Capital Equipment News December 2020

MARKET REVIEW 2020

Babcock’s Volvo L150H wheel loader on a mine site.

“One has to take advantage and capitalise on these when they become apparent,” he says. “This is also an ideal time to ‘clear the decks’, and to resolve any long-outstanding issues that may need attention.” Most importantly, he says, it remains imperative that the pandemic is not used as an excuse to justify below-acceptable levels of service to the customer. The future The International Monetary Fund projects a 2021 GDP some 6,5% lower than the pre-COVID-19 projections for January 2020, yet both Babcock Equipment and Pilot Crushtec remain positive about 2021. “We remain optimistic that the aggregates market will, at some point, turn from its decline, and that government infrastructure projects will be forced into action,” says Marais. “We will continue to grow our expertise and our offering to the commodities environment, and we hope to become even stronger in this market.” Vaughan says that, barring a second wave of COVID-19, “we remain optimistic that the capital equipment market will show signs of modest recovery during 2021 driven mainly by the mining industry.” “Although COVID-19 has had a dire impact on our economy, our social environment and our business practices,” says Marais, “we have seen new innovations and a new way of thinking about doing business emerging from this situation. “We have embraced some of the practices which we believe will continue long after the pandemic has disappeared. This new reality will enable us to engage with even more clients more often, adding even more value to the industry in ways which would previously have been frowned upon.” b

A Pilot Crushtec service technician visiting a mining client.

“We have seen an increase in clients opting to repair equipment as opposed to replacing it, and a sharp increase in interest in pre-owned units, as clients opt for more cost-effective solutions to their most urgent requirements.”

Francois Marais, sales and marketing director, Pilot Crushtec International

“We remain optimistic that the capital equipment market will show signs of modest recovery during 2021.”

David Vaughan, MD of Babcock’s equipment business

TALKING POINTS

new reality. “Having a calm and considered approach to adjusting our business in order to survive the volatility has allowed us to continue trading without panic,” he says. “Our own experience through the pandemic has shown us that panic and rash decisions can have dire consequences.” He says a calm and tactical approach to adjusting the business to manage the decline in revenue and cash flow has allowed Pilot Crushtec to stay focused and to continue with the activities that add value to the clients and, ultimately, to the business. Vaughan recommends that companies ensure that they are as efficient and productive as possible in these tough economic times. “Self-analysis and taking the necessary action to remedy issues remain crucial in order to ensure sustainability.” He says there are always opportunities that present themselves during downturns such as this one.

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