MACHINING
How CNC Machining Companies Can Survive And Thrive During The Pandemic
The global Covid-19 pandemic in 2020 changed the world. For many businesses, it brought unforeseen problems and unexpected hazards. The pandemic’s effect was uneven; some industries escaped relatively unscathed (outdoor activities) and some even thrived (online shopping) while others, such as traditional manufacturing, witnessed a serious downturn. To survive the pandemic and even find a measure of success in the middle of it, businesses needed to learn how to pivot. This meant finding a new market, or a new product, or a new area of focus that was seeing increased demand during the pandemic. Pivoting an existing business is a tall order; try something too radical, and the burden on the business will be too much. But if you don’t pivot quickly enough, you risk losing out on a chance to keep your business going and even thriving. CNC machining companies face a similar choice. As the pandemic continues, machine shop owners need to determine where to focus their efforts. Fortunately, while traditional manufacturing – the mainstay of work for most machining hubs and machine shops – suffered
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ASIA PACIFIC METALWORKING
a serious setback, other sectors witnessed increased demand for CNC-machined parts. A setback By some estimates, reduced manufacturing industry output resulted in over $200 billion lost in 2020, in China, India, Japan, and the US alone. That figure, while serious enough, was much lower than expected at one point during the pandemic. Most countries recovered or are recovering their manufacturing demand quite quickly, a point that bodes well for CNC machining businesses down the road. Nevertheless, a $200 billion downturn is a serious blow. As factories shut and shops closed, demand from the manufacturing sector for CNC machining services took an expected tumble. However, while manufacturing demand fell, another sector saw a sky rocketing need for CNC services, providing an opportunity for CNC machining to offset losses in one sector with gains elsewhere.
