Medical Supply Chain Disruption- The Need for Increased Capital

Several months into the COVID-19 pandemic, it has become clear that the crisis has fundamentally and permanently challenged the supply chain assumptions of nearly every industry that does business with federal, state, and local government agencies. Sourcing from global markets such as China not only provided low cost options, but also a steady, reliable supply of products and components that helped contractors ensure completion.

The global economic shutdown due to COVID-19 effectively changed everything. With factories in China and other trading partners shuttered or operating at reduced capacity, many American companies were forced to halt production due to serious disruptions to their supply chains. Disruption in some sectors goes well beyond project delays. Contractors tasked with supplying the medical sector with PPE, for example, in many cases still do not have sufficient supply – forcing medical professionals to reuse n95 masks between patient visits.

As the economy reopens and government contractors wish to take on projects that help restart the American economy, supply chains that once relied entirely on overseas sources will turn to local and regional suppliers that, while more reliable and of usually higher quality, come at a much higher cost. Masks that usually cost one dollar may now cost up to six. Even as COVID cases eventually subside, the need for items like test kits and cleaning supplies will be an issue for years to come.

Each industry was uniquely affected by the pandemic, and there is no one-size-fits-all approach to dealing with the related supply chain issues. However, it is abundantly clear that across the board an increase in capital will be necessary to accept contracts and complete the projects necessary for an economic reboot. An infusion of capital from a company like Brevet Capital can, without delay and unnecessary risk, contribute to: medical research and development, testing kits, reopening shuttered hospital departments, cleaning services necessary for reentry, and much more. In a pandemic, when it comes to saving lives, waiting is simply not an option.