WELCOME
Weekly selected highlights in flow control, treatment and combustion from the many McIlvaine publications.
• New Route to Market in the $18 billion Cartridge Filter Industry
• Steel Industry Valve Purchases Will Exceed $1.7 billion this Year
• Cleanroom Supplier Program in the Post Digital Era
• Eight Indian based Companies will Spend more than $1 billion for Valves in 2019
• Weekly and Monthly Publication Samples
New Route to Market in the $18 billion Cartridge Filter Industry
A webinar on September 19 at 10:00AM will explore the new route to market for cartridge filter suppliers. The Industrial Internet of Wisdom (IIoW) is the gateway to the post digital era which will make it highly desirable to forecast the cartridge purchases for each major prospect and provide each with a lowest Total Cost of Ownership Validation (LTCOV). The continuing validation will necessitate interconnection among suppliers, publishers, conference organizers and end users to create decision systems.
The first step for the supplier is to provide a forecast for each significant prospect. In the wine industry more than 50 companies each spend $200,000 or more for cartridges. These companies warrant individual LTCOV validations.
Next year $18 billion will be spent for cartridges. Of this total $600 million will be spent by food and beverage companies. The sub-segment for wineries will be $40 million.
The U.S and France account for 25 percent of the world’s wine consumption. Italy, Germany, and China account for another 25 percent. The top 20 countries consume most of the wine.
The top 10 wine makers will spend $18 million for cartridge equipment and consumables next year.
Company 2019 Cartridge Purchases
$ millions
E.J Gallo 5
Constellation Brands 3
The Wine Group 2
Treasury Wine Estate 2
Viña Concha y Toro 1.5
Castel Frères 1.5
Accolade Wines 1.5
Pernod Ricard 1.5
One of the purchasers is Hubert Sekt. An article about cartridge use at this winery appeared in a Filtration and Separation feature article. Information in this article provides some of the background information needed to make an LTCOV.
The LTCOV is established in a series of decisive classifications which make clear which product provides the lowest cost of ownership. The applications for cartridges include pre filtration and final filtration and also filtration of water and steam used for filter regeneration. The filtration is an important factor in the quality of the wine and it affects the taste. Removal of yeast is a safety issue which could result in CO2 buildup and explosions. So a series of decisive classification steps are needed to review alternative options for reaching each of the goals with least cost.
Wineries such as Hubert Sekt are looking for a solution not just filters. Therefore a cartridge supplier can offer a package and make the case that the LTCO is in purchasing a package.
The article adds to the decisive classification process with information such as:
Classification Options or Parameters
Processes to be considered Pre filtration, filtration, regeneration
Pre filter options to be considered Wrapped cartridges vs pleated
Decisive classifications for pre filter alternatives Initial cost, efficiency, safety, life, product taste, impact on final filter
Vendor scope Separate purchase of each product type vs package from one vendor
The webinar on September 19 will discuss the world cartridge filter market opportunities and the program to first forecast the opportunity for each major prospect and secondly how to work with publishers and others to validate that a product has the lowest total cost of ownership.
The foundation of the program is the forecasts which are supplied in N024 Cartridge Filters: World Market
You can register for the webinar at Free Market Webinars
Steel Industry Valve Purchases Will Exceed $1.7 billion this Year
The world steel industry will spend over $1.7 billion this year for valves, parts, and service. Many of the valve decisions will be made from the headquarters of large international operators. This will necessitate a new marketing approach by valve suppliers.
In the case of ArcelorMittal, the majority ownership is by an Indian individual but the decisions regarding valve purchases may be made in Luxembourg which is the company headquarters. ArcelorMittal is a major valve purchaser. Its valve purchases for steel and mining applications are just under $100 million per year of which $84 million is for steel applications.
As the world’s largest steel manufacturer, ArcelorMittal makes almost as much steel as India itself. Yet India must more than double steel output by 2030 if its smart cities, bullet trains, advanced manufacturing and safer housing are to become reality. ArcelorMittal, with its partners Nippon Steel and Sumitomo Metal is presently bidding to buy Essar Steel which is a large bankrupt Indian Steel company.
Lakshmi Niwas Mittal owns controlling shares in Arcelor Mittal which he founded. He is one of the world’s wealthiest individuals and sits on the board of Goldman Sachs. He grew up in an Indian family in the steel business. Until the 1990s, the family's main assets in India were a cold-rolling mill for sheet steels in Nagpur and an alloy steels plant near Pune. Lakshmi Mittal decided to strike out on his own and opened his first steel factory PT Ispat Indo in Sidoarjo, East Java, Indonesia in 1976.
He then founded ArcelorMittal which is now the world’s leading steel and mining company, with annual achievable production capacity of approximately 113 million tons of crude steel, driven by 197,108 employees working in 60 countries.
ArcelorMittal is the largest producer of steel in North and South America and Africa, a significant steel producer in the CIS region, and has a growing presence in Asia, including investments in China and India. It is also the largest steel producer in the EU, with significant operations in France, Germany, Belgium, Spain, Luxembourg, Poland, the Czech Republic and Romania.
It is also a mining leader. ArcelorMittal has a global portfolio of 14 operating units with mines in operation and development and is one of the largest iron ore producers in the world.
ArcelorMittal works with more than 70,000 direct suppliers, covering an annual spend of around $50 billion for raw materials, energy, industrial products and spares, as well as various services.
It manages a complex supply chain, using the principles of total cost of ownership. If it purchases Essar Steel it is likely that major valve decisions will be made in Luxembourg or in one of nine shared services centers the company operates worldwide.
With remote monitoring of valve operations and data analytics the company will have the background data to determine the lowest total cost of ownership. It has invested heavily in IIoT working with ABB, Schneider Electric, GE, Siemens and others. At the Olaberria plant in Spain, as an example, valves associated with the melting, dust collection and other equipment are continuously monitored and data analyzed.
Valve suppliers looking to increase sales in India as well as in other countries will want to consider the following:
• Purchasing decisions are going to be made by relatively few individuals who are not likely to be at the plant site
• Decisions are going to be increasingly made based on lowest total cost of ownership
• The successful valve supplier will need to prepare a lowest Total Cost of Ownership Validation (LTCOV) for each application in each industry and then LTCOVs for each major customer
• We are entering the post digital era where the Industrial Internet of Wisdom (IIoW) is empowering IIoT and will necessitate new marketing strategy for valve suppliers.
• This new era will make it possible for international valve suppliers to better compete for valves to be used in India
The McIlvaine N028 Industrial Valves: World Market provides 50,000 forecasts of valves by type, end use location, and industry. It also includes forecasts for the 200 largest customers
A program including forecasts for thousands of prospects is also available. Details are provided at www.mcilvainecompany.com
Bob McIlvaine can answer your questions at rmcilvaine@mcilvainecompany.com 847-784-0012 ext. 122.
Cleanroom Supplier Program in the Post Digital Era
The McIlvaine World Cleanroom Markets and Cleanroom Projects are the foundation of a new approach to selling cleanroom hardware and consumables. Cleanroom owners want to buy the equipment and consumables with the lowest total cost of ownership (LTCO). Suppliers would like to validate that their products are the LTCO choice. Publishers and conference organizers would like to be facilitators to communicate the relevant information. Market researchers need to understand the LTCO options in order to make relevant forecasts and properly advise clients.
We are entering the post digital era where the Industrial Internet of Wisdom will empower IIoT. Cleanroom suppliers should be out in front leading the march into the post digital era and selling a wisdom based program to their customers. The program should address each prospect in each industry and each process within that industry as well as each supplier product which will have the lowest total cost of ownership (LTCO) for the operator. This LTCO validation (LTCOV) is accomplished with collaboration and a combination of Wisdom tools which not only present the LTCO but validate it (LTCOV) by connecting with the individual purchasers. This is the route to higher sales.
Each Prospect: McIlvaine forecasts purchases by the 100 largest owners as part of the multi-client report. Forecasts for thousands of additional purchasers in each industry are provided on a custom basis.
Each Process: Classes of cleanroom, mini environments, biological safety cabinets and other processes are analyzed.
Each Product: The range of consumables from gloves to disposable clothing and hardware from walls to filters is addressed.
LTCOV: McIlvaine provides the interconnections and background data to assist suppliers in determining that a product has the lowest total cost of ownership.
Collaboration: The interconnection with publishers, conference organizers, and subject matter ultra-experts is part of the validation process.
Wisdom Combo: Knowledge of the applications to help advise the operator on the use of the product can be expanded to remote monitoring and operational support.
Connect: Validation only comes with customer acceptance which in turn comes from interconnection with publishers, conference organizers, associations and others.
Higher Sales: Successfully validating the LTCO of the product results in not only higher sales but higher margins and profits.
For more information on the services click on N6F World Cleanroom Markets and 80A World Cleanroom Projects
For more information on the program contact
Bob McIlvaine at rmcilvaine@mcilvainecompany.com 847-784-0012 ext. 122.
Eight Indian based Companies will Spend more than $1 billion for Valves in 2019
The market for valves in India is increasing at a greater rate than elsewhere. Purchases in 2019 will exceed $3 billion. This represents valves, parts, and service which will be utilized in India. Eight large valve purchasers based in India will spend more than $1 billion for valves. However some of those valves may be installed in other countries.
The end use forecast is crucial to stocking of valves and service. However, the use for sales purposes is diminishing as purchasing decisions are increasingly centralized. Some valve selection and purchase for use in India is made in China and Japan where equipment for new coal fired power plants is part of packages. Long term financing of new facilities by the governments and financial institutions in these countries results in control of initial valve decisions.
On the other hand, Indian based suppliers such as BHEL are providing equipment for new coal fired plants in other countries. Indian based conglomerates are purchasing valves for their facilities in India and elsewhere. NTPC is presently the leading valve purchaser due to the upgrade of its coal fired plants to remove SO2, NOx and fine particulate. Eight Indian based companies each spend more than $30 million per year for valves.
Valve suppliers looking to increase sales in India as well as in other countries will want to consider the following:
• Purchasing decisions are going to be made by relatively few individuals who are not likely to be at the plant site
• Decisions are going to be increasingly made based on lowest total cost of ownership
• The successful valve supplier will need to prepare a lowest Total Cost of Ownership Validation (LTCOV) for each application in each industry and then LTCOVs for each major customer
• We are entering the post digital era where the Industrial Internet of Wisdom (IIoW) is empowering IIoT and will necessitate a new marketing strategy for valve suppliers.
• This new era will make it possible for international valve suppliers to better compete for valves to be used in India
The McIlvaine N028 Industrial Valves: World Market provides 50,000 forecasts of valves by type, end use location, and industry. It also includes forecasts for the 200 largest customers.
A program including forecasts for thousands of prospects is also available. Details are provided at www.mcilvainecompany.com Bob McIlvaine can answer your questions at rmcilvaine@mcilvainecompany.com 847-784-0012 ext. 122.
Weekly and Monthly Publication Samples
Our weekly and monthly publications have important news and insights. Here is a selected title from each from the most recent issue.
1ABC Fabric Filter
JSW Steel Orders Meros and WGR System for Existing Sinter Plant No. 4 at Vijayanagar Plant
2ABC Scrubber/Adsorber/Biofilter Knowledge Systems
Wärtsilä Signs €170 Million Scrubber Deal
3ABC FGD and DeNOx Knowledge Systems
Yara Supplying Urea and Ammonia to Power Plants Throughout the World
4ABC Electrostatic Precipitator Knowledge Systems
MHPS Receives Order to Upgrade Environmental Systems at Unit 3 of KOMIPO's Boryeong Power Station
9ABC Air Pollution Monitoring and Sampling Knowledge Systems
Fugitive Emissions and Pump Summit Better Solutions
41F Utility E-Alert
Proposed Thabametsi 630 MW Coal-fired Power Plant for Limpopo, South Africa
Air Pollution Management
Nederman Sales Up 5.2 Percent in Quarter 2, 2018
59-EA Gas Turbine and Combined Cycle E-Alert
NORTH CAROLINA: NAES Selected to Operate Kings Mountain Energy Center
80A World Cleanroom Projects
Lonza Pharma & Biotech to Expand Portsmouth Site