Mechanical seals are used to prevent the leakage of liquids. Mechanical seals are largely used in oil and petrochemical industries. The industrial shift towards the adaptation of advanced technologies is spurring the growth of the mechanical seals market. Further, the expected decline of the oil and gas industry in the future due to rising concerns over non-renewable sources of energy seems to negatively impact the demand for mechanical seals in the industry.
According to the United Nations Conference on Trade and Development (UNCTAD), global foreign direct investment (FDI) will grow vigorously in 2018. This implies that there will be strong growth in the manufacturing sector in the coming decade. Moreover, many countries are now adopting investment policies that will boost the manufacturing sector and drive mechanical seals market trends.
For instance, in 2017, several countries and economies adopted investment policy measures across the globe, of which 84% of countries were favorable to investors. This will allow investors to invest their funds in various industries with a primary focus on energy, transportation, and manufacturing.
AB SKF (SKFRY), John Crane (Smiths Group Plc. (SMGZY)), and Flowserve Corporation (FLS) are the leading market players. SKF holds the largest market share with a revenue of USD 9.90 billion in 2018.
How Could Global Mechanical Seals Market Addresses The COVID-19 Concerns?
The rapid increase in cases of COVID-19 leaves manufacturers from all industries with no option but to make arrangements to stem impending workforce challenges. As of March 2, 2020, the World Health Organization (WHO) reports 88,913 confirmed cases of COVID-19 have been reported in more than 55 countries on six different continents.
While the main emphasis is and should be on containing and mitigating the spread of the virus, economic impacts are proving to be significant.
Success in the pump distributor world in the fight against coronavirus is measured just like any other industry these days, it seems.
“It’s really just being able to be pliable and be nimble in a scenario that is constantly changing,” said Chris Campo, the vice president of sales for Seacoast Supply, Inc., and operated New England distributor of products such as mechanical seals and lubricants for high-performance equipment critical to plant operations.
Different end-user companies had different rules for distance and visitation, but if Seacoast employees could visit the companies, they would. However, some problem-solving has been left to phone calls and computer video chats.
But in the case of the pump and system and industrial industry, it really can’t be done 100 percent over email, over the phone, or behind a computer. The company must put their hands on something and eyes on something. If companies need to take a measurement or put a wrench on something, it’s impossible to do that 100 percent from behind a computer or over the phone.
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