Mcilvaine Insights


No. 71   August 1, 2018


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

  • 3700 Large Purchasers of Bags and Cartridges

·        A Good Sales Lead or a Reliable Purchase Forecast

·        Market Forecasting by Type of Purchaser


3700 Large Purchasers of Bags and Cartridges

3700 companies will purchase 50 percent of the bags and cartridges used for dust collection and gas turbine inlet filtration. They will spend $1.75 billion for these products in 2019. Large cement and power companies’ individual expenditures will exceed $1 million.  The average large purchaser in the miscellaneous industry category will spend just $150,000. The average among the 3700 will be $470,000.



Since the purchases of these 3700 companies are predictable a direct sales program can be set up to address them.  Each will spend enough to warrant a special effort.

Purchases by the 200 largest customers are included in the N021 World Fabric Filter and Element Market

Purchases by the other 3500 are available as part of a business program explained at

A Good Sales Lead or a Reliable Purchase Forecast

Which would you rather have? A good sales lead for a hot project with the name of the purchasing agent and the project manager or a reliable forecast as to how much of the products you sell will be purchased by the customer over the next two years.

You would want to choose the hot sales lead if you sell a general performance product such as a 2” water intake valve.  If your product is a 36” diameter lined valve you would want to choose the reliable forecast.  Here are the reasons.

·       The selling task for high performance products starts months or years before purchase. The chances of last minute persuasion are not high.  If you have a reliable long term forecast you can devote the requisite sales effort.

·       The project manager and purchasing contact are valuable but with a high performance product the decision may have been already made by engineering.  Companies such as BASF, IP, ConAgra, or Arcelor Mittal have thousands of LinkedIn contacts.  So finding the right people is not a problem. Part of a long term campaign is to establish rapport with the decision makers. A last minute introduction is a poor alternative.

·       The reliable purchase forecast allows you to wage an organized sales campaign.  Responding to sales leads is a chaotic modus operandi.

Find out about the McIlvaine program to provide reliable purchase forecasts at

Market Forecasting by Type of Purchaser

Forecasts for pumps, valves, scrubbers, filters and other combust flow and treat (CFT) equipment are typically divided into new equipment and repair/service. However, with further divisions by use it is possible to forecast purchases by individual customers.


When a system supplier provides a new system at an existing plant, the plant owner is likely to provide a preferred bidders list.  If a unit is going to be replaced or for normal service and repair the plant will be the purchaser. 

Only a few percent of purchases will be for greenfield plants not owned by companies already operating CFT products. Expansion at existing plants is more common. Replacement of equipment is likely to be a bigger potential than purchase of equipment for a new system. If the industry growth rate is 5 percent and the CFT product life is 20 years, the replacement market will be the same size as the new system market.

Segmentation in this manner shows that the end user is making most of the CFT decisions. Since there is consolidation and centralization of purchasing in industries buying CFT products most of the purchases will be made by less than 35,000 companies. 


The energy and utilities sectors have the most large purchasers. Other industries have fewer large purchasers but in the case of the food or metal working industry there are many very small purchasers.  However their total share is small.

The ability to forecast most of the purchases provides a foundation for a whole new marketing approach.  Details are found at