“The supply base is better today than a month ago,” importer Jun Xu of Brighton-Best International declared.  Factories in China are “pretty much back up to capacity.”

But the coronavirus situation in China “is changing weekly,” he cautioned.

Canada-based importer Hans Fuller of Fuller Metric agreed that fasteners from China are “moving again.”  Some were confined for two weeks because of the virus.  

“Communication was difficult,” Fuller reflected. “It seems to be ok now.”

Vertex Distribution’s direct contacts in China report about 80% of employees are back to work in China’s fastener factories, president Rich Megliola reported.

With the spread of the coronavirus, the panel of importers was added to the Pacific-West Fastener Association and National Fastener Distributors Association joint meeting March 6, 2020.  As of that date, the World Health Organization listed 95,265 cases in 33 countries with 3,281 deaths. WHO reported 80,565 cases in China.

The three panelists agreed that they were not confident in the information coming from the Chinese government.

Fuller finds his “people on the ground” in China are better sources of information on fastener supply.

Xu finds Brighton-Best’s purchasing staffs can provide better updates than official announcements.

Impending problems from the coronavirus (COVID-19) beyond production include freight constraints on lifts or trucks, Xu explained.  There is also concern about lower inventories of raw materials and backlogs in the finishing process.

Xu has cancelled international travel not just because of the possibility of catching the virus, but other complications involved.  

“What you don’t want is to get quarantined,” Xu pointed out.

Fuller said Skyping can replace many trips.

Megliola recommended distributors “check with your suppliers on item-by-item.”

Vertex has containers arriving this week, Megliola said.

Though China is making progress on containing the coronavirus, Xu does see potential for spreading the virus.  He noted Europe has open borders.  

“And how do you shut down LA?” Xu asked.

Vertex is focused on keeping employees here healthy, Megliola explained.

Production closed for the January 25 to February 8 celebration of the Chinese New Year.  But the coronavirus kept many factories closed February 9 and beyond.

“As factories ramp up there will be a backlog in the shipping lanes,” Xu warned.  If you have a three-to-four week ETA on a parts order, “You better add seven days,” Xu advised.  But it is weeks, not months, he added.

The flu virus doesn’t live on shipping containers, Xu observed.

Xu suggested there is “more worry” about demand than delivery as recreational travel, hotels and restaurants cut back due to the virus.  

“If the paranoia continues there might be some issues.”

Fuller agreed with the concern about the demand side “if panic takes hold.”

Brighton-Best holds “a lot of inventory and today that’s a good place to be,” Xu said. “Inventory is our job.”

Importing fasteners “will self-adjust,” Xu predicted.  “We’ve been through difficulties before.”

Going into the coronavirus situation, the U.S. and China were already in a trade war with the American taxpayers paying the bill, Xu noted.