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Chinese fastener factories begin returning to work

2020-02-14    Author:   Source:Chinadaily, fastenerandfixing   Views:505    

Chinese fastener factories,mechanical manufacture,International Fastener Show China

During the Spring Festival in 2020, due to unexpected public health events, the resumption of work downstream was delayed compared with previous years, and transportation and logistics were temporarily interrupted.It is conservatively estimated that this public health emergency will delay market consumption for more than 3 weeks.

For now on, there are three reasons affecting the enterprises to resume work.
Firstly, employees return to work later. The escalation of the epidemic occurred before Spring Festival, which made employees uneasy to return to their work place. Traffic flow data showed the reluctance of some employees to return to work. Even if the employees choose to come back for work, but a series of questions will follow, how do you put them in quarantine? Is it possible for companies to offer sufficient protective materials? In the early stages of restarting production, are there any prevention standards and event handling procedures that companies should follow? These are the real problems faced by enterprises. For large labor-oriented companies especially, the above-mentioned problems are more prominent.

Secondly, the epidemic halted transportation in certain areas, and created logistical challenges for delivery. In order to control the epidemic, some provinces carried out access control and temperature detection on their highways. But some places closed or even blocked the roads. Meanwhile, the logistics sector has been negatively influenced. Because of this, surveyed steel mills said they will face a situation where there is no place for finished products and they will lack raw materials in the coming weeks. According to statistics from Mysteel, as of Jan 30,22 construction steel companies in a southern province had a total inventory of 1.375 million metric tons, an increase of 379,000 tons from the first week after the Spring Festival in 2019.

Thirdly, the enterprises will suffer losses due to the delayed delivery of orders. In February, companies manufacturing seasonal products usually usher in a busy period of production and shipments. However, the aforementioned factors deferred the progress of production recovery, so it's difficult for companies to deliver orders on time. As a consequence, some companies will be forced to choose airfreight to deliver goods, which generates higher costs. In particular, the delay in order deliveries may lead to greater losses for exporters.

From the perspective of expected full recovery time, 80% of the enterprises can fully resume production before the end of march, among which, only for the enterprises that fully resumed in February, the downstream enterprises of fasteners account for the majority, and the remaining few are mechanical manufacturing and wire drawing factories. International Fastener Show China will be held on June 22-24, 2020 in Shanghai World Expo Exhibition & Convention Center! 

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