2021-01-25
Weichai Holding Group Co., Ltd., a leading Chinese powertrain manufacturer, has acquired a controlling stake in Lovol, one of the country’s major agricultural equipment makers.
Source: Xinhua News Agency Read The Article
PSR Analysis: People look up to leading companies in industry because often times they are not just leading the trend, they are also setting an example of weathering the storm during crisis.
2021-01-22
SUMMARY. In our previous forecasts, we have discussed some hope for a V-shaped recovery, it did not materialize. Our conclusion was based on several factors, such as the current economic cycle, overall strength of the economy, fiscal policy, political landscape in the US and globally, etc. After managing through the early stages of the pandemic in H1 2020, we saw good trends in H2 2020 and we had reasons to be optimistic for a quick recovery.
However, the recovery took a slight pause during the last few months. Unemployment continued to increase, and regional lockdowns prevented the necessary demand for a significant year-end growth. Now that the elections are over, we’ll have yet to see what the new administration will be able to achieve during the next two years. Specifically, if the long awaited infrastructure reform can be passed. However, fiscal policy with near zero interest rates, which government has promised to keep in place for the near future, will provide a good platform for the economic recovery and allow us to look optimistically into 2021-2022.
2020-12-21
Russian authorities plan to increase vehicle utilization fees in 2021, according to automotive sources.
Utilization fees could be increased by as much as 25-30% for all types of vehicles, including special machinery, according to industry sources. This measure would be accompanied by a comparable devaluation of the national currency, which would reduce trade barriers.
Utilization fees were implemented in 2012. It was always considered as a compensation of Custom’s tax reduce after Russia’s entry into WTO. It was set in Russian Rubles. Initially, the fees were paid by the importers only. However, they later were expanded to everybody, but then local OEMs started receiving industrial subsidies, compensating for this fee.
PSR Analysis: With reduced tax collection and increased State expenses in 2020, Russian authorities are seeking sources to compensate for income losses. Increasing utilization fees is one way to do this. PSR
Maxim Sakov is Market Consultant – Russia Operations for Power Systems Research
2020-10-28
For 18 months, tractor factories were working on a single or 1.5 shift basis at best because of demand slowdown. With numbers picking up, factories now are moving to two or three shifts to hit 100% capacity utilization. The capacity is currently 9.5 lakh units on a two shift basis, but we can also go to three shifts if the demand holds up. Read The Article
Yanmar Holdings announced it will begin operating Yanmar Synergy Square, a support base for monitoring the operational status of customers’ agricultural and construction equipment, beginning Oct. 19, 2020.
Data will be collected and analyzed via communication from sensors installed on machines and equipment. It will suggest parts replacement and maintenance before they malfunction. It was built at a cost of 2.5 billion yen (23.8 million USD) and will be operated by Yanmar Global CS, a subsidiary of the company.
2020-10-23
SUMMARY. The global economy, especially within the Engine, OEM and Components industries, has felt the immediate impact from COVID: assembly line shutdowns, labor issues, supply chain issues, logistics and transportation to name a few. The pandemic has exposed many weak links in the global economic chain. However, by end of summer, most of these challenges were either completely resolved or temporary solutions had been put in place.
Diversification has become the theme during the pandemic recovery, and we expect this trend to continue. Not only are companies looking for new markets and suppliers to grow top and bottom line revenue as well as to minimize risks, but we see a shift into new industries. Furthermore, rapid developments of new technologies create massive opportunities for OEMs and suppliers as well as posing real threats to OEMs that solely rely on traditional products that are powered by fossil fuels.
2020-09-27
The 6,300 units is the estimate by Power Systems Research of the number Combines to be produced in the U.S. 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.
2020-08-23
Currently construction at the plan includes rebuilding of warehouses and administrative buildings in preparation for installation of new crane equipment.
“Amkodor-Onego” LLC was established by Belarus holding “Amkodor” in 2019 following the bankruptcy if the “Onego Tractor Plant”. The plant needed an investor, and “Amkodor” stepped up. “Amkodor” is going to create a site for assembly, and then – for import substituting full cycle production of forestry machines – harvesters, forwarders, etc.
An investment contract was signed in June 2019. Under the contract, full modernization of the warehouses and major overhaul of the buildings are planned. Total cost of the project is estimated by US$ 220 million. The government of Karelia (Russian region) assumed the priority of the project and established several requirements.
2020-07-26
With extended lockdowns in most parts of India, the production of all non-essentials was at a halt or at minuscule levels in April and May until the economy was unlocked. This move reduced demand in the short-term, but owing to intrinsic domestic demand, we are optimistic about future business expectations
Better Outlook of Rural Economy
However, hope has arisen from India’s rural part as the agriculture sector appears to have been relatively less impacted by the lockdown. This part of the country never truly went into a harsh lockdown, and thus procurement, harvest, and consumer activities have remained unaffected. Farming continued during the lockdown, especially for rice and wheat cultivation. The return of migrant workers caused a surplus of agricultural labor. This resulted in the fact – more land was brought under cultivation than ever before. As a result, the country has witnessed a good season of rabi harvest.
Construction Equipment Internal Sales in Brazil from January thru May grew 35% over the same period of 2019. The Brazilian Machinery Builders´ Association (ABIMAQ) expects 2020 sales to hit 20,000 machines, 15% more than in 2019.
Source: Valor Econônico Read The Article
PSR Analysis: The Construction segment was the less affected by the pandemic than some other segments. The interest reduction directed investment to real state, especially housing, and some measures, such as the new regulation for sanitation, recently approved by the parliament, will boost the Construction business in 2020 and more significantly in the coming years. PSR
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