INTRODUCTION
Flexible foam is a type of a processed polymer or plastic composed of hydrocarbons and other organic units which are joined are joined together with urethane link and used as cushioning for a wide variety of consumer and commercial products, including furniture, carpet cushion, transportation, bedding, packaging, textiles, and fibers.
The rise in the packaging industry is expected to influence the growth of flexible foam market in the forecast period. However the fluctuation in the price of raw materials and discharge of hazardous air pollution at the time of manufacture process are likely to act as restraint of the growth of the company.
COVID-19 has hampered the flexible foam market as the demand from the construction, furniture, and automotive industry declined significantly. Automotive industry play a major role for flexible foam, after COVID-19 this industries are halted this hindered the growth of the market and due to the lockdown regulations, the construction industry was hindered as many constructions were halted and resulted in less demand for furniture in offices and houses.
Declined demand from some of the countries had hindered the growth of the market. Lack of consumer confidence affected the demand. The government and other trade associations are trying to maintain the demand level and thus take various steps that make equilibrium in demand as well as supply of the flexible foam.
AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE GLOBAL FLEXIBLE FOAM MARKET
Government policies favoring the growth of the automotive, electronics, and construction industry, coupled with the demand for efficient packaging solutions, will propel the market over the forecast period. Government introduced the payroll protected act to help smaller companies and has put off payroll taxes for large companies. This helps the industries to retain their growth, and some countries government gave permission to work on construction sites with limited people.
STRATEGIC DECISION FOR MANUFACTURES AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
After covid-19 industries mainly focused to ensure health, safety, and business continuity. Local teams are monitoring continuously to prevent spread of the virus, In this pandemic situation, industries are provide their product and services as efficiently as possible without increasing the spread of the virus.
The manufacturers are following COVID-19 protocols with less number of workers. And some manufacturers introduced bio-based flexible foam that expected to growth the revenue of the flexible foam market. Manufacturers investing in R&D to develop eco-friendly bio-based flexible foams. Also, the government of various countries has extended support to small and large industries.
Impact on Price
The COVID-19 crisis and governmental lockdowns in most countries have led in decrease in price in 2020 as the usage has declined in the end-user. The key buyers in Asia-Pacific either cancelled their advance orders or declined their purchases this lead downturn the growth of the revenue. Most companies have shut their operations, and many countries have sealed their ports, there by resulting no product movement.
This has led to cancellation of several orders. The automotive activities in Europe and USA are most impacted as due to low new car registrations. Fluctuation price in raw material has impacted price of flexible foam.
Impact On Demand
Due to COVID-19 crisis, it has affected the production and construction activities across the globe. The countries such as china, India, U.S., Germany, and Brazil announced lockdown for several months, severe downturn in global economic activities has resulted in significant reduction demand for these foams. Reduction in transportation of materials has significantly affected the performance of the building and construction industry.
The demand for these foams has also affected due to this factor. The main automotive industries have been affected due to low demand for new cars. Many construction industries are halted due to covid-19 resulted in less demand for furniture for office and home. Reduced economic activity results in less demand for new commercial or industrial sites. Lack of consumer confidence negatively affected the demand.
Impact on Supply Chain
The lockdown during the COVID-19 stopped manufacturing activities, disrupted the supply chain and created a shortage of raw materials. Due to restrictions they can’t reach the customers. The operations from the end use industries such as automotive, transportation, construction, and electronics disrupted due to the lockdown. Due to restriction the transportation across the world stopped. Most companies faced disrupted supply chains.
Such disruption has reflected in financial side. Impact of an economic downturn on construction demand this hit long term supply of flexible foam. Foam used in interiors for aviation application has reduced this lead to reduction in the supply chain. Most of the companies are facing issues with the raw materials as most of the countries are under complete lockdown. At some parts, for few manufacturers, the end-product is ready; however they are not able to reach the costumers and thus losing money.
Conclusion
Flexible foam is a type of a processed polymer or plastic composed of hydrocarbons and other organic units which are joined are joined together with urethane link and used as cushioning for a wide variety of consumer and commercial products including furniture, carpet cushion, transportation, bedding, packaging, textiles, and fibers. The outbreak COVID-19 dramatically the changed the foam market across the world. Industries are facing issues due to lockdown and shutdown. The demand for foam became very low.
This COVID-19 created a shortage of raw materials. Restriction on transport also created an impact in the industry. Due to the lockdown regulations, the construction industry was hindered as many constructions were halted and resulted in less demand for furniture in offices and houses. Government introduced a fund scheme for small and large companies to help to retain their growth. Manufacturers focused on safety and to ensure health, and they continue to supply the products to consumers with safety precautions, and they invest in R&D to develop eco-friendly products. Downturn on construction demand hits long term supply of foam. Reduced in economic activity has results in less demand.
