Lunar new year holiday is coming in February, which only last about 7 days, but the disruption it causes in manufacturing can be of up to 40 days.
The reasons are below:
1.All major businesses in China and Taiwan completely shut down for at least 7 days -that includes factories.
2.Some factories might even shut down for up to 3 weeks, the reason being that China’s transportation system will be completely blocked as all employees go back from their factory to their hometown up to 2,000 km away..
3.No manufacturing components orders ship out of China or Taiwan during CNY.
4.You might experience serious production slowdowns 1 or 2 weeks before CNY holiday, this is because many workers leave factories early to go back home.
The pandemic affected the manufacturing industry by disrupting the supply chain in below points.
1.Getting components or materials from China for electronics manufacturing was difficult.
Either factories were not allowed to reopen after CNY, or they had only a limited number of workers, mainly due to travel restrictions.
2.Moving components and materials was complicated, after CNY, due to global travel restrictions imposed to control the pandemic, there was a significantly reduced capacity for air freight.
So how to prepare for supply chain challenge due to CNY.
The best thing to do is to place orders as early as possible!
Please share your demand with our sales team earlier to catch up the favorable delivery date for you. thank you!
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