The coronavirus situation is reaching some alarming proportions. Let’s just say that not only is our health at risk, but our wallets will also feel the impact of this devastating virus.
The fact that the virus originated in China is maybe the most damaging occurrence for multiple industry branches. And, as we can already see, from car manufacturers to the IT sector, all of them have and will be impacted in the future.
But it was a big blow for Wuhan! That’s because it’s one of the most important manufacturing nodes in China. From Citroen, Renault, Honda, and China’s Dongfeng, to some tech companies you might know, or even use, like Siemens, Xiaomi, and many others, everyone has felt the ripples which, in turn, will affect the global market and much more. That is a fact!
Tesla announced that they will shut down their Shanghai factory for the moment, until the situation will be resolved. And, in the long run, that will affect the development of electric cars, not just for Tesla, but for other automotive manufacturers as well.
The impact coronavirus has today will affect the tech industry of tomorrow. The fast spread and the strict quarantine measures implemented are closing factories down and taking their toll on human life. This affects not only China but the world, and, as we will find, our savings will take a hit because of this.
For some of you, the absence of toilet paper or canned foods is starting to get annoying. But the strange reality is that, in Wuhan and other cities in the world, this is becoming the norm. Supply chains are getting cut or barely making deliveries because the warehouses are getting empty.
Whether you want to believe it or not, we get a lot of our goods and disposables from China. Some of your local businesses might have direct supply links to a Chinese manufacturer. And this virus will cut some, if not, most of these links. That means, you, as a consumer and a customer, will have to pay a premium price for goods or technology that you considered cheap in the past.
And this is not the first time it happened. Small problems in China can and will hurt the world economy. We rely on China for manufacturing and supply, and they rely on us for the business and raw materials… sometimes. A symbiosis that sustains the world economy, if you want, that is now floored by what is basically a Super Saiyan Flu. A fire in a factory and the prices of memory chips will explode; an earthquake in Taiwan and the PC market could burn. These are just two examples of the impact that the Chinese market has on all of us. The premium we talked about earlier is about to be noticed in the months to come.
First, in the consumer IT department.
Companies like BBK Electronics will take the biggest hit. They rely on smart inventory systems, automated warehouses that store and place your goods for delivery. These cut costs and help small businesses to develop. A company that manages and sets up Smart Inventory Warehouses, is now at risk too.
And so, as one of the most notable presidents of America said: “It trickled down.” And it is gonna trickle down to all of us. More and more luxuries, that we took for granted in the past, are gonna be denied. From cheap SSDs, to cheap car parts. From Chinese gadgets that we buy from Wish or Ali to a good old toothbrush. All of it is gonna take a hit and is gonna burn a hole in your wallet all the while.
We will see a drop in online shopping from China, and more and more products will see a price increase. And as factories are closing down, or working a quarter of capacity, more and more sectors will deplete the current inventory and will have to overcharge for the incoming one, that, sometimes, will not come.
So what to do? Do we stack up on phones, chargers, SSDs, memory sticks and gadgets to last a lifetime, and hope this passes over? Do we get an air filtered bunker in the middle of nowhere? Or maybe we can rely on the internal manufacturers to take some of the tolls and ease up the burden? Join a doomsday cult maybe?
All we need to do is prioritize the things we need.
That goes for users, power users, small and big businesses, and of course families. We will see that some price increases in the future are gonna be artificial, as we can see, on a global market level, with filtering masks. Others… not so much.
Slow and steady wins the race in this case. Stack up on what you need, watch the world news and think critically. You might hear some fake news or some media group that blows things out of proportions for clicks, but nothing beats a national warning level that you get on your phones and TV screens.
If it spreads in your area, the authorities will let you know in 99% of the cases. Trust the national emergency broadcasts and sometimes the national communications channels. Like the national television or radio, if they are solely controlled by the state. The amount of information disclosed may vary from country to country, but no state wants its citizens to panic.
So… think critically, watch the world news, and prioritize what you need and when you need it. And realize that this virus has an impact on the global market and on human life. Moderation in times of crisis will make this experience safer for you, and your personal funds.
Let’s hope this coronavirus pandemic will be resolved soon, but this doesn’t mean that premium will not apply in the future. That is a given. We will pay for the damages that the virus did. With blood, effort, and capital. After all, isn’t this how the world works?