The COVID-19 pandemic has put a lot of pressure on manufacturers. Not only has demand for many products decreased substantially, but manufacturers also have to manage disruption in supply chains and ensure that warehouse workers are protected in accordance with safety protocols. At the same time, age-old problems still persist; machines might break down at any time and goods may not live up to quality standards.
It’s a lot to juggle, and all of these challenges can have an adverse impact on the bottom line, causing cash flow problems. With some estimates suggesting it will take five full years before output returns to pre-pandemic levels, manufacturers need to make smart decisions in order to weather the recession.