With China and Italy under lockdown and the coronavirus officially declared a pandemic, the global economy is groaning and supply chains are disrupted. Industry Europe caught up with Ronan Ye, Managing Director of high-quality prototyping company 3ERP to get his insights on the damage done and how COVID-19 has been affecting business.
3ERP
Industry Europe: Firstly, I’d like to thank you for chatting with us about this urgent issue. I very much hope yourself and your family are safe and sound.
The city of ZhongShan, where 3ERP is headquartered, has seemingly escaped the worst of the coronavirus. In the city there have been 66 confirmed cases and thus far no fatalities. Nonetheless, what is the situation like in the city at present?
Ronan Ye: Actually, ZhongShan had just two cases yesterday, they are back from Spain. After 23 days without any new cases. They have been sent to the hospital immediately, and the living garden where they live is sealed down. Government departments will arrange people to take care of their daily life for sure. If they want to buy things, what they need to do is send a message, then, they will get things delivered to their door.
Well one month ago, it was really tough for everyone in ZhongShan. I guess same everywhere in China. Panic and pressure! That’s normal when things are unclear.
Me and my family spend all the time in the house. We didn't go out unless it is really necessary, like buying food and daily stuff. Good thing is, finally, I spend lots of time with my family. Have never done that before.
Now, people are starting to calm down a little bit here.
By the way, anyone who is identified as a coronavirus infected person, the country will pay everything for the treatment. As you know, it is huge amount of money for people with average income. That’s another reason that people stop worry that much.
IE: What steps have you been taking to protect your staff?
RY: First of all, all people who come to work have to wear mask. Our company has also prepared enough masks for our staff. When they come to work, they will wear the new mask from the company. We also inspect the body temperature. And we change the mask within 4 hours. Spray the medical alcohol to the hands and feet. Spray disinfectant twice a day. In the old days, we have lunch and dinner together. But now, we take meals individually.
IE: Can you tell me about ways in which the outbreak has affected your suppliers or distributors?
RY: Tough. We have set up a stick rule to come back to work. And people were not able to travel freely, which mean people won’t be able to come to work on time. But our customers keep sending us orders. That means lots of projects will be delayed. We're complaining a lot at the moment. But when we look back, we'll see it was the best choice. Safety comes first!
IE: Have you had problems sending orders within China? What about outside of China?
RY: It is a bit slower than usual, but not a big problem, unless sending in and out from HuBei Province. Sending things outside of China is fine.
IE: Have local authorities been providing assistance to businesses affected by the outbreak?
RY: Yes, lots of new policies have been set up which helps a lot. For example, cancelling the social insurance costs for the coming six months and lowering the interest for loans.
IE: They say with every crisis also comes an opportunity as well as lessons to be learned. Do you see any of either that could apply to 3ERP as a company?
RY: Lots of rapid prototyping companies are trying to expand. Luckily, 3ERP doesn’t do it in this way. Our strategy is to keep ourselves flexible and stick to the high-end market. Our goal is to deliver high-quality prototypes on the dot, and we always do. That’s our code value. It is a huge pressure when a company has to pay lots of employees when everyone is doing nothing. So I won’t be surprised if some companies have to close down.
IE: What about to the global economy? What lessons can we learn?
RY: Without doubt, the coronavirus is harmful for the global economy! It is bad for sure. But I haven't reached the level to think about what lessons we can learn for the world yet. Frankly, I spend my time and energy to think of how we can survive through this bad situation. I believe we will get through this. And I believe human beings will get through the tough situation.
IE: Some commentators are talking about this being a pivotal point in global trade and supply structures. What do you think will be the medium and long-term consequences of the outbreak for the global economy?
RY: Seriously, do you believe this kind of pivotal point saying? I believe it is what it is. Frankly, the global economy was taking a downturn, so is it really that bad? Here comes a big topic... I think over-manufacturing is creating a lot of things we don’t really need, which creates extra CO2 emissions and empties the resources of Earth. I am happy we are a prototyping company. Everything we do is custom made. We don’t create things which are not needed. I think that’s the future way of how manufacturing should be.
IE: What about the ongoing trade battle between China and the US?
RY: That isn’t good for either party. China or the US will benefit from this? Seriously, I don’t think so. It is what it is. I think to do things in what place is not a decision from any organisation. It is how it has to be. For example, the lobar intensive product manufacturing has moved to the other Asian countries. What shall we do? Keep complaining? Why should we? Thinking about what you can do to keep yourself ahead of the competition is more important. That’s the reason why we are doing better in comparison with other RP companies here in China.
I guess both parties will calm down in the end, and figure out a way which is good for both.
IE: How to prevent the virus?
RY: First of all, people should understand it right. The long latent period is the most dangerous thing, because the carriers show no sign at all. Due to cultural differences, western people don’t want to wear masks. As far as I know, only sick people should wear the masks. If everyone thinks in this way no matter whether healthy or sick, it is a big problem. I would suggest not going to crowded places. If you have to, you must find a way to protect yourself. Don’t touch your eyes, noses and mouth before you wash your hands.
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