Closed foundries and cancelled events associated with metal castings all over the world undid the growth spike seen between the years 2018-19. With the COVID-19 infection sending shivers down the spines of business owners and investors, job losses continue to plague the metal casting industry with lockdown after lockdowns in almost every part of the world. Social distancing ensured the foundry’s labour force was reduced to half its size sending panic waves across the labour camp.
The effects on the economic condition, particularly on foundries on the metal industry, are all about uncertainty. Following strict precautionary measures, a number of trade fairs have either been cancelled or postponed to the next year. Large events have been limited to a small or focused group, and employees in the IT divisions of metal foundries have been instructed to work from home. Event organizers have cited the well-being of their staff as well as the visitors as paramount. Also, social transmission has been the major cause for the rapid spread of the deadly pandemic in many countries.
Another problem that foundries are facing is that production in the automotive industry has almost come to a standstill. This has far reaching effects as the demand for cast components are reduced, hitting medium-sized and small foundries that mainly make components for the automotive industry. Foundries affected by the effects of COVID-19 should innovate to produce alternative products that can help keep the ball rolling until the economy revives itself. This is also because of the uncertainty when this will actually happen as the industry moves into the dark. Experts opine that free movement of goods must be maintained at all costs, as the industry ecosystem is highly dependent on the division of labour. It remains to be seen how these developments will continue to impact the foundry industry in the months to come.