BACKGROUND OF THE STUDY
Manufacturing has long been an important part of emerging countries’ economic success. Designing, processing, and preparing products from commodities and raw materials is what the manufacturing industry is all about. Automobile, chemical, food and beverage, manufacturing, electrical, and other sectors are included in this category. Manufacturing is a significant portion of the economy, accounting for roughly 16% of global GDP in 2018.
The manufacturing industry has been struck particularly severely by COVID-19. A terrible number of new cases were recorded across China and numerous nations across the world in the first three months after COVID-19 arose in Wuhan City, Hubei Province, China. On March 2020, the World Health Organization (WHO) ultimately designated the outbreak a global pandemic (WHO 2020). COVID-19 appears to be a risk factor. The ensuing lockdown brought industrial facilities to a halt, causing the whole global supply chain to be disrupted. To put things in context, China is home to “one or more direct or Tier 1 suppliers” for more than 75% of corporations, and 938 Fortune 1000 organizations have Tier 2 suppliers there (Batch E.RP 2020). This set off a cascade of events that included a dramatic drop in worldwide Foreign Direct Investment (FDI) inflows and a global economic slowdown. According to the United Nations Conference on Trade and Development (UNCTAD), the COVID-19 outbreak might reduce worldwide FDI by 5 to 15% due to a drop in the manufacturing sector and plant closures.
STATEMENT OF THE PROBLEM
COVID-19’s impact on the global manufacturing industry can be divided into discrete manufacturing (automotive, machinery, electrical and electronics, metal, aviation, and so on) and process manufacturing (food & beverage, chemicals, pharmaceutical and medical equipment, paint and coatings, and personal care & cosmetics, to name a few).
Food and beverage manufacturers are currently dealing with drastically lower customer consumption as well as supply chain concerns. Apart from the supply chain disruption, the rampant stockpilers who have participated in panic buying have contributed considerably to the increased scarcity on the food stores.
The delivery of raw materials and ingredients to manufacturing locations has been severely disrupted, causing production to be impeded and businesses to abandon operations.
OBJECTIVE OF THE STUDY
The goal of the research is to evaluate the influence of covid-19 on the industrial industry. It is aimed for a certain audience.
To investigate the industrial sector’s economic importance.
To learn more about the impact of covid-19 on the food and beverage industry
To determine the impact of Covid-19 on the industrial industry.
SIGNIFICANCE OF THE STUDY
This research will have a profound impact on the overall body of knowledge. Manufacturing firm owners will be able to re-strategize on how to make their companies survive in the face of a pandemic. It will raise government understanding of the importance of supporting manufacturing industries, which are vital to the country’s economic development. The study would also pave the way for more investigation into the topic at hand.
SCOPE OF THE STUDY
The goal of the research is to evaluate the influence of covid-19 on the industrial industry. It will also look into the manufacturing sector’s economic importance. It will investigate the impact of covid-19 on food and beverage firms in greater depth. It will also establish how quickly Covid-19 affects the manufacturing sector. The research is limited to the Dangote Sugar Refinery in Lagos State, Nigeria.
LIMITATION OF THE STUDY
Several problems were faced over the course of the research, including but not limited to the following. These are the ones.
Inadequate funding: The research was hampered by a lack of funds, which prevented the researcher from accessing banks in Lagos, as well as printing and collating questionnaires.
Time constraint: Another constraint is time, as this research had to be completed while also juggling other academic responsibilities, making it hard to conduct this study in a large, representative sample.
H0: Covid-19’s impact on the manufacturing sector is minimal.
H0: Covid-19 has no substantial impact on food and beverage production companies.
DEFINITION OF TERMS
COVID-19: Corona virus disease 2019 (COVID-19) is a sickness caused by a new corona virus known as SARS-CoV-2 (severe acute respiratory syndrome corona virus 2).
Lockdown: A lockdown is a policy that requires people or communities to remain in their current location owing to specific threats to themselves or others if they are allowed to travel and interact freely.
Manufacturing Sector: According to the United States government, the manufacturing sector consists of institutions or businesses that participate in the mechanical, physical, or chemical transformation of raw materials, substances, or components into new products.