COVID-19 is a crisis for our industry and indeed most other industries. This is an extraordinary situation that is affecting us all. Many brands, retailers and licensors face unprecedented levels of business disruption, a reduced workforce and significant financial losses as they struggle to keep their businesses afloat.
The manufacturing industry is similarly impacted by COVID-19. Whilst travel restrictions have lifted and production capacity is returning in some manufacturing centres, the outlook for Q2 and the beginning of Q3 looks less certain as factories are faced with new business challenges related to this global pandemic.
Over 90% of IETP’s manufacturer members report recent changes in their operations and business relationships. These changes include a fall in demand, reduced or cancelled orders (including goods already produced and ready to ship) and delayed payments.
As companies and their suppliers grapple with challenges related to COVID-19, workers are also impacted with vulnerable groups such as low-wage and informal workers, students, and female workers being particularly affected.
This guidance document offers best-practice recommendations for purchasing practices to help you manage risks, protect workers and secure mutually beneficial business partnerships with your manufacturers during these difficult times. Links to resources are also included.
The toy industry is resilient but COVID-19 presents us with challenges on a scale that we have not had the experience of managing. We encourage all companies which rely on external manufacturers to consider the good practice guidance set out in this document as we work together to protect business continuity and support workers. This will help us to achieve the best possible outcome for our industry in light of the unprecedented challenges we face.
Manufacturer capacity and capability will be critical enablers of the global recovery. Maintaining Responsible Purchasing Practices now will pay dividends once we move from crisis to recovery mode. Click to download the guidance