$2.9 Billion Market for Filtration and Separation in the Food Industry
The 2016 world market for food filtration and separation hardware and consumables will exceed $2.9 billion. This is the conclusion of the McIlvaine Company through iteration of data in a number of its related reports.


The expenditure for consumables will be nearly twice the hardware investment. One-third of the consumables expenditures will be for replacement cartridges followed by cross-flow filtration membranes. The third largest purchase will be for filter cloths, followed next by filter bags. Rounding out the consumables list are ion exchange resins and filter belts.
Centrifuges head the list of hardware expenditures.

Ranking Hardware Type
1 Centrifuges
2 Cross-flow filtration hardware
3 Filter presses
4 Cartridge hardware e.g. housings
5 Bag hardware e.g. housings
6 Leaf, gravity and drum filters



The largest application segment is dairy, fruits and vegetables, sugar beet, corn and grain. Dairy represents more than one-third of the total in this segment. Separation of milk and cream in centrifuges is one of the oldest applications. Membrane technology is replacing leaf filters with diatomaceous earth in many plants in this category.
The market is growing at rates slightly above that of GDP as filtration is used to create new products as well as improve the quality of existing products. Fat free and non-alcoholic beverages are two examples of new products created by filtration and separation.
A few centrifuge suppliers dominate this hardware segment. At the other end of the spectrum, there are thousands of companies sharing the consumable cartridge market in the food industry.
McIlvaine derives its food filtration and separation forecasts by extracting information and insights from the following reports:
N024 Cartridge Filters: World Market
N020 RO, UF, MF World Market
N006 Liquid Filtration and Media World Markets
N005 Sedimentation and Centrifugation World Markets
Alternatively to purchasing the individual reports, one can choose to purchase application focused reports such as Food Filtration and Separation. This is one of many customized multi-client reports available from McIlvaine. For more information contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com

Half of All Flow Control and Treatment (FCT) Purchasing Decisions Are Made Remotely
The choice among suppliers for an FCT product is more often made outside the local sales area. This means that coordination of local sales people is routinely necessary. Furthermore, market forecasts and sales quotas based on where the products will be used have to be adjusted to take into account the remote influence. A big portion of sales can be in large projects. Most of these involve remote influence.
Large companies are moving toward global sourcing. A few hundred large companies purchase 40 percent or more of FCT products. These large purchasers also are the ones with the large projects. Most large project purchasing decisions are made by groups and not individuals.
Local Influence vs. Purchasing Company Size for Flow Control and Treatment Equipment

100%

Small companies with 60% of the market
↑
Local
Decision
Making
Influence
50%
Large companies with
40% of the market
↑


↑
Project Size →

Smaller companies tend to make purchasing decisions in the country, province or state in which the product will be used. In larger companies, decisions are frequently made by corporate people in another locality. Another factor is project size. The larger the project, the more likely the decision will be made in part by people not at the point of use. McIlvaine has determined that anywhere from 50 to 200 large companies account for 40 percent or more of the purchases in any of the flow control and treatment product areas.
When the influence of EPC and system suppliers are included, the relative percentage of local decision making is further reduced.
Percentage of Purchasing Decisions Made at Another of the 95 Countries, Regions and Provinces Rather than at the User Plant

Small Company (Purchases) Large Company (Purchases)
Local
Decision Remote Decision Local
Decision Remote Decision
Large purchaser 20 40
Small purchaser 60 10
OEM, EPC 5 10 5 15
Consultant 5 10 5 15
Total for Category 70 30 30 70
Total for Market which is 60/40 Small 42 18 12 28
In the total market, 54% of the decisions are local and 46% are made remotely.
For a major system or component, 46 percent of the decisions are made remotely. This number is much higher when components such as pumps and valves for new plants are evaluated. Seventy percent of the decisions would be made remotely. Often a valve is assembled in a component in one location and then shipped to the end user. The component supplier will make the ultimate purchase but the end user man have substantial influence on the valve choice.
Most of the decisions will be made locally for repair parts and replacement valves, pumps, nozzles, etc. The exception would be large companies that are moving to global sourcing.
Sales management needs to take into account the remote influence and large project impacts.
The first step is to create detailed forecasting of markets by use in all the sales territories. McIlvaine has divided the world into 95 significant territories (9 regions in the U.S. and 6 regions in China). This spreadsheet then becomes the template for adjustments by remote influencers and large projects.
The sales effort at the global sourcing headquarters for Arcelor Mittal which has more than 100 steel plants and coal mines needs to be proportional to the remote influence. A large project such as the $3 billion potash mining project in Canada or $20 billion coal gas pipeline in China must also be taken into account.
McIlvaine addresses all three of these needs.

• Detailed forecasting of markets is available with individual reports displayed at: MARKETS

• Detailed analysis of projects is available with a number of annual subscriptions explained at: DATABASES

• Detailed listings of OEMs and end users is available in the following: PEOPLE
The general program is summarized at: Detailed Forecasting of Markets, Prospects and Projects
Power Plant Pump Purchases in 2016 Will Be $3 Billion
The power industry has been on a spending spree for new coal-fired power plants. Led by China, this spree has finally peaked but will remain at a high level thanks to India, Vietnam and Indonesia which have embarked on ambitious programs. Total purchases of pumps by the power industry will grow modestly to $3 billion next year. This is the conclusion reached by McIlvaine Company in N019 Pumps World Market.
Centrifugal pumps will account for 67 percent of the purchases.




Eighty percent of the pump purchases for the power industry will be made by less than 100 corporations. PLN in Indonesia will install more new coal-fired boilers than all the utilities in Europe and the U.S. combined. Electricity Vietnam (EVN) will build twice as many as PLN. Several Indian utilities will also build large numbers of new power plants.
Sales in Asia will exceed other continents due to both the quantity of new power generation and the choice of fuel. Most new capacity in Asia will be coal-fired, whereas in the U.S. the new capacity will be gas-fired. Coal generators spend three times as much for pumps as do gas turbine power plants. Pumps are used for cooling water, ultrapure water, steam, FGD recycling slurry and wastewater treatment.
For more information on N019 Pumps World Market click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/116-n019
300 Large Oil and Gas Projects Account For 80 Percent of the Flow Control and Treatment Purchases
Some oil and gas projects include hundreds of millions of dollars of pumps, valves, filters, compressors and other flow control and treatment equipment. The top 300 projects each year account for more than 80 percent of the purchases. McIlvaine tracks these in the bi-weekly Oil, Gas, Shale, Refining E-Alert.

October 30 Oil and Gas E Alert covering Two Week Period

Project Name
Description
Total Amount
$ Millions Flow
Control
Treat
$ Millions
Order
Yr 20+
Enbridge Canadian pipeline 38,000 300 16-19
Odebrecht Pipeline in Peru 4,000 40 17-19
Golar FLNG off Cameroon 8,000 90 17
Saudi Arabia's PetroRabigh Petrochemical and refining complexes 10,000 200 16-18
Dung Quat Refinery New refinery in Vietnam 4,000 90 16

Rosneft New refining and petrochemical complexes in Eastern Russia 10.000 200 17-19
10 Additional Large Projects LNG, refining, extraction 50,000 1,000 16-19
Total 124,000 1,920

Sixteen projects reported in the latest bi-weekly issue account for close to $2 billion of purchases of flow control and treatment equipment. The scope includes oil and gas extraction, LNG, gas-to-liquids processing, and tar sands processing.
The Alert is available separately but is also available as part of N049 Oil, Gas, Shale and Refining Markets and Projects, which provides a complete program for detailed market, prospect and project forecasting.
For more information on Oil, Gas, Shale, Refining E-Alert: click on: http://home.mcilvainecompany.com/index.php/databases/28-energy/991-71ei.
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Bob McIlvaine
President
847 784 0012 ext. 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com