Every industry has been touched by the ongoing coronavirus crisis, and manufacturing is no different, with supply chain issues, material shortages and subdued demand for certain product segments all taking their toll on sales and stability in the past 12 months.
Within this sector there is the subcategory of CNC equipment, which is increasingly commonplace in production lines of all shapes, sizes and scales. So how has the pandemic affected this particular niche, and what might the future hold as vaccines are rolled out and the world gets back to normal?
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Second hand machinery is increasingly appealing
There is no doubting that new CNC gear is costly, and while this is not really a problem in typical circumstances when manufacturers can expect to recoup up front costs quickly as the machinery goes into operation, in the COVID-19 era when the market is far more volatile, buying brand new machines is less attractive.
Add to that the fact that organizations are having a tougher time acquiring the credit from lenders that could help them pick newer models, and it might seem like manufacturers are destined to stick with incumbent equipment until conditions improve.
Interestingly the sheer variety of CNC routers, lathes, mills and more which are available on reputable second hand marketplaces is coming to the aid of organizations in this unprecedented period of disruption and uncertainty.
Because companies can make significant savings by choosing a used CNC machine rather than a new one, it is allowing them to upgrade from outdated alternatives, pursue more innovative projects and continue developing more efficient practices, while also accommodating tighter budgets in the process.
Peaks and troughs in particular segments are inevitable
While it is certainly accurate to say that the pandemic has had its influence felt almost everywhere, it is equally true that while some have suffered at its hands, others have been well positioned to capitalize on the opportunities afforded to them.
For example, while there has been a dip in demand for CNC manufacturing in the aerospace and automotive industries as a result in travel and transport reduction, those operating in the healthcare and medical spaces have seen a surge in demand for their services.
Until the majority of the world’s population has been vaccinated, or a degree of herd immunity has been reached to stem the spread of the virus, this uneven fluctuation in the fortunes of the CNC industry in particular and the other sectors it feeds will remain a constant.
Flexibility and agility will be essential
The pandemic proved, above all else, that businesses need to be flexible and agile, so that they can adapt to unexpected challenges and pivot in a totally different direction if the market dictates.
From a CNC context, this means that investing in machinery that is as versatile as possible, so that it can be used to make almost any conceivable component rather than being suited to just a handful of operations, is the best option.
Hopefully this crisis will help businesses become more adaptable and give them greater resilience in the future, if they manage to survive in the meantime.
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