75% of companies report coronavirus has disrupted their supply chains
Nearly 75% of companies are seeing capacity disruptions in their supply chains as a result of coronavirus-related transportation restrictions, according to an Institute for Supply Management survey published Wednesday.
This is strong warning sign that COVID-19—which was ruled a pandemic by the World Health Organization on Wednesday—is weighing down the global economy.
“For a majority of U.S. businesses, lead times have doubled, and that shortage is compounded by the shortage of air and ocean freight options to move product to the United States—even if they can get orders filled,” said Thomas Derry, CEO of ISM, in the report. “Companies are faced with a lengthy recovery to normal operations in the wake of the virus outbreak.”
Over 60% of firms are experiencing delays in receiving orders from China, and 53% are having difficulty getting information from China.
As a result of these disruptions, 1 in 6 firms report adjusting revenue targets downward due to the coronavirus.
The survey was conducted between February 22 to March 5 among more than 600 U.S firms.
More must-read stories from Fortune:
—Is this your first stock market crash? Some advice for young investors
—Here are two of the biggest losers from the Saudi Arabia oil price war
—Why investors suddenly turned on pot stocks
—Here are some of the most extreme ways companies are combating coronavirus
—Why it’s so hard to find the next Warby Parker
Subscribe to Fortune’s Bull Sheet for no-nonsense finance news and analysis daily.