As concern about the spread of COVID-19, commonly known as the coronavirus, continue to develop in the U.S., many companies are beginning to look at the potential economic impacts of this virus on their businesses. What can you do to prepare? Here is what you need to know:
- Monitor your Supply Chain Closely
Many producers are experiencing delays in shipping containers at the ports. While some restrictions have been lifted in China and ocean freight is reportedly beginning to move again, the extended break due to the Chinese New Year and the quarantine in areas of China has left some U.S. ports with very little incoming freight, meaning the container equipment for U.S. exporters is scarce. These effects create a ripple through the shipping industry and may create bottlenecks at ports. This extends even to over-the-road truckload freight as the amount of back-hauls from the ports will be reduced. Because of container delays, even materials that are not originating from China might be put into short supply due to the extra demands stemming from companies looking to fill the void due to delayed containers.
- Have a Business Continuity Plan in Place
The CDC announced this week that the U.S. should prepare for the virus to spread here, and so your business should plan for its potential effects like you would for any other natural disaster, including scenarios of potential quarantines. The CDC published interim guidance for businesses to prepare and respond to COVID-19. Your plan should include ways to encourage your employees to practice good hygiene and stay at home if they are feeling sick to prevent the spread of the disease, as well as plans keep business critical systems running in the event that employees need to work from home or limit travel.