2020-04-25
Japanese OEMs are struggling to adapt to the COVID-19 problem. Plants are being temporarily shut down and production adjustments are being made.
While domestic plants are generally operating quietly, overseas bases are being affected in various ways, depending on the country. Here is a summary of announcements by the major companies.
As of today, India is relatively less impacted by COVID than other nations. Because of the very bold and unprecedented move of a complete lockdown for about 40 days, India has managed to restrict the number of positive cases to 17,000.
Considering that India is a country with a population of over 1 billion persons living in challenging on-ground conditions, it is a phenomenal effort of proactive and timely response from the government as well as restraint observed by citizens.
105,900 units is the estimate by Power Systems Research of the number of Skid Steer Loaders to be produced in North America (Canada and the United States) in 2020.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
2020-03-23
This report includes updates on these manufacturers: Haval, Claas, Aurus, and KAMAZ.
This article first appeared in the March 2020 issue of PowerTALK™ News
Haval, the Chinese manufacturer, said it plans to build its own engine plant in the Tula region of Russia. Work is scheduled start this month (March 2020). The planned investment in the project is US$ 270 million. This information comes from press-service of Haval Motor Rus.
It’s expected that the new plant will produce 80,000 engines annually, increasing the localization level of SUVs by several thousand units annually. Total personnel number in automotive plant exceeds 1000 people. Read The Article
PSR Analysis: The first Russian Haval plant opened in May of 2019. Current production capacity is 80 Haval SUVs. The plant will be located on a 10,000 sq.m. site next to the Haval automotive plant. It will provide more than 300 jobs.
In April 2020, Russian plant Claas in Krasnodar will start producing the Tucano 320 grain combine. During the first two years, this model will be produced simultaneously in Germany and in Russia. Beginning in 2022, the plant in Krasnodar will became the sole maker for this model. The move opens opportunities to increase production and export volumes for the Russian plant.
2020-03-22
This report appeared in the March issue of PowerTALK ™ News
Lack of components coming from China may be a problem because of work interruptions caused by the coronavirus. According to the Brazilian Machinery Builders´ Association (ABIMAQ), the risk of supply stoppages is high. The Chinese content of an Agricultural Machine produced in Brazil is estimated to be 10% to 15%, with higher concentration on electronics components.
Source: M&T / Globo Rural Read The Article
PSR Analysis: This is an opportunity for local and international players to start
supplying these companies as an alternative source. The time window is short for
development of alternative sources, but global companies may start risk mitigation
plans. Understanding the opportunities, volumes and component content will be
key at this moment.
The combination of market decline by 31% and the increase of vehicle imports
are the main reasons for the drastic reduction in production. From 2010 to
2015, the local production has been above the imports, with significant exports
to neighbor countries as Colombia and Peru. From 2016 – 2018, imports grew
from 31,000 to 103,000 units, while the production grew from 29,000 to 42,000
between 2016 and 2017, after a significant market growth, but reduced from
42,000 to 18,000 in 2019 with the competition from imports.
Source: PSR / AEADE Source: M&T Read The Article
PSR Analysis: Currency policy changes and changes in automotive industry
regulations are the main reasons for the shift in the automotive industry of
Ecuador. These changes affect not only Ecuador, but also the ability to reach
neighbor countries with its products, opening space for other players, like
Brazilian and Chinese. PSR
Fabio Ferraresi is PSR Director, Business Development, South America
2020-02-25
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.
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.”
CASE IH celebrates positive results in 2019 with 649 sugar cane harvesters sold in Brazil in 2019 being 50% made by CASE. Case points the share growth to the improvements made at the model A8000 that can make up to 15% on operational cost savings and robustness for those machines that operates over 4,000 hours per year.
Source: M&T Read The Article
PSR Analysis: Agricultural business remains strong. Despite lower sales of small tractors dedicated to small business due to lower credit, heavy production equipment sales remain strong because of record production of grains and other agricultural products. PSR
2019-11-19
HANNOVER, Germany– The impressive Gold Award for Innovation at the Agritechnica 2019 Show was awarded to John Deere for its electro-mechanical power split gearbox.
Stepless transmissions with a hydrostatic-mechanical power split have been used in agricultural tractors for over 20 years. Previously, additional generators for electric drives with a higher power requirement were installed on tractors (fan, compressed-air/air conditioner compressor, etc.) or on implements.
HANNOVER, Germany–For many years, Agritechnica has been growing and strengthening its role as the top European agricultural trade show. Despite the struggles that the industry is facing, with declining order books and a less than enthusiastic outlook for 2020, Agritechnica 2019 held here Nov. 11-16, 2019, reaffirmed its position as the most important ag tech event in Europe. The show reported 2,820 exhibitors and 450,000 visitors, more than 130,000 of them from outside Germany.
2019-11-08
Agritechnica 2019 begins Nov. 10, 2019, in Hannover, Germany, and analysts from Power Systems Research will be walking the halls gathering data and photographs on the latest products and trends. We’ll have their report here for you.
Agritechnica is one of the world’s largest exhibitions for agricultural machinery and equipment. This event showcases products such as tractors, transport, and harvesting technology, and equipment. Don’t miss our reports. PSR
Monthly news and analysis from PSR’s experts
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