OEM Networking Directory Has the Contacts at Consulting and Supplier Companies
If you sell systems, scrubbers nozzles, packing or corrosion resistant materials
you will use the McIlvaine OEM Networking Directory daily. Check it out
at:
53DI OEM Networking Directory.
Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a
Weekly Basis.
Here are some headlines from the last weeks Utility E-Alert.
UTILITY E-ALERT
#1252 – December 11, 2015
COAL - US
COAL – WORLD
·
Engie to sell India, Indonesia
Assets
as it seeks to exit
Coal-based
Projects
·
Proposed 600 MW Balingian Power Station for Mukah, Sarawak, Malaysia
·
Jimah East Power plans ultra-supercritical 2,000 MW Coal-fired Power Station in
Jimah, Malaysia
·
Two Phase 1,320 MW Coal-fired Power Station proposed for Kalapara, Bangladesh
·
Proposed 300 MW Coal-fired Power Station in Banovici, Bosnia and Herzegovina
MVR Waste Incinerator in Germany is a Template for Coal-fired Power Plants
For more information on
41F Utility E-Alert
click on:
http://home.mcilvainecompany.com/index.php/databases/28-energy/485-41fi
Half of All Flow Control and Treatment (FCT) Purchasing Decisions Are Made
Remotely
The choice among suppliers for an FCT product is more often made outside the
local sales area. This means that coordination of local sales people is
routinely necessary. Furthermore, market forecasts and sales quotas based on
where the products will be used have to be adjusted to take into account the
remote influence. A big portion of sales can be in large projects. Most of these
involve remote influence.
Large companies are moving toward global sourcing. A few hundred large companies
purchase 40 percent or more of FCT products. These large purchasers also are the
ones with the large projects. Most large project purchasing decisions are made
by groups and not individuals.
Local Influence vs. Purchasing Company Size for Flow Control and Treatment
Equipment
100% |
|
|
|
|
|
Small companies with 60%
of the market |
|
||
↑ |
||||
Local
Decision
Making
Influence |
||||
50% |
||||
|
|
Large companies with
40% of the market |
||
↑ |
||||
|
||||
|
||||
↑ |
||||
|
Project Size → |
Smaller companies tend to make purchasing decisions in the country, province or
state in which the product will be used. In larger companies, decisions are
frequently made by corporate people in another locality. Another factor is
project size. The larger the project, the more likely the decision will be made
in part by people not at the point of use. McIlvaine has determined that
anywhere from 50 to 200 large companies account for 40 percent or more of the
purchases in any of the flow control and treatment product areas.
When the influence of EPC and system suppliers are included, the relative
percentage of local decision making is further reduced.
Percentage of Purchasing Decisions Made at Another of the 95 Countries, Regions
and Provinces rather than at the User Plant
|
Small Company (Purchases) |
Large Company (Purchases) |
||
|
Local
Decision |
Remote Decision |
Local
Decision |
Remote Decision |
Large Purchaser |
|
|
20 |
40 |
Small Purchaser |
60 |
10 |
|
|
OEM, EPC |
5 |
10 |
5 |
15 |
Consultant |
5 |
10 |
5 |
15 |
Total for Category |
70 |
30 |
30 |
70 |
Total for Market which is 60/40
Small |
42 |
18 |
12 |
28 |
In the total market, 54% of the
decisions are local and 46% made
remotely |
For a major system or component, 46 percent of the decisions are made remotely.
This number is much higher when components such as pumps and valves for new
plants are evaluated. Seventy percent of the decisions would be made remotely.
Often a valve is assembled in a component in one location and then shipped to
the end user. The component supplier will make the ultimate purchase but the end
user man have substantial influence on the valve choice.
Most of the decisions will be made locally for repair parts and replacement
valves, pumps, nozzles, etc. The exception would be large companies that are
moving to global sourcing.
Sales management needs to take into account the remote influence and large
project impacts.
The first step is to create detailed forecasting of markets by use in all the
sales territories. McIlvaine has divided the world into 95 significant
territories (9 regions in the U.S. and 6 regions in China). This spreadsheet
then becomes the template for adjustments by remote influencers and large
projects.
The sales effort at the global sourcing headquarters for Arcelor Mittal which
has more than 100 steel plants and coal mines needs to be proportional to the
remote influence. A large project such as the $3 billion potash mining project
in Canada or $20 billion coal gas pipeline in China must also be taken into
account.
McIlvaine addresses all three of these needs.
The general program is summarized at:
Detailed Forecasting of Markets, Prospects and Projects
Bob McIlvaine
President
847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com