COVID-19 is a pandemic disease which has created a severe outbreak in the world starting from China to almost in every country. It has major impact almost on everything including human life, world economy, automotive sector, industrial sector and others as a result demand and consumption rate gets lowered. Unavailability of vaccine to cure or prevent the disease from spreading is major reason due to which lockdown has been initiated for prevention and to lower the COVID-19 spread.
To control the disease spread, lockdown is so far is considered to be the better solution observed in the many countries but it also has an adverse effect on the economy. As a consequence of COVID-19, much of the world is facing rather typical living conditions today. Under any form of quarantine, more than 2 billion people were at the height of the pandemic and 91 per cent of the world’s population, or 7.1 billion citizens, reside in countries with border controls or travel restrictions due to the outbreak.
As the pandemic hit globally, employees are advised to work from home. There is strict action by government to lockdown the countries till the time virus infected patients are controlled. The key players in industrial valves market such as Emerson Electric Co, The Weir Group PLC, Flowserve Corporation, Schlumberger Limited and IMI PLC, among others are continuing their operations by taking necessary precautions. The main focus of the companies is to keep employees healthy, while supporting their customers in the best way possible. The production of the industrial valves are stable, the sales and distribution channels of the market players are functioning normally which is driving the market in the pandemic situation.
COVID-19 has created a major impact on the manufacturing industry as almost every country has opted for the shutdown option for every production facility except the ones who are dealing in producing the essential goods. To prevent the spread of coronavirus disease, the government has taken some strict actions such as the shutdown of production and sale of non-essential goods, blocked international trade, and many more. The only business which is dealing in this pandemic situation is the essential services that are only allowed to open and run the processes. Companies such as pharmaceutical and chemical, among others are allowed for facilities operation but with certain safety rules.
Now at the current period where almost half a year is ended the government is taking the initiative to support the economy by allowing the manufacturing operations by following physical distancing practices. The manufacturing facilities are getting started now with a limited workforce creating major demand for the market. Adjusting production volume and increases in production for products that are in demand will help the key players to sustain in the market. The demand for maintenance, the repair will remain the same but the capital investments by the end-users may change.
As the COVID-19 crisis continues to expand, makers would possible face challenges on varied fronts. Producing firms would be searching for immediate measures to stay their workforces safe and their businesses solvent. Makers would conjointly have to be compelled to look on the far side their economic viability. Because the COVID-19 pandemic intensifies, makers would possible face continued downward pressure on demand, production, and revenues. They’d continuously face cash-flow liquidity challenges and difficulties in managing debt obligations.
There is both positive as well as negative impact of the COVID-19 disease on market as it has lowered its demand and at the same time, several strategies which can help the market players to increase their presence and market share in the industry.
IMI PLC, which is engaged in the design and implementation of innovative, designed solutions for new plant constructions and also providing full plant life cycle service support planned to remain in close touch with our suppliers to monitor the supply chain, equipping their service technicians with additional personal protective equipment as required.
On 17th February 2020, before the global release of COVID-19, Flowserve issued its guidance on certain financial indicators for the full year 2020. Due to the rapidly changing effects of COVID-19, and end-market volatility, Flowserve is withdrawing its financial outlook for 2020 at this time. This strategic decision helps to help the business work, and is committed to making them run safely and efficiently.
The COVID-19 pandemic has had tangible implications for the global economy. Traveling restrictions and social distancing steps on a wide scale cause a sharp decline in company and consumer spending due to the quarantine situation. The demand for industrial valves expected to improve gradually due to the plants in china resumed their production from March. Companies that need resources to connect remote workstations to employees, businesses that urgently need to go online to work with consumers or retailers, and delivery services. So the above reasons are directly impacting the demand for industrial valves in positive way.
Could COVID-19 be the unpredictable event that finally forces many industries and companies, to re-think and transform their supply chain models? Due to the lockdowns, companies are facing severe problems for raw materials or finished products transport, this is directly impacting the growth of the company. To overcome this situation, companies must closely monitor long-term and short-term demand and maintain inventory to reduce production loss in the economic slowdown situation.
COVID-19 has forced the workers to stay at home and take their workloads in their home, the sales and distribution channels of the market players are functioning normally which is driving the market in the pandemic situation. The global economy slowdown is directly impacting the consumption of industrial valve solutions which is acting as a restrain in the COVID-19 crisis. The strategic decisions such as close touch with our suppliers to monitor the supply chain and working closely with their component suppliers and monitoring the demand by the key players are opening lucrative opportunities for the market.