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JHK's Report to Customers
Global Supply Chain Disruption amid Coronavirus Turbulence
Date : 2020/04/06

JHK’s stable production capacity and well-integrated capability help customers to stay buoyant

Spreading over 100 different countries of the world with more than 100,000 cases confirmed, the coronavirus COVID-19 has led to lockdowns in many cities and suspension of public events and commercial activities like exhibitions and professional sports games, causing the steepest fluctuations in stock exchange markets in the U.S. and Europe in the past three decades.

And now, adding salt to injury to the global economic outlooks is the ongoing supply chain disruption begot by the coronavirus pandemic in manufacturing industries worldwide.

The Exigent Issue in China: Disrupted Supply Chain


To say the current supply chain disruption is the “sequelea” of the coronavirus spread is not overstated. It follows China’s decision to lock down cities and mandate suspension of factory operations nationwide this February, when the COVID-19 outbreak had just begun in the country.


The after-effect of the action is massive for sure, given that China is the world’s most important manufacturing base of smartphones, computers, solar cells, and many others. With China’s coronavirus outbreak spiraling out of control from January through February, global supply chain has been disrupted to seriously dampen some industries, such as automobiles. 

According to news reports, automakers including Nissan of Japan and Hyundai of S. Korea have been forced to shut down production of some makes and models in China due to supply shortage of parts and components. 



Same Crisis Faced in Taiwan       


The supply chain crisis has worried Taiwanese manufacturers with operations at home as well. 


CNFI (Chinese National Federation of Industries) of Taiwan released a holistic survey polling industry insiders and member companies in February, which shows most correspondents are concerned about disrupted supply chains, alongside production suspension and financial management, amid the COVID-19 pandemic. Fitch Rating also warned earlier that supply chain disruption will emerge as a new crisis to global manufacturing industry.

Presently, China’s manufacturing sectors have just managed to get over from the COVID-19 epidemic. However, the process is slow. It rests with whether and when factories can hire enough workers and resume their logistics to restart production. In this scenario, Taiwanese manufacturers that are upset by supply chain disruption have even witnessed contract orders significantly decline lately. Fortunately, not all of them are suffering.



JHK Ensures Customers Sustainable Business Development


JHK confirms that contract orders have been increasingly diverted by customers to its factory from other places over the past few months. It is attributable partly to JHK’s stable supply chain and well-established manufacturing network, which result from the veteran maker’s insistence on operating only in Taiwan.

Another reason ever more customers choose to place orders with JHK amid the supply chain turbulence is the company’s greatly integrated production capability and ample capacity. At present, JHK has employed a full line of advanced multi-blow, multi-die equipment that allows for the cold-forging of precision parts and products, such as auto parts, hand tools and fasteners, using up to 7 dies in one cycle, as well as a skilled workforce dedicated to die and mold development in house. 

Therefore, JHK has seen a significant surge of diverted orders that are mostly for hand sockets and extension bars with a length ranging 300-350mm. Each of the said products can be rolled out efficiently in one cycle at JHK’s factory and equipment. With JHK’s time-tested skills and consummate production technologies, customers’ business sustainability can be effective assured. 



      __iMonster's Digest___  
With Challenge Comes Opportunity to JHK
As a veteran cold-forging maker who stands in customer’s shoes and tries to figure out what they truly need all the time, JHK in the face of supply chain disruption has stayed in good shape, thanks mainly to its dedication to continuous improvement.

A striking example is that JHK made a farsighted decision to upgrade its equipment last September, regardless of a market meltdown due to China-U.S. trade disputes. With the investment project, the company effectively enhances its capability of producing cold-forged products with a maximum length from only 200mm to 400mm. With the effort bearing fruits, JHK has effectively remained buoyant at a time when most of its peers have suffered from shrinking orders and disrupted supply chains in the wake of the COVID-19 pandemic.

"JHK's Report to Customer" © 2020 Jih Hsin Kun Screw Co., Ltd.

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