Manufacturing, and Michigan, will feel the effects of COVID-19 harder than most

February 29, 2020, 8:39 AM

We all know that good times never last forever. We just don't know what will bring them to a close. 


This week's potential culprit: COVID-19, the coronavirus causing a global panic in financial markets and around the world. 

The Detroit News reports that coronavirus will disrupt manufacturing, and when it does, Michigan will be harder-hit than most states. 

Michigan's manufacturing roots — with 14.2% of employment based in manufacturing compared to 8.5% nationally — will leave it more exposed to the potential for production slowdowns and layoffs from the virus' impact on supply chains. Businesses are working to mitigate the risk to their overall business and bottom lines.

... Automotive manufacturing in particular will be hurt because of its deep supply chains, and Michigan is more dependent on that sector than any other state.

...The Michigan Economic Development Corporation says it's monitoring the situation. "It is, however, too early to speculate on what the impact has been or will be moving forward," spokesman Otie McKinley said.

Supply chains can be delicate, with many depending on just-in-time delivery models. With entire regions of China still on economic lockdown, it is likely that the disruptions will ripple throughout various industries. 

All of the Detroit Three have warned that if the virus' effects continue to be felt in Asia and the U.S., it could disrupt production. However, the full effects are difficult to predict in the rapidly spreading epidemic.

Read more:  The Detroit News

Leave a Comment:

Photo Of The Day 

Potd_freejoeexoticpotd_554 "Free Joe Exotic!", found on the East Side of Detroit

By: Dustin Blitchok