The COVID-19 pandemic spread has made a threatening impact on the construction equipment industry. The wide city lockdown in various countries has resulted into a sudden halt in the building and construction industry all across the globe. With this the demand for new construction equipment including backhoe, loader, excavator, and grader among others got hurtled. Moreover, the halting of operations at steel mining, cement and other industries resulted in no new demand for construction equipment industry. The construction equipment industry is among the ‘essential’ category in the US due to which the manufacturing plants of major market players of construction equipment manufacturers were not forced to shut in the country. Caterpillar Inc., a major construction equipment provider in the US has announced to run its most of the operations in the country. However, due to lower demand, the Mapleton manufacturing facility of the company has been closed temporarily on 23rd March 2020. In the same month, CNH Industrial, another major company of construction equipment announced temporary shutdown of the most European plants for complete two weeks. It is mainly due to supply chain disruption in the whole region. It was announced on March 21, 2020, earlier to this the company has already announced to shut down its four Italian plants on March 12, 2020.
After the announcements, 28 out of 30 plants of the company are under a temporary shutdown. UK based JCB is also got highly affected by the spread of COVID-19 pandemic. In February 2020, when the virus was at its peak in China, the company has closed its manufacturing plant in the country. It was due to supply chain disruption as well as the health concern of their workers. During the COVI-19 pandemic spread, around 25% of the suppliers of the company were closed and others were working at a very lower capacity to avoid capital loss. With the spread of COVID-19 pandemic in Europe, the company announced to shut down its operations in the nine manufacturing plants of UK from March 18 till the end of April due to less demand of the construction equipments in the construction industry. The close down of the manufacturing plants have made adverse impact on the shop floor employees and the office staff has to work 39-hours a week from home. Due to all these circumstances, around 4%-6% less production of the construction equipment will be observed across the globe in 2020.
OMR Global recently published report on https://www.omrglobal.com/industry-reports/impact-of-covid-19-on-global-construction-equipment-industry
The Report Covers
- Comprehensive research methodology of the global construction equipment industry.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies impacting the global construction equipment industry.
- Insights about market determinants which are stimulating the global construction equipment industry.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Global Construction Equipment Industry – Segmentation
- Earthmoving Equipment
- Material-Handling Equipment
- Heavy Construction Equipment Vehicles
- Other Equipment
To learn more about this report request a free sample copy @ https://www.omrglobal.com/request-sample/impact-of-covid-19-on-global-construction-equipment-industry
