Second wave of COVID is cruel. It seems like a mystery that ‘exactly when India was looking positive and rising, Covid 2.0 came silent and with intent to kill. It has taken so much from many of usthis time. Yet we Indians are made of strong mental bounce back ability and thus we over come every time, each time faster than anticipated.
Most ofus are rebuilding our mindset and gathering strength to be back. The workers are in their home town yet half of them are still working in factories or on sites. Despite, Covid 2.0 has created scar and fear this time. The courage of doing business and sustaining in tough times is clearly evident among trade people, dealers and staff members. Despite of covid spread, people are working, payments are slow but coming. Despite of loosing the closed ones, people are talking about work and trying to work.
By month of June, dispatches and collection will certainly gain momentum. Once gloomy news will be replaced by recovery news, wood panel industry will again be flooded with orders for a couple of months as markets have no material in stock. And in these times, once again, reputation and payment goodwill parties will reap their dividend of being good.
I anticipate, things to improve 7th June onwards, markets will start operating for limited hours. The governments may choose to allow partial opening of markets in coming weeks keeping safety in mind. I firmly believe, that every wood panel business will show die hard spirit and try to bounce back with bigger mental strength. On an average the May month witnessed 25.0 % of volumes for factories who are still manufacturing.
Wood panel warehouses have been dispatching on and off, even during covid lockdowns till April 30th. Measuring the progress made in challenging times like covid gloom and lockdowns, even a little movement or growth makes the team and staff mood optimistic. It looks clear that markets will begin to look promising from Q2 onwards with plenty of order flow to plywood, laminate and wood panel factories as there is no stock lying in markets.
The payments are hard to get, and we all feel harsh to ask for. But, as talked, many parties are supporting their factories/suppliers by making payments which is so soothing and appreciated. The scenario in Covid 2.0 is actually shaping up a big change in Indian building material industry and that is in area of payment cycle.
Covid 1.0 brought the concept of pay and get material. Covid 2.0 is going to strengthen ‘Cash and carry’. Majority of big manufacturers are convinced of fundamental of ‘dispatch to those who have made payments’ or doing more business with those who have ‘extended support in tough times by paying’. Covid 2.0 is certainly solidifying the payment hygiene in our wood panel decorative industry.
By month of June, dispatches and collection will certainly gain momentum. Once gloomy news will be replaced by recovery news, wood panel industry will again be flooded with orders for a couple of months as markets have no material in stock. And in these times, once again, reputation and payment goodwill parties will reap their dividend of being good. By May fourth week, many markets will start dispatching quickly and faster recovery is anticipated by June end or July.
First two quarters of 2020-21 were very challenging, then came improvement from October and things looked shaping up till covid 2.0. This time, recovery will be faster but whether it will sustain the speed or lose the momentum will only be guessed once we all are vaccinated, avoid gatherings and curb spread. Let’s defeat the evil of covid and bury so there is no third wave.
Prayers and Peace to Souls
Respect and best blessings to all who have stood-by to help others.