Overall, activity in the portable plants market for 2023 has been slow. According to our client information, certain projects have been postponed or cancelled. In that particular market, we experienced an 8 percent decline.
According to the most recent economic reports, 2024’s economic outlook is expected to be weaker than 2023. However, this is only speculation. Although the economic data does not support a market increase, we hope that the aggregate market will improve.
The most important aspect to monitor will be interest rates. Supply chain and pricing may be directly impacted by interest rates.
We anticipate a decrease in production until the next election. Similar to previous slowdowns, we utilize the opportunity to improve production by increasing capacity, become more active in product improvement through engineering, and generally implement processes that would otherwise be challenging during a busy time.
Even in 2023, following COVID-19, labor shortages remain a problem for many companies. Typically, regular routine maintenance cycles are required with belt conveyors using traditional external motor and gearbox drives. The shortage of maintenance personnel impacts motor performance and results in unnecessary motor failures and costly downtime.
VDG has made significant investments in research and development in order to extend the service life of our products, resulting in a new generation of drum motors.
Alex Kanaris is president of VDG.
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