CORONAVIRUS WILL FORCE MANUFACTURERS TO

ENHANCE AUTOMATION, DIGITALIZATION

ARTICLE SUMMARY
BY : MUHAMMAD FIRDAUS HAFIZI BIN
AZMAN
2019720119 (BA2444B)
 WHY ?
COVID-19 is forcing manufacturers to rely more on
automation and digitalization for long-term
operations to reduce the financial impact from
epidemics and other potential economic challenges.

THE COVID-19 OUTBREAK

•  Becoming a global stress test
• China hosted the first outbreak and, after more
than 1 month of unprecedentedly strict
prevention and control measures, the epidemic
has been essentially brought under control
• COVID-19 is unlikely to have a huge long-term
impact. Epidemic prevention and control
measures from local governments will be a key
factor.
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 MANUFACTURING PURCHASING MANAGER
INDEX

SLOW DOWN TO
50 % 14.3% 35.7 %

• According to analysis of data segments such as

power generation, population migration, and
transportation; the work resumption rate in china is
about 65% (except for students).
• Although the overall recovery of enterprises is
better, it is more difficult for small and medium-
sized enterprises and lifestyle-service industries to
return to work.
• It is expected that production and operation will get
back to normal completely by may. 3
 FACTORS NEED TO BE TAKEN BEFORE
RELOCATING MANUFACTURING
• LOCAL MARKET CAPACITY, • INFRASTRUCTURE AND
LOGISTICS,
• TIME AND INVESTMENT
REQUIRED, • LABOUR COSTS,

• LOCAL GOVERNMENT • SKILL LEVELS

POLICIES,

CHINA ADVANTAGE
• Relatively speaking, the completeness of china’s
supply chain in automobile, electronics and other
industries makes the chinese industrial chain
very efficient and flexible.
• This, coupled with china’s huge domestic market,
stable government policies, strong infrastructure,
good labour skills and engineering resources.
• Means that many global companies will surely
want to maintain key production centers in china.
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 THE EPIDEMIC
THE EPIDEMIC HAS SIMPLY EXPOSED PROBLEMS
AND RISKS THAT ALREADY EXISTED

• IT MIGHT FORCE INDUSTRY TO UNDERTAKE MUCH

NEEDED REFORMS TO AUTOMATION,
DIGITALIZATION AND LOGISTICS PROCESSES AND SHORT TERM IMPACT OF THE EPIDEMIC
SYSTEMS.
• Decline in revenue and profits.

• Example, Under china’s stringent prevention and

control measures, a large number of
manufacturing enterprises were completely
suspended, and the loss of production capacity is
expected to be 1 to 3 months in total.
• Production recovery cannot be achieved overnight,

• The resumption of work may also face difficulties

in the form of recruitment problems, an insufficient
supply of raw materials, and other issues such5 as
logistics and cash flow.
 SUGGESTION

Small and medium-sized enterprises, and those with

insufficient cash flow, will feel the pressure most.

• For enterprises with good operation and high

capacity utilization, the focus must be to restore
production as soon as possible, but for some
enterprises that were on the edge of the market,
the epidemic will push them over that edge.

OTHERS

• China’s manufacturing enterprises need to

upgrade to higher-value activities

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 SUMMARY

• The pandemic of covid-19 had effect many country and it has slow downed
all of the economy nation widely.
• Although china had face the pandemic badly and it affect a lot in their
economy, the advantage and idea that they had will help them to recover
their nation economy with a better plan and more efficient.
• The COVID-19 epidemic has brought unexpected difficulties and challenges
to governments, industries and enterprises around the world. But it is a
short-term effect and it will eventually pass. In the long run, COVID-19 is a
chance for industries to make much-needed operational improvements.

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THANK YOU
MUHAMMAD FIRDAUS HAFIZI BIN AZMAN

012-4692903

FIZEEE78@YAHOO.COM

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RUS-WILL-FORCE-MANUFACT
URERS-TO-ENHANCE-AUTOM
ATION-DIGITALIZATION/