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- Auto industry hit hardest by supply chain disruptions during Covid pandemic - survey
Auto industry hit hardest by supply chain disruptions during Covid pandemic - survey
CNBC reports that according to a survey that covered six broad industries, the automotive sector was hit the hardest by supply chain disruptions during the Covid-19 pandemic. The survey was conducted by the Economist Intelligence Unit and sponsored by Citi.
Around 51.7% of respondents from the auto sector said disruptions to supply chains were “very significant” — the highest proportion across the six industries.
The footwear and apparel industry came in second with 43.3% respondents reporting “very significant” disruptions. Meanwhile, only 6.7% from the IT, tech and electronics sector indicated the same.
The auto industry was particularly affected by a shortage of semiconductors, which caused several carmakers to cut production at some of their plants. The chip shortage was caused by a surge in demand for personal computers and other consumer electronics as many people were kept at home during Covid lockdowns.
The pandemic has led some businesses to rethink their supply chains for the longer term, with around one-third of respondents conducting a complete overhaul, the survey found. One in five supply chain managers surveyed have invested or are looking to invest in the Philippines and India in the next 12 months as part of their strategy.
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