Mcilvaine Insights

No. 128   December 4, 2019

Betty Tessien

WELCOME

Weekly selected highlights in flow control, treatment and combustion from the many McIlvaine publications.

·       Briefs

·       World Centrifuge Market Controlled by Fewer than Fifty Companies

·       Most Profitable Market Program for Flow and Treat Companies in the Power Industry

Briefs

India’s Growth has Slowed.  GDP growth in India has slowed from 9% three years ago to just 4.5% this year. Nevertheless with a population destined to be the world’s largest in the coming years and with a capitalistic structure it continues to be an attractive flow and treat market.  McIlvaine is working with Mission Energy who hosts important conferences such as Flyash Utilization scheduled for Goa in February http://flyash2020.missionenergy.org/.  The Indian  flow and treat market relative to coal fired boilers will be very large over the next few years and in terms of amounts of equipment purchased exceed the U.S. at its height.  However, the lower prices reduce this potential somewhat.  Nevertheless it is an attractive market which we cover weekly in http://home.mcilvainecompany.com/index.php/databases/42ei-utility-tracking-system

Tariff and Trade Problems continue to Impact  the Flow and Treat Industry.   This conflict is not good for the flow and treat industry but is spurring internationalism. The U.S. will purchase a continually smaller share of flow and treat products. So protection of this shrinking domestic market pales in importance to pursuing the increasing opportunities around the world. The result is therefore going to be less rather than more production in the U.S.

Pharmaceutical Flow and Treat Growth to Average 5% in the U.S.  The cleanroom industry in the U.S. will continue to benefit from a growing market for pharmaceuticals. The biopharmaceutical segment is growing even faster than the industry as a whole. The need for flexible and small production facilities is leading to innovations in single use, closed systems and restricted access barrier systems.  The impact is analyzed in http://home.mcilvainecompany.com/index.php/markets/other/n6f-world-cleanroom-markets  Projects are tracked in http://home.mcilvainecompany.com/index.php/databases/80a-world-cleanroom-projects

World Centrifuge Market Controlled by Fewer than Fifty Companies

Thousands of new forecasts relative to the market for centrifuges have just been posted to http://home.mcilvainecompany.com/index.php/markets/water-and-flow/n005-sedimentation-and-centrifugation-world-markets.  Centrifuges are highly engineered devices which require substantial capital investment to design and manufacture. It is not surprising that fewer than fifty companies have captured seventy percent of the market.

The energy segment includes stationary power, shipboard fuel oil treatment, oil, gas, and refining.  The top supplier has nearly 30 percent of the market.

The life science and chemical segment includes food, pharmaceuticals, and chemical processes.

The two top producers share sixty percent of the market.

The water segment includes municipal water and wastewater as well as desalination.  There is no clear leader.  The top three suppliers have less than a third of the market.

The other segment includes mining, iron and steel and many other industries.  Many smaller companies pursue niches which are overlooked by larger competitors.   The top four suppliers account for only twenty-five percent of the market.

There are relatively few exhibitions around the world with extensive displays of centrifuges. ACHEMA stands out with 25 exhibitors.  However, this event is tri annual. When annualized it is only 8/yr. WEFTEC is a U.S. municipal wastewater conference and exhibition which is held yearly. So even though it has only has eight centrifuge exhibitors it is comparable to ACHEMA.

By contrast IFAT in Germany competes with WEFTEC but is triannual.  When annualized this is a smaller event for centrifuge suppliers than Offshore Technology Conference held annually in Houston. The U.S. SME Mining show next year will have four centrifuge exhibitors as well. 

It is surprising that Interphex in the U.S. and PowerGen in New Orleans had no centrifuge exhibitors. There are hundreds of small exhibitions attached to specialized conferences.  Andritz participated in 50 such exhibitions in 2019. The focus on many of these were Andritz products other than centrifuges.

This market report http://home.mcilvainecompany.com/index.php/markets/water-and-flow/n005-sedimentation-and-centrifugation-world-markets.  is continually updated and includes decanter, disc, and other centrifuge forecasts for each industry in each country.

Bob McIlvaine can answer your questions at  Direct: 847 784 0013, Cell: 847 226 2391 or you can email him at rmcilvaine@mcilvainecompany.com

Most Profitable Market Program for Flow and Treat Companies in the Power Industry

Market research has been used as a peripheral tool by power plant flow and treat product providers. Now it can be the foundation of a program to successfully pursue the Most Profitable Market (MPM). There is already enough information available through media, associations, conferences and internet resources to determine the best prospects and then convince them that the supplier has a better product.  McIlvaine can provide the market forecasts which can be used to pursue this unique new approach based on customer knowledge and not sales leads.

McIlvaine can provide the market research. Suppliers can promote their products in a structured and proactive manner by working with the media, conference organizers, consultants, and associations with a structured approach which breaks down traditional silos. Here is an example.

At PowerGen International in New Orleans Clarion introduced new approaches to organizing knowledge and connecting the seekers and those with the answers. There were Knowledge hubs and arranged meetings with programs called “Connect” and “Match” McIlvaine  contributed with organized knowledge access in a number of areas as explained at
 http://www.mcilvainecompany.com/PowerGen_2019/MPM/powergen_and_the_most_profitable.htm

One successful example of  the structured proactive started with PowerGen Connect and ended with a brief meeting at a consultant stand. Speakers and exhibitors shared thoughts on flyash reclamation and reuse in the U.S. and India.  Another example utilized articles in Power Engineering plus the  knowledge of treatment chemical experts to analyze a very promising technology for improving efficiency of limestone scrubbers.  While this may be a minor opportunity in the U.S it is a huge opportunity in India and should continue to be pursued at PowerGen India and in conferences organized by Mission Energy who also has an upcoming 2020 flyash utilization conference in India.

There were a number of valve exhibitors identified in the McIlvaine PowerGen tour guide. A very narrow application “turbine bypass valves” was selected to demonstrate the value of pursuing each niche.  McIlvaine is working with IVAMA (Indian Valve Manufacturers Association) and writes more than one feature article on valves each month for major publications. There are a number of good articles on valves archived in Power Engineering.

The support of utility associations such as EPRI, VGB, Mission Energy and others can be pursued because the MPM for suppliers is the lowest total cost of ownership solution for the operators.

McIlvaine tracks all the major power projects and has analysis of every coal fired power plant operator in the world with more than 1000 MW of installed or planned capacity.

http://home.mcilvainecompany.com/index.php/databases/42ei-utility-tracking-system . 

McIlvaine tracks GTCC projects  http://home.mcilvainecompany.com/index.php/markets/air/gas-turbine-and-reciprocating-engine-supplier-program as well as nuclear and renewable. 

For 40 years it has sought to provide organized access to the information on coal fired flow and treat technology with http://home.mcilvainecompany.com/index.php/silobusters/44i-coal-fired-power-plant-decisions

McIlvaine standard market reports provide the Total Available Market at each major prospect. With MPM this is expanded to identify and then convince those customers who will provide the company with the greatest profits.

McIlvaine needs assistance  to forecast the most profitable markets. The supplier also needs this crucial information.  It can be obtained in an organized approach where knowledge is shared.

The starting points for the program are the standard or customized market reports described at  www.mcilvainecompany.com  - Markets.  The Most Profitable Market Program is also explained in detail from a home page link.

Bob McIlvaine can answer your questions at rmcilvaine@mcilvainecompany.com  direct 847 784 0013 cell 847 226 2391