Mcilvaine Insights

No. 85   November 28, 2018

WELCOME

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

• Forecasting Pump Purchases by Companies More Important than by Countries
• Markets and Projects for Gas Turbine Systems and Components Tracked Continuously

Forecasting Pump Purchases by Companies More Important than by Countries

The world industrial pump market will exceed $54 billion this year. It is dispersed among 196 countries and 15,000 purchasers.  However most of the market is concentrated.  The top 14 purchasers will account for 10 percent of the market this year.  1700 companies will account for 80 of the purchases.

The way pumps will be purchased in the future is different from the traditional method. Large corporations are installing process management software and analyzing pumps at their plants around  the world.  This is leading to lowest total cost of ownership analyses and central purchasing of high performance pumps. The scope includes engineered pumps for severe and critical service but also packages combining general purpose pumps and software into a package which creates a higher value than the competition.

Pump companies are selling direct, through sales representatives, and through distribution. In the future more sales are likely to be direct. 133 companies will spend more than $50 million for pumps this year.  This warrants a special direct effort for each one of them.

733 companies will spend more than $10 million on pumps this year. A direct effort or at least careful tracking of the success at each of these plants is warranted.

1733 companies will spend more than $5 million for pumps.  It is recommended that these companies at least be identified individually and decisions then made as to how to approach them.

4733 companies will spend more than $1 million for pumps this year. At the very least the cumulative projected purchases of these companies  should be determined for each sales territory.

The traditional geographical market forecasts are based on countries. There are two reasons. First each country identifies a geographical area. Second each country has a unique set of influences such as regulations and language.  However only 53 out of 196 countries spend more than $50 million/yr on pumps. Two countries, the U.S and China each will account for valve purchases in excess of  $11 billion. Thirty-five states in the U.S. will account  for purchases in excess of $50 million. Twenty-three Chinese provinces will also each account for purchases in excess of $50 million.

The amount of area covered by China and the U.S. is  many times the area covered by many small European countries. The result is that most pump companies have multiple sales offices, distributors, or sales representatives in these countries.

The potential in any region is also a function of the type of pump and industries being pursued.  Kuwait has almost no industry except energy. But it is a major oil producer. In some of the African countries there is no significant pump market except in mining; but purchases for the mining industry can be substantial.

The McIlvaine Company’s  Pumps: World Markets  provides 50,000 forecasts by pump type, industry, and country.  Forecasts are also provided for the 100 largest purchasers.  This basic format can be customized and expanded to fit the corporate and sales objectives of any pump company.

Information on Pumps: World Market is found at: N019 Pumps World Market

Bob McIlvaine can answer your questions at  rmcilvaine@mcilvainecompany.com  847 784 0012 ext. 122

Markets and Projects for Gas Turbine Systems and Components Tracked Continuously

The McIlvaine Company provides market forecasts as well as plant and project identification for  power plant gas turbines and reciprocating engines worldwide.  Details are found at  59EI Gas Turbine and Reciprocating Engine Supplier Program.  Here are the headlines from the October Alert.

GAS TURBINE & RECIPROCATING ENGINE

MARKET ALERT  OCTOBER 2018

GAS TURBINES – U.S.

·       NEW YORK: Siemens Celebrates Commercial Operation of CPV Valley Energy Center in New York State

·       PENNSYLVANIA: NAES Selected To Operate CPV Fairview Energy Center

·       PENNSYLVANIA, RHODE ISLAND: Starwood Energy to Acquire Two Combined-Cycle Plants From Dominion Energy

·       TEXAS: McDermott Receives Full Notice to Proceed on Entergy's Montgomery County Power Station Project

GAS TURBINES – WORLD

·       BANGLADESH: GE Power Wins Order to Develop HA Powered Plant in Bangladesh

·       DOMINICAN REPUBLIC: APR Energy to Deliver Fast-Track Power to the Dominican Republic Following Lightning Strike to Power Plant

·       VIETNAM: Deputy PM urges AES Corporation to develop Son My 2 thermal power project

RECIPROCATING ENGINES – U.S.

·       MICHIGAN: GE and Clarke Energy to Supply Turnkey CHP Plant for Municipal Electricity Utility in Michigan

RECIPROCATING ENGINES – WORLD

·       EQUATORIAL GUINEA: New Wärtsilä Power Plant will support Industry Development in Equatorial Guinea

·       PAPUA NEW GUINEA: Wärtsilä to secure Base-Load Power Supply to Community and Businesses in Papua New Guinea

·       SPAIN: With GE’s Engine Exchange Program, Grupo Losan Boosts the Reliability and Efficiency of Its COMETA Power Plant in Spain

·       UNITED KINGDOM: Wärtsilä successfully hands over Two New Plants to support the UK’s need for Fast-Starting Flexibility

BUSINESS

·       Agreement at Siemens on Measures to boost Competitiveness

·       GE Seizes Opportunity in Changing Energy Landscape with Investments in the Aeroderivative Business 

·       GE Introduces the Next Generation of the Waukesha 275GL+ Gas Engine with ESM2 to Meet High Horsepower Gas Compression Needs