The continued spread of the Covid-19 pandemic is beginning to impact on construction and mining equipment manufacturer Caterpillar’s supply chain, a possibility the company previously disclosed in February.
The US-based company indicated on Thursday that it was monitoring the situation closely and said that supply chain teams had been executing business continuity plans. “Caterpillar is committed to continuing to execute these plans and will remain in close contact with its supply chain to monitor future possible implications, especially on production facilities,” the company assured.
Currently, Caterpillar said it would continue to run the majority of its US domestic operations and that it planned to continue operations in other parts of the world, as permitted by local authorities. However, owing to uncertain economic conditions resulting in weaker demand, potential supply constraints and the spread of the Covid-19 pandemic and related government actions, Caterpillar announced that it would temporarily suspend operations at certain facilities.