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

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  • Olli-Pekka Hilmola

    (Kouvola Unit, LUT University, Prikaatintie 9, 45100 Kouvola, Finland
    Estonian Maritime Academy, Tallinn University of Technology (Taltech), Kopli 101, 11712 Tallinn, Estonia)

  • 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
    Department of Industrial Engineering and Management, School of Engineering, Jönköping University, P.O. Box 1026, SE-551 11 Jönköping, Sweden)

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.

Suggested Citation

  • Olli-Pekka Hilmola & Oskari Lähdeaho & Ville Henttu & Per Hilletofth, 2020. "Covid-19 Pandemic: Early Implications for North European Manufacturing and Logistics," Sustainability, MDPI, vol. 12(20), pages 1-13, October.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8315-:d:425559
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    References listed on IDEAS

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    Cited by:

    1. Marco Ardolino & Andrea Bacchetti & Dmitry Ivanov, 2022. "Analysis of the COVID-19 pandemic’s impacts on manufacturing: a systematic literature review and future research agenda," Operations Management Research, Springer, vol. 15(1), pages 551-566, June.
    2. Ahmed Karam & Abdelrahman E. E. Eltoukhy & Ibrahim Abdelfadeel Shaban & El-Awady Attia, 2022. "A Review of COVID-19-Related Literature on Freight Transport: Impacts, Mitigation Strategies, Recovery Measures, and Future Research Directions," IJERPH, MDPI, vol. 19(19), pages 1-27, September.
    3. Afees A. Salisu & Abdulsalam Abidemi Sikiru & Philip C. Omoke, 2023. "COVID-19 pandemic and financial innovations," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3885-3904, August.
    4. ASUAMAH Yeboah, Samuel, 2023. "Navigating the Waves of Change: Exploring the Impact of COVID-19 on Consumer Behaviour in Developing Countries," MPRA Paper 117976, University Library of Munich, Germany, revised 2023.
    5. Valeska V. Geldres-Weiss & Nathaniel P. Massa & Joaquín Monreal-Pérez, 2021. "Export Promotion Agencies’ Lived Turmoil, Response and Strategies in COVID-19 Times," Sustainability, MDPI, vol. 13(21), pages 1-24, November.

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