Dealerships faced shutdowns and dramatically decreased vehicle sales due to the pandemic; they were already suffering from diminishing margins on new and used vehicle sales, which have continued to erode profits on their variable operations. Their fixed operations division, which services customers’ vehicles, has had to carry the dealerships through lean times. Growth in fixed operations will be key to helping dealers survive until vehicle sales start to recover after COVID-19.
After entering the U.S. market for synthetic passenger car motor oil (PCMO) in mid-December 2019 with its own branded full synthetic PCMO, Costco extended its product line into heavy duty motor oil (HDMO) with its Kirkland Signature conventional SAE 15W-40 HDMO in July 2020. Kirkland HDMO meets the current API Service Category of CK-4, which means the product meets OEM specifications for service-fill applications and will not compromise an OEMs’ warranty—provided the end-user follows OEM-recommended oil drain intervals based on operating conditions.
Demand for fuel additives is dependent upon two factors: fuel demand and fuel additive treat rates. All other things being unchanged, fuel additive demand should grow along with the growth of fuel demand. COVID-19 is expected to drive a sharp decline in fuel demand in 2020, which will be reflected in the fuel additives market. While fuel demand should recover from 2021 onwards as the global economy recovers, there may be some long-term changes in fuel consumption patterns. For example, growing penetration of electric vehicles will adversely impact the growth of fuel demand in the medium- to long-term, which, in turn, will impact fuel additive demand in the medium- to long-term.
Germany is one of the world’s most technologically advanced producers of transportation equipment, steel, iron, cement, chemicals, machinery, and machine tools. It is also the fifth-largest metalworking fluids market globally.
Over the past five years, German industrial output has risen considerably, driving demand for metalworking fluids to 130 kilotonnes in 2018. The transportation industry was the leading consumer of metalworking fluids that year, accounting for an estimated 46% of the total.
Mexico is expected to resume growth in 2020 after last year’s economic stagnation, which was caused by a combination of negative factors including policy uncertainty and slower global and U.S. production. The economic recovery will be contingent on the successful implementation of prudent fiscal policies and the ratification of the U.S., Canada, Mexico (USMCA) trade agreements, which is basically replacing NAFTA.
The shift from conventional petroleum wax-based products to synthetic and vegetable waxes is becoming intense. Non-conventional waxes, particularly Fischer-Tropsch’s and hydrogenated vegetable, are increasingly becoming the focus for growth in the wax business. Interestingly, the wax landscape is also changing on the end-use side.
Metalworking fluids is the second-largest category within the industrial lubricant segment in Russia. The segment has been stable without large variations over the years. However, due to the steady annual growth of automotive production in the country and increasing exports of steel and primary metals over the past few years, it is expected that demand for metalworking fluids will keep growing in line with growth in the manufacturing sector.Continue reading
With China’s slowing GDP, many changes and new economy sectors will play an increasingly important role in the country’s future economic growth. China’s economic structure is transforming from investment- and export-driven to consumption-driven, with manufacturing and growing domestic consumption. Its changing economic strategy will bring both opportunities and challenges to different end-use industries.Continue reading
We’re all familiar, I suspect, with U.S.-based warehouse operator Costco Wholesale Corporation and its extensive, trusted Kirkland Signature private-label line of products, such as gasoline, wine, spirits, cashews, laundry detergent, vitamins, beef hot dogs, and my personal favorite, funeral urns and caskets. When it’s time for Uncle Leo to meet his maker, send him out in style and on a budget in a Costco casket.
It is a known fact that the conventional lubricants market is projected to be flat to declining in the foreseeable future. To offset these declines and both maintain and grow their market share, businesses need to look for opportunities in various market segments, with synthetics being one of them. Sales of synthetic and semi-synthetic lubricants are projected to grow at a CAGR of 5.7% and 3.9%, respectively, between 2018 and 2023.Continue reading