The spreading of coronavirus disease 2019 (COVID-19) and lockdowns that started from Wuhan, China in January led to a severe economic contraction in the second quarter of 2020. COVID-19—which has claimed more than 689,000 lives (as of August 3rd)—has disrupted supply chains for buyers of valves. The coronavirus disease spreads rapidly: 18 million infected cases have been found in more than 200 countries and territories around the world. The deadly virus is having a severe effect on global contracting activities for valves. Many of the original equipment manufacturers (OEMs) have experienced varying lengths of production and shipping disruptions caused by the COVID-19 pandemic, particularly in major valve production countries like China, Italy, and the United States. Manufacturers’ financial performances have suffered because of the COVID-19 pandemic and prolonged low oil prices. The worsened sub-supply conditions have also adversely affected production schedules, and led to a rise in logistics, transportation, and freight costs. In some cases, OEMs must source materials from new suppliers.
To read the full Valve World Americas August 2020 industry outlook, please contact Brittani Schroeder (b.schroeder@kci-world.com) for the full PDF.