According to a professor at Indiana University—Purdue University Columbus (IUPUC), Indiana manufacturers could feel a deep impact if the coronavirus makes its way to the Hoosier state—and even it doesn’t.
The U.S. was given a sneak peek at possible virus impact last week when stocks plunged repeatedly in response to global economic concerns and virus fears.
Calling China the “the manufacturing basket of the world” last week, Associate Professor of Finance at IUPUS Ryan Brewer said are mainly afraid of supply chain challenges at this time.
With so many Indiana manufacturing businesses relying on materials from China, Hoosier businesses are quite vulnerable. Indiana imported $7.7 billion in goods from China in 2019, making it the number two import source behind Ireland.
Brewer said if Indiana manufacturers are unable to get needed components, it will create quite a ripple effect. These manufacturers are often not able to easily source products elsewhere and certainly on short notice. Even if the components are available in China, there are also logistical issues with getting product to the manufacturers who need them.
Director of Global Sales for Cargo Services in Indianapolis, shipping containers going into China are still on track, but exports have decreased substantially. He said the supply of shipping containers could become scare in the Midwest in the near future.
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