The impact of the pandemic will have both short-term and long-term consequences. This is likely to create a ‘new normal’ for the future of businesses across the sector.
Embedded electronics design consultancy ByteSnap Design is looking to establish how electronics companies cope with the coronavirus pandemic – now and in the months ahead.
Aside from a mass migration to remote working as employees are told to stay at home, there are many more implications of Coronavirus to the business process.
Perhaps most significantly there have been disruptions to supply chains, causing shipment delays for electronics manufacturers. These expected delays are estimated to be at least five weeks, if not more. Ripple effects will only increase as the spread of the virus continues globally, causing more countries to restrict border access and raw materials.
More specifically, it is predicted that consumer electronics will be hit the worst by movement restrictions, closely followed by industrial & automotive.
These trends could change the way businesses operate, with some resourcing switching to domestic suppliers. Further, the management process may favour stock being held in-house as opposed to JIT inventory, which is the supply chain management (SCM) practice of holding as limited finished products as possible.
In addition to supply chain issues, there are also instances where projects are now being put on hold. Indeed, most businesses across the world currently appear to be falling into one of three categories, those that:
- will unfortunately not survive the financial impact of the pandemic,
- are pausing all spending to weather the storm
- are either very busy or using this time to get ahead with final product developments.
COVID-19 Outbreak: Which industry sectors are in demand?
Not all electronic product companies are suffering. Aside from the obvious working on medical devices, other businesses are also seeing an increase in demand for their products or services.
Key areas include remote monitoring electronic devices that allow companies to continue working during the lockdown. Additionally, tracking and logistics are busier than ever, and food packaging companies are barely able to keep up with increased demand.
Artificial Intelligence (AI) is another tech sector predicted to surge during the pandemic, not least by directly combating COVID-19 through medical research. In most cases, with an emphasis on reducing human interaction and social distancing, businesses will likely be turning to AI solutions for their product designs. This would help with risk management, reducing person to person contact.
What will we learn from all of this?
With the global impact of the coronavirus pandemic, there comes a pressing need to understand the effect of this crisis on the various engineering industries. This is particularly the case for the electronics market.
ByteSnap Design is looking to produce a snapshot-view examining both ends of the spectrum, from the businesses busier than ever to those really taking a hit.
For many, resilience and adaptability will be key over the next year.
Have you got 3 minutes to help improve understanding of COVID-19's effects on the electronics industry?
During this challenging period, ByteSnap Design is asking for just three minutes of your time to participate in a short survey. This will help us all to better understand how COVID-19 is affecting the electronics industry.
Once the embedded electronics firm has collected the anonymous responses, they will share the results, providing you with valuable insights into how your peers are doing.
To participate in this survey, please use the link below.