Dealing With Volatility: What You Need to Know During the Coronavirus Crisis Part 3 - Industrial/Heavy Equipment Update-Dealing With Volatility: What You Need to Know During the Coronavirus Crisis Part 3

Dealing With Volatility: What You Need to Know During the Coronavirus Crisis Part 3 - Industrial/Heavy Equipment Update

Video Transcription

Video Summary

In a recent webinar, Mike Rivitch and Ross Gilarity discussed the effects of the COVID-19 pandemic on the industrial machinery and heavy equipment industry. While the industry had shown signs of recovery earlier this year, the pandemic has caused a significant downturn in demand. According to a recent survey of equipment dealers, 44% reported shrinking demand, and only 26% reported growing demand. This has led to a reduction in equipment orders, with 55% of dealers expecting to purchase less equipment in the next six months. The survey also showed that 37% of dealers reported having too much used equipment, while 41% reported having above-average new inventory levels. However, Gilarity expressed concern that the industry has not fully recognized the severity of the situation. He anticipates significant earnings declines for machinery companies and does not expect a quick recovery. Additionally, he does not foresee a large federal infrastructure bill due to competing priorities and concerns over funding. Despite the challenges facing the industry, Gilarity believes that the shift to rental equipment will continue and sees potential opportunities for buying in the market.

Keywords

COVID-19 pandemic

demand downturn

equipment orders

used equipment

earnings declines

federal infrastructure bill

rental equipment