When the pandemic hit, lockdowns were imposed for most businesses, with the exception of the most critical industries. Manufacturing one of the key industries, and had to deal with more than just the threat of COVID-19 as it sought to keep everything afloat. .
Insurance Business sat down with CNA’s production industry experts, underwriting specialist and manufacturing manager Luke Sampson, as well as senior risk control consultant Barry Martin, to see how the industry has weathered the worst economic effects of the pandemic and how insurance has helped.
Listen now: How changes in manufacturing segments lead to new lessons learned
When asked what the main classes of the COVID-19 pandemic were for production, Array Martin highlighted how the global fitness crisis has controlled to metaphorically catch with pants down.
“I think there are a number of conclusions from the pandemic,” the representative said. “First and foremost, COVID-19 has revealed how fragile the supply chains of top manufacturers are globally and, in turn, fragile. “
Manufacturer chains have also been severely affected by the global pandemic, Martin explained.
“The shortage of uncooked fabrics and parts is forcing Canadian brands to struggle to locate new supply resources. There are government shutdowns in jurisdictions [that] have gone into effect. This eventually led to higher acquisition costs, making it more expensive for corporations to manufacture their products.
Business continuity plans have also been “significantly tested” during the pandemic, Martin said, “even as demand for Canadian products remained strong or even increased. “But COVID-19 hasn’t just disrupted commodities, the representative told Insurance Business.
Sampson intervened to raise that the pandemic has affected the way insurance allocates value, either in terms of real estate replacement prices, or in terms of machinery and production equipment.
“I think it goes hand in hand with Barry’s comment about the origin chain,” the production manager said. a partially broken facility or replacement of a key production apparatus has skyrocketed in recent years. “
Sampson also noted that device replacement times have also been particularly delayed during the pandemic; this has left many brands with insufficient evaluations, he noted.
But a silver lining of this black cloud over manufacturing, Sampson said.
“All those demanding situations that we have discussed show how incipient and resilient the productive industry of this country is,” he said.
“In the two years of the pandemic, we’ve noticed that brands face all sorts of challenges. From government shutdowns to decimated supply chains and delays in getting your manufactured goods to market. And given all those challenges, the industry still has largely controlled to locate its path, maintaining the stability of its revenues. By locating new source resources and continuing your R activities
The fact that brands have also controlled their operations and at times ensured the protection of their workers “in an environment of uncertainty and anxiety” also deserves some credit, Sampson said.
“So, overall, what a wonderful achievement, and I think it wants to be celebrated. “
Listen now: How changes in manufacturing segments lead to new lessons learned
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