Opportunities for Manufacturing Still Abound
The global recession has all but wiped out the exuberance of the manufacturing industries. Nothing new to report here. News all over the web and print medias focus endlessly on the agony being faced by the common man these days but the fact is that the manufacturing industries have been reeling long before. Spiraling interest rates, the strong/weak dollar rates and the oil price crisis all started a slow down process that was effectively finished off by the global economic meltdown.
Companies all over seem to be floating a figure anywhere between 30% – 50% reduction in order intakes and corresponding metrics. The industries worst hit by the recession are the automobile industries and their ancillaries. This has resulted in a snowball effect that directly affected all verticals that act as suppliers to the industry – iron & steel, transport, raw materials, etc. Most plants were effectively closed for months of November and December with some activity reviving in January.
This March the India manufacturing industry is showing signs for optimism despite the overall gloom. Granted this isn’t a complete revival but for those in the nuclear, aerospace, wind energy and a few commercial vehicle segments – there is extensive scope for manufacturing activity still. To be sure areas like power generation, which include wind energy and diesel gensets, never really felt the recession to the full extent. Demand has been quite good even in these times. Parts production for nuclear power has also been an interesting area.
In the commercial vehicle segments, Volvo and Ashok Leyland seem to have their hands on something special. Demand for Volvo buses has been positive and Volvo India has published a positive outlook for 2009. Volvo is planning to increase production capacity by 25% based on repeat orders from major State Road Transport Corporations. Coupled with the central government commitment to build up transportation needs this has given Volvo a lot to be happy about.
Auto News @ ET
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Machinist.in
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