportation and logistics.”
In the long term, the virus is now impacting the global supply chain, with a current estimate of 113 countries identified as reporting cases. “Transportation requirements will be hard to predict,” according to the white paper. “Both capacity and pricing swings are anticipated across transportation modes, with the associated impact to shippers worldwide.”