Coronavirus Impact: How Manufacturing and Service Sectors Adapt to the “New Normal”

Delivery

This report comes in PPT.

Key Findings

Investments into digitalisation and production automation to accelerate

COVID-19 is forecast to accelerate industry investments into digitalisation and production automation tools. Such tools would help the companies to better track their supply chains and increase operating flexibility.

Supply chains are expected to become more regionalised

Supply chains are set to become more regionalised in the medium to long term. COVID-19 showed the vulnerability of the existing supply chains and companies have accelerated efforts to create regional supply networks and be closer to end-consumers. This is especially relevant for manufacturing of critical goods, such as food products, pharma ingredients, machinery and electronics parts.

Asia Pacific is forecast to witness the fastest recovery

Asia Pacific is forecast to start recovering from COVID-19 disruptions in 2020 and major industries are expected to reach pre-COVID-19 production levels in 2021. This growth is associated with relatively stable health situations, government stimulus packages and faster than anticipated recovery in China.

Latin America faces the risk of prolonged economic uncertainty

Latin America is expected to face prolonged economic uncertainty and production disruptions, with many industries forecast to fully recover only in 2022-2023. Declining demand for exported commodities, currency issues and the ongoing health crisis are set to weigh on the region’s economy and industries.

Hi-tech goods industry could gain in the long term

Global hi-tech goods industry is forecast to contract by 3% in 2020 due to supply chain and demand disruptions, although negative effects are expected to be short lived. The hi-tech goods industry is set to rebound in 2021, driven by new investments and expanding demand for automation equipment.