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.
Company
|
Number of Centrifuge Exhibitors
|
|
|
|
Achema 2018
|
25
|
|
WEFTEC 2019
Chicago
|
8
|
|
IFAT,
Munich, 2018
|
7
|
|
OTC 2019
|
4
|
|
SME Mining
2020
|
4
|
|
FI-Foodtec
2019
|
3
|
|
Interphex
Japan 2020
|
2
|
|
Beer X 2020
|
1
|
|
China Coal
and Mining
|
1
|
|
Dairytec UK
2020
|
1
|
|
Frac Sand
2019
|
1
|
|
Interphex
NYC 2019
|
0
|
|
PowerGen
2019 New O.
|
0
|
|
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.
Activity
|
Present
Approach
|
MPM
|
Sales Initiation
|
Sales Leads and Reps
|
Predicted Prospects
|
Market Research
|
Peripheral
|
Foundation of Approach
|
Sales Promotion
|
Unstructured and Reactive
|
Structured and Proactive
|
Sales Success
|
Persuasion
|
Lowest Cost of Ownership Evidence and Delivery
|
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.
Determination Needs
|
Knowledge Sharing
|
Product use in each power process by fuel type
|
Knowledge networks providing access to media,
conference and association resources
|
Determine the market for each process
|
Free flowing solids includes coal, limestone,
gypsum, ash; liquids include water, slurries, process liquids and gases
would include steam (all being forecast by McIlvaine in each country)
|
Determine the use for the product in each
process
|
Knowledge networks providing access to media, conference and
association resources
|
Determine the purchases by each major customer
|
Analysis already available for coal, nuclear,
GTCC, and renewables generators with 95% of capacity. It is customized
for a specific offering with
knowledge networks.
|
Analyze competitor market share and offerings
|
This includes analysis of all advertising and
exhibition activity including niche as well as major events. Media can provide this data to
advertisers.
|
Compare lowest total cost of ownership
|
Knowledge networks providing access to media, conference and
association resources are supplemented by webinars.
|
Pursue markets where high margins are not offset
by high sales costs
|
Associations, media, and conferences can be leveraged in an
organized market campaign which can include collaboration with other
divisions or with complimentary product suppliers
|
Develop new and better solutions
|
Access to all the available information is
necessary to determine what is needed.
|
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
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