Global Trade Impact of COVID-19 On The Industrial Paint Booth Market
Currently the entire world is grappling with the impact of the COVID-19 pandemic. However, as some countries are beginning to re-open their economies, we are seeing the financial and economic impact that the pandemic has inflicted.
In previous years the growing demand for passenger cars, commercial vehicles and two-wheelers continuously unlocked underlying growth opportunities for the industrial paint booth market. Growth was seen in the sectorat a consistent pace, over the last quarter and further growth was forecasted to continue throughout the 2020-2030 period.
Due to the outbreak of coronavirus however, the global industrial paint booth market is set to witness stagnating growth in 2020.
The shutdown of economies and businesses throughout the world substantially lowered the demand for industrial goods and auto vehicles, which could pose a challenge to the industrial paint booth market.
For countries that never shut down the industrial goods and automotive sectors the biggest problem they faced was disturbed supply chains that has generated a shortage of some raw materials, which is significantly curbing their ability to produce.
Even with these significant challenges, the market is still estimated to be able to come out of this small slump and continue to see growth throughout the next 10 years. The global Industrial paint booth market is projected to expand at a compound annual rate of growth of 2.6%, in terms of value, to reaching over US$ 789 million by the end of 2030.
As the pandemic situation is being brought under control in some countries, their economies are set to regain trajectory. Due to this, businesses are beginning to experience a resurgence and the industrial spray booth market is no exception.
Areas such as East China are giving industrial companies incentives in order to encourage the manufacturers to increase production to help avoid a significant drop, as much as possible.
Luckily for countries, such as Australia, a complete shutdown of all businesses wasn’t necessary. This meant that even though some gaps in the supply chain were seen and production did slow, if the company had the means to, they never completely shut down. Now thatAustralia, like others are preparing to continue reducing restrictions and opening up the economy completely, manufacturing can slowly begin further production and attempt to fill the gaps in their supply chains through Australian suppliers. Markets such as the Australian industrial paint booth market can take this opportunity to make themselves stronger in order to compete with the global market and the global leaders within their market.
It is an opportunity for Australian owned and run companies such as DRYSYS Spray-Cure, to help revitalise local Australian manufacturing and build resilience into domestic supply chains for the industrial paint booth market. This is important to build the Australian economy back-up while the majority of the world is still in lockdown. It is the country’s best bet in order to be able to continue manufacturing and engineering what is needed in Australia, even with restrictions on imports from some of Australia’s largest import partners.
The outbreak of COVID-19 has caused momentous obstructions to the global industrial paint booth market, like many other markets they are poised to witness a sharp drop in demand for a couple of quarters. However, as the situation is brought under control, the marketis set to grow positively to create significant opportunities by the end of the forecast period in 2030.