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April 7, 2020

COVID-19 to disrupt defence supply chains: Poll

Analysis of the results of a recent poll by Verdict indicated that COVID-19 is expected to have a disruptive impact on defence supply chains.

Analysis of the results of a recent poll by Verdict indicated that COVID-19 is expected to have a disruptive impact on defence supply chains.

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COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
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The poll was conducted to assess the impact of COVID-19 outbreak on defence supply chains.

The poll analysis, based on 480 responses, showed that 85% of the respondents believed COVID-19 outbreak would be disruptive on defence supply chains. A majority 48% opined that the disruption will be high, having chosen to answer ‘very disruptive’.

A moderate disruption is expected by 36% of the respondents, while approximately 15% of the respondents predict a minimal impact of the outbreak.

Reflecting the concern is the US Department of Defense’s (DoD) initiative to maintain cash flow by accelerating payments through prime contracts and expediting payments to subcontractors, according to analysis by GlobalData, a leading analytics firm.

Production and assembling activities by big companies such as Airbus and Boeing have been temporarily suspended in locations affected by lockdowns due to COVID-19, although key support services continue to be provided. Airbus, for example, temporarily suspended all non-essential activities in Spain from 29 March to 09 April, while Boeing too announced similar pauses in production in multiple locations.

The Australian DoD and the UK Ministry of Defence (MoD) have also initiated measures in support of defence supply chains, such as adjusting procurement policies to expedite the acquisition of materials and services related to the coronavirus outbreak.

Limited short-term impact on naval shipbuilding, says GlobalData

According to GlobalData, naval shipbuilding is vulnerable to the COVID-19 outbreak in the short-term, due to the temporary closure of shipyards and cash-flow issues through the supply chain. Although the delays are not clear immediately, GlobalData sees only a limited impact on naval shipbuilding since many countries classify it as essential work.

The longer-term impact of COVID-19, however, will be in the form of a reduction in programme funding due to recession resulting from the pandemic, says GlobalData.

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Free Report
img

Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

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