China’s Covid Outbreak to Cause Stock Delays and Availabilities

China’s Covid Outbreak to Cause Stock Delays and Availabilities

March 2022

Update April 1st: China is having its worst Covid-19 outbreak since Wuhan in 2020. Eastern Shanghai residents are faced with 10 extra days of isolation as of today. This means delays in electrical supplies may continue for an extended period of time. 

With a recent outbreak of Covid-19 in a northeastern province in China, factories have been ordered to shut down, and tens of millions of citizens are in lockdown. Due to China’s zero-Covid strategy, closures will be in place until at least March 20th. 

The restrictions in China are likely to cause delays in stock across the lighting industry in Australia, as many businesses in the affected areas have been closed, unless they supplied essentials such as food.  Large companies including Apple and Toyota are affected by the technology hub, Shenzhen’s lockdown, and many major lighting suppliers in Australia are also predicting stock availability issues. With large lighting supplier factories in the affected areas, supply chains are likely to be impacted across the industry. 

Other jobs involved in exporting supplies are also halted due to the outbreak, causing further delays. Drivers being tested for Covid-19 are causing delays in trucks, and containers are waiting for hours to weeks while port workers are getting tested. “Even the most prepared businesses will be impacted by these new lockdowns in China, as flexibility within the supply chain is minimal,” said Julie Gerdemn, chief executive of Everstream Analytics.

It’s hopeful that these shutdowns won’t affect supply chains long term. "Such lockdowns have happened before, and [cities] have re-opened within a short period of time once the number of Covid cases were within control," Yeang Cheng Ling, senior investment strategist at Singapore's DBS Bank, told the BBC. 

JH Market is working to keep up with our customer’s needs. “We are in constant communication with our overseas suppliers and manufacturers to ensure products are arriving to our stores with minimal delay,” said James Wang, executive chairman of JH Market. But with growing concerns over delays in stock, JH Market recommends customers to purchase in advance to avoid coming up short on supplies. 

What does this mean for you?

This covid outbreak will likely cause delays in receiving your electrical supplies from all your go-to stores. 

It could be advantageous to order your staple products in tricolour now, so you can tailor your lighting’s colour temperature to any upcoming jobs. This saves on your inventory space, while also giving you an advantage over competitors who may leave their purchasing to the last minute, missing out on crucial supplies. 

To ease cash flow during this difficult time, you can use JH Market’s Price Lock & Save plan, which allows you to access bulk buy price and further discounts without having to pay for everything upfront. Being able to lock in prices with our no price increase guarantee, you’ll protect yourself from competitor’s inflated prices due to availability of stock.

Find out more by calling your account manager on 1800 000 808.

Order ahead through our website, over the phone or in store to keep products on hand and prevent your jobs from getting delayed.