A CRITICAL ANALYSIS OF COVID-19'S IMPACT ON THE manufacturing SECTOR: A CASE study OF DANGOTE SUGAR REFINERY
Using Dangote Sugar Refinery as a case study, this study investigated the effects of covid-19 on the manufacturing sector. To do this, two research hypotheses were developed. The research was conducted at the Dangote Sugar Refinery in Lagos, State. In this study, the survey methodology and simple random sample procedures were utilized. The population includes the whole workforce at the Dangote Sugar Refinery. In calculating the sample size, the researcher selected 67 respondents at random and vetted 50 respondents. For data collection, a self-created and verified questionnaire was utilized. The collected and validated questionnaires were examined with frequency tables and percentages, whereas the hypothesis was evaluated with the Chi-square statistical technique. The findings indicate that the manufacturing sector is important to the Nigerian economy, that Covid-19 had no positive impact on food and beverage companies, that Covid-19 had a significant impact on the manufacturing sector, and that Covid-19 has a significant impact on food and beverage manufacturing companies. The researcher recommended immediate installation of cleanliness measures and reconfiguration of workspaces for safety based on the findings. To reduce the number of people on the manufacturing floor, organizations could investigate automation solutions such as staggered shifts, increased distance between workers, and visitor bans. Transferring new knowledge throughout the supply chain is optimal for automating repetitive processes, such as assembly and predictive maintenance, and for automating repetitive tasks, such as assembly and predictive maintenance. Companies should update best practices as the situation changes and support suppliers in applying them, as well as plan for supply chain pivots that may need the identification of alternative suppliers.
1.0 BACKGROUND OF THE STUDY
Historically, manufacturing has played a crucial role in the economic development of developing nations. Design, processing, and preparation of goods from commodities and raw materials comprise the Manufacturing Industry. Among these are the automobile, chemical, food and beverage, mechanical, and electronic industries. In 2018, the manufacturing sector accounted for approximately 16 percent of the world's gross domestic product.
The manufacturing industry is one of the sectors severely damaged by COVID-19. In the first three months following the emergence of COVID-19 in Wuhan City, Hubei Province, China, an alarming number of new cases were recorded across China and in several other nations. In March 2020, the World health Organization (WHO) officially designated it a global pandemic (WHO 2020). Evidence suggests that COVID-19 is transferred by respiratory droplets through contact channels such as the mouth, nose, conjunctiva, or eyes (UNICEF 2020). Typically, the novel corona virus originated in China, which is home to the bulk of industries that supply raw ingredients to a variety of production facilities around the globe. Efforts were made to prevent the spread of the virus, which necessitated a lockdown.
The subsequent lockdown rendered the manufacturing facilities inoperable, disrupting the whole worldwide supply chain. More than 75 percent of enterprises have “one or more direct or Tier 1 suppliers” from China, and 938 of the Fortune 1000 have Tier 2 suppliers in China (Batch E.RP 2020). This precipitated a series of events, including a dramatic decrease in global Foreign Direct Investment (FD) inflows and a global economic recession. The United Nations Conference on Trade and Development (UNCTAD) anticipated that the COVID-19 epidemic might cause a 5 to 15 percent decline in worldwide FDI because to the decline in the manufacturing sector and factory closures.
1.2 STATEMENT OF THE PROBLEM
The influence of COVID-19 on the global manufacturing industry can be divided into discrete manufacturing (e.g., automobile, machinery, electrical and electronics, metal, aviation, etc.) and process manufacturing (e.g., food & beverage, chemicals, pharmaceutical and medical equipment, paint and coatings, and personal care & cosmetics, among others).
In the current environment, food and beverage manufacturers must contend with declining consumer demand and supply chain challenges. In addition to the supply chain disruption, rampant stockpilers who have engaged in panic buying have contributed significantly to the increased scarcity on supermarket shelves.
The delivery of raw materials and ingredients to manufacturing locations has been severely disrupted, which has impeded output and compelled enterprises to cease operations. Also, the availability of labor in an era of social separation has been a big issue. According to a report by the french trade association ANIA, food and beverage industries like Dangote Sugar have experienced a 22 percent decline in global revenue as a result. While at-home consumption has increased, out-of-home consumption, which historically yields a higher profit margin, has stalled. In light of this context, this research will investigate the effects of covid-19 on the industrial industry.
1.3 OBJECTIVE OF THE STUDY
The purpose of this study is to examine critically the impact of covid-19 on the manufacturing industry. It is specifically geared
To investigate the economic significance of the manufacturing sector.
To determine the impact of covid-19 on the food and beverage industry.
Determine the degree of covid-19's impact on the industrial industry.
1.4 RESEARCH HYPOTHESIS
H0: The incidence of covid-19 in the manufacturing sector is low.
Covid-19 has no substantial effect on the food and beverage manufacturing firm.
1.5 SIGNIFICANCE OF THE STUDY
This work will contribute to the total corpus of knowledge. It will allow manufacturing business owners to re-evaluate their business strategies in light of the epidemic. It will heighten the government's awareness of the importance of supporting manufacturing industries to the country's economic development. The study would also generate opportunities for more research on the topic under discussion.
1.6 SCOPE OF THE STUDY
The purpose of this study is to examine critically the impact of covid-19 on the manufacturing industry.
Additionally, the economic significance of the industrial sector will be examined.
It will investigate further the impact of covid-19 on the food and beverage industries. In addition, it will determine the extent to which covid-19 affects the manufacturing industry. However, the research is restricted to the Dangote Sugar Refinery in Lagos, Nigeria.
1.7 LIMITATION OF THE STUDY
Challenges encountered over the course of the study included but were not limited to the following. The following are:
Inadequate funding: the research was hindered by a lack of funds, which prevented the researcher from accessing banks in Lagos, particularly for printing and collating questionnaires.
Time limitation: the time element is a further restraint, as this research had to be conducted concurrently with other academic activity, making it unable to conduct this study with greater representativeness.
1.8 DEFINITION OF TERMS
COVID-19 is an infection caused by a novel corona virus referred to as severe acute respiratory syndrome corona virus 2 (SARS-CoV-2).
A lockdown is a policy requiring people or a community to remain where they are, typically owing to specific threats to themselves or others if they are free to travel and interact.
As defined by the U.S. government, the manufacturing sector consists of institutions or firms engaged in the mechanical (including assembly of component parts), physical, or chemical transformation of raw materials, substances, or components into new products.
A CRITICAL ANALYSIS OF COVID-19'S IMPACT ON THE MANUFACTURING SECTOR: A CASE STUDY OF DANGOTE SUGAR REFINERY