August 2016 - Water Market Insights 198

Improving the Right-to-Win Ability for High Performance Flow Control and Treatment Products

The right-to-win for high performance flow control and treatment products can be enhanced by leveling the playing field and changing the scoring method. Right-to-win is the ability to engage in any competitive market with a better-than-even chance of success. Four strategies have been used to improve the right-to-win ability. They are position, execution, adaptation and concentration.

In flow control and treatment there are two types of products and services: high performance and general performance. The right-to-win strategies for them differ significantly.

The challenge of large U.S. and European based suppliers of high performance flow control and treatment products is to not only improve the right-to-win ability in the existing market, but to be pro-active in changing the rules of the game to level the playing field and even the scoring method in developing countries. Most of these large companies have not achieved the sales and profits in the fast growing developing market. McIlvaine, therefore, proposes that “creation” be considered a fifth right-to-win strategy. The importance of each strategy has been ranked from very important to irrelevant.

Right-to-Win Strategies for High Performance and General Performance Products (5 is very important and 1 is irrelevant)
Right-to-Win Strategy	High Performance	General Performance
Position	3	5
Execution	3	5
Adaptation	5	3
Concentration	3	4
Creation	5	2

The creation strategy changes the playing field by making it easier for purchasers to buy the best rather than the lowest cost product. This entails finding an easier way to determine the lowest total cost of ownership (LTCO). Arcelor Mittal is doing this by global sourcing and then providing LTCO analyses for its 200 plants around the world. McIlvaine is accomplishing this in certain industries with free Decision Guides for end users.

Changing the scoring method is another game changer. Most flow control and treatment products contribute to increased life quality today at some penalty to future generations (e.g. greenhouse gases or resource depletion). The perspective is quite different for a wealthy individual who wants to set up annuities for his grandchildren and the starving parent who cannot even ensure the survival of his children. McIlvaine has created a metric to help developing countries make the best choice for their citizens.

For more information on right-to-win strategies in flow control and treatment contact Bob McIlvaine 847-784-0012 ext. 112 rmcilvaine@mcilvainecompany.com.

The Market for Sedimentation and Centrifugation Equipment Will Exceed $8.4 Billion/yr. By 2020

The market for clarifiers, hydrocyclones, centrifuges and dissolved air flotation systems will exceed $8.4 billion/yr. by 2020. This is the conclusion reached by the McIlvaine Company in N005 Sedimentation and Centrifugation World Markets.

The municipal sludge dewatering market is a big market for decanter centrifuges. Over the years, decanters have captured market share from the traditional belt press.

Because of its size and the fact that more than 30 percent of the sludge is not presently treated, China is the largest market. The choices which it makes between centrifuges and belt filter presses will significantly impact the centrifuge market. The 2015 goal was to treat 70 percent of the sludge in big cities and 50 percent in smaller cities. A new Foshan sludge treatment center is under construction. Wuhan expects to complete eight sludge processing plants by 2020. Shanghai plans to reduce landfill sludge from 86 percent in 2012 to 7 percent by 2020. Eleven sludge treatment projects in Bailonggang, Shidongkou and Zhuyuan are underway. Cement production facilities that are under construction in Bailonggang will utilize dewatered sludge from nearby treatment facilities.

Another growth market for centrifuges is the potash industry. Nearly $30 billion will be spent to build potash plants in Canada and the U.S. Centrifuges and hydrocyclones are used for product recovery.

Zero liquid discharge (ZLD) systems are increasingly selected by power plants in many areas of the world. Centrifuges are used prior to the crystallizer. Other sedimentation equipment is also required.

Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a Weekly Basis

The 41F Utility E-Alert is issued weekly and covers the coal-fired projects, regulations and other information important to the suppliers. It is $950/yr. but is included in the $3020 42EI Utility Tracking System which has data on every plant and project plus networking directories and many other features.

DATE	HOT TOPIC HOUR AND DECISION GUIDE SCHEDULE *The opportunity to interact on important issues*
August 25, 2016 10:00 am CDT *Markets*	Oil, Gas, Refining - Supply and demand; impact on flow control and treatment products; regional impacts e.g. subsea in North Atlantic vs. shale in the US vs. Oil Sands in Canada.
TBA *Markets*	Food - Analysis of 12 separate applications within food and beverage with analysis of valve, pump, compressor, filter, analyzer and chemical options; impact of new technologies such as forward osmosis.
TBA *Markets*	Municipal Wastewater - Quality of pumps, valves, filters, and analyzers in Chinese and Asian plants; new pollutant challenges; water purification for reuse.
TBA *Markets*	Mobile Emissions -Reduction in CO, VOCs, and particulate in fuels, oils, and air used in on and off road vehicles; impact of RDE and failure of NO_x traps and the crisis in Europe created by the focus on clean diesel.