fbpx skip to Main Content
Machine Shops In A Challenging World

Machine Shops in a Challenging World

The world may seem a very different place to what it was a few short months ago.  Yet from a manufacturing point of few, many of the trends identified before the coronavirus crisis are just as relevant today as they were before. In this article, John Young, APAC director at EU Automation, analyses some of the latest manufacturing challenges faced by machine shops and what manufacturers should do to improve their processes.

It has already become a cliché to say that the coronavirus pandemic changes everything. Yet if we step back from the present moment, we find that many of the key challenges and trends that will continue to impact manufacturing most in the months and years ahead are the very same things we have been talking about before the current crisis. 

The key challenge—or opportunity—is the potential impact of new technologies, particularly those associated with the fourth industrial revolution. The question was if and how these technologies would fundamentally transform machine shops. Will the impact of coronavirus slow the adoption of the technologies of the future, as business uncertainty leads companies to think twice about expensive upgrades? Or will it speed up the revolution that was already underway, as there now appear to be even greater reasons for automating manufacturing processes? The answer, if I could tentatively suggest one, will be a bit of both.

Accelerating the Uptake

We have read regularly in these pages about the marvels of new technologies. Whether we are talking about additive or subtractive manufacturing, or the latest machines combining greater functionality into a single footprint. Five-axis CNC machining, for example, allows machines to work with more complex geometries and produce cuts that would have been inaccessible for an older machine working on three axis.

Machine shop owners must judge if and when to invest in these upgrades. It is arguable that the lure of increased automation will be stronger now than ever before. Machine shops that require less human input because more basic processes are automated had their appeal before. Many machine shops were opting for greater automation when making purchasing decisions, even if it took a year or so to fully integrate. 

The early adopters will feel that their course of action has been validated by recent events and they now appear more resilient in the face of contemporary challenges. With a reduced need for direct human involvement in the manufacturing process, they are less vulnerable to the impact of shutdowns or prolonged social distancing measures.

Similarly, digitalisation not only offers gains in efficiency and removes the risk of human error, but also more easily allows for remote monitoring. Factors such as these give many of the technologies associated with the fourth industrial revolution an added bonus right now. We told you so, you might hear their advocates cry.

If the current crisis does precipitate an accelerated uptake of new technologies, then that is to be celebrated. However, those who cannot afford expensive upgrades or systems overhauls need not feel like they are being left behind. It is probably more sensible to talk of evolution rather than revolution and its unfolding will be far from uniform. 

Manufacturers therefore need to carefully tread the middle line between enthusiastically accepting the benefits of new technology on the one hand, while on the other knowing that a one-size fits all approach would not be appropriate. 

The Inevitability of Obsolescence

Obsolescence is a logical consequence of this technological evolution and managing it is a major challenge for machine shops and manufacturers. Technological obsolescence takes place when a particular technology is rendered less useful by new technologies becoming available. In machining, punched tape technology was made obsolete by the emergence of modern CNC machines.

Product obsolescence is the term we use to refer to a situation where an OEM no longer supplies a part. This is set to become a greater problem in the coming years.

One factor driving this trend is the increased reliance on computers and electronics. Industrial systems are typically built to last for many years. Many electronic components have shorter life spans because development is driven by the needs of a consumer market, not the needs of industry. This is a dilemma that the previous generation of machine shop owners did not have to contend with.

Managing Obsolescence

For manufacturers looking to improve their processes, the first thing to understand here is that the word obsolescence has too many unwarranted negative connotations. Say obsolete and people think, useless, redundant or out of date.

 

To continue reading this article, head on over to our Ebook!

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

Increasing Speed And Productivity With The X-Definition Plasma Cutting System

Honda To Consolidate Domestic Car Plants

Helping Customers Move Towards Industry 4.0

Hexagon Manufacturing Intelligence Division To Set Up New Canadian HQ In Toronto

IoT Innovation Hub To Be Built In Hanoi’s Hoa Lac Hi-Tech Park

Omron Releases CP2E Series All-In-One Controller For Compact IoT Applications

Coronavirus Hits Automotive And Aerospace Supply Chains

Bringing Industry 4.0 To Life

Industry 5.0: The Future Of Manufacturing In 2035

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

 

UK Manufacturers Positioned To Lead The Green Revolution

UK Manufacturers Positioned To Lead The Green Revolution

A new report, published by the Manufacturing Technologies Association (MTA), has found that if the UK moves towards Green manufacturing, we could see between £8–20 billion added to the UK’s GDP and 400,000 to 1 million jobs created.

Climate change is having a huge impact on the world we live in and the calls to tackle it are growing louder every day.

The MTA report highlights that the UK is well placed to lead the way in this green future, if we act now. Since the early 1990s, the UK has reduced carbon emissions by 44 percent and is the first country to commit to net zero emissions.

“Going green is not an option, it a necessity. The UK has a worldwide reputation for innovation within manufacturing and engineering. This report highlights the need to invest to make to the essential transition to a decarbonised economy,” said James Selka, CEO of MTA. “By embracing green technology, we can transform our economy as a whole and work towards sustainable growth, creating new, higher paid, jobs and protect the environment in the process.”

The Commission on Climate Change which underpinned the net-zero target estimated that an increase in investment in Green technologies in the order of 1 to 2 percent of GDP per year up to 2050 was needed.

Green growth is an important economic driver – growing around four times faster than the overall economy. Starting early gives companies the best chance of staying ahead and diversifying into future products and markets.

Green transition involves decarbonising processes and products all along the supply chain, as well as reducing the carbon that products require in use.

Transformation that is investment-led both boosts GDP directly and adds to productive capacity.

The effect on GDP stands to be large, adding some £8bn to £20bn in output to UK manufacturing and its supply chains. The effect on jobs also stands to be substantial:

  • Creating some 400,000 to 1 million jobs in the economy as a whole;
  • Some 37,000 to 90,000 jobs in UK manufacturing, and
  • A further 34,000 to 83,000 jobs in the supply chain.

Moreover, the report shows that new jobs stand to be of high-quality, well paid, and fit for the 21st century.

Selka added, “We have seen through the Covid-19 pandemic that when Government engages with manufacturers that change can be implemented quickly. With strong national guidance and the right structure put in place by the UK Government and fully integrated into an Industrial Strategy, we are well placed to become world leaders in Green manufacturing.  We need continued investment in resources like the High Value Manufacturing Catapult to spur progress. The possibilities for growth are substantial. UK manufacturers are ready for this challenge.”

 

Check these articles out:

Industry 5.0: The Future Of Manufacturing In 2035

Ultimaker’s New Software Solution Helps Overcome Barriers In AM Adoption

Renishaw Ramps Up Production Of Ventilator Components

Germans Already Going With Asian Batteries

Daimler Opens Mercedes-Benz Plant In Russia

Hypertherm Releases Major Version Update Of Robotmaster Robot Programming Software

Thailand Sees Strongest GDP Growth In Years

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

 

Machine Tool Industry Propels Taiwan To Become World’s Second Largest Masks Manufacturer In Just 40 Days

Machine Tool Industry Propels Taiwan To Become World’s Second Largest Masks Manufacturer In Just 40 Days

The machine tool makers were instrumental in Taiwan’s race to supply the mounting demand for masks in the fight against the COVID-19 pandemic. Article by TAITRA.

Machine Tool Industry Propels Taiwan to Become World’s Second Largest Masks Manufacturer In Just 40

With COVID-19 devastating world manufacturing now, most factories have either paused work or are slowly recovering. Contrary to most countries worldwide, Taiwan was able to maintain full staff levels in its offices. A part of this result can be attributed to the massive increase in mask production capacity, which now has made Taiwan rank the world’s second largest mask supplier. Such capacity expansion was at first estimated to take six months—much too slow compared to the speed at which COVID-19 spreads. But it ended up taking only 40 days to build up all the 92 sets of automated mask production lines with support from the machine tool industry.

From 2.24 Million to 13 Million Masks Daily

In late January, COVID-19 had begun to spread globally, and Taiwan was at the front line of the strike. Knowing little about the virus, the government decided to expand the country’s mask production capacity so that it would be capable of supplying enough masks for domestic demand. It needed 92 sets of automated lines that required six months for assembly.

“As long as we are provided with the built-up layout, we can assemble it.”

“If there’s demand for robotics in combating COVID-19, we will make it our priority to support.”

“We can help handle the electrical circuits.”

These were the replies when the Taiwan machine tools manufacturers heard about the difficulties faced with mask production. Over 80 manufacturers immediately organised to volunteer and send out staff to join in the mask machine assembly. Given that masks were not a common household necessity as they are now, the lack of manpower made the assembly of the 92 sets a hard task. The volunteers came in to fill in for the needed workforce, and they also self-produced parts that were lacking for mask assembly. They even assisted in troubleshooting during the test runs. Up to 100 workers were volunteering on site during the busiest time, and an average of 60 workers were there every day.

Taiwan’s mask production was at 2.24 million masks per day in January. It increased fivefold within 40 days to 13 million in March. At present, 17 million masks are being produced per day.

 

To continue reading this article, head on over to our Ebook!

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

APAC: Demand For Machine Tools On The Upswing As Manufacturers Invest In New Production Facilities

LVD Showcases New Products In Virtual Technology Events

Profound Machinery Benefits Of A Multi-disciplinary Design

Efficiency and Speed Make Kencoa Aerospace Machining Top Notch

Are Cheaper CNC Machine Tools More Cost Effective?

3 Ways Advanced Machining Builds a Competitive Edge in Aerospace

 

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

 

Digital Sales Offer Long-Term Opportunity To Automotive Aftermarket In Indonesia, Says GlobalData

Digital Sales Offer Long-Term Opportunity To Automotive Aftermarket In Indonesia, Says GlobalData

Auto part suppliers in Indonesia are turning to online platforms to weather the COVID-19 pandemic crisis. Following this news, Bakar Sadik Agwan, Senior Automotive Consultant at GlobalData, offers his view:

“Indonesia currently leads Southeast Asia in terms of the number COVID-19 cases and the country continues to practise large-scale social distancing measures. This in turn has kept customers away from the market and e-Commerce is expected to become new normal for the public to cater their all possible essential and non-essential needs.

Automotive industry, which is amongst one of the deeply impacted industries by the COVID-19 in Indonesia, is expanding its presence in the digital retail as the market looks far from recovery with the current rate of rising cases in the country. Both OEM and aftermarket have been responsive to the situation. Majority of the OEMs are turning up to online enquiries, bookings and virtual tours to get new vehicle sales. The players in the automotive aftermarket, including the e-Commerce companies, are also ramping up their presence in the digital space through availability of consumables, wear and tear parts, accessories and others through their online portals and also offering services home delivered.

Astra Auto Parts, Tokopedia, Alibaba, Ubuy are some of the key existing e-Retailers in the automotive aftermarket in Indonesia and there are new players entering/expanding their presence as well. Carbatama, a manufacturer of lubricant for the Exxon Mobil launched its online store in April 2020. Tokopedia, which already markets parts and components has now partnered with Carro – a leading used car platform in Southeast Asia, to expand its business to used cars.

Diversifying revenue stream through online sales of parts and services is the right move by the aftermarket players to balance the declined sales from the brick and mortar stores. Additionally, digitisation of sales means more than a mere response to COVID-19 pandemic, as the local market was already undergoing digital transformation due its growing Internet penetration, which stands at over 60 percent of total population, as of January 2020. Expanding presence in the digital sales will offer sustainability to local players and will act as long-term opportunity to the automotive aftermarket in Indonesia.”

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

Mercedes-Benz Increases Production Capacity In Indonesia

Hilco Leading Disposition Process In Australian Automotive Manufacturing Equipment

Coronavirus Hits Automotive And Aerospace Supply Chains

Hexagon WORKPLAN 2021: Enhancing Automation In The Sheet Metal Market

Manufacturing Sector Key To Indonesia’s Economy Growth

APMEN SURVEY: COVID-19 Impact On Manufacturing Industry

Vietnam To Remove Import Tax For Auto Materials

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

 

A Look At Global Powertrain Key Technologies And Trends By Region

A Look At Global Powertrain Key Technologies And Trends by Region

Frost & Sullivan’s recent analysis, Global Powertrain Outlook, 2020, finds that global automotive sales are expected to decline by more than 14.2 percent due to COVID-19 by the end of 2020 as manufacturing facilities and supply chains are affected by worldwide lockdowns. However, this slowdown is not expected to have an impact on consumer purchase trends. Demand for diesel engines is expected to decline in Europe by 30 percent by the end of 2020 as Worldwide Harmonised Light Vehicles Test Procedure (WLPT) commences, while global electric vehicle (EV) sales are forecast to increase by about 3.4 percent, spurring demand for gasoline-hybrid and fully-electric powertrains

“OEMs will focus on hybridising existing internal combustion engine (ICE) vehicles as full hybrids have proven to help comply with stricter regulations and have also enjoyed consumer success in recent times,” said Naga Karthik Voruganti, Research Analyst, Automotive & Transportation at Frost & Sullivan.

“Engine downsizing will continue, while the highly efficient gasoline direct injection (GDI) engines will continue seeing an increase in adoption. The integration of gasoline particulate filters (GPFs) and three-way catalytic converters (3WCs) is expected to increase substantially in 2020 with more OEMs seeking to get their gasoline-powered vehicles certified under the new WLTP regulations.”

Voruganti also said mild-hybrid powertrains and the standardisation of exhaust after-treatment technologies, such as selective catalytic reduction (SCR) and coated GPF, are major technology trends that could impact the powertrain industry in 2020.

The growth opportunities in the key regional markets will vary considerably. The main trends and growth opportunities in each key region are presented below:

  • The United States: The US is expected to register about 1.13 million electric and hybrid vehicle sales in 2020, an increase of about 4.7 percent, with a majority of the growth coming from Battery Electric Vehicles (BEVs) and mild and full hybrids.
  • Europe: European Electric Vehicles of all types (xEV) sales are expected to grow by 5.3 percent, assuming a moderate COVID-19 impact, and EVs alone will have a positive growth of about 27.5 percent.
  • China: Vehicle sales are projected to decrease in 2020 due to the unpredictable impact of COVID-19, but EV share is expected to increase from 4.9% of the sales in 2019 to 5.6% in 2020.
  • India: Hybrid vehicle sales increased by 75 percent from 2018, which poses opportunities for OEMs to explore the market. Diesel vehicles will witness an increase in prices compared to gasoline due to the stringent norms of Bharath Stage – 6 (BS-VI).
  • South Korea: Despite a decline of 1.6 percent in recorded sales nation-wide and the end of the temporary tax cut in August, the Mild Hybrid Electric Vehicle (MHEV) 48V segment enjoyed 283% growth, as sales quadrupled in 2019.
  • Indonesia: Car sales improved toward the end of 2019, but due to the sudden and massive impact of COVID-19 on the global supply chain, overall sales are expected to decline by about 17.3 percent in 2020.
  • Japan: Although the sales of new passenger cars in the country in 2019 declined by 2.1 percent from 2018, Japanese brands’ sales have increased by 1.9 percent; sales of foreign brands declined by 3.3 percent. Vehicle sharing and the fading appeal of cars among the younger population are trends expected to affect the domestic market in 2020.

 

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

Indonesia Auto Market To Remain Stable

Digital Transformation Of Manufacturing To Add US$387 Billion To APAC’s GDP By 2021

Electric Cars May Cost Less Than Gasoline Cars In 2025

Metal Powder Market Forecast To Grow At 3% CAGR Over 2018 to 2028

Global Light Vehicle Market To Decline 17.2 Percent In 2020

Heimatec on Thailand Opportunities and Challenges

Global Auto Sales Rise 4.6% In September

ASEAN Automotive On The Road To Recovery

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

 

Cloud-Edge And 5G Set To Propel Post-COVID-19 Value Creation

Cloud-Edge And 5G Set To Propel Post-COVID-19 Value Creation

More than ever, cloud compute and intelligence platforms should be as close to the source of data at the outer ‘edges’ as possible. The importance of cloud-edges is further highlighted in their relationship with 5G, which forms a symbiotic association with cloud-edge as a technological evolution of the cloud. Cloud-edge implementations promise new growth for the telecom industry. Revenue from cloud-edge AI chipset sales is set to grow from US$2.6 billion in 2020 to US$12 billion in 2025, at a compound annual growth rate (CAGR) of 36 percent , finds global tech market advisory firm ABI Research.

The synthesis of cloud-edge and 5G presents an opportunity for communications service providers (CSPs) to provide complete end to end solutions for enterprise verticals. For example, with their robust connectivity and 5G assets, the likes of AT&T, Telefonica, Verizon, and Vodafone could move up the value chain to service enablement layer for IoT, analytics, and other horizontal capabilities. “A combination of cloud-edge compute and 5G ultra-reliable low latency connectivity is going to be the bedrock to propel post-COVID-19 growth. This growth is not just for telecoms, but also for a multitude of asset-heavy industries as they embrace digital-first processes and operations,” says Don Alusha, Senior Analyst at ABI Research.

At present, there is no “right” business model for cloud-edge deployments. A key strategy for vendors like MobiledgeX, Ericsson, and Nokia is to target their products at the circumstances in which enterprises find themselves, rather than to enterprises themselves. In other words, the critical unit of analysis must be existing operations and associated commercial circumstances, not the customer. There is a mass of enterprise requirements that must be satisfied with cloud-edge implementations that do not fit the ‘one-size-fits-all’ profile. The ability to deploy edge-clouds across dispersed sites and supply chains in a uniform fashion is bound to be the defining feature to accelerate edge-cloud diffusion. This is particularly significant in a post-COVID-19 world where local compute, 5G, and fiber will continue to be the foundation for continued innovation and value creation.

As telecoms look closely at current market dynamics for cloud-edge opportunities, the key is to understand where it stands in terms of existing assets and complementary control points. The market for cloud-edge deployments promises growth, but it is composed of a plethora of players and technologies which must be intimately understood. At present, the industry does not have all the answers but should realize the choke points in the near term to obtain growth in the long run. For example, CSPs need a clear sense of the industry or industries) they currently serve and what additional opportunity falls within the boundary of cloud-edge as they take the lead to rejuvenate the global economy post-COVID-19.

“Lastly, hyper scale providers like Amazon and Microsoft are taking advantage of their lean operations to launch their cloud-edge offering. They have the vision to build capabilities close to the edge, but they do not necessarily have the penetration and distribution of network capabilities that CSPs have. Clearly, there is an opportunity to be addressed by somebody, but the jury is still out on who captures what parts of the emerging cloud-edge and 5G ecosystem,” Alusha concludes.

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

Vinfast Opens R&D Center In Australia

Interview With Jun Chie, Vice President & General Manager At Keysight

Smart Manufacturing Market to Reach US$573B By 2027

Frost & Sullivan: Digital Retailing And Vehicle Leasing To Propel Automotive Recovery Path

Global Spending on Defence Declines as Governments Allocate Funds to Reactivate the Economy

ASEAN Automotive On The Road To Recovery

The Global Aluminium Castings Market To Grow By US$32.1 Million Despite The Pandemic

 

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

EuroBLECH 2020 Postponed To March 2021 In Hanover, Germany

EuroBLECH 2020 Postponed To March 2021 In Hanover, Germany

EuroBLECH Digital Innovation Summit to take place in October 2020

Mack Brooks Exhibitions has announced the postponement of EuroBLECH, which was scheduled to take place at the Hanover Exhibition Grounds in Germany from 27 to 30 October 2020. The new dates for the next EuroBLECH, 26th International Sheet Metal Working Technology Exhibition, are 9 -12 March 2021. This decision was taken after extensive conversations with all exhibitors and partners over recent weeks and months who have expressed their preference not to hold the show in October, in light of the ongoing Covid-19 crisis. Uncertainties around travel restrictions in order to maintain the truly international character of the EuroBLECH event were also a concern to many participants.

Speaking about the announcement, Nicola Hamann, Managing Director of Mack Brooks Exhibitions said: “The past months have been challenging, in particular for the sheet metal working industry and its related industry sectors. We have seen a decrease in orders of capital goods and many companies are telling us about their challenges in dealing with the impact of the Covid-19 pandemic. Although we have recently received authority approval for our Safety and Security concept to hold EuroBLECH in October this year, we have decided to postpone EuroBLECH to Spring 2021”.

As part of a recent series of industry surveys, the participants of EuroBLECH indicated their requirement to network and conduct business in order to pave the way for the recovery of the industry following the Covid-19 pandemic. EuroBLECH will therefore offer a virtual hub for the global sheet metal working industry in October: “Following feedback from our exhibitors and visitors indicating the need to participate in an event, even if not in a physical form, we will organise a Digital Innovation Summit taking place from 27 to 30 October, our planned event slot. This Digital Innovation Summit will provide our exhibitors with a platform to demonstrate their latest machines and solutions and arrange virtual meetings with international visitors. We believe it is our duty to assist the industry through these extraordinary times by offering a market place this year as a platform for innovations and a starting point for the recovery of the industry”, continued Nicola Hamann.

The EuroBLECH Team will communicate closely with customers and partners over the coming weeks and months and thank their exhibitors, partners, suppliers and visitors for their support during this challenging time. Further information on the Digital Innovation Summit containing details on the Online Presentation Theatre for exhibitors, video on demand options and matchmaking facilities, will be available shortly.

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

Schneider Electric Innovation Summit Singapore: Powering And Digitising the Economy

Hexagon WORKPLAN 2021: Enhancing Automation In The Sheet Metal Market

A Company At The Heart Of The Car Industry

Fibre Laser or CO2 Laser—Which Will Prevail?

DOST Metals Industry Research and Development Center Is Mass Producing 5000 Face Shields Daily

Global Light Vehicle Market To Decline 17.2 Percent In 2020

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

 

Wire & Tube China 2020 To Steer Global Economy Recovery As Scheduled In September

wire & Tube China 2020 To Steer Global Economy Recovery As Scheduled In September

At present, the COVID-19 epidemic has been effectively controlled in China, and some overseas countries have managed to stabilise the epidemic situation after several months of travel restrictions. Considering the exhibition industry is important to promote cross-regional economic and trade cooperations, a guideline on the prevention and control of COVID-19 issued by the State Council of China in May declared that all kinds of necessary conferences and exhibitions can be held with a high standard onsite hygiene measures and proper personnel management.

During the pandemic, the organisers of wire & Tube China, Messe Dusseldorf (Shanghai) Co Ltd, Shanghai Electric Cable Research Institute Co Ltd and Metallurgical Council of China Council for the Promotion of International Trade (MC-CCPIT) pay close attention to the changes in the domestic and international situation. In addition to the establishment of a joint emergency team, the organisers have actively created a new model of an “offline + online” combined exhibitionwhich can not only warm up the exhibition, but also break the boundaries of time and space to network exhibitors with buyers.

On the other hand, many exhibitors still show their trust in wire & Tube China. So far, over 600 companies have confirmed their participation in wire China, and nearly 340 companies have submitted booking applications for Tube China. Country and region pavilions from Germany, France, Japan, and China Taiwan are expected to join the exhibition at the same time.

Ensuring the health and safety of every participant is always the top priority. The organisers will strictly follow the COVID-19 protection guidelines and provide all participants with a safe communication platform. In response to the prevention and control measures on COVID-19 in Shanghai, all participants need to do online real-name registration before the show, then present health code and take temperature onsite.

Visit http://www.tubechina.net/links?id=95 to register and get passes.

 

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

Global Light Vehicle Market To Decline 17.2 Percent In 2020

Global Spending on Defence Declines as Governments Allocate Funds to Reactivate the Economy

Vietnam Experiences Influx Of Japanese Investments

TMTS 2020 Switched To A Virtual Event, With Next Exhibition Scheduled In 2022

TRUMPF Discusses Opportunities For Growth In Vietnam

Mouldmakers Turn To Process Automation In Race To Recover

[WATCH] APMEN Speaks On The Impact Of COVID-19 On ASEAN’s Metalworking Industries

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

 

Global Light Vehicle Market To Decline 17.2 Percent In 2020

Global Light Vehicle Market To Decline 17.2 Percent In 2020

The world’s light vehicle market is forecast by GlobalData to decline by 17.2 percent to 73.6 million units in 2020, due to the impact of the COVID-19 pandemic and its associated economic fallout.

“This is a bigger one-off shock than witnessed in the two years of the global financial crisis,” says Calum MacRae, Automotive Analyst at GlobalData.

GlobalData’s analysis suggests that the damage to the global market will turn out to have been most acute in the second quarter of this year, when strict lockdown measures were in place across the world.

“Our forecast sees Q2 around 34 percent down on last year’s pace and way below the 2008 Q4 low point reached during the last big global downturn,” MacRae says.

“However, vehicle markets are on the turn as we get into the second half of the year. China was first in to the crisis and was first out. China’s light vehicle market was up eight percent in May and South Korea’s was up nearly 10 percent. In Europe we’re seeing some improvement to vehicle markets now, too, helped by government subsidies for new vehicle purchases.”

A combination of pent-up demand and the effects of the government subsidy program saw the French vehicle market surge back to life in June. Light vehicle sales increased by 2.4 percent year-on-year in June to nearly 286,000 units. Passenger car sales increased by 1.2 percent to just under 234,000 units.

However, MacRae cautions that uncertainties remain in this crisis and COVID-19 infections are rising in a number of countries in Asia and the Americas – most notably in the US.

“COVID-19 cases are on the rise in a number of US States, prompting new restrictions on populations. This brings further downside to GlobalData’s US light vehicle sales forecast. Increasing infection rates in three key US sales markets – California, Texas and Florida – means that stronger headwinds are a real threat.

“If tighter social restrictions are introduced or re-introduced in the coming days and weeks, prospects for the US market will suddenly look much dimmer than the 14.5 million (-15.2 percent) GlobalData currently forecasts for the US light vehicle market and will potentially result in a sub-14 million market.”

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

Rolls-Royce Uses Light 10 Billion Times Brighter Than Sun To Improve 3D Printing

Thailand Remains As Production Base For Toyota

Frost & Sullivan: Digital Retailing And Vehicle Leasing To Propel Automotive Recovery Path

Faro Launches Cobalt Design Structured Light 3D Scanner

Worldwide Spending On IoT To Reach US$745 Billion In 2019

The Global Aluminium Castings Market To Grow By US$32.1 Million Despite The Pandemic

Industrial Automation Sector Amid COVID-19 Pandemic

3D Imaging Sensors And Hardware Subsystem Market To Hit US$57.9 Billion By 2025

Shutdowns To Cost European Auto Industry GBP 29 Billion

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

ASEAN Automotive On The Road To Recovery

ASEAN Automotive On The Road To Recovery

Despite continued softness in the market, the automotive manufacturing market is steadily moving towards recovery. According to Globaldata, although the global light vehicle sales fell 33.8 percent in May compared to a year ago, it showed an improvement from April when sales fell a record low of 47.5 percent. Analysts believe markets will begin the long climb back and we will begin to get more signals on market demand for the rest of the year.

In fact, China will lead the global auto market recovery. With automotive production and supplies resuming and China lifting restrictions on the movement of people and goods since early April, vehicle sales have started to stabilise.

Here, we take a look at the latest developments in the ASEAN automotive market and its road to recovery:

Thailand:

With phase 4 of relaxations, Federation Of Thai Industries (FTI) expects gradual recovery of the automotive market as businesses restart operations.

However, May vehicle production production was down 69.1 percent in May YOY, totalling 56,035 units. They noted that 2020 vehicle sales could be 700,000 units if the outbreak stays under control, or 500,000 units if local infections continue into September. 

Furthermore, 50 percent decline is expected for the auto parts market, but the Auto Parts Industry Club expects gradual recovery of auto parts industry as Thailand enters Phase 4 relaxation

  • AAPICO Hitech (AH) expects losses in its Q2/2020 amid the continuing decline in the local automotive industry from the beginning of the year due to the pandemic, Marklines cited a Thun Hoon report. Among AH’s businesses is the manufacture of OEM automotive parts. The company, according to the report, plans to boost its production capability this year to serve new auto parts products.
  • Mazda has reported sales of 1,602 vehicles in May 2020, down by 60 percent YoY, but up by 58 percent from the previous month. In a statement, Mazda is seeing positive signs that the automotive market is gradually recovering, given increased sales in every segment.
  • Mazda has announced that it will resume two-shift operations at all its plants in Japan in July. Its plants in Thailand and Mexico will be operating on limited days. Mazda expects global production volume in July to increase by 50 percent from June, according to a MarkLines report citing Nikkan Jidosha Shimbun
  • Auto parts maker T. Krungthai Industries Public Ltd (TKT) has over THB500 million ($16.15 million) worth of backlog order in hand, waiting to be delivered to customers, according to MarkLines, citing a Thun Hoon report. TKT expects sales to recover in the second half of 2020.

Indonesia:

GAIKINDO, Indonesia’s automotive manufacturers association, reported Indonesia’s total vehicle sales in May 2020 were 3,551 units, down by 95.8 percent YoY due to the coronavirus. Meanwhile, the government is encouraging innovation through its Industry 4.0 program which includes the automotive industry and EV industry.

Although sales have experienced a downward trend since the beginning of the year, PT Suzuki Indomobil Sales (SIS) remains optimistic that it can increase its market share this year. From January to April 2020, Suzuki’s market share increased to 11.5 percent, compared to 9.3 percent in the same period last year. (GAIKINDO)

Vietnam:

According to the Vietnam Automobile Manufacturers’ Association (VAMA), automobile sales declined 30.6 percent YOY to 19,081 units in May.

Vietnam ratified a free trade agreement with the European Union that will cut or eliminate 99 percent of tariffs on goods traded between the Southeast Asian country and the bloc, and provide Vietnam with a much-needed post pandemic boost, according to Bangkok Post. Vietnam will have a transition period of up to 10 years for some imports, such as cars. With this, insiders predicted the domestic automobile market will prosper in the last six months of the year and domestic automakers have the opportunity to develop as well as compete with imported cars. (VNS)

  • Toyota Vietnam has announced sales of 4,311 units in May 2020, up by 48 percent from April. (Auto Daily)
  • VinFast Production and Trading LLC announced in April that the inauguration and start of production of its automobile manufacturing plant will take place in June 2019 instead of September 2019 as previously planned.

Malaysia

Malaysian Automotive Association (MAA) reported new car sales decreased 62.2 percent YoY in May. They expect sales volume for June 2020 to be higher than May as businesses resume after restrictions for economic activities are lifted and sales tax exemption announced by the government.

Furthermore, The Malaysia Automotive, Robotics and IoT Institute (MARii) estimates a 28 percent drop in new car sales in 2020 due to the Movement Control Order (MCO) brought about by COVID-19, and that a minimum 500,000-unit total industry volume is needed in 2020 for automotive businesses’ continued survival.

  • The Malaysian government has agreed to reduce the sales tax for new vehicles for six months until December to revitalise the market, according to a report from New Straits Times.
  • For the 1Q 2020, UMW Holdings Berhad registered a lower revenue as disruptions caused by the COVID-19 pandemic led to lower sales in the automotive and equipment businesses.
  • In May 2020, PROTON sold 5,676 vehicles, accounting for an estimated market share of 23.3 percent, but down by 46.5 percent compared to last year. Sales in May, however, was a 73 percent improvement over that of March. For January to May 2020, PROTON’s sales volume declined by 23.3 percent, while the overall industry dropped by 48.7 percent over the same period.
  • Perodua has sold 52,920 vehicles as of the first five months of 2020, giving it a 41 percent market share against an estimated year-to-date total industry volume of 129,401 units.

Philippines:

Operations of both assembly plants and dealerships have resumed with easing of restrictions. The Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA) reported a 84.6 percent decrease in May car sales YoY. According to Philippine Star, however, May’s production figure of 4,788 units was a vast improvement over the 133 units manufactured in the previous month. Furthermore, CAMPI expects total vehicle sales to drop 20 percent in 2020 due to the pandemic.

  • Auto parts makers have renewed their call to the government to support local parts manufacturing by implementing higher duties on vehicle imports and prevent small and medium parts makers from closing shop amid the COVID-19 pandemic, according to a Philippine Star report.
  • Comprehensive Automotive Resurgence Strategy (CARS) program
    • Government introduced Incentives to encourage investments in vehicle manufacturing, while manufacturers have to manufacture at least 200,000 units of enrolled vehicle model within six years
    • According to the Department of Trade and Industry (DTI), volume of vehicles required to be produced will remain unchanged even if automakers are unable to reach the target

For other exclusive articles, visit www.equipment-news.com.

 

Check these articles out:

Aircraft Milled Parts Market To Reach US$4.3B In 2025

APAC Demand For Machine Tools On The Upswing As Manufacturers Invest In New Production Facilities

5G Integration In IIoT Systems Accelerates Industry 4.0 In The Wake Of Pandemic

FTI Spurs Thai Automotive Market With Proposed Measures

BMW And Mercedes Put Autonomous Drive Collaboration On Hold Due To COVID-19

Automotive OEMs Must Improve Online Sales Models To Mitigate COVID-19 Sales Slump

Shutdowns To Cost European Auto Industry GBP 29 Billion

Global Auto Sales In The Wake Of COVID-19

 

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

 

 

Back To Top