Coronavirus: American factories in China unable to staff production lines as lockdown continues
- American Chamber of Commerce in Shanghai members struggling to kick-start production despite the end of the official Lunar New Year holiday extension
- Situation reflects wider congestion in China, with roads, ports and cargo depots clogged up due to staff shortages
As China tries to put its economy back to work amid a novel coronavirus outbreak that has left swathes of the country on lockdown, American manufacturers have warned that they do not have enough staff to man their production lines.
A survey of 109 companies in the manufacturing powerhouse of the Shanghai region found that while two-thirds of factories were up and running by the end of last week, 78 per cent did not have enough workers to kick-start full production. Almost half, meanwhile, said that their global operations have already been hit by the spread of the coronavirus.
Companies in the area, which includes Suzhou, Nanjing and the wider Yangtze River Delta, had to apply for permission to reopen, and of those that were granted a licence, just 58 per cent were permitted to open all of their production lines, according to the survey conducted by the American Chamber of Commerce (AmCham) in Shanghai between February 11 and 14.
“The biggest problem is lack of workers as they are subjected to travel restrictions and quarantines, the number one and number two problems identified in the survey. Anyone coming from outside the immediate area undergoes a 14 day quarantine,” said Ker Gibbs, AmCham Shanghai president.
