Media coverage of Brexit seems to have taken a back seat for now and Coronavirus (COVID-19) has taken its place. What a difference two weeks can make.

Since my last blog, stock markets and oil prices have taken a tumble, Italy is in lockdown mode, the Irish government has cancelled all St. Patrick’s Day Parades and, since last Friday, all Irish schools and colleges remain closed until March 29th. Sport fixtures and concerts are also cancelled. Even Donald Trump has imposed a travel ban from mainland Europe to the U.S. which was subsequently extended to the U.K. and Ireland. What does this mean for the service dealer sector in Ireland?

The Coronavirus has sent fear and panic in the stock markets. Why should this be? Investors are worried that this virus will stall world economic growth and may even cause it to go into recession. Slow economic growth means less product sales. This includes manufacturers of farm and garden machinery and equipment. If some of these companies have large debts then the slowdown in business could make loan repayments difficult and may force some to go bankrupt. Not a nice thought.

Another cause of concern is the supply chain of raw materials that is used to manufacture these items, especially if they have to come from China.

Many Italian tractor manufacturers are very concerned right now and may feel the effect of the Italian government’s decision to put a travel ban in and out of Italy. Companies such as Argo, Landini, SAME, and equipment makers Muratori attachments, to name but a few, may find it difficult to export their products. However, many of these companies have manufacturing facilities in other countries. Time will tell how long this lockdown will last for. If other European countries decide to follow Italy’s lockdown style then this market will find it hard to recover. The good news is that China seems to be coming out of the crisis but can western economies afford to lock down as they did?

On top of all this, oil prices have fallen because of a production cut disagreement between Saudi Arabia and Russia. It would be great if these lower prices will transfer to the petrol pumps, which would mean cheaper running costs for farmers, landscape contractors and groundsmen. It remains to be seen but so far the drop in fuel prices to the consumer has been tiny.

All these events have put pressure on dealers and distributers around the country. Farming life should go ahead as normal. We are now in the Spring season and soon farmers will be getting their machines ready to till and sow the land. Groundsmen are facing into the growing season which means that groundcare equipment will be soon back in action. Will service dealers be able to have a sufficient supply of spare parts in stock in anticipation of breakdowns? As I mentioned earlier, many spare parts for tractors are manufactured in China so there could be a supply concern here.

There is also the issue of self isolation. If employees decide to stay away from work, how will this affect the service dealers? Will premises be forced to temporarily shut down? Can they afford this, just as the busy sowing and growing season begins?

There is no doubt that the Coronavirus has done a lot of damage to the global economy. It has affected energy prices, supply chains, restaurants, hotels, airlines and autos to name a few. My personal opinion is that this virus will fade out with the onset of warmer weather, just like the flu does. If that is the case, normal life should resume in the next few weeks and business will, hopefully, pick up.

In the meantime, observe the precautions and guidelines for Coronavirus. Visit the HSE website www.hse.ie for information on COVID-19.

Below are some links that also may be of help

https://www2.hse.ie/conditions/coronavirus/coronavirus.html
https://www.hpsc.ie/a-z/respiratory/coronavirus/novelcoronavirus/guidance/
https://www.gov.ie/en/campaigns/c36c85-covid-19-coronavirus/