More than half of US companies won’t travel to China due to COVID-19

The survey’s 628 respondents largely represent US manufacturing and non-manufacturing firms

COVID-19

More than half of US companies won’t travel to China due to COVID-19. Source: flickr.com

According to the Institute for Supply Management (ISM) survey, nearly 75% of companies report supply chain disruptions due to coronavirus-related transportation restrictions.

Furthermore, over 80% of them believe that their organization will experience some impact because of COVID-19 disruptions. Meanwhile, one in six companies reports adjusting revenue targets downward an average of 5.6% due to the outbreak.

The story the data tells is that companies are faced with a lengthy recovery to normal operations in the wake of the virus outbreak. For a majority of US businesses, lead times have doubled, and that shortage is compounded by the shortage of air and ocean freight options to move product to the United States - even if they can get orders filled
Thomas W. Derry, Chief Executive Officer of ISM

The research unveiled that more than 60% of companies that ordinarily travel to China aren’t going to do that during the next 6 months.

What is more, 47% claim travel to other international areas is subject to extra scrutiny or limitations. Among the most mentioned areas are Korea, Italy, Japan, broadly Europe, Hong Kong, and Singapore.

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