Covid-19 Pandemic: Early Implications for North European Manufacturing and Logistics

Olli-Pekka Hilmola, Oskari Lähdeaho, Ville Henttu and Per Hilletofth
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Olli-Pekka Hilmola: Kouvola Unit, LUT University, Prikaatintie 9, 45100 Kouvola, Finland
Oskari Lähdeaho: Kouvola Unit, LUT University, Prikaatintie 9, 45100 Kouvola, Finland
Ville Henttu: Logistics and Seafaring, South-Eastern Finland University of Applied Sciences, Paraatikenttä 7, 45120 Kouvola, Finland
Per Hilletofth: Department of Industrial Engineering and Management, University of Gävle, SE-801 76 Gävle, Sweden

Sustainability, 2020, vol. 12, issue 20, 1-13

Abstract: From early 2020 onwards, the world has been going through an unprecedented wave of lockdowns, shutdowns, and preventive measures due to the Covid-19 pandemic. It is evident that these have been harmful for tourism, passenger transport, and the service sector in general. However, less is known regarding the implications for manufacturing and logistics, which is the purpose of this research. We concentrate on reporting survey findings from Northern Europe, and mostly from Finland. Based on trade accounts, it is evident that Covid-19 has had significant impacts on Finnish import and export. However, in survey responses, companies report that they have mostly been able to serve customers in a good fashion, and the pandemic has increased transportation costs only moderately. Inventories might experience an increase due to the virus, however, in the longer term they will likely remain at the earlier levels (or slightly increase). Companies are mostly afraid of the effects of the second wave of the epidemic, and are also already thinking about the long-term issues with transportation modes used together with supply chain dependencies. For example, the Chinese and, in part, Russian, markets are increasingly being served by railways during the current decade. For some companies (especially small and medium-sized ones) and foreign trade markets, however, the epidemic era has been very harmful. Therefore, as a conclusion we argue that the pandemic is causing rather asymmetrical impacts on manufacturing and logistics.

Keywords: Covid-19; manufacturing; freight; logistics; Finland; Northern Europe (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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