Manufacturers of any kind are exposed to serious risks on the job every day. While most businesses already have continuity plans in place, they may not address the fast-paced and unknown variables of a pandemic like COVID-19. We have highlighted 4 important risks faced by manufacturers and tips to keep your business protected.
Supply chain delays and disruptions
Businesses serving multiple industries, including metal fabricators, industrial manufacturers and food manufacturers have seen change in demand since the start of the COVID-19 pandemic. It has raised uncertainties in both supply and demand, which has had a global impact on the manufacturing industry. Projects are time-sensitive, leaving little room for delays. Supply chain transparency and diversification is needed to better detect potential issues and remediate early on. Manufacturers should consider alternative partners to source parts and supplies from to prevent potential delays in the supply chain.
Third party failure
The business partners that your companyrelies on may be struggling or experiencing changes due to the pandemic. This unpredictable behaviour in the supply chain can have a significant impact on your own production. In order to ensure you are informed about any changes to your partners and suppliers, keep regular and open communication with them on how they may be impacted by COVID-19. If necessary, seek alternative partnerships that still allow you to preserve your current relationships.
Losing sight of safety protocols
As manufacturing companies make reductions to staffing during this time, it puts added pressure on following safety procedures. Workers are stretched thin and are at a higher risk for fatigue and injuries. On top of adhering to strict safety protocols, manufacturers need to enforce social distancing and sanitation measures to prevent outbreaks. A manufacturing plant can help prevent workplace accidents by holding routine safety seminars and closely following safety procedures.
Cyber vulnerability
While COVID-19 may have slowed down some business operations, it hasn’t stopped cyber criminals from preying on manufacturing businesses. The number and complexity of ransomware attacks continue to rise, leaving companies that aren’t equipped vulnerable to security breaches. Cyber attacks can severely affect production processes or shut them down altogether. Defend against data breaches by educating your employees on cyber security best practices. Perform a cyber risk assessment to identify any security vulnerabilities in your technology systems.
For manufacturers, managing risk has always been part of the equation. It is important to not lose site of potential hazards during this time of uncertainty. At Fuse Insurance, we understand the Canadian manufacturing industry and can provide comprehensive insurance solutions for companies large and small. We also have access to top-quality risk management services so you can build resilience to the challenges ahead. Call us today at 1-866-387-FUSE (3873) or contact us online.