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Mcilvaine Insights |
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No. 75 September 11,
2018 |
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Mcilvaine Insights |
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No. 75 September 11,
2018 |
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WELCOME
A webinar on September 19 at
10:AM will explore the new route
to market for cartridge filter
suppliers. The Industrial
Internet of Wisdom (IIoW) is the
gateway to the post digital era
which will make it highly
desirable to forecast the
cartridge purchases for each
major prospect and provide each
with a lowest Total Cost of
Ownership Validation (LTCOV).
The continuing validation will
necessitate interconnection
among suppliers, publishers,
conference organizers
and end users to create
decision systems.
The first step for the supplier
is to provide a forecast for
each significant prospect. In
the wine industry more than 50
companies each spend $200,000 or
more for cartridges.
These companies warrant
individual LTCOV validations.
Next year $18 billion will be
spent for cartridges. Of this
total $600 million will be spent
by food and beverage companies.
The sub-segment for wineries
will be $40 million.
The U.S and France account for
25 percent of the world’s wine
consumption.
Italy, Germany, and China
account for another 25 percent.
The top 20 countries
consume most of the wine.
The top 10 wine makers will
spend $18 million for cartridge
equipment and consumables next
year.
One of the purchasers is Hubert
Sekt.
An article about
cartridge use at this winery
appeared in a
Filtration and Separation
feature article.
Information in this
article provides some of the
background information needed to
make an LTCOV.
The LTCOV is established
in a series of decisive
classifications which make clear
which product provides the
lowest cost of ownership. The
applications for cartridges
include pre filtration and final
filtration and also filtration
of water and steam used for
filter regeneration.
The filtration is an
important factor in the quality
of the wine and it affects the
taste. Removal of yeast is a
safety issue which could result
in CO2 buildup and
explosions. So a series of
decisive classification steps
are needed to review alternative
options for reaching each of the
goals with least cost.
Wineries such as Hubert Sekt are
looking for a solution not just
filters. Therefore a cartridge
supplier can offer a package and
make the case that the LTCO is
in purchasing a package.
The article adds to the decisive
classification process with
information such as:
The
webinar on September 19
will discuss the world cartridge
filter market opportunities and
the program to first forecast
the opportunity for each major
prospect and secondly how to
work with publishers and others
to validate that a product has
the lowest total cost of
ownership.
The foundation of the program is
the forecasts which are supplied
in
N024
Cartridge Filters: World Market
You can register for the webinar
at
Free
Market Webinars
Steel Industry Valve Purchases
Will Exceed $1.7 billion this
Year
The world steel industry will
spend over $1.7 billion this
year for valves, parts, and
service. Many of the valve
decisions will be made from the
headquarters of large
international operators.
This will necessitate a
new marketing approach by valve
suppliers.
In the case of ArcelorMittal,
the majority ownership is by an
Indian individual but the
decisions regarding valve
purchases may be made in
Luxembourg which is the company
headquarters.
ArcelorMittal is a major
valve purchaser. Its valve
purchases for steel and mining
applications are just under $100
million per year of which $84
million is for steel
applications.
As the world’s largest steel
manufacturer, ArcelorMittal
makes almost as much steel as
India itself. Yet India must
more than double steel output by
2030 if its smart cities, bullet
trains, advanced manufacturing
and safer housing are to become
reality. ArcelorMittal, with its
partners Nippon Steel and
Sumitomo Metal is presently
bidding to buy Essar Steel which
is a large bankrupt Indian Steel
company.
Lakshmi Niwas Mittal owns
controlling shares in Arcelor
Mittal which he founded. He is
one of the world’s wealthiest
individuals and sits on the
board of Goldman Sachs. He grew
up in an Indian family in the
steel business.
Until the 1990s, the family's
main assets in India were a
cold-rolling mill for sheet
steels in Nagpur and
an alloy steels plant near Pune.
Lakshmi Mittal decided to strike
out on his own and opened
his first steel factory PT Ispat
Indo in Sidoarjo, East
Java, Indonesia
in 1976.
He then founded
ArcelorMittal which is now the
world’s leading steel and mining
company, with annual achievable
production capacity of
approximately 113 million tonnes
of crude steel, driven by
197,108 employees working in 60
countries.
ArcelorMittal is the largest
producer of steel in North and
South America and Africa, a
significant steel producer in
the CIS region, and has a
growing presence in
Asia, including investments in
China and India. It is also the
largest steel producer in the
EU, with significant operations
in France, Germany, Belgium,
Spain, Luxembourg, Poland, the
Czech Republic and Romania.
It is also a mining leader.
ArcelorMittal has a global
portfolio of 14 operating units
with mines in operation and
development and is one of the
largest iron ore producers in
the world.
ArcelorMittal works with more
than 70,000 direct suppliers,
covering an annual spend of
around $50 billion for raw
materials, energy, industrial
products and spares, as well as
various services.
It manages a complex supply
chain, using the principles of
total cost of ownership. If it
purchases Essar Steel it is
likely that major valve
decisions will be made in
Luxembourg or in one of nine
shared services centers the
company operates worldwide.
With remote monitoring of valve
operations and data analytics
the company will have the
background data to determine the
lowest total cost of ownership.
It has invested heavily in IIoT
working with ABB, Schneider
Electric, GE, Siemens and
others.
At the Olaberria plant in
Spain, as an example, valves
associated with the melting,
dust collection and other
equipment are continuously
monitored and data analyzed.
Valve suppliers looking to
increase sales in India as well
as in other countries will want
to consider the following:
·
Purchasing decisions are going
to be made by relatively few
individuals who are not likely
to be at the plant site
·
Decisions are going to be
increasingly made based on
lowest total cost of ownership
·
The successful valve supplier
will need to prepare a lowest
Total Cost of Ownership
Validation (LTCOV) for each
application in each industry and
then LTCOVs for each major
customer
·
We are entering the post digital
era where the Industrial
Internet of Wisdom (IIoW) is
empowering IIoT and will
necessitate
new marketing strategy
for valve suppliers.
·
This new era will make it
possible for international valve
suppliers to better compete for
valves to be used in India
The McIlvaine
N028 Industrial Valves: World
Market
provides 50,000 forecasts
of valves by type, end use
location, and industry. It also
includes forecasts for the 200
largest customers
A program including forecasts for thousands of prospects is also available. Details are provided at www.mcilvainecompany.com
Bob McIlvaine can answer your
questions at
rmcilvaine@mcilvainecompany.com
847 784 0012 ext. 122.
Cleanroom Supplier Program in
the Post Digital Era
The McIlvaine
World Cleanroom Markets and
Cleanroom Projects are the
foundation of a new approach to
selling cleanroom hardware and
consumables. Cleanroom owners
want to buy the equipment and
consumables with the lowest
total cost of ownership (LTCO).
Suppliers would like to validate
that their products are the LTCO
choice. Publishers and
conference organizers would like
to be facilitators to
communicate the relevant
information.
Market researchers need
to understand the LTCO options
in order to make relevant
forecasts and properly advise
clients.
We are entering the post digital
era where the Industrial
Internet of Wisdom will empower
IIoT. Cleanroom suppliers should
be out in front leading the
march into the post digital era
and selling a wisdom based
program to their customers. The
program should address each
prospect in each industry and
each process within that
industry as well as each
supplier product which will have
the lowest total cost of
ownership (LTCO) for the
operator. This LTCO
validation (LTCOV) is
accomplished with collaboration
and a combination of Wisdom
tools which not only present the
LTCO but validate it (LTCOV) by
connecting with the individual
purchasers. This is the
route to higher sales.
Each Prospect:
McIlvaine forecasts
purchases by the 100 largest
owners as part of the
multi-client report.
Forecasts for thousands
of additional purchasers in each
industry are provided on a
custom basis.
Each Process: Classes of
cleanroom,
mini environments,
biological safety cabinets and
other processes are analyzed.
Each Product: The range of
consumables from gloves to
disposable clothing and hardware
from walls to filters is
addressed.
LTCOV: McIlvaine provides the
interconnections and background
data to assist suppliers in
determining that a product has
the lowest total cost of
ownership.
Collaboration:
The interconnection with
publishers, conference
organizers, and subject matter
ultra-experts is part of the
validation process.
Wisdom Combo: Knowledge of the
applications to help advise the
operator on the use of the
product can be expanded to
remote monitoring and
operational support.
Connect: Validation only comes
with customer acceptance which
in turn comes from
interconnection with publishers,
conference organizers,
associations and others.
Higher Sales: Successfully
validating the LTCO of the
product results in not only
higher sales but higher margins
and profits.
For more information on the
services click on
N6F World Cleanroom Markets
and
80A World Cleanroom Projects For more information on the program contact
Bob Mcilvaine at
rmcilvaine@mcilvainecompany.com
847 784 0012 ext. 122
Eight Indian based Companies
will Spend more than $1 billion
for Valves in
2019
The market for valves in India
is increasing at a greater rate
than elsewhere. Purchases in
2019 will exceed $3 billion.
This represents valves,
parts, and service which will be
utilized in India. Eight large
valve purchasers based in India
will spend more than $1 billion
for valves. However some of
those valves may be installed in
other countries.
The end use forecast is crucial
to stocking of valves and
service. However, the use for
sales purposes is diminishing as
purchasing decisions are
increasingly centralized. Some
valve selection and purchase for
use in India is made in China
and Japan where
equipment for new coal
fired power plants is part of
packages. Long term financing of
new facilities by the
governments and financial
institutions in these countries
results in control of initial
valve decisions.
On the other hand, Indian based
suppliers such as BHEL are
providing equipment for new coal
fired plants in other countries.
Indian based conglomerates are
purchasing valves for their
facilities in India and
elsewhere.
NTPC is
presently the leading
valve purchaser due to the
upgrade of its coal fired plants
to remove SO2, NOx
and fine particulate.
Eight Indian based
companies each spend more than
$30 million per year for valves.
Valve suppliers looking to
increase sales in India as well
as in other countries will want
to consider the following:
·
Purchasing decisions are going
to be made by relatively few
individuals who are not likely
to be at the plant site
·
Decisions are going to be
increasingly made based on
lowest total cost of ownership
·
The successful valve supplier
will need to prepare a lowest
Total Cost of Ownership
Validation (LTCOV) for each
application in each industry and
then LTCOVs for each major
customer
·
We are entering the post digital
era where the Industrial
Internet of Wisdom (IIoW) is
empowering IIoT and will
necessitate a new marketing
strategy for valve suppliers.
·
This new era will make it
possible for international valve
suppliers to better compete for
valves to be used in India
The McIlvaine
N028 Industrial Valves: World
Market
provides 50,000 forecasts
of valves by type, end use
location, and industry. It also
includes forecasts for the 200
largest customers.
A program including forecasts for thousands of prospects is also available. Details are provided at www.mcilvainecompany.com Bob Mcilvaine can answer your questions at
rmcilvaine@mcilvainecompany.com
847 784 0012 ext. 122
Weekly and Monthly Publication
Samples
Our weekly and monthly
publications have important news
and insights. Here is a
selected title from each from
the most recent issue.
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