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Industry Updates

U.S. Manufacturing Could Suffer Because of Coronavirus


Many areas in the United States heavily tied to manufacturing could suffer in the coming weeks because of supply chain disruptions to production, said economist Michael Hicks, director of the Center for Business and Economic Research at Ball State University.

The culprit for the disruptions is the coronavirus (COVid-19), Hicks noted.

“The actual disease may be longer-term effects on the labor supply and organization of production, which is harder to estimate,” Hicks said. “In the short term, the factory stoppages may affect producers in the next few weeks.”

In his 2017 study, “How Vulnerable Are American Communities to Automation, Trade, & Urbanization?” Hicks profiled specific communities that are dependent on manufacturing jobs. The study points out that the manufacturing-heavy Midwest may be the first to feel supply chain disruptions.


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