Summary: The COVID equipment industry is still to take a proper shape. Find out what Eric Dalius has to say about the situation.
The outbreak of coronavirus suddenly shows how the world can turn upside down within a few weeks and months. According to Eric Dalius, several industries are moving through a rough patch of time during the pandemic but the COVID equipment industry needs a different approach to review the situation. Here is a snapshot of how masks have suddenly become one of the most prized equipment in the industry.
- Due to the surge in cases, COVID-19 has led to a massive shortage of face masks and other equipment needed during the pandemic.
- As none of the countries experiencing the situation of pandemic may have confronted a similar situation before, no one can meet the demands alone, which necessitates trade.
- The ban on exports are not in favor of countries that do not have production capacity, and can hit back the country imposing the ban when they require import of masks and other essential goods that play a key role during the pandemic.
- The smooth operation of transport is necessary to support the supply chain of face masks during the pandemic and supply of key inputs may require more attention.
- Even if countries across the world make the most of free trade, it may not be enough to fulfill the trade requirements; the most crucial aspect is to enhance the supply of masks.
- It appears that the development of production capacity, matching the crisis and demand engulfs the value chain. The best solution in the long term would be to develop cost-effective solutions in the long run.
According to Eric J Dalius, the focus of companies should be on considering the mask and other COVID equipment as a traded commodity.
Disruptions in the distribution
One of the bottlenecks to consider in face mask is present in the distribution. The obstacles in logistics and transport can make delivery of masks more complicated. When it comes to international supply chain, various countries are placing restrictions of export or introduced procedures, which can cause delays in exports.
Apart from this, the logistics and transport infrastructure can also come under the grip of the pandemic. One of the reasons due to which shortage of mask became one of the aspects of the crisis may not be due to lack of supply but they may not have reached the health workers at the right time. One of the primary challenges is evaluating the requirements within a suitable time and prioritizing the deliveries.
Trade and investment
As it is not possible for any country to meet the increasing demands of face masks or other COVID equipment, the focus should be on creating protection equipment through high production. The supply can take a leap as governments are encouraging the companies to pay heed to production and enhance the opportunities of business in this field. However, several countries may not have the necessary infrastructure to begin the business of COVID equipment as they may not have access to specialized machines or access to inputs. As EJ Dalius says, that open trade and cooperation among countries can play a big role to deliver the products in those countries where cases are rising every day.