Coronavirus impact on our small business
The coronavirus is not the root cause of our production delays, but it certainly is not helping the situation. We ultimately placed our production order late, and the factory was not able to fulfill two promised dates before taking off for the Chinese New Year.
As the severity of the coronavirus has spread the factories remain closed and we've been forced to seek an alternative local source for the parts to keep the momentum going. We have our biggest show coming up at the end of March in Toronto called the One of a Kind Show. As a result, we have requested quotes from 7 local machine shops for our custom infrastructure for our watches.
We have enough inventory on all other parts to keep us moving for a little while longer but we are looking at every opportunity to source components from other parts of the world if not locally.
In talking with our suppliers the situation seems to be worse than what's being communicated in the media and we expect the delays to drag out longer which will have an impact on the global economy. This impact seems to be delayed for some odd reason but none the less we're predicting a pinch on the market in due time.
If big businesses such as Apple are projecting Q1 losses we can for sure expect this to be one of many underperforming quarters across the board. We are also projecting a lower than planned Q1 but doing all we can to be resourceful and find local solutions.