Mcilvaine Insights

No. 86   December 6, 2018

• Sales Program focused on the 50,000 top CFT Prospects
• First Quarter 2019 Webinars will Focus on Biopharmaceuticals

• January 9, 2019 - Guide, Control and Measure Markets and Structure

• $1.8 billion Fabric Filter Media Market
•  

$8.3 billion HVAC Market

Large Market in Municipal Wastewater for Decanter Centrifuges

Sales Program focused on the 50,000 top CFT Prospects

Fifty thousand companies purchase 90 percent of the combust, flow, and treat equipment and services.  Large purchasers such as BASF and Arcelor Mittal are centralizing purchasing, remotely monitoring CFT components, and using data analytics to determine lowest total cost of ownership.  One company just announced an IIoT program for 450 plants around the world.

Ninety-nine percent of all CFT components and services  are sold to companies which have purchased these components previously. Most purchases are replacements, repairs, or part of previously announced expansion plans. The successful sale of high performance CFT components starts long before a request for quotation.  Therefore a sales program focused on the specific prospects rather than current intelligence is the successful route.

The program involves the following steps

1.     Identify the prospects precisely

2.     Segment and prioritize the prospects

3.     Forecast the projected annual purchases for those companies which will spend enough to justify the effort

4.     Become knowledgeable about the customer processes which use the CFT products

5.     Prepare a total cost of ownership analysis for each product

6.     Continuously validate the lowest total cost of ownership (LTCOV)

Numerical identification of the prospects for a CRM program is very important.  Chinese and Japanese companies are identified by characters which result in variations in English phonetic equivalents. Chinese companies typically are identified with a city name prefix.  McIlvaine has prepared a database with numerical identification of many thousands of companies.  Here are some of the companies showing up under Beijing.

A large partial list of numerical identifiers is displayed at

Company Classification

Shenhua and Guodian have merged creating the world’s largest CFT product purchaser.  This conglomerate will purchase more CFT products this year than 150 individual countries.  So it is necessary to further classify subsidiaries which are making purchase decisions separately.  In the above case Guodian has a subsidiary, Longyuan. This entity is both a supplier and purchaser of CFT products and services.  As a supplier it appears in another McIlvaine database which identifies the subsidiaries, the locations of major operations within each subsidiary and produced at that facility.  The 53DI OEM Networking Directory  also includes consulting firms such as AECOM.

The way subsidiaries are segmented is shown in the following sequence

Product Analysis by Financial Entity

When you click on the A section you see -----

·        AEA Technology Environment

·        AECOM

·        Aecon Group, Inc.

·        Aefna, LLC

·        AEG Aktiengesellschaft

When you click   on AECOM you see 50 listings such as

·        AECOM Technology Corporation/ Earth Tech, Inc. - CA, USA

·        AECOM/ ENSR Consulting & Engineering - CA, USA

·        AECOM Environmental/ ENSR - NC, USA

·        AECOM Technology Corporation/ Earth Tech - CO, USA

·        AECOM/ENSR/ RETEC Group - PA, USA

·        AECOM Environmental Group - WI, USA

·        AECOM/ Austin - IL, USA

When you click on the Earth Tech California location you see a display with the address, contacts and products such as

·        Site Remediation - CONSTRUCTION

·        Site Remediation - CONSULTANTS

·        Site Remediation - CONSULTING & DESIGN

It is equally important to standardize on geographic,  industry, process, and product classifications.  These are found at  http://www.mcilvainecompany.com/Decision_Tree/subscriber/Tree/Default.htm

The numerical identification is the first step in setting up a prospect based sales program. The McIlvaine Company can provide  identifiers for suppliers to use in their CRM programs.  This can be supplied with or without the product purchase forecasts for selected prospects. For more information contact Bob McIlvaine@ rmcilvaine@mcilvainecomany.com

First Quarter 2019 Webinars will Focus on Biopharmaceuticals

In the first week of the new year we will have a webinar for investors and suppliers on process automation and will break out the booming biopharmaceutical segment. In succeeding weeks we will cover modular cleanrooms, pumps, valves, filtration, and centrifuges.

The pharmaceutical market will exceed $1 billion this year of which 80 percent will be synthetic pharmaceuticals. The global biopharmaceutical market will exceed $200 million this year and will double by 2025. In contrast the total pharmaceutical market will grow by less than 6 percent a year.

The biggest biopharmaceutical  growth segment will be monoclonal antibodies. The U.S. biopharmaceutical market share is now 40 percent but will decrease slightly over the next five years. However the growth in the U.S. is likely to be above 8 percent.

January 9, 2019 - Guide, Control and Measure Markets and Structure

An analysis by McIlvaine will be the basis of a discussion of the market and shares of major suppliers who supply 30 percent of the market. The definitions and allocations of revenues for specific suppliers will be reviewed.  Potential participants are asked to review the analysis and make comments over the intervening period.  These comments will be reviewed and incorporated as appropriate. The analysis can be reviewed at N031 Industrial IOT and Remote O&M

You can register for the free webinars at  Free Market Webinars

$1.8 billion Fabric Filter Media Market

The world fabric media market in 2019 will be $1.8 billion.  Cement companies will be the largest purchasers The power industry and specifically coal fired generating companies will be in second place.

More details on the media, elements, filters and systems are found at: N021 World Fabric Filter and Element Market

$8.3 billion HVAC Market

The world HVAC filter market next year will be $8.3 billion next year.

See details at N022 Air Filtration and Purification World Market

Large Market in Municipal Wastewater for Decanter Centrifuges                

NAFTA will be the second largest regional market for wastewater decanter centrifuges behind East Asia.

Repair parts and remote monitoring and support will be increasing segments of the market For more information click on  N005 Sedimentation and Centrifugation World Markets

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