A resilient return for Asia’s manufacturing and supply chains?
By Didier Chenneveau, Matteo Mancini, and Sahil Shinghal Asia shows an early glimpse of how manufacturing and supply-chain leaders are responding to disruption caused by the pandemic. The Asia-Pacific region is at widely varying points on its journey through the COVID-19 pandemic. China is broadly beginning to restart its operations amid recovering domestic demand, while other geographies, such as Southeast Asia, Japan, and South Korea, are still tackling cases and under a range of control measures to help stop the spread. To understand the differing sentiment and responses among manufacturing leaders across the whole region, we surveyed more than 200 manufacturing and supply-chain leaders across industries including advanced industries; consumer goods; chemicals; metals and mining; oil and gas; construction, engineering and infrastructure; and transportation and logistics. Recovery is coming, but isn’t here yet Overall, 39 percent of respondents are confident that the manufacturing sector will recover rapidly from disruptions caused by COVID-19, estimating that as little as two to three months will be sufficient. However, 61 percent expect that recovery will take at least six months. Once we looked at responses split by subregions across Asia Pacific—Australia and New Zealand; China; Japan and South Korea; South Asia; and Southeast Asia—we saw that optimism closely aligns with the stage of progression through the pandemic timeline. Nearly half of respondents in China expect rapid recovery, possibly because the country is further along the timeline in its pandemic response. Responses from Southeast Asia, Japan, and South Korea, on the other hand, report markedly lower confidence in a swift recovery. The majority of these regions are still tackling cases and only just beginning to ease lockdown measures—South Korea is currently preparing to slowly and cautiously proceed to the next normal under “everyday quarantine” measures. Japan’s lack of confidence is worth noting, as the country has a […]