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As we have moved into the second half of this year, growth rates associated with increased post-pandemic demand observed within almost all manufacturing sectors has had a huge impact on power consumption within many provinces across China.
The shortage of energy combined with China’s “double control” policy, which is aimed at a reduction of energy consumption and conservation in line with a carbon neutral target, has seen some local governments implement strict energy consumption levels resulting in power limitations that are causing many manufacturing companies to limit or stop production, as well as leaving factories and homes without electricity amid soaring prices.
The current electricity shortages are affecting manufacturers across virtually all mainland China, with up to 44% of China’s industrial activity affected with many factories introducing mandatory worker vacations to counter the stops in production. This situation affects our factories leading to extended lead times. Our factory management teams are working closely with our factories to secure delivery and production schedules.
NCAB Actions include
- NCAB prioritization – from senior management down to production schedulers.
- Daily review of all open orders from NCAB Group within factory production schedules.
- Constant updates on local electricity limitations / planned production stops.
- Ensuring weekly production lead-time updates take into account potential stops.
What can I as a customer do?
NCAB can exert better control on orders on hand rather than future lead time, meaning it is recommended that you place your orders sooner rather than later. Please be open for a dialogue with your contact person so we can understand and plan for your production needs.
For further information, please contact your local NCAB office.