Mcilvaine Insights

No. 109   June 14, 2019

WELCOME

Weekly selected highlights in flow control, treatment and combustion from the many McIlvaine publications.

• SiloBuster Webinar Program for Combust, Flow, and Treat (CFT)  Suppliers
• Maximizing CFT Profits in the Coal Fired Power Generation Industry

SiloBuster Webinar Program for Combust, Flow, and Treat (CFT)  Suppliers

Subscribers to McIlvaine market reports and databases can now take advantage of a free 90 minute webinar opportunity where individuals from multiple product groups, locations, and disciplines can review displayed data, ask questions and provide insights.

In “The Silo Effect”, Gillian Tett documents the magnitude of the problem created by the efficient division of labor. Surveys show that management ranks lack of collaboration among divisions as a top problem.  CFT companies such as  IDEX and Filtration Group have become very successful by encouraging each product group to operate independently. You cannot argue with success. But as Tett shows with her examples there is much additional benefit in communication among disparate groups.  The challenge is to do this without restricting the independence.  The SiloBuster webinar program is a good way to initiate this collaboration.

McIlvaine market reports have forecasts for each product in each industry in each country. This empowers people with local sales knowledge to contribute. Representatives and distributors can be allowed to view data during the webinar and make contributions. The reports also have the forecasts for each large customer. The database reports have the details on the specific corporate customers and plants.

The data also includes forecasts of present and future production in each industry and country.  For example there are forecasts in MW for solar, gas turbine, coal, and nuclear power. There are forecasts in tpy or m³ of ethylene, LNG, and other petroleum products, wafers per month for semiconductor companies, production in tpy for each type of ore, wastewater treatment in MGD,   and square feet of pharmaceutical cleanroom space.  This level of detail empowers people with specific knowledge to contribute.

Many distributors or representatives have unique industry knowledge. There are many rapidly developing markets such as single use biopharmaceuticals, hydraulic fracturing in Argentina, China and Saudi Arabia, ultrasupercritical coal fired generators in China, lithium production in Australia, and manufactured frac sand production in Texas. Input from various individuals will contribute greatly to better understanding these new developments. 

Many purchase decisions are made at the corporate level.  BASF in Germany has standardized on condition monitoring flow measurement from companies such as E&H.  These guides apply to all the hundreds of BASF plants around the world. Arcelor Mittal is buying fabric filter systems in Belgium for operation in South America. In Chile Suez operates half the municipal wastewater plants with purchasing guidance from France. This internationalization makes it highly desirable to pursue each large customer on a collaborative basis.

One of the biggest opportunities is to understand and leverage the product technology of the disparate groups. With IIoT and Remote O&M the emphasis is on the total cost of ownership of the system.  A smart pump or valve is better than a product of equal quality which does not perform smartly. The pump is dependent on the valves operating optimally. The scrubber operation is dependent on the pump.  In the case of  FGD the fan and pump are sharing work.  There is the option to increase the fan horsepower for more efficient scrubbing with less pump flow.  The use of HEPA filtration for gas turbine inlets reduces turbine wear and greatly increases the HEPA market.  Many of these technology developments are included and can be viewed during a webinar in http://home.mcilvainecompany.com/index.php/other-services.

Understanding the relationship of all these products is challenging. Each process in each industry provides its own unique  requirements. Within a large corporation there are industry specialists. In addition there are employees who formerly were employed  by a company in the subject  industry. Their knowledge can be beneficially extracted.

Competitor knowledge is  spread across many individuals within the organization. McIlvaine reports have estimated market shares. These can be the basis for group discussions.  Some competitors will have new products or have been merged with another company. When TLT was purchased by POWERCHINA  with $48 billion in sales and a double digit growth rate it changed the Chinese market opportunity for Howden and other fan companies.

Sharing information about regulations is also important.  China has an HELE (high efficiency, low emissions) initiative.  Part of that initiative is third party operation of power plant air pollution systems to insure compliance. This creates a whole new group of purchasers of lime, nozzles, agitators, fans, dust collector bags, valves, pumps, couplings, seals, water treatment chemicals etc. Will these companies become international (Boqi is already expanding)? Will the initiative be copied in other countries?

One free 90 minute SiloBuster webinar is available for purchasers of the fabric filter, scrubber, FGD, DeNOx, thermal oxidation, precipitator, liquid filtration, sedimentation, IIoT & Remote O&M, valve, pump, and treatment chemicals reports. http://home.mcilvainecompany.com/index.php/markets

Another free webinar is available for purchasers of each industry report and database: coal, nuclear, gas turbine, renewables, oil & gas, water/wastewater, cleanrooms, semiconductor, pharmaceutical, industrial (including chemical, mining, pulp & paper, other). http://home.mcilvainecompany.com/index.php/databases.

With the various free webinars and others which can be added at a nominal price, a continuing SiloBuster webinar initiative can be undertaken. This initiative will be a catalyst for further intra divisional activity.   For more information on this opportunity please contact Bob McIlvaine at 847 784 0013 or email him at rmcilvaine@mcilvainecompany.com

Maximizing CFT Profits in the Coal Fired Power Generation Industry

Coal fired power represents the largest single opportunity for suppliers of combust, flow and treat (CFT) equipment.  The replacement and repair for existing plants far exceeds that of any other application. There is so much new plant construction in Asia that coal fired generators remain the leading purchasers of new systems and components. The market is very challenging for CFT suppliers because the geographies and decision makers keep changing.

Who would have predicted that in terms of CFT products for new plants the U.S. would not be in the top 50 countries and that India, Vietnam, Indonesia and Turkey would be near the top behind China?  Who would have predicted that China would have tougher standards for the combination of greenhouse gases and air pollutants than any other country?

Non-Chinese suppliers of instruments, valves, pumps, nozzles, seals, mist eliminators, filter bags, precipitator rappers and DeNOx catalyst have to be innovative to keep leadership positions when more than 50 percent of the market is in China. The emergence of Chinese coal fired  generator and APC system suppliers on the world stage has both negative and positive implications for the international CFT suppliers. The negative aspect is that the suppliers will tend to use Chinese components. The positive aspect is that many of these companies are now supplying build, own, operate systems.  If an international supplier has the lowest total cost of ownership (LTCO) product then he has a chance to sell to Chinese system suppliers who are charging owners a fixed price per kW.

This opportunity can be seized  with the aid of tools developed by the McIlvaine Company which are outlined in the Most Profitable Market Program explained at www.mcilvainecompany.com

Collaboration

The future is in total solutions. A valve or a pump is no better than the way it is used in a system.  Many of the opportunities will take place in countries where the supplier does not have a strong sales presence. Working with local entities is one option. Another is to collaborate with other suppliers of complimentary products and jointly chart a sales strategy for a particular country. McIlvaine will be participating in a half-day session at PowerGen to discuss these options.

SiloBuster Program

In many cases the supplier already has representatives or company personnel in the target country. These people can be most effectively used by busting the geographical and application silos. These people can become more effective if there is a forecast of the product sales potential  at each major prospect. In most cases a successful sale needs the efforts of multiple people at disparate locations. Maximizing their contribution is a goal of the SiloBuster program.

LTCOV Program

Success is contingent on providing the lowest total cost of ownership (LTCO) and then validating it (LTCOV). With remote monitoring and data analytics the cost and performance of each CFT product will be tracked. Suppliers need to understand the processes, adapt their products to make them superior and then validate this superiority through all the means available including exhibitions, media and some innovative routes to market as explained in 44I Coal Fired Power Plant Decisions

Program for Each Utility

Purchases at each large power plant are large enough that a specific revenue opportunity can be generated and a program to pursue it put in place.

A complete profile on EVN as well as every major utility is provided in the Utility Tracking  System along with capacity in MW for thousands of operators and 15,000 individual units.

Market Reports

The Utility Tracking System 42EI Utility Tracking System  provides coal fired capacity forecasts for each country. The capacity will increase from 2 million MW to close to 2.3 million MW between 2018 and 2022. For some countries such as Belgium coal has been phased out. But for others such as Bangladesh there will be sixteen times as much coal fired capacity in place in 2022 as in 2018.

Individual market reports are also provided

World Fabric Filter and Element Market,  N027 FGD Market and Strategies,  N035 NOx Control World Market, N056 Mercury Air Reduction Market, N031 Industrial IOT and Remote O&M  5AB Air Pollution Management, N029 Ultrapure Water: World Market,  N028 Industrial Valves: World Market, N026 Water and Wastewater Treatment Chemicals: World Market, N024 Cartridge Filters: World Market,  N020 RO, UF, MF World Market, N019 Pumps World Market, N006 Liquid Filtration and Media World Markets, N005 Sedimentation and Centrifugation World Markets 

These reports cover coal fired power along with other applications.

Project Tracking

The  Alert  41F Utility E-Alert  provides project news. Background details can be found in the tracking system database.  The SiloBuster program can be used to coordinate the sales effort.  The revenue forecast for specific products at each plant provides a long range tool for which this updated information is just a small piece of the puzzle. The program is geared to provide maximum value to those suppliers selling high performance products. Success comes with a long term program which convinces the customer to include the supplier on a bid list whenever the opportunity arises.

Although the coal fired market is challenging the Most Profitable Market Program provides a route to market to maximize success.  For more information on the program contact Bob McIlvaine  847 784 0013  rmcilvaine@mclvainecompany.com

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