Coronavirus Impact on PPE and Ventilators, Beroe Analysis
RALEIGH, North Carolina, June 3, 2020 /PRNewswire/ -- The impact of COVID-19 on the medical devices industry is high, and is expected to have a medium-long term effect as the industry is witnessing a shortage of electronic components and raw materials, according to Beroe Inc, a procurement intelligence firm.
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COVID-19 has had a major impact on the supply-demand gap, with a 1,000- 2,000 fold increase for a few PPE products, raw material shortages increasing by over 10 percent, and increased production of more than 100 percent.
Small and medium companies dependent on China and other countries such as the U.S., Germany, Italy, UK, South Korea, and Japan for components or raw materials might experience temporary shortages.
As a result of the factory shutdowns in China during Jan 2020, lockdown in various countries have led to many disruptions across the supply chain for PPE and emergency or critical equipment manufacturers. The U.S. dependency on imports for PPE related products such as masks is very high.
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Beroe, which is based in North Carolina, further stated that procurement experts can access this report on market intelligence platform Beroe LiVE: live.beroeinc.com
Due to COVID-19, there is a slowdown in demand and production for various medical products because of the focus on emergency and critical medical supplies. Products experiencing high demand are alcohol prep pads, blood infusion sets, face shields, gloves, IV solutions, IV extension sets, protective eyewear, respiratory equipment, and thermometers etc. Products with high demand and shortages are face masks, hand sanitizers, isolation gowns, jacket and lab coats, shoe covers, and surface disinfectant wipes.
There has been a major impact on global logistics due to reduced transportation and availability of workforce. The key issues and challenges in the electronic manufacturing industry faced by both OEMS and EMS players are reduction in inventory or buffer capacity, increased lead times, delay in PO deliveries, supplier allocation issues and reduction in the number of manufacturing lines. Other challenges include parts' shortages with a 75 percent impact, transportation disruptions/lockdowns for 70 percent, reduced workforce for 55 percent and underutilized facilities for 33 percent.
Key Findings:
-- As a result of COVID-19, there are temporary restrictions on exports of
PPE and other critical medical equipment or products, including pharma
products, and hand sanitizers, from up to 91 countries.
-- There is a risk of shortage of major critical equipment used by
healthcare providers, patients and people such as masks, sterile gowns,
disinfectants, hand sanitizers, medical alcohol, ventilators, testing
kits, and gloves.
-- EO Gas supply shortages are observed in U.S., while MDR in Europe have
extended their timelines till May 2021.
-- New product approvals and product launches might get delayed as the
focus is on EUA's than the typical approvals. Few companies have
publicly announced temporary holds on trials and studies of devices.
-- Additive manufacturing or 3D printing enables companies to shift their
sourcing of parts from remote locations like China to on-site production
facilities.
-- For big companies or real medical manufacturers, it is observed that
most of them have an alternate source or a second source for components
and raw materials etc., indicating minimal supply chain impact for these
big players.
The research methodology adopted for the report included:
-- Experts with twenty years of domain experience
-- Interaction with buyers
-- Inputs from supply chain partners
The pandemic has led to a market failure where high demand meets limited supply. It is now a "seller's market," in which suppliers and distributors have established new terms and conditions for buyers. Payment terms now include higher financial risks, such as 50 percent upfront payments, with balances due once the merchandise leaves the warehouse. There are also excessive mark-ups, with distributors accused of stockpiling goods to create perceived shortages and selling later at inflated prices. A proliferation of substandard and falsified medical products is also present.
The report also includes:
Market Analysis:
-- Medical Devices
-- Industry Issues or Challenges
-- Major Risk Factors
-- Risk Probability
-- Businesses & Operations
-- Global Supply Chains
-- Supply of Parts or Intermediate Components
-- Supply Shortages for COVID-19 response products eg Masks, Ventilators
Market Dynamics and Impact Assessment:
-- Outlook on PPE and Ventilators
-- Supply-Demand Gap
-- Regulations
-- Raw Material Shortages
-- Increased Production
-- Port Shutdown
-- Material Movement
-- Counterfeiting and Price Gouging
-- Recommendations
COVID-19 Impact:
-- Manufacturing Services
-- Payment Terms
-- New Terms and Conditions
-- Ban on Exports
Global PPE Landscape:
-- Additive Manufacturing
-- Masks
-- Gloves
-- Supply and Demand
-- Key Developments
-- Innovations
-- Initiatives
-- Supplier News
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions--leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com
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SOURCE Beroe Inc.
