According to foreign media reports, JCB closed its UK plant, Orex closed three plants in France, Terex closed its plants in Italy, China, and Washington State in the world. Manitou announced the closure of its French plant.
Komatsu announced that its sales data for 6-ton and above excavators in the Chinese market fell by 35% year-on-year in January and 67% in February.
The Volvo Group stated: "The global outbreak of the New Crown epidemic is affecting the entire group, and the risk of significant financial impact will begin in mid-March."
From the global epidemic report, we can see that the epidemic situation in Japan and South Korea has been effectively controlled, and the growth rate of confirmed patients has slowed down. Data from European and American countries are constantly rising. Although many countries have invested huge sums to save the market, they cannot prevent equipment production problems caused by supply chain disruptions, factory shutdowns, and terminal sales.
Supply chain rushes, maintenance, temporary closure as a last resort
Transmission maker ZF said in a statement that it had received notice from some customers that it was slowing or about to stop production. ZF said: "Our goal is to supply our customers as long as possible and on demand." The company also said that it is currently unclear what the slowdown in car production will affect the company globally. The factory makes an impact.
According to Robert Bosch, "to a large extent, we are currently trying to maintain the manufacturing business" and the company's own supply chain. In Automotive News Europe's global top 100 supplier list, Stuttgart, Germany-based Bosch ranked first. In 2018, the company's global original equipment auto parts sales were $ 49.525 billion.
The second-ranked European supplier, Continental, stated that "temporary plant closures are the company's last resort and will only be implemented in extreme cases and at the request of the authorities". The company said in a statement that its epidemic plan had been "successfully implemented during the previous New Crown epidemic" and that they would act on a case-by-case basis.
Japan and South Korea epidemic under control, but supply chain risks remain
From the global epidemic broadcast, we can see that the epidemic situation in Japan and South Korea has been effectively controlled, and the growth rate has slowed down. Data in Europe and the United States have continued to rise, and equipment problems caused by supply chain disruptions, factory shutdowns, and terminal sales have continued.
Previously, South Korea's manufacturing industry was suffering from the negative spillover effect of the Chinese epidemic: South Korea ’s average daily exports in the first 20 days of February had a negative growth of 9% year-on-year due to the decline in Chinese demand. According to media reports, insufficient manufacturing in China ’s manufacturing industry has also caused some South Korean companies Hyundai stopped production due to insufficient parts.
In this context, the epidemic is spreading faster in Korea, which may cause more companies to reduce production or even stop production. Its manufacturing industry is facing an even worse situation. But more important for global investors is that in the context of the temporary manufacturing capacity of China's manufacturing industry due to the epidemic, the factory in South Korea, which is also a major manufacturing country in the world, will undoubtedly increase global supply if it reduces production capacity or suspends production for a short period of time. The chain is tight.
Europe, Japan, and South Korea spend huge sums of money to save the market
Although many countries have invested huge sums of money to save the market, they cannot stop the slump in the global equipment manufacturing industry brought by the supply chain.
The U.S. Federal Reserve announced on the 15th that it will lower the federal funds rate target range by 1 percentage point to between 0% and 0.25%, and launch a $ 700 billion quantitative easing plan to support financial markets and deal with the impact of the new crown pneumonia epidemic on the US economy. influences. Earlier, the Federal Reserve has urgently cut the federal funds rate by 50 basis points to the level of 1% to 1.25% on the 3rd.
Europe: In response to the economic impact of the new pandemic pneumonia, the European Central Bank announced the 750 billion euro emergency asset purchase plan on the evening of the 18th.
In addition, according to foreign media reports, the Japanese government is planning an economic stimulus plan of more than 30 trillion yen. The Australian government is also brewing a new round of economic stimulus measures.
Stop the virus and boost the economy, "Only China can help us"
In terms of stopping the virus: Geng Shuang, a spokesman for the Chinese Ministry of Foreign Affairs, confirmed on the 17th that China has provided or is providing them to dozens of countries and regions in need such as Pakistan, Laos, Thailand, Iran, South Korea, Japan, Italy, and the AU. Urgently needed medical supplies. Leaders of many countries have stated that "only China can help us."
Boosting the economy: China has released incomplete statistics of 50 trillion infrastructural investments, and the epidemic has entered a tailing stage. The operating rate of major projects in many provinces and cities in China has exceeded 90%, and even in Hubei, the severely affected area, the operating rate has increased for three consecutive years.
According to the figures provided by the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, the operating income of China's construction machinery industry in 2019 is expected to reach 660 billion yuan, an increase of about 10% year-on-year. In each segment, China's mobile starters, excavators, loaders, rollers, tower cranes, roadheaders and forklifts are the world's largest producers.
With the continuous recovery of the Chinese economy, the global manufacturing industry is expected to usher in a new round of growth.
