Pressure Washers

  • Global: Recovery Is Strong, but Uneven

    GLOBAL REPORT
    Yosyf Sheremeta
    Yosyf Sheremeta

    SUMMARY.  The global economy performed very well in 2021 and continues to recover, along with trade, employment and incomes. But the revival is unbalanced, with regions/countries, businesses and people facing very different economic realities. Recent improvements also conceal structural changes, which means that some sectors, jobs, and technologies will not return to their pre-pandemic trends. Based on the most recent economic developments and trends, Power Systems Research remains somewhat optimistic about the global recovery.

    Many of us hoped to be in the post-Covid phase by now, but it is evident that there is no quick way out.  The pandemic has had a profound impact on the world economy, and it will continue to challenge established norms of life and business into the foreseeable future.  As we start the new year, many challenges remain, new and old alike: re-surgency of COVID variants, restrictions on travel, supply chain challenges, shortages of materials/goods, inflation, and employment, as well as renewed geopolitical tensions across many parts of the globe.

    Power Systems Research witnessed a strong economic recovery globally in 2021, despite regional differences.  Output in most OECD countries has now either surpassed or is about to reach pre-pandemic levels, but lower-income economies, particularly those where vaccination rates are low, are at risk of being left behind.  Furthermore, the rebound will continue to vary widely among different market segments.  

    Global inflation re-surfaced in 2021 and presents a real risk to economic recovery in all regions. The renewed inflationary pressure risks lasting longer than was expected a few months ago.  The surge in retail and wholesale energy costs in late 2021 will undermine economic growth prospects for large parts of Europe and Northeast Asia well into 2022.  Rising food and energy prices already have impact on low-income households in particular. 

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  • Global Economy On the Path To Economic Recovery, Despite Increased Uncertainty

    Yosyf Sheremeta
    Yosyf Sheremeta

    The global economy is on a healthy rebound trend, but issues with supply chain, logistics and the re-surgency of COVID-19 during Q3 2021 remained.  Power Systems Research witnessed a strong economic recovery globally in H1 2021; however, many challenges still remain.  The rebound will continue to vary widely among different regions/countries, but a complete recovery is not expected until the global pandemic is under control.   With some minor changes among regions and market segments globally, our overall forecast from last quarter remains in place, and that is good news to our industry players, OEMs, powertrain, and component suppliers.

    The global economic performance last quarter was in line with our initial projections from earlier this year.  As we projected last quarter, we did not expect any rapid economic recovery in H2 2021, however, we continued to witness a steady increase in economic activities.  During the last quarter of 2021 Power Systems Research expects this trend to remain in place.

    Government support in the form of fiscal policies and public health management are driving the economic rebound and largely explain variations in performance across countries. With the targeted monetary support to consumers and certain industries, the demand for products and services globally is coming back, and we expect this trend to carry over into Q1 2022.

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  • Strong Post-pandemic Growth Expected into 2022-23 for North America

    Yosyf Sheremeta
    Yosyf Sheremeta

    SUMMARY.  After the GDP declined 3.5% last year, the worst performance in almost 75 years, the US economy is set for a strong comeback.  There are many reasons to be optimistic about the economy for the next few years, including strong readings of macro-economic factors combined with the economic cycle reset backed by government initiatives and policies.

    Our positive outlook is based on the reviews of key economic indicators, including GDP, unemployment, and inflation. 

    During H1 2021, we witnessed a strong level of activities and a rebound for many industries.  As local governments eased lockdown restrictions, service-oriented industries gained traction and that translated to an overall increase of economic activities across many industries. 

    We expect this level of rebound to continue and we now expect even stronger overall growth for 2021.  The US economy is on track to reach or even surpass the growth level of 1984 – the highest one since 1950s.  In the near term, consumer spending will help drive demand and support the strong growth trend.

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  • Briggs & Stratton Files Chapter 11, Sets Sale Agreement

    Briggs & Stratton (B&S) one of the  largest producers of gasoline engines for outdoor power equipment, and a manufacturer of power generation, pressure washer, lawn and garden, turf care and job site products, has filed Chapter 11 Bankruptcy.

    Michael Aistrup
    Michael Aistrup

    The company has obtained $677.5 million in financing, with $265 million committed by KPS and the remaining $412.5 from the company’s existing group of lenders.

    B&S also announced it has entered into a definitive stock and asset purchase agreement with KPS Capital Partners. Under the terms of the agreement, an affiliate of KPS formed for purposes of this transaction has agreed to acquire substantially all the company’s assets and assume certain customer, employee and vendor liabilities.

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  • We Expect 2020 NA Overall OEM Production To Be Flat

    This article initially appeared in the February 2020 issue of PowerTALK News.

    SUMMARY.  The North American economy remained stable in 2019 and pure economic conditions as well as fundamentals in the region were favorable. Most industries performed very well, and the short-term outlook remains stable to flat for most market segments. However, we see many new developments that could suggest a shift in the trend.

    Yosyf Sheremeta
    Yosyf Sheremeta

    Consumer confidence declined slightly in December, following a moderate increase in November.  The Conference Board’s Consumer Confidence Index stood at 126.5 in December, 1.4 points higher than in September 2019. 

    Per Lynn Franco, Senior Director of Economic Indicators at The Conference Board: “While consumers’ assessment of current conditions improved, their expectations declined, driven primarily by a softening in their short-term outlook regarding jobs and financial prospects. While the economy hasn’t shown signs of further weakening, there is little to suggest that growth, and in particular consumer spending, will gain momentum in early 2020.”

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