Shocking New Study Says The Coronavirus “Could Impact More Than 5 Million Businesses Worldwide”
When was the last time that we witnessed a disaster that severely disrupted the supply chains of over 5 million companies around the globe simultaneously? Looking back over the past couple of decades, I can’t think of one. In recent days I have written a number of articles about the economic impact of this coronavirus outbreak, and what we have seen so far could be just the beginning. With each additional week that much of the Chinese economy remains at a virtual standstill, things are going to get even worse. Today, China accounts for approximately 20 percent of global GDP, but that doesn’t tell the entire story. At this point the rest of the world has become so dependent on Chinese exports that any sort of an extended shutdown for Chinese manufacturing would be a complete and utter nightmare for global supply chains. In fact, a brand new study that was just released by Dun & Bradstreet has concluded that the coronavirus outbreak in China “could impact more than 5 million businesses worldwide”…
The new coronavirus outbreak and subsequent shutdown of huge swathes of China could impact more than 5 million businesses worldwide, according to a new study.
A special briefing issued by global business research firm Dun & Bradstreet analyzed the Chinese provinces most impacted by the virus, and found they are intricately linked to the global business network.
Many people may assume that we could just “make these things somewhere else”, but that isn’t so easy.
New factories would have to be built, workers would have to be trained, etc.
And as Harvard Business School’s Willy Shih has pointed out, there are “some things that are only made in China these days”…
There are some things that are only made in China these days, and not just the usual electronics and toys — consumer products — it’s active pharmaceutical ingredients that go into pharmaceutical supply chains worldwide.
So what is going to happen if economic activity in China does not return to normal any time soon?