Customers may soon have to pay more or wait a little longer to purchase various goods if the coronavirus continues to spread, warned a business researcher with Virginia Tech.
Barbara Hoopes, a professor of business information technology, says the virus has caused a “blockage” in the global supply chain due to the fact that China is a major supplier of goods to countries around the world.
“We’ve already heard some companies like Apple say that they will not be able to meet their deliveries in the first quarter,” Hoopes said. “Companies are anticipating that they will fall short in supplies.”
According to Hoopes, Americans could start seeing higher prices or longer waiting periods within the next few months for certain electronics, such as smartwatches, phones, video game consoles and computers.
“The cancellation of commercial flights will impact electronics as these types of products are commonly flown as cargo on passenger flights,” said Hoopes. “You would see those inventories depleted more quickly.”
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Delays and disruptions that are forming now could ultimately affect the holiday shopping season later in the year, Hoopes warned.
“Manufacturers will do everything in their power to increase production rates but it’s possible that there will be shortages,” said Hoopes. “Alternate sources of supply and alternate transportation routes will happen. It’s just a matter of some delays.”
While manufacturing companies may be able to adjust and recover, the service industry will take a much harder hit as people avoid traveling, going to hotels and eating at restaurants.
That business is lost for good, with the worst happening overseas, said Hoopes.
“Here in the D.C. area I don’t expect to see the service disruptions that they’re seeing in China,” she said.
Globally, more than 83,000 people have fallen ill with the coronavirus. China, though hardest hit, has seen lower numbers of new infections, with 327 additional cases reported Friday, bringing the country’s total to 78,824. Another 44 people died there for a total of 2,788.
South Korea has recorded 2,337 cases, the most outside of China. Emerging clusters in Italy and in Iran, which has had 34 deaths and 388 cases, have in turn led to infections of people in other countries. France and Germany were also seeing increases, with dozens of infections.
The Associated Press contributed to this report.
