NI tools firm says coronavirus is driving up demand from Britain

A NORTHERN Ireland manufacturer has said it’s seeing a spike in demand from Great Britain as coronavirus affects supplies from China.

And businessman Roger Vance said the crisis facing companies which have relied on China demonstrates the dangers of ‘off-shoring’ their supply chain.

Cases of coronavirus have surged in South Korea, Italy and Iran as the illness spreads beyond China.

Around 2,700 people have died of coronavirus, the majority in China.

Fears surrounding its spread have led to partial shutdowns at companies like equipment manufacturer JCB, which relies on parts imported from China.

And in Northern Ireland, some manufacturers are cutting back on meetings at their facilities to avoid the potential spread of the virus.

Global markets continued to slump yesterday as fears gripped investors across the world.

Britain’s top index closed almost 2% down at 7,017.88 points, a 138.95-point drop. It marks a further £35bn wiped off the index, adding to the £62bn lost on Monday.

The FTSE 100 had racked up its worst day since 2015 on Monday, as Italy became the first country in Europe to announce a major outbreak of coronavirus.

In Northern Ireland, one major manufacturer has stopped all travel to Hubei province, where the virus originates, while other visits to China can only take place for ‘business-critical’ reasons and must be authorised at the highest level.

Meanwhile, Roger Vance, the managing director of Ad-Vance

Engineering, said it was seeing a spike in demand from customers in Great Britain.

The firm makes injection moulding tools, which are in demand from the automotive, medical device and pharmaceutical industries.

The company said some suppliers have referred to sourcing problems from China and the Far East.

Mr Vance said: “The coronavirus has heightened the need to ‘think local’ on a long-term basis, and reduce over reliance on overseas sourcing.

“Many leading businesses are suddenly facing major supply challenges because of coronavirus.

“But with over 50% of UK tool manufacturing currently being sourced from China, the impact on our entire manufacturing sector, and wider economy, could be disastrous.”

He added: “The Chinese market has been steadily winning business from the UK since 2000, primarily based on the promise of reduced costs.

“Over the years, this has resulted in the closure of many local tool manufacturers who simply could not compete.”