The magnitude of the Covid-19 pandemic will be determined by its duration, geographic spread, business disruption and overall impact on the global economy, says equipment manufacturer Caterpillar.

No company is immune to the impacts of Covid-19 and Caterpillar is starting to feel the impact of the pandemic on its supply chain.

Currently, the manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives said it is continuing to run the majority of its US domestic operations and plans to continue operations in other parts of the world, as permitted by local authorities.

However, due to uncertain economic conditions resulting in weaker demand, potential supply constraints and the spread of the Covid-19 pandemic and related government actions, Caterpillar is temporarily suspending operations at certain facilities.

The company’s supply chain teams have been executing continuity plans, “which include, but are not limited to, being alert to potential short supply situations, and, if necessary, utilising alternative sources and/or airfreight, redirecting orders to other distribution centres, and prioritising the redistribution of the most impactful parts”.

Caterpillar added that its financial results for the first quarter and remainder of 2020 will be impacted by the above factors and the continued global economic uncertainty due to the Covid-19 pandemic.