Impact of COVID-19 on the Global Screw Compressor Market
The outbreak of novel coronavirus is causing a financial and operational crisis for industries such as energy & power, automotive, mining & metals, and food & beverage. Moreover, the electronic goods utilized in these industries have faced slowdowns in supply and manufacturing due to lockdowns in most key countries and reduced consumer demand throughout the globe. Major manufacturers in the power industry, such as Samsung, LG, and Panasonic, have decided on a price increase of 3% to 5% across their product models. The prices and import duties on the refrigeration system and other compressor related systems are expected to see an increased import tax. Although Siemens, a major screw compressor manufacturer, has managed to avoid large factory shutdowns, it supplies these compressors and other power equipment to many industries that have been directly affected. Thus, the manufacturer’s overall business has experienced losses, but the financial stability of the company has enabled it to weather through the crisis.
FIGURE: DECREASE IN AVERAGE VISITS IN FOOD AND BEVERAGE OUTLETS BETWEEN FEBRUARY AND MARCH 2020
Due to the start of the deadly virus in China, a large number of the country’s factories remained closed, which has hampered the manufacturing sector in countries such as India and the US, where the goods are heavily imported from China. Screw compressors are widely used in the food & beverage industry as the food and beverage factories need 100% pure oil-free air for processing food. However, as the world copes with the COVID-19 pandemic, a few food and beverage retailers continue to operate as it is considered as an essential service. Most food outlets have closed their dining areas and incurred huge losses. The industry was relatively stable throughout January and February 2020. However, it saw a downtrend by mid-March. This slowdown has affected several industries and, consequently, the businesses of components that are used in maintaining operations in these industries.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Secondary Source: World Bank