TPC Publishes Electronic Industry COVID-19 Impact Survey
As a follow up to ongoing research on the impact to the electronics supply chain in China from the Coronavirus (COVID-19); TPC conducted a 5th special survey. The survey had ~7200 respondents with ~85% located in China. Key findings along with our supporting on the ground checks are as follows:
- Only 23% of the respondents are seeing an incremental negative impact over the past 4 weeks to demand and/or production from the virus; vs. 28% last month and 31% in April.
- 93% of the respondents see production down only 5% or less for C2Q due to the virus’ impact.
- Now 14% think the production shortfall in C1Q & early C2Q will be made up in C2Q while 67% believe it will be made up in C3Q (up from 59%).
- 7% are saying the production shortfall will never be fully made up vs. 1% in the May survey.
- Regarding the shortfall, ~51% of these responses believe the virus will not be contained enough to make up the production deficit. this is the #1 reason now and a significant shift in what the supply chains are thinking will hamper the recovery.
- 26% (vs. 35% in May) believe there will not be enough components available in to make up the shortfall.
- Now 73% (vs. 63% in May & 58% in April) of the respondents see 5% or less demand destruction; while only 11% see >10% demand destruction.
- The weighted average of this survey’s demand destruction due to COVID-19 is ~4-5%
Complete survey results published on ECIANow.org
