What are the impacts on supply chains?

Disruption of labor markets and supply chain means that companies are considering their contractual and credit arrangements and seeking to invoke a variety of risk management strategies to mitigate the impacts of the COVID-19 pandemic.

The effects of interruption of manufacturing capacity, and disruption of trading routes will be felt both upstream, in agriculture and the extractive industries and downstream, in construction, and in wholesale and retail commerce. For the construction industry, delays to materials and workforce shortages will require careful management of sub-contractors and clients.

Industries with demand-linked revenues are implementing contingency plans as restrictions on movement are imposed. The aviation and shipping industries are responding to disruption to flights and voyages, delays and cancellations as a result of government interventions such as quarantines, enhanced checks or entry restrictions. Infrastructure projects, particularly those procured using Public-Private Partnership (PPP) models, may be impacted by closure or restrictions on the utilization of public infrastructure.  

The energy industry is facing a complex challenge of keeping supplies available, in the context of market price drops due to reductions in demand and workforce shortages.



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