In Episode 132 of Hidden Forces, Demetri Kofinas speaks with Tom Derry, CEO of the Institute for Supply Management and publisher of the market-moving ISM Manufacturing Index about the impact of COVID-19 on global supply chains.

In recent years, global supply chains have been in the process of a fundamental shift, in part to strengthen their immune systems to mitigate the risk of multiple threats — unprecedented trade turbulence, as well as economic uncertainty, geopolitical events and rising labor costs. COVID-19 (novel coronavirus) has provided a severe new test to these global supply chains.

Since its genesis in the manufacturing hub of Wuhan, China, in December, the outbreak has resulted in more than one million documented cases and nearly sixty thousand deaths worldwide, quarantined workers, temporarily shuttered factories, canceled high-profile events, shaken markets and handcuffed supply management organizations at many companies. The gravity of the situation was exemplified in a survey by Institute for Supply Management, which found that nearly three-fourths (72%) of U.S. companies have experienced supply chain disruptions due to coronavirus-related transportation restrictions, and 81% of organizations expect their procurement operations to be impacted by COVID-19. For some of those companies, the infection goes beyond the supply chain, as 16% of survey respondents report lowering annual revenue targets by an average of 5.6%. More than half (53%) of the 628 respondents in ISM’s recent survey said their companies are having trouble getting supply chain information from China.

The full episode is a deep-dive into how the intricate world of just-in-time manufacturing, outsourcing, and globalization has been impacted by the world-wide disruptions we’ve seen in early 2020. In the overtime, Demetri and Tom discuss the impact of COVID-19 on the telecommunications industry and MSO’s, the automotive space, commercial air travel, as well as the market for shipping crude oil. Tom also explains how companies have been re-positioning themselves coming out of this contraction, including the long-term impacts of rerouting supply chains and rethinking the scale and efficiency of distribution and sourcing.

You can access the episode overtime, as well as the transcript and rundown to this week’s episode through the Hidden Forces Patreon Page. All subscribers gain access to our overtime feed, which can be easily added to your favorite podcast application.

Producer & Host: Demetri Kofinas

Editor & Engineer: Stylianos Nicolaou

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