Chinese Manufacturing & Distribution Update
Published 2/14/20:
The impact of Coronavirus on the ability of China to manufacture materials within the magnetic supply chain has been severe. While we at Allstar are confident that things will get better in the near future, at this point it is completely unclear how and when this situation will fully resolve itself.
Starting in early January, most workers began migrating home from our partner factories and facilities in order to celebrate the Lunar New Year. With the outbreak becoming much more pronounced in mid-late January, travel was entirely constricted and most workers remained in locations away from their work places. Last week a start date of February 10th was the date communicated, indicating production could begin at any location within the country. In some places, facilities have opened with a bare minimum of support staff. Unfortunately, the proximity of Wuhan/Hubei to Shanghai/Hangzhou/Ningbo is such that travel restrictions have not fully relaxed as of this week. As such most factories remain shuttered and more critically, much of the capacity for short haul transport required for raw materials to go to factories and finished goods to go from factory to distribution centers to ports for air/sea freight has been greatly reduced.
The ability to receive an RFQ and process for price is completely intact. The ability of the factory to share the date of expected startup, when it will be capable of 100% operational capacity, and when a specific custom order will be completed/shipped for overseas transport remains in doubt. Whether this will take 2 weeks or 2 months to fully resolve, we at Allstar are unclear. We remain in daily contact with our partners and continue to represent the interests of our customers at all times.
For some sizes, shapes, grades, and more, there is stock that we are prepared to pull from and ship as soon as the situation on the ground allows for it. Please feel free to contact Allstar with your needs and we will do our best to help or at least update you as to the latest relating to production and shipment questions..
Thank you,
Tyee Harpster
President