With industries resuming their operations amidst the ongoing pandemic, the Machine Tool industry too is in a lookout for new opportunities the situation has created.With industries resuming their operations amidst the ongoing pandemic, the Machine Tool industry too is in a lookout for new opportunities the situation has created.
Industries have restarted their operations as they bid to regain a firm footing in business amid Covid-19 pandemic. The virus spread resulted in lockdown measures, hitting every industry sector including the Auto sector which was already reeling under a prolonged business slowdown. The sector is battling serious financial challenges, uncertainties in demand and orders, cash flow and pressure from workforce and distributors. It’s imperative to ensure business continuity without compromising on the health and safety of people in our continued fight against Covid-19.
Companies have deferred their investments and capital expenditure for the near future with uncertainties engulfing capacity utilization, which is at an all-time low. Industry sources believe that people are slowly accepting to ‘live and work with Covid’ and the stalled economic cycle is gaining traction. With lockdown, fears of job losses and salary cuts looming large, public is spending less to conserve cash for emergency needs. Sensing this, companies are holding back their fresh investments and those which invested in the immediate past are hoping for sales and revenue returns.
The Machine Tool industry is the first industry to be affected in any kind of slowdown or downturn, and the last one to recover. In the current scenario, the silver lining is the thrust to localization and the series of stimulus measures for MSMEs announced by the Union Government to improve liquidity, cash flow and hopefully demand.
Machine Tool industry exploring sunrise sectors
So, what does this mean for Machine Tool industry manufacturers, which until now were heavily reliant on demands from Auto Component and Automobile manufacturers? Well, the Machine Tool industry is the first industry to be affected in any kind of slowdown or downturn, and the last one to recover. In the current scenario, the silver lining is the thrust to localization and the series of stimulus measures for MSMEs announced by the Union Government to improve liquidity, cash flow and hope-fully demand.
Sectors such as Healthcare and Medical Equipment manufacturing, Agriculture Machinery, Infrastructure, Telecom, Power, Aerospace and Defence offer promise, and these sunrise sectors need to be explored keenly by the Machine Tool industry.
Covid-19 has changed the way world used to function and manufacturers need to adapt to the changing order, keeping in mind the big picture as to what will pay in the medium- and long-term. Technology and R&D, leading to innovative product development, will be crucial to stay ahead and meet customers’ expectations from sunrise sectors, and Machine Tool industry needs to get geared up for this. Some prominent Machine Tool companies have entered the field and are manufacturing face shields, N-95 masks, ventilators, personal protective equipment, etc. in their factories. They have carried concept to product development in these trying times and, against all odds, are successful. They are supplying to the government, hospitals and in the commercial space. Companies have cleared the medical prerequisites, obligations and procedures from regulatory authorities for their engineered equipment and released it to the commercial market successfully. These efforts are inspirational and Machine Tool manufacturers will carve out opportunities from new user sectors in the coming days or in the immediate future.
Some prominent Machine Tool companies have carried concept to product development in
these trying times and, against all odds, are successful.
Localization is the answer
Industry leaders are exploring to localize their sourcing, developing products which until now were being imported, seeking collaborations, joint ventures, changing their product portfolio, and shifting from product selling to providing solutions and exploring opportunities in the export market. All these moves will help the Machine Tool industry develop and grow in the medium- to long-term.
Source: Magic Wand Media