WELCOME
Weekly selected highlights in flow control, treatment and combustion from the
many McIlvaine publications.
New Route to Market in the $18 billion Cartridge Filter Industry
A webinar on September 19 at 10:00AM 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.
Company |
2019 Cartridge Purchases
$ millions |
E.J Gallo |
5 |
Constellation Brands |
3 |
The Wine Group |
2 |
Treasury Wine Estate |
2 |
Viña Concha y Toro |
1.5 |
Castel Frères |
1.5 |
Accolade Wines |
1.5 |
Pernod Ricard |
1.5 |
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:
Classification |
Options or Parameters |
Processes to be considered |
Pre filtration, filtration,
regeneration |
Pre filter options to be
considered |
Wrapped cartridges vs pleated |
Decisive classifications for pre
filter alternatives |
Initial cost, efficiency,
safety, life, product taste,
impact on final filter |
Vendor scope |
Separate purchase of each
product type vs package from one
vendor |
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.
|
JSW Steel Orders Meros and WGR System for
Existing Sinter Plant No. 4 at Vijayanagar Plant
|
2ABC
Scrubber/Adsorber/Biofilter Knowledge Systems
|
Wärtsilä Signs €170 Million Scrubber Deal |
|
Yara Supplying Urea and Ammonia to Power Plants
Throughout the World
|
|
MHPS Receives Order to Upgrade Environmental
Systems at Unit 3 of KOMIPO's Boryeong Power
Station
|
9ABC Air Pollution
Monitoring and Sampling Knowledge Systems
|
Fugitive Emissions and Pump Summit Better
Solutions |
|
Proposed Thabametsi 630 MW Coal-fired Power
Plant for Limpopo, South Africa
|
|
Nederman Sales Up 5.2 Percent in Quarter 2, 2018
|
|
NORTH CAROLINA: NAES
Selected to Operate Kings Mountain Energy Center
|
|
Lonza Pharma & Biotech to Expand Portsmouth Site |