August 2015 - Water Market Insights 158

Sales calls, advertising and exhibiting by air, gas, liquid, water flow control and equipment suppliers are all predicated on certain assumptions relative to the identity of the decision maker for the product being sold. McIlvaine analyses in N064 Air/Gas/Water/Fluid Treatment and Control: World Market show that there is a continuing shift in responsibility. The following trends are clear:

· The divide between how decisions are made on commodity vs. engineered products widens,

· Decisions for a specific engineered product are concentrated in fewer individuals,

· The total number of decision makers increases due to the increasing number of product categories which are purchased,

· The challenge to assimilate the needed knowledge to make buying decisions continues to grow.

Commodity vs. Engineered Products: Decisions on commodity products continue to be made by the purchasing department. They are concerned about reliability of supply and cost, but rarely need input from other departments. On the other hand, the complexity of engineered product and particularly those which can impact the company’s quality control are likely to be made with greater input from engineering and operating management and less on purchasing.

Purchasing people expect to be reactive and respond to seller inputs. So direct sales contact, sales leads and similar tools gain in importance. Those making decisions on engineered products tend to be proactive and now tend to make decisions over longer time spans. Gone are the days when the foreign delegation would attend the Tri Annual ACHEMA fair and have to make major decisions on the spot. These decisions are now forged over time and from a number of sources. The supplier who waits for the sales lead or formal specification is in difficulty.

Concentration of decision making in fewer individuals. Growth of large companies and the trend toward internationalization result in key product decisions being made by a few individuals. An engineer at Intel may make high efficiency filter selections for semiconductor facilities throughout the world. A valve expert at Petrobas will make key decisions about severe service valves which may influence the selection of hundreds of thousands of valves per year.

Another factor in the continuing concentration of decision making is the rapidly growing amount of knowledge which may be relevant to the decision. Niche experts are needed to keep up with this knowledge explosion.

Increasing numbers of decision makers. The knowledge explosion dictates that pump and valve decisions be made by separate individuals. The specialist on subsea valves will not be involved in decisions on valves for LNG plants. The engineer making scrubber decisions for EON will not be making the decisions on products to upgrade precipitator transformer rectifier sets.

With more and more decision makers each influencing greater numbers of purchasing decisions, it becomes a major challenge for suppliers to reach the right person at the right time. Understanding of the inner workings of the target companies becomes more important than obtaining the specification for the latest project. If the expert does not already have you on the “short” list, early access to a specification is not valuable.

Face-to-face discussions diminish in importance. A new generation of decision makers who is constantly communicating digitally has less time for face-to-face discussions and is relying on alternatives for critical decisions. Personal relationships will always be important but they are now complemented by many other communication tools.

Greater reliance on life cycle cost rather than initial price. In the past it has been difficult to make life cycle cost comparisons between competitive products. The access to reliable comparisons is resulting is increasing use of this tool.

The challenge to assimilate needed knowledge. Knowledge continues to expand and the human brain does not. The purchaser must now rely on niche experts who can keep up with the latest developments. The seller has to create new routes to supply the niche expertise. The local sales representative cannot deliver it and the customer cannot supply it. Sellers who effectively address this need have a substantial advantage.

The responsibility shifts dictate new approaches to the market. McIlvaine has created a unique new route to market with free decision systems for operator and owners. They include:

“Total Solutions” is the Hot Topic Hour on August 20, 2015 at 10:00 a.m. CST

Owners of plants with air pollution challenges are increasingly looking for suppliers who will provide a “Total Solution.” In the broadest sense this can be the determination of how to meet the emission goals followed by a turnkey installation with operational and maintenance support. The webinar at 10:00 a.m. CST will provide owners with options that are available and the advantages of each.

Martin Schroter, Senior Manager of Business Development at Duerr Systems, Inc.

Bill Gretta, Vice-president, Power Plant Solutions Division of Eneractive Solutions

Nathan White, Director, Business Development, SCR/DeNO_x Catalyst & Technology at Haldor Topsoe, Inc.

Mike Gregory, Business Development, Capital Equipment at Industrial Accessories Company/IAC

Michael James Widico, Vice-President, Business Development at KC Cottrell, Inc.

Stewart McKenzie, Sales & Marketing Manager, Environmental Division, Lechler, Inc.

Josh Lemaire, Vice-president, Business Development and Marketing for Montrose Environmental Group, Inc. and Erick Mirabella, Vice President, Business Development and Marketing for Montrose Air Quality Services

John Albritton, Regional Sales Manager at Paragon Airheater Technologies, Inc.

Tom Van Remmen, Vice-president, Global Sales and Marketing at Verantis Environmental Solutions Group

Steve Feeney, Manager National Sales, Aftermarkets at Babcock & Wilcox Power Generating Group

Jeff Williams, Director, Advanced Control Solutions at Emerson Process Management, Power & Water Solutions

Regis D'Angelo, Manager, Sales and Marketing at MET Marsulex Environmental Technologies

Factor	Example
Complex systems with multiple control steps	Coal-fired boilers, cement kilns, chemical processes
Valuable final product recovery	Precious metal mining
Valuable process product recovery	Refinery catalyst, solvents in chemical and surface treatment
Difficult compliance with air permit	Many industries in many countries where even start up and shut down emissions are important
Safety	Explosive gases
Health	Semiconductor toxic fumes
Potential for air pollution control system to negatively impact operations	Many industries
Lack of skilled personnel within the plant	Continuous trend
Success of remote monitoring	Applicable to all pollutants and operating parameters
Ability of suppliers to provide a lower cost alternative	Reduction of repairs, downtime, energy consumption, etc.

Options	Example
Preliminary system design	CECO offers CFD modeling and design for rolling mill fume control including the important industrial ventilation ductwork to reduce air volume
Turnkey system with unique combination of pollution control devices	MEGTEC sewage sludge incineration systems with oxidizer, scrubber and wet precipitator. Trimer supplies PM_2.5^, NO_x reduction and acid gas capture in one device
Turnkey system with total operational control	FLS offers this option for cement kilns
System and reagent integration	Dürr and ClearChem supply pulverized limestone injection in the furnace followed by a catalytic filter
BOO and byproduct sales	MET offers this system to convert SO₂ to ammonium sulfate fertilizer
Remote monitoring of operations	Many examples
Guaranteed cost bag replacement program	Supplier monitors operations and replaces bags as needed at a fixed yearly cost
Routine service programs	Replace all parts in system, regular inspections, continuous remote monitoring

The webinar will be free of charge to both suppliers and plant owners. McIlvaine will be compiling a Decision Guide with assistance from the suppliers over the next five weeks. Those with information on Total Solutions which they would like to share should contact Bob McIlvaine at: rmcilvaine@mcilvainecompany.com 847 784 0012 ext. 112.

· Chinese Lenders lead Team to finance 300 MW Zambian Coal-fired Power Plant

· Gemma Power Systems Enters into an EPC Agreement with Exelon for 200 MW Peaking Power Plant at West Medway

· Stadtwerke Kiel, Kraftanlagen München and GE are building 190 MW Cogeneration Power Plant in Germany

· Ansaldo to convert 6^th of October Power Plant to Combined Cycle (Egypt)

· Deal to build UK Nuclear Power Plant (Hinkley Point C) should be finalized within Weeks

· OEMs, EPCs and Consultants will account for Flow Control and Treatment Purchases of $68 Billion in 2015

· Catalysts were a Major Focus at the August 6 McIlvaine Hot Topic Hour Discussion of GT Exhaust Systems

On Thursdays at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. These Webinars are free of charge to owner/operators of the plants. They are also free to McIlvaine Subscribers of Power Plant Air Quality Decisions and Utility Tracking System. The cost for others is $300.00 per webinar.

See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

DATE	SUBJECT	DESCRIPTION
August 20, 2015	Total Solution Options	More Information