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The Global Electric Generator Market to Seek New Balance Between the Pandemic, Cheaper Oil, And the Demand for Alternative Energy

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The Global Electric Generator Market to Seek New Balance Between the Pandemic, Cheaper Oil, And the Demand for Alternative Energy

IndexBox has just published a new report: ‘World – Electric Generating Sets And Rotary Converters – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The Increased Demand for Autonomous Electricity Supply for Business, Industrial Facilities, and IT Infrastructure Buoys Electric Generator Market

In 2019, the global market for electric generating sets and rotary converters was finally on the rise to reach $58.4B after two years of decline. Electric generating sets and rotary converters are equipment that is used for primary power generation and also serves as backup power supplies for infrastructure and residential buildings.

The key factors in the demand for generators are the growing demand for electricity, insufficient electrical infrastructure, especially in areas far from large cities, the need to provide a guaranteed power supply with a stable voltage, as well as backup power to important infrastructure facilities (hospitals, government agencies, business centers, airports, train stations, etc.) and technical equipment (communication towers, data centers, industrial enterprises, etc.).

In value terms, the largest electric generating set and rotary converter markets worldwide were the UK ($3.1B), China ($2.8B), and Russia ($2B), together comprising 14% of the global market (IndexBox estimates). Brazil, the U.S., India, Indonesia, Turkey, Japan, Nigeria, South Korea, and Angola lagged somewhat behind, together comprising a further 15%. The leadership of the UK in value terms is largely attributed to the high demand for wind generators in the country – such units are large, rather expensive, and their quantity is much less than, for example, portable gasoline generators.

In 2019, the highest levels of per capita consumption of electric generating sets and rotary converters were registered in Angola (30 units per 1000 persons), followed by South Korea (8.23 units per 1000 persons), Japan (7.40 units per 1000 persons), and Russia (6.79 units per 1000 persons), while the world average per capita consumption of electric generating set and rotary converter was estimated at 2.92 units per 1000 persons.

Since industrial and other high capacity generators constitute expensive equipment, their installation and use correspond with capital investments against the background of the general growth of industry and trade. The dynamics of construction also directly affects the generator market: business centers, retail outlets, infrastructure, and social facilities are increasingly being equipped with backup generator sets, while residential construction is driving the demand for portable generators for private homes, which are usually purchased in case of power outages.

Another fundamental factor of market growth is the growth of the IT sector, as well as the telecommunications sector: the coverage of the countries of the world with wireless networks and mobile Internet is increasing, the infrastructure for which requires a stable power supply.

The development of electric transport (especially electric vehicles) will require the creation of a large-scale network of charging stations, which may increase the demand for generators (local generators can become auxiliary or even the main sources of energy for charging stations in hard-to-reach areas).

The Pandemic Hampers Business Investment But Promotes the Equipment of Medical Facilities and the Demand for Portable Generators

In view of the above, the dynamics of the electric generating sets and rotary converters market as a whole reflects the overall GDP growth. In early 2020, the global economy entered a period of the crisis caused by the outbreak of the COVID-19 pandemic. In order to battle the spread of the virus, most countries in the world implemented quarantine measures that put on halt production and transport activity.

The combination of those factors disrupts economic growth heavily throughout the world. According to World Bank forecasts, despite the gradual relaxing of restrictive measures and unprecedented government support in countries that faced the pandemic in early 2020, the annual decline of global GDP could amount to -5.2%, which is the deepest global recession being seen over the past eight decades.

In Asian countries, especially China, which faced the pandemic earlier than others, the epidemic situation improved earlier, with the quarantine measures largely relaxed, and the economy is gradually recovering from the forced outage. Thus, in China, by the end of 2020, an increase of 1% is expected (while a year earlier it was 6.1%), and in general in Southeast Asia in 2020, an increase of 0.5% is expected. In the medium term, it is assumed that the economy will gradually recover over several years as the restrictions are finally lifted. The U.S., meanwhile, is struggling with a drastic short-term recession, with the expected contraction of GDP of approx. -6.1% in 2020, as the hit of the pandemic was harder than expected, and unemployment soared due to the shutdown and social isolation.

The industrial sector has proven vulnerable to the pandemic as due to quarantine measures, industrial facilities may be stopped, and the drop in incomes of the population makes the growth of end markets unfeasible, thereby hampering any expansion of the industrial manufacturing. Thus, the above economic prerequisites will have a negative impact on the establishment of new industrial facilities and put a drag on market recovery.

On the other hand, measures to mobilize the medical system and equip temporary COVID hospitals required the use of a large number of generators. At the same time, in the second half of 2020, the effect of this factor may fade out against the background of the gradual weakening of the pandemic and the removal of social isolation.

In the wind energy segment, which comprises the global exports of $6.1B in 2019, an additional factor is also favorable government policy worldwide. Increased attention to environmental issues and the political goal of reducing the “carbon load” will increase the demand for generators on alternative energy sources, in particular, for wind turbines.

As for portable generators, the additional demand could be found in those countries with a lack of stale centralized electricity supply e.g., in many African countries. Furthermore, lower oil prices as a result of reduced demand and oversupply amid the pandemic are making oil and gas more affordable. Consequently, the cost of electricity that is generated by the fossil-fuel-based equipment is reduced, which contributes to the growth of the use for electric generating sets and rotary converters. The increasing social anxiety, as well as the continuing threat of isolation due to the virus, could lead to the purchase of portable generators for future use in case of power outages in emergency situations.

Taking into account the above, it is expected that in 2020 and the next few years, global consumption of electric generating sets and rotary converters should decline somewhat against 2019. In the medium term, as the global economy recovers from the effects of the pandemic, the market is expected to grow gradually. Overall, market performance is forecast to pursue a slightly upward trend over the next decade, expanding with an anticipated CAGR of +0.9% for the period from 2019 to 2030, which is projected to bring the market volume to 25M units (IndexBox estimates) by the end of 2030.

Source: IndexBox AI Platform

oil prices

U.S. States and Metros Hit the Hardest by the Drop in Oil Prices

The COVID-19 pandemic has sent the world economy into turmoil as lockdowns around the world have caused economic activity to grind to a halt. The demand for oil has crashed in the wake of the growing pandemic, sending oil prices diving and even dipping below $0 per barrel. According to the most recent data from the U.S. Census Bureau, the U.S. employs close to 130,000 people in the oil and gas extraction industry. Many of these workers now face uncertain employment.

Bureau of Labor Statistics (BLS) data from the last two decades shows that employment in the oil and gas sector tends to rise and fall with crude oil prices. Price drops in 2014 resulting from oil surpluses caused the oil and gas sector to shed roughly a third of its workforce. Today, the pandemic combined with a lack of storage capacity for excess oil have caused the price to fall sharply again—a trend that threatens thousands of jobs.

The concentration of oil and gas extraction workers varies widely by location. At the state level, Oklahoma and Wyoming have the highest concentrations of workers in oil and gas extraction at 7.7 and 6.7 times the national average respectively. Texas, with a relative concentration of 5.8 times the national average, boasts the largest number of total oil and gas workers of any state. Many states such as Hawaii, Maine, and Rhode Island don’t produce oil or natural gas and have no employees reported by the Census Bureau.

To find the metropolitan areas hit hardest by the drop in oil prices, researchers at Construction Coverage used data from the U.S. Census Bureau and the Bureau of Economic Analysis. The researchers ranked metro areas according to the relative concentration of employment in the oil and gas extraction industry. Researchers also looked at the total number of oil and gas extraction workers, the median earnings for those workers, and cost of living. To improve relevance and accuracy, only metropolitan areas with at least 100,000 people were included in the analysis.

Here are the 25 major U.S. metropolitan areas with the highest concentrations of oil and gas workers:

For more information, a detailed methodology, and complete results for all major metros and U.S. states, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/cities-hit-hardest-by-drop-in-oil-prices

Report republished with permission

younger generation

How To Entice The Younger Generation Into Utility Careers

Unfortunately, there is a serious age crisis within the energy and utility sector at the moment. Many companies recognized, in approximately the 1990s, that they were facing a severe problem with the age demographics of their workers: younger people didn’t want to work in these areas, due to a number of factors such as better access to alternative education and a lack of faith in the sustainability or career options within such career pathways. However, this has only really started affecting business now, since the older wave of workers are beginning to retire, leaving energy companies scarce of any manpower. So, in these dire times, we must look to the younger generation to fill the gaps and become the new driving forces in the energy and utility sectors, but how can you entice them into joining your company?

Changing Attitudes

Of course, not all of your older workers are going to disappear overnight, so you have to consider the effect and impact that focusing on the younger generation might have on them, due to many cultural and societal clashes which are common between the differing ages of workers. Older workers may see younger workers as finicky and addicted to their material possessions – think less antiques and hand-me-downs and more iced coffees and mobile phones – which may create friction within the workplace which could put off younger workers. Make sure that any pre-existing staff are educated on diversity and how to be welcoming to the younger generation, and inform them of the changes which you are trying to make to the workforce, and the reasons behind your doing so. Education is the best way to avoid this being a problem.

Think Local

“Often, the best talent – and the most willing to work in our areas – is found locally,” says Richard Ford, an HR at Thesis Writers and Big Assignments, “since we often find that implementing training with the surrounding education centres and informational days for students is the way to go. Many kids from the cities won’t know much about creating electricity or the jobs which are involved with energy, but if we reach out to the students living around our workplace and teach them how they can go far in our business, often the pull to stay near home and find a stable job leads them to join a career in our sector, since they can often stay near family and childhood friends, and work and live in a town which they are familiar with.”

In short, education – not only of your staff, but also your possible future staff – is the way to go. Make sure that you are taking advantage of every opportunity to reach out into the local schools and colleges and inform the students of the career options which they have, which are closer to home than frightening and unknown office jobs in big cities with long commutes.

Appealing To The Younger Generation

“The current workplace has been shaped by the older, “baby boomer” generation, who helped to make the culture and social atmosphere of workplaces everywhere appear how they are today,” explains Amanda Wills, an HR at Dissertation Writing Service and Essay Services.

However, in order to appeal to the younger generation, you may need to make a couple of changes, keeping in mind the differing social climate of today. Generally, younger people are more conscious of their social standing, in regards to giving back to communities, so making sure that your company does a lot of work in the community is vital. Younger workers may also want to have more of a say in how the company is managed, so letting them take part in important decisions and making sure that everyone feels like their voice is being heard is also a good idea.

“Although they’re not ‘snowflakes’, younger people do require a different working climate to the generation which we are used to, which may make appealing to them seem a little difficult at first,” Jade Coates, a journalist at UKWritings and Boomessays, states, “but once you have put the changes in place, you’ll find it easy to attract younger workers and revive the life in your workforce, or so to speak! Education is usually the best method, but making sure that you are open and honest is also important, and keeping all rules and regulations (including social guidelines for your working staff) regularly updated is also a good idea, to remove any chances for friction or problems before they can happen.”

Summary

The younger generation may seem difficult to attract to jobs in the utility and energy sectors, but it only takes a little bit of change to get them on board. Investing in education opportunities and keeping your current staff up-to-date and welcoming is always a plus, and developing your workplace for the modern era by keeping the community and social morals in mind can make your company appear more inviting and viable.

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Aimee Laurence writes professionally for Top Assignment Writing Services NSW and Research paper help services. She has a personal interest in the energy industry and enjoys spreading her knowledge on the creation of electricity and the workforce behind it. Also, Aimee is a tutor at Student Writing Services.