WELCOME

Weekly selected highlights in flow control, treatment and combustion from the many McIlvaine publications.
• Briefs
• Customer Based Sales of Combust, Flow and Treat Products
• Which Pump Purchaser to Target First?
• IIoT Newsletter
Briefs
Fugitive Emissions Summit: This two-day conference June 26-27 will be held at the same time as the Pump Summit in Houston. An exhibition on both subjects will also be held. Bob McIlvaine will be there and looks forward to discussing both subjects with one and all. McIlvaine is covering fugitive emissions in its valves, pumps, and IIoT publications but also in 202I Refinery Decisions.
To learn more about the conferences or to register click on www.amercas.fugitive-emissions-summit.com
Air Pollution Management. This service is explained at 5AB Air Pollution Management. You can view the latest newsletter at http://www.mcilvainecompany.com/brochures/newsletters/gdnl480/gdnl480.htm
Latest News Releases
$20 billion Market for Cartridges by 2024
Power Industry will Spend over $1.5 billion for Gas Measurement in 2022
$180 billion Market for Combust, Flow and Treat for Gas Turbines
Power Plant Cross Flow Membrane Revenue Opportunity to Exceed $1.2 billion by 2025
Accurate Forecasting of the Combust, Flow and Treat Markets Would Cost $2 billion
Top 25 Pharmaceutical Companies will buy 45 Percent of Cleanroom Consumables
Is 3M Leading the Way to IIoT for Industrial Filter Suppliers?
Customer Based Sales of Combust, Flow and Treat Products
There is a sea change in the market for combust, flow and treat (CFT) products. Navigating that change is going to be challenging but it can be accomplished progressively with immediate returns to offset costs.
If you sell high performance CFT products you will need a business program which is oriented around large corporate customers and not around sales leads. This program can be implemented one customer at a time. If you start with the low hanging fruit the program will be self-supporting. Here are the details.
Sea change: The sea change is occurring rapidly because:
• Most CFT products are or will be considered high performance (initial price is less important than performance).
• CFT purchasers are merging and consolidating purchasing and selection decisions in central corporate operations.
• The corporate staff is employing remote O&M and data analytics to determine the total cost of ownership of each product in each process.
• The Industrial Internet of Wisdom (IIoW) is empowering the corporate staff to validate the lowest total cost of ownership for each product in a process in each plant.
The challenge: It will be necessary to persuade a knowledgeable corporate staff that the suppliers product has the lowest total cost of ownership for a specific process. This in turn requires knowledge of the customer's processes and a mechanism to convey this to the decision makers.
The progressive approach: This sea change can be navigated one customer at a time as follows.
• Pick the customer based on
o Size of the revenue potential
o The total cost of ownership advantage of the supplier product
o Sales experience with this customer
• Organize the campaign
o Coordinate the regional and corporate sales, engineering and other personnel in the most effective manner.
o Interface with the customer based on knowledge of his processes and valid total cost of ownership analyses which takes into account the site-specific factors for each plant.
The McIlvaine company has a program which will provide you with cost effective support for this campaign. This includes forecasts of CFT purchases for the 1000 corporations who will buy most of the CFT products, details on the plants and projects and the building blocks for lowest total cost of ownership validation (LTOV). This includes general factors such as country by country electricity costs but also knowledge of many of the most important processes and the performance of CFT products in those processes.
A free webinar can be arranged to discuss a progressive program.
Just contact Bob McIlvaine at 847-784-0012 ext. 112 or rmcilvaine@mcilvainecompany.com.
Which Pump Purchaser to Target First?
The sea change in the market for pumps will require prioritizing corporate prospects and then initiating a program for each on a progressive basis? Which is the best first target? Here are the criteria.
Size. The top 3000 purchasers are buying most of the high-performance pumps (performance is more important than initial price). Their average purchases are $7 million. However the top 50 each purchase over $50 million per year. The largest is Sinopec with purchases of over $800 million per year. Gaining a market share of 10% with any of these 50 companies could therefore add revenues of $5 to $80 million per year. So any of the top 50 prospects would warrant significant effort.

Pump Purchases in 2018
Company Type Corporate Location Industry Pump Purchases $millions
Sinopec Operator China Oil & Gas 607
Sinopec Operator China Chemical 108
Sinopec EPC China All 90
Sinopec Total China Multiple 805
NTPC Operator India Power 224
EDF Operator France Power 220
Eskom Operator South Africa Power 192
Bechtel EPC U.S. All 320
BASF Operator Germany Chemical 157
Product Fit
There are a number of different pump types. Each is available in multiple materials depending on the service. A pump company specializing in exotic alloy pumps would want to focus on industries such as chlorine manufacture where exotic alloys are required. Here are pump purchases for the top chlorine manufacturers.


Chlorine Producer Pump Purchases $ millions - 2018
Company % $
Total 100 300
Olin 6 18
Oxy 4 12
Formosa 3 9
Dow 3 9
These are just purchases for chlorine service. All these manufacturers also purchase pumps for processes using chlorine, as well as for power, water, wastewater and cooling. For these specialized applications it is possible to achieve high market shares. A 30% market share at one company can result in revenues of more than $5 million/yr.
There is lots of differentiation in materials to withstand corrosion, temperature and erosion. Manufacturers are willing to spend whatever is necessary to minimize leaks of dangerous acids. The company which can provide the lowest total cost of ownership validation (LTCOV) can capture a large market share.
Sales Fit
The corporate office is likely to be the primary decision maker but local sales and service will also be important. If you have strong sales and service support in the Americas you will want to consider that the second largest purchaser in the food industry (ADM) buys 66% of its pumps for the Americas region.
IIoT Newsletter
This monthly newsletter is available separately or as part of N031 Industrial IOT and Remote O&M. Here are the headlines for the latest issue.
MARKETS
• Largest Market for Liquid Measurement Instruments is at Existing Plants
• The Power of Innovation for Suppliers of Combust, Flow and Treat Products
• Advanced Forecasting for Greater Sales and Profits
• $30 billion/yr Aftermarket and $10 Billion/yr Innovation Market for FGD
• Lowest Total Cost of Ownership Validation (LTCOV) will be Essential for High Performance Combust, Flow and Treat Products and Services Success
INDUSTRY NEWS
• Is 3M Leading the Way to IIoT for Industrial Filter Suppliers?
• Coal-fired Webinar Focuses on Strategy for International Component Suppliers
• Patismo Systems Software m\Monitors Health of Coal-fired Boiler Components
• MHPS Americas Launches New Power & Energy Solutions Business
• FANUC, Hitachi, and Preferred Networks to Establish a Joint Venture Company for the Development of Intelligent Edge Systems
• Predictive Monitoring and Analytics System for Pump Applications
• H+E Delivers Ultrapure Water System for Power Plant in Mozambique
• ABB Optimizes Sootblower at African Supercritical Plant
• ABB Global Launch of its New Ability Ellipse Software Solution.htm
• New Online Sulfur Analyzer Enables Real-Time Data Analysis in the Oil and Gas Industry
• Windrock Debuts New IIoT Enabled Spotlight Monitoring System at TPS 2017
• Worldwide User Organization founded for Open IoT Platform MindSphere
• FleetguardFIT-Filtration Intelligence Technology with Telematics to Provide Full Visibility Into the Service Life of oil and Fuel, Lube and Air Filters
• Accenture to Help Statoil Accelerate Digital Transformation Across Its Global Operations
• Jacobs Partners with Atos to Deliver Predictive Maintenance Solutions
• Smart Refineries: Leveraging Data for Operational Intelligence
• NextDecade Selects ABB to Automate and Electrify Second Wave of U.S. LNG
• L&T Technology Services Wins Multi-Million Dollar Digitalization Contract from ExxonMobil Exploration Company
• Remote Monitoring of Steam Traps Is Cost Effective
• WindESCo Deploys Unique Solutions to Boost Wind Revenue, AEP