Market analysis: How the rolling equipment market is faring in 2020 and beyond
Rolling equipment markets have slowed in the wake of Covid-19 but are expected to return to growth next year. Here, we take a look at what’s happening in the sector.
The rolling equipment industry has been impacted by Covid-19 but to a lesser extent than the automotive sector.
That’s partly because construction, agricultural and mining equipment has been deemed essential in some markets and exempt from Covid-19-related plant shutdowns, although there have been some temporary plant closures in parts of Europe and, to a lesser extent, Asia and North America.
The majority of manufacturers have withdrawn guidance for the financial year as they wait to see the impact of Covid-19 on results. Reduced capital expenditure and delayed investment decisions are contributing to the current contraction in the markets for rolling equipment.
The lower volumes of shipments this year follow a softening of the market at the end of 2019. But there’s light at the end of the tunnel: rolling equipment sales are expected to grow again from next year. Sales are also expected to hold up better than auto sales in 2020.
So, what’s been happening in the market?
- Global sales of construction machines and mining machines are forecast to decrease by 20% in both sectors in 2020
- Agricultural machinery sales are forecast to experience a more modest decline of 13%
- Deep sea shipments of construction, agriculture and mining equipment dropped in the first quarter of 2020
- Q2 is likely to be the low water-mark for volumes
- Sales of rolling equipment are expected to grow again next year and in 2022
At Wallenius Wilhelmsen, our focus is on supporting rolling equipment customers during this period of recovery and ensuring a safe return to normality. We’re continuing to operate sailings across our global shipping network and operations at our equipment processing centres to serve demand.
As rolling equipment manufacturers restart production and gradually increase their manufacturing output, we will adapt our service levels to meet their needs.
Data sources: (IHS Markit, Caterpillar, Parker Bay, OEM Revenue Consensus Estimate, Tractor Sales and Registrations in Key Markets)