05 May 2020

Survey – Body

Resuming Operations in the ERA of COVID-19 Survey

May 2020

    Do you manufacture, contract manufacture or source components/raw materials in China?

    YesNo

    What have been your biggest challenges of resuming operations in China following the Coronavirus lockdown?

    Select Up to Three

    Manufacturing disruptionSupply chain disruptionLogistics disruptionLack of product demand from customersNot all employees or on-site senior executives have returned to their China-based positionsCash/Liquidity to maintain operation

    What actions has your company taken to mitigate these challenges?

    Select all that apply

    Shift production to your company’s other plants / Decrease factory production / Factory consolidation / Discontinue product linesIdentify & qualify alternative vendors / Purchase finished components and goods from alternative manufacturers / Identify & qualify contract manufacturers / Shift components & raw materials from other facilities owned by your companyIdentify & qualify alternative logistic partners / Establish expedited freight agreements / Re-negotiate warehousing and consignment agreementsPricing discounts / Re-negotiate customer agreements / Sales incentives for customersMarket research of growth potential (new markets, adjacent verticals, etc.)Hire new or temporary employees / Hire interim executives / Transfer executives from other sites / Employee & leadership trainingAlternative payment strategies (pre-payment, extended payment terms, renegotiated vendor terms, etc.)Other

    What impact have these actions had on mitigating the challenges of resuming operations for your company?

    Significant improvementPartial improvementNo improvementToo early to tell

    Has the Coronavirus experience changed your interest in a possible relocation of part or all of your China manufacturing and sourcing to another country?

    YesNo

    If yes, how?

    Significantly increased interestModerately increased interestMinimally increased interestDecreased interest

    Are you currently considering/planning/implementing a relocation of part or all of your China manufacturing and sourcing to another country?

    YesNo

    If yes, why?

    Rank the following options giving each one a rank between 1 (Greatest Motivation) and 3 (Lowest Motivation)

    • Risk diversification (to reduce current dependency on China)
    • Cost savings (labor, tax incentives, production costs)
    • Growth development (access to new markets)

    If no, why?

    Too expensiveProduct consumption primarily in ChinaCurrent focus on resuming operationsToo early to begin long-term business planningNot a priority for my company

    What part of your China operations are you relocating or considering/planning to relocate to another country?

    ManufacturingSourcingBoth

    To where are you considering/planning/implementing a relocation of part or all of your China operations?

    Select all that apply

    USMexicoAsiaCEEOther

    What is the current development status of your company's plan to relocate part or all of your China manufacturing and sourcing to another country?

    Are currently developing/implementingAre just beginning/about to beginPlan to start in the near futurePlan to start after we come through the current crisisHave no defined timeline

    In addition to the Coronavirus, how would you rank the impact of the following factors upon your business?

    Rank the following options giving each one a rank between 1 (Greatest Impact) and 5 (Least Impact)

    • US/China tariffs
    • Increased labor rates
    • Slowing China economy
    • Strong domestic competition
    • Transparency, IP loss, etc.

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