While the coronavirus is causing distress all around the world, most tier-1 suppliers in the Netherlands are able to continue their operations. With a disrupted supply chain and extensive safety measures being taken, NTS, VDL, Technolution and Neways are mostly concerned with ongoing activities. Demcon has to step up to meet the demand for their ventilator modules.
Discussing the effects of the corona outbreak on his company, NTS CEO Marc Hendrikse doesn’t see any drop in demand for products. In fact, there’s even a slight increase. “That’s what we call the pull-in effect,” Hendrikse explains to Bits&Chips. “Customers place orders earlier than normal, now that they know for sure that the factories are still operational.” He argues that the end markets in which NTS is active, ie semicon, life science and analytical, just continue to go forward.
This can be challenging if the supply chain is disrupted. “In February, our factory in Shanghai was completely shut down,” says Hendrikse. “That location is now fully open again.” The relative uncertainty means that the company operates more than usual in reactive mode. “We evaluate customer demand, supplier capabilities and available staff on a daily basis.”
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