Eurovent Middle East, along with other international industry organisations, has published a Position Paper to warn of severe consequences to critical infrastructure if the supply and servicing of HVACR equipment is halted.
Several governments around the world have imposed shutdowns of non-essential businesses as part of the measures to contain the COVID-19 outbreak. In some countries, this includes manufacturers, suppliers and service professionals of HVACR equipment.
Among these countries are major producers like Italy, India or Malaysia and it is expected that more countries and regions will follow in the weeks to come. Shutdowns include the manufacturing of HVACR systems and components, which will lead to a shortage of supplies and services for critical infrastructure.
Data from Eurovent Market Intelligence indicates that Italian factories alone provide about 20% of all finished products to the European HVACR market. In the IT cooling segment, Italy’s role is even more significant, with a share of production of almost 45% in the EMEA region.
It is estimated that currently more than 50% of the HVACR production in Europe is directly affected by shutdowns, while a majority of the remainder are struggling with faltering supply chains and shortage of components.
For the Middle East, the shutdowns in other countries however will have a significant impact on local production due to shortages in the supply chain. An even more severe effect will be seen in those sectors where there is a high dependency on imports.
This is specifically true for IT cooling equipment nd refrigeration systems, where most of the products are manufactured in Europe.
The Position Paper calls on governments around the world to include the HVACR industry in the list of essential businesses.
The dependency on a global supply chain and requirements to adhere to strict standards and regulations exposes markets to significant shortages in the supply of equipment, which ensures the safe operation of healthcare, cold chain and data centre facilities if a coordinated approach towards this industry is not followed.
Brian Suggitt, president of Eurovent Middle East, said: “Governments currently imposing shutdowns on HVACR businesses need to keep in mind, that this not only disrupts the supply chain in their own country but cuts off other countries and regions dependent on imports of essential products.
"This is especially true for developing countries around the world that do not have the capacity to sustain the functioning of vital, life-critical infrastructure without the necessary products.”