Production localisation to accelerate by 2025

Around 30 per cent of manufacturing companies worldwide plan to increase production localisation efforts over the next six months to better shield from future risks, according to global market research company Euromonitor International.

The production localisation progress would make global supply and logistics chains shorter and provide new growth opportunities for North American and European suppliers. In addition, changing economic conditions and consumer preferences will impact the manufacturing sector, which will have to adapt to the ‘new normal’, the research firm noted.

“Outbreak of Covid-19 has left long-lasting impacts on global manufacturing and supply chain sectors. According to our survey results, around 30 per cent of companies are planning to implement supply chain resiliency and risk mitigation solutions. Another result indicates that around 50 per cent of companies are planning to reshape their digital strategies and investigating into e-commerce,” it said in a statement.

“Based on operating costs, it is most likely that manufacturing companies will want to relocate part of their production activities from Asia and China to Eastern Europe and Latin America, as these regions offer lower operating costs and are closer to Western European and North American markets,” concluded Justinas Liuima, senior consultant at Euromonitor International.

Pharma M&A activity grew 17 per cent in H1

Merger and acquisition (M&A) deal activity in the pharmaceutical sector rose by 17 per cent in the first half (H1) of 2020, disregarding the economic toll of the global pandemic, a report said.

It saw a total of 41 deals during the period, but the Q2 2020 deal value total of $3.3 billion was the lowest quarterly total since Q1 2018, according to the research data analyzed and published by ComprarAcciones.com. According to PwC, the pharma subsector posted a drop of 56 per cent in deal value from H2 2019 to H1 2020. For the PLS sector as a whole (pharma, biotech and medical devices), the decline in deal value was a massive 87.2 per cent during the same period.

Meanwhile, the pharma and life sciences (PLS) sector saw M&A deal value sink from $272.9 billion to $35 billion year-on-year (YoY). The total deal value for the pharmaceutical subsector in H1 2019 was $100.1 billion. In contrast, its total deal value in H1 2020 was valued at $7.7 billion.

The PLS sector had a total of 99 deals valued at $35 billion in H1 2020. In H2 2019, the figures were higher, with 129 deals valued at $86.5 billion. H1 2019 was even bigger, with 119 deals valued at a remarkable $272.9 billion.

For the healthcare industry as a whole, H2 2020 started off with 13 deals valued at $1 billion+ according to S&P Global.

On the other hand, based on a report from Global Data, the global M&A deal value started on a downtrend in Q1 2020. It went from $151.2 billion to $129.9 billion from February to March. Another study from S&P Global shows that the decline carried into Q2 2020, with a 35 per cent drop in deal volume. Similarly, total transaction value dropped by 40 per cent, the highest drop since 2015.

Airline revenues set for 46 per cent fall in 2021: IATA

The total airline industry revenues in 2021 are expected to be down 46 per cent compared to the 2019 figure of $838 billion, said the International Air Transport Association (IATA), noting that recovery has been delayed owing to new Covid-19 outbreaks.

The total airline industry revenues in 2021 are expected to be down 46 per cent compared to the 2019 figure of $838 billion, said the International Air Transport Association (IATA) in new analysis.

The industry cannot slash costs sufficiently to neutralize severe cash burn to avoid bankruptcies and preserve jobs in 2021, it added, reiterating its call for government relief measures to sustain airlines financially and avoid massive employment terminations. IATA also called for pre-flight Covid-19 testing to open borders and enable travel without quarantine.

The previous analysis was for 2021 revenues to be down around 29 per cent compared to 2019. This was based on expectations for a demand recovery commencing in the fourth quarter of 2020. Recovery has been delayed however, owing to new Covid-19 outbreaks, and government mandated travel restrictions including border closings and quarantine measures. IATA expects full year 2020 traffic to be down 66 per cent compared to 2019, with December demand down 68 per cent.

“The fourth quarter of 2020 will be extremely difficult and there is little indication the first half of 2021 will be significantly better, so long as borders remain closed and/or arrival quarantines remain in place. Without additional government financial relief, the median airline has just 8.5 months of cash remaining at current burn rates. And we can’t cut costs fast enough to catch up with shrunken revenues,” said Alexandre de Juniac, IATA’s Director General and CEO.

UAE telecom subscribers top 21.8m in August

The number of subscribers in telecommunications services in the UAE, including mobile phones, landlines and Internet, grew to 21.808 million by the end of August, 1 percent up compared to the preceding month.

The latest statistics released by the Telecommunications Regulatory Authority (TRA) indicated an increase in the number of mobile phone subscribers to 16.685 million at the end of the month, a growth of 206,000 from 16.479 million from July, reported state news agency Wam.

Pre-paid mobile phone subscriptions totalled 13.107 million, while post-paid mobile phone subscriptions stood at 3.578 million at the end of the reference month.

Landline subscriptions likewise increased to 2.127 million from 2.125 in July, which indicates a rise from 23.6 to 23.75 lines per 100 people.

In the meantime, the total number of internet subscriptions slightly declined to 2.996 million from 3 million in July, with all subscriptions conducted through broadband services.

Earthmoving equipment market to hit $91bn

The global earthmoving equipment market is poised for solid growth over the six years mainly due to the surging private sector investments in mining sector, new product launches and technological advancements, according to a recent study.

The sector is set to grow from its current market value of more than $80 billion to over $91 billion by 2026, gaining remarkable traction over the 2020 to 2026 period, stated the study from market research firm Global Market Insights.

Heavy equipment is usually considered important for construction jobs of nearly any size, from large-scale commercial and civil projects to home buildings.