The world’s attention is focused on coronavirus. Business owners should be thinking about the trickle effect on their business instead. Awareness may turn catastrophe into opportunity.
Consider the hypothetical case of Brett’s HVAC in Tucson. Summer is coming and customers will need new AC units, parts and refrigerant.
China is the world’s largest manufacturer of AC units and components. Most of the other major brands from Japan, Thailand, Mexico and the United States require at least something imported from China to complete production.
In addition, every manufacturer needs parts to maintain their production lines. Parts and materials are needed for packaging and distribution too.
If any one component in the entire system from raw material to final product is dependent on China, expect to see a major shortage. China’s factories are completely shut down from coronavirus.
It is easy to imagine a shortage of HVAC components.
Summer arrives and the phone starts to ring. Brett calls in an order to his supplier. He is shocked to hear everything is out of stock. Brett’s customers are unhappy. His competitors are in the same boat, and none of them can work.
A month goes by and China’s factories are starting to produce again. It will be another before inventory arrives. Brett and most of his competitors are forced to lay off their workers. Summer will be over before the products arrive from China.
Brett never imagined this global event would impact his local business this way. If only he planned in advance, and bought excess refrigerant. He could work when his competitors could not. He could hire the best technicians once his competitors laid them off. It could have been a huge competitive advantage.
How will this global event impact your business?
