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Equipment manufacturers continue to be negatively impacted by COVID-19

The coronavirus pandemic continues to negatively impact equipment manufacturers by decreasing demand and disrupting supply chains, according to a new study by the Association of Equipment Manufacturers.

Kip Eideberg, senior vice president of government and industry relations with the AEM, said COVID-19 is also taking a toll on the industry’s workforce.

“For those equipment manufacturers who have had to furlough workers, nearly one third said they will not be bringing them back,” he says. “I think even more ominously for the industry and the economic recovery, equipment manufacturers who had to lay of workers, 8 out of 10 said they will not be able to rehire them based on current conditions.”

More than half of the presidents, CEOS, and owners of equipment manufacturers surveyed say that the federal government has not done enough and an investment in infrastructure would help support the industry.  

“You may ask what does that have to do with the equipment manufacturing industry, well, that is the key driver of demand and decreased demand is our number one challenge right now there just aren’t enough orders for new equipment coming in,” he says. “So they can bring these infrastructure projects back online and that will help drive demand,” he says.

Eideberg says it is helpful that equipment manufacturers are designated as essential workers.

This is the second survey by AEM about the impact of COVID-19. \

Audio: Kip Eideberg