Milwaukee Electronics is closely monitoring the impacts of the coronavirus in China and elsewhere. At present, we anticipate only minimal impacts on our supply chain and our ability to deliver products to our customers.
The situation, however, is fluid and could change on short notice.
We are gathering information from suppliers with China based manufacturing and those with supply chains that rely on China output. While we have yet to be notified of any specific delays, we expect that any extended closures could result in shipping delays of products or components manufactured in China.
In addition, the Milwaukee Electronics Singapore office and our overall supply chain strategy focuses on direct relationships with our offshore (not just China) factories for improved transparency. We are getting information directly from the local factories, in the local language, and are keeping a close pulse on this situation.
Here are a few details that we do know:
  • Chinese New Year shutdown was extended unilaterally by one week until February 10th by the Chinese government
  • Hubei Province Chinese New Year shutdown has been extended indefinitely
  • Late last week, the Chinese government put in additional restrictions which require manufacturers to pass a government issued inspection prior to opening back up
  • These inspections are now backlogged with little communication on the future schedule
  • In addition to this, there are significant travel restrictions which has prevented workers from returning
  • These impacts are very supplier unique; we have some suppliers as low as 45% people capacity and some as high as 75%
  • Air shipments are being impacted as 90% of the passenger capacity between China and the rest of the world has been cancelled until the end of March at earliest. Passenger places account for approximately 45% of freight capacity as goods are shipped in the belly of the planes
  • Chinese ports are open, but trucking companies are just beginning to ramp up volume
It is important to note that Milwaukee Electronics has no manufacturing locations in China.
If you have any questions, please do not hesitate to contact your local Program Managers or Milwaukee Electronics contact.

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