Manufacturing Industries

Your manufacturing company might claim ERC if you were impacted by the COVID-19 pandemic. Some of the ways to qualify include:
• You suffered a loss of revenue during the pandemic in either 2020 or 2021, or both.
• You experienced a full or partial shutdown due to a government order.
• You experienced supply chain delays.
In our experience, most of the manufacturers in the country will qualify for ERC even if they stayed open during 2020 or 2021.
Partial Shutdown of Manufacturing Operations
There is no requirement that your manufacturing business must have totally shut down. Instead, a partial suspension is enough to qualify you for ERC. Given all the government mandates, most manufacturers experienced at least a partial shutdown of their operations.
Did your manufacturing company employ any of the following at the behest of the government?
• Mandatory sanitation that cut into operation time
• Required pre-access questionnaires which delayed shifts.
• Temperature checks which reduced employee output
• Social distancing requirements that impacted operations
• Capacity restrictions in your plant which limited the number of workers.
• Shift to virtual work for some employees which disrupted operations.
• Inability to meet with clients due to travel restrictions.
• Burdensome or unfavorable workplace modifications
All you need to show is that a government order or mandate had disruptions to your business.
Supply Chain Disruptions and Manufacturing
No industry in the country has been as impacted by COVID supply-chain disruptions as manufacturing. Our manufacturing clients have been rocked by:
• Shortages of materials and equipment sourced from around the world.
• Mandatory shutdowns which interrupted the operations of key suppliers
• Supply chain bottlenecks which delay the receipt of necessary materials and equipment even when they are available.
• Runaway prices for materials, services, and goods
• Worker shortages which prevent sourcing services or goods from key vendors
Pictures of container ships stranded at sea waiting to unload make for dramatic television footage. But in each container are materials or equipment that manufacturers need so they can run their business. Any delay in receiving necessary materials or equipment led to fulfillment delays on your end.
COVID is directly responsible for much of the supply chain disruptions. Many shipping companies lost employees who came down with the virus and had to quarantine. Consequently, many crews were gutted. Shipping companies implemented additional safety measures, such as required disinfecting equipment or employee testing. These measures—though motivated by safety—slowed down their work, increasing the time for delivery.
Statistics show that supply chain disruptions have proved costly. According to ITI Manufacturing, shipping rates have increased 8-9 times. That’s 900% higher than they were before the pandemic!
Fortunately, you can qualify for ERC if you suffered due to supply chain issues!