Arab Press

بالشعب و للشعب
Saturday, Feb 22, 2025

How to prepare the tech supply chain for the next outbreak: ‘You just can’t’

How to prepare the tech supply chain for the next outbreak: ‘You just can’t’

Electronics manufacturing guru Liam Casey says the coronavirus proves there are some events you cannot plan for. The global health crisis is generating fresh questions about whether the technology industry relies too much on China

Over the last 24 years, Liam Casey, an electronics manufacturing guru, has guided numerous brands through the intricacies of the Chinese supply chain. Today, he argues nobody could have prepared for the events of the past two months.

As the coronavirus inflicts incalculable damage to public health and economic growth around the world, every instinct of global business is being urgently questioned.

Casey is the perfect guy to answer the alarm. He is the founder and chief executive of PCH International, a product development and supply chain services company with core operations in San Francisco and Shenzhen, and – as Fortune magazine once described him – “the one you call for a factory connection, the guy you hire for your packaging design and the one you ask about FedEx negotiations”. The Atlantic magazine dubbed him “Mr. China”.

A triple whammy of cybersecurity threats, a trade war and the coronavirus outbreak are exacerbating a backlash to globalisation and generating fresh questions about whether the technology industry relies too much on China. It is perhaps not a surprise that Mr China made the case that companies really do not have any other choice.

“Over the last 20 years, a huge amount of the component assembly and manufacturing has been concentrated in China,” Casey said on a video call from his office in San Francisco.

“You can move your final assembly today, but if you want a purely independent supply chain, that is a massive investment. I can’t see any one company that wants to make it.”

The Cork, Ireland, native is one of the most prominent Silicon Valley evangelists for, and beneficiaries of, a globalised supply chain, where products are developed and assembled in Chinese factories and shipped across the ocean, affixed with recognisable American brand names like Apple, Amazon.com and Dell.

Like everyone else, PCH was affected when the coronavirus started to spread on the mainland over the Lunar New Year holiday. Its Shenzhen factory remained closed after the public holiday and reopened only after passing local inspections, two weeks behind schedule.

More than 100,000 people have been infected with the coronavirus worldwide. No known cases of infection were found among the 500 employees of PCH in China or the 60 in the US, Casey said. “Today we are back up at 100 per cent capacity, which has been a challenge,” he said.

Other manufacturing operations are still flagging. Foxconn Technology Group – formally known as Hon Hai Precision Industry and Apple’s most important contract manufacturing partner – is hoping to return to normal operation in China by the end of this month.

Casey travels frequently to Shenzhen but is now grounded amid the outbreak. PCH has stopped all non-essential employee travel, and the company is using the video conferencing feature in Microsoft Teams to stay in touch.

Casey has had to field panicked calls from clients, who would normally be travelling to China this time of year to oversee prototypes of products for the next holiday season.

Casey recalled one customer telling him last week: “If I don’t get that product to market, all my colleagues, everyone on my team, will be out of work.”

Like the Sars outbreak of 2003, the coronavirus proves there are some events you cannot plan for, according to Casey. “You can strategise against trade wars, but when it comes to something like a global epidemic, you just can’t,” he said. “I was in China during Sars. You had a period where everything stops.”

This time, Chinese authorities moved relatively swiftly to contain the coronavirus, Casey said. But now it has spread far beyond China’s borders, and he worries about the response from other countries: “No one knows whether the worst is over or not.”

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Israeli Minister Urges Hamas to Surrender and Depart from Gaza.
Iran Considers Moving Its Capital Due to Urban Difficulties
Israel and Hamas Finalize Sixth Exchange of Hostages and Prisoners During Continuing Gaza Ceasefire
Leaders of BRICS to Gather in Rio de Janeiro for July Summit
Muhsin Hendricks, a trailblazing openly gay imam, was killed in South Africa.
Trump's special envoy for hostage affairs cautions Hamas against challenging Trump before Saturday's deadline.
Two British citizens apprehended in Iran amid escalating tensions.
Israel Issues Threat of Military Action as Hostage Negotiations with Hamas Continue
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Initiative
Israel Warns of Ending Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Gaza Children.
Lebanon Installs New Government with Hezbollah's Impact on Key Ministries
Report: Iran Attempted to Assassinate Trump During Election Campaign
U.S. Authorizes $7.4 Billion Arms Sale to Israel
Iran's Supreme Leader Rejects Nuclear Negotiations with the U.S.
UN Chief Denounces Trump's Gaza Plan, Cautions Against Ethnic Cleansing
Pressure Intensifies for a Free Trade Agreement between the UK and GCC in Light of Economic Difficulties
Israel to Withdraw from UN Human Rights Council Due to Accusations of Anti-Semitism
EU Reaffirms Gaza's Essential Role in Future Palestinian State Following Trump's Proposal
Iranian Currency Reaches All-Time Low Amid US 'Maximum Pressure' Initiative.
UN Reaffirms Ban on Deportation from Occupied Territories Amid US Gaza Proposal
Palestinians Fear Repeat of 'Nakba' Amid Ongoing Crisis in Gaza
UAE Aids in the Exchange of 300 Prisoners Between Russia and Ukraine
Egypt Seeks Global Backing for Two-State Solution Following US Proposal for Gaza Plan
Trump's Suggestion to 'Seize Control' of Gaza Represents a Significant Shift in US Policy
French President is the first EU leader to extend congratulations to the new Syrian President.
Tunisian President Appoints New Finance Minister Amid Economic Crisis
Trump Suggests U.S. 'Takeover' of Gaza, Prompting Global Worries
Trump's Proposal for Gaza Provokes Global Debate
President Trump Suggests Moving Gaza's Palestinian Population
Aga Khan IV, Spiritual Leader and Philanthropist, Dies at 88
Erdogan and Syria's Sharaa Talk About Collaboration to Counter Kurdish Militants
Trump Suggests U.S. Control of Gaza Strip Amid Ongoing Conflict
Trump Resumes 'Maximum Pressure' Strategy to Limit Iran's Oil Exports.
Ex-British Soldier Sentenced for Espionage on Behalf of Iran and Fleeing from Prison
Gazans in Egypt Reject Displacement, Struggle with Return to War-Torn Home
Queen Rania Urges Protection of Children’s Rights at Vatican Summit
Hamas Officials Ready to Begin Negotiations for Phase Two of Gaza Truce
Trump Expresses Caution Over Gaza Ceasefire as Netanyahu Visits Washington
Oman to Host 18th Indian Ocean Conference on Maritime Security and Trade
Emir of Kuwait Meets BlackRock CEO for Talks on Investment Opportunities
Queen Rania of Jordan Calls for Global Action on Children’s Rights at Vatican Summit
Egyptian President El-Sisi Invited for White House Meeting Following Jordanian King’s Visit
Queen Rania Calls for Protection of Children’s Rights at Vatican Summit
Israeli Military Operations Continue on Lebanon Border Amid Ceasefire Tensions
Israeli Hostage's Release Highlights Uncertainty Over Family's Fate
Israeli Military Operations Escalate in Southern Lebanon Amid Hezbollah Tensions
Zayed Award for Human Fraternity Announces 2025 Honorees
Kuwait Anticipates a 12% Increase in Budget Deficit for the 2025-2026 Fiscal Year
×