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Opportunities in the High Performance Air, Water, and Combustion Market
The instant availability of information has made it possible for suppliers to analyze the unique needs of each customer. The result is going to be better products creating better processes, creating increased value throughout the supply chain.
There is a $335 billion high performance air, water, and combustion product market. Each purchaser has unique needs. In the past these needs were made apparent in the sales process rather than in advance.
This reactive approach is starting to change as suppliers realize that they can understand the present and future processes of each customer and work with them to the benefit of both.
What is needed is to identify the unique current and future total cost of ownership (TCO) factors and determine which products best reduce them.
Thousands of purchasers operate multiple processes with many unique TCO factors. Even for the largest suppliers the cost of analyzing each process at each plant is prohibitive. But Consider how these plants are spending that $335 billion for high performance products.
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High Performance Air, Water, and Combustion Purchases 2021
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Product
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$ billions
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Product
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$ billions
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Valves
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40
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Fans
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10
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Pumps
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30
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Compressors
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15
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Hose and Couplings
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10
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Air Pollution Control
Systems
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35
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Treatment Chemicals
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8
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Liquid Filtration
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15
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Granular Solids Conveying
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10
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Other Separation
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20
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Granulation, Aggregation
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10
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Size Reduction
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15
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Mixing
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25
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Drying
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20
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Evaporation
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15
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Heat Exchange
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15
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Burners
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12
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Guide
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7
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Control
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13
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Measure
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10
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The cost of ownership factors divide into two main categories: general and application specific. General costs such as electricity prices are applicable to any of the product evaluations.
Many of the application cost factors such as abrasion or product value equally impact a number of product categories.
To the extent that the analyses of TCO factors are shared the cost of determining them at each plant is reduced. If just one percent of these potential sales is spent on analysis that is $3 billion/yr.
The goal is to increase EBITA from 15% to 30%. This would be a $50 billion yearly increase. Such a potential justifies a significant effort.
McIlvaine is providing market analyses for all the purchasers of air, water, and combustion products and services. This holistic approach is cost effective.
A video explanation of this new program is available on YouTube.
A power point presentation is displayed at: http://home.mcilvainecompany.com/images/Most_Profitable_Market_Program.pdf
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