Impact of COVID-19 on the Global Earthmoving Equipment Market
The COVID-19 pandemic has spread across the globe. In March 2020, the declaration of coronavirus as a pandemic has resulted in lockdowns being implemented in most of the countries. The restrictions imposed by government authorities have compelled the industry players to allow their employees to work remotely. However, the adoption of automated technologies to minimize human interaction in manufacturing facilities is expected to support the growth of the global earthmoving equipment market. The use of technologies, including automated machinery and advanced electronics, has not only ensured the continuity of businesses during the pandemic but has also enhanced work productivity.
Several emerging and developed economies have implemented countrywide lockdowns to maintain social distancing. Many of the retail outlets and e-commerce services were shut down to curb the spread of the pandemic. The manufacturing of construction-related products and the provision of related services was restricted to permitted limits during the lockdown. The production of earthmoving equipment was also affected, resulting in a demand and supply gap. The COVID-19 pandemic has affected the supply chains, limiting the growth of the global earthmoving equipment market. These factors have severely impacted the global economy and the revenue generation of the construction industry.
Sales of excavators and related products play a vital role in generating revenue for the earthmoving equipment industry, owing to their high usage in the construction of commercial and residential buildings. The figure below shows the volume of excavators sold in China from January 2020 to June 2020. The fluctuating sales of excavators are expected to affect the growth of the earthmoving equipment market over the projected timeframe.
Sales of Excavators in China (Units)According to the MRF analysis, the global construction industry is expected to witness slow growth in the coming year, which is likely to affect the global demand for earthmoving equipment. The market is expected to recover in the Q4 of 2020. Industry participants are likely to improve their manufacturing capabilities as the market stabilizes gradually over the projected timeframe.
Source: National Bureau of Statistics