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Weekly selected highlights in flow control, treatment and combustion from the many McIlvaine publications.

·       Insights of the Week

·       Navigating the New Market Route for High Performance Products and Services

Insights of the Week

Filtration 2017:  Speakers addressed IIoT and the future for filtration products.  'Herve.Buisson of Veolia sees a big future for IIoT but emphasized the need to identify the key technical performance indicators (KTPI).  McIlvaine asked Herve whether these indicators should include information on the fibers, media, and other filter components.  If data analytics show one filter performing better than another then it will be important to determine why.  If the KTPIs for the components are identified then there will be a wealth of meaningful information to help component suppliers improve their products.  This bonanza of information will need to be leveraged in ways that INDA can help create.  (see the following article)

WEFTEC:  The conference and exhibition were bigger and better than ever this year.  Automation and IIoT products were displayed by many exhibitors.  Veolia was displaying the process management software referenced by Herve at Filtration 2017.  This year there were many more Asian companies exhibiting. 

McIlvaine is forecasting purchases by individual wastewater utilities.  LA Sanitary District,  Detroit, and Chicago MSD are small in comparison to many operators in Asia,  Flow and Treat Purchases by U.S. Municipal Wastewater Treatment Plant Operators will exceed $13 billion this Year

Market Webinars: On Wednesday the markets for combust, flow and treat in nuclear power will be discussed.  You can still register at Free Market Webinars. You can also sign up for the November 8 webinar on flue gas treatment for combustion sources.

Market News

Two Thousand Companies make or influence most of the Pump Purchases

Five Companies will be Responsible for 39 Percent of the Combust, Flow and Treat Purchases in the Nuclear Power Sector Next Year

A New Route to Market for Combust, Flow and Treat Companies

The Role of Engineering Design Firms in Coal-fired Power Generation

The IIoT and Remote O&M Segment of Renewable Energy is Growing Faster than the Industry

Pharmaceutical Membrane Cartridge Market to Exceed $1.2 billion Next Year

Navigating the New Market Route for High Performance Products and Services

The Industrial Internet of Wisdom (IIoW) will radically change the way high performance products are selected. The opportunities for higher margins and increased market share dictate a unique sales effort. McIlvaine can provide the tools to help suppliers create the needed sales program.

High performance products are those whose quality justifies a price above the minimum specification. General performance products are sold based on price and service.  There is no reason to conduct total cost of ownership analyses. 

In the past it has been very difficult to analyze total cost of ownership of various high-performance product alternatives.  As a result, high performance products have been sold the same way as the general performance products.  The sea change is the new ability of the purchaser to determine the lowest total cost of ownership (TCO).  With IIoT empowered by IIoW the corporate buyer will have the TCO for each of the alternatives and make his decisions accordingly.  The main role of the sales group will be to make sure the buyer has an accurate TCO.

At companies such as BASF, Rio Tinto, Arcelor Mittal, and Duke Power IIoT and Remote Monitoring is enabling corporate specialists to analyze the performance of every valve, pump, filter, and turbine in the global fleet of plants.  IIoW is in its infancy but as it grows it will provide not only the total cost of ownership but the guide to new and better products.

IIoW utilizes the data analytics provided by IIoT and provides the interconnection between end users, suppliers, and subject matter experts to create the TCOs and more importantly create new products with lower TCOs.  The interconnections need to be as prolific in IIoW as in IIoT.  They include

• Supplier personnel in each product group and geography interconnecting with peers around each of the 1000 large purchasers of combust, flow and treat products and services (McIlvaine can identify the opportunity for each product for each of the 1000 purchasers)
• Owner-operator personnel in each plant and in each role interconnecting around processes and products used in more than one of the plants (McIlvaine has a beta site for BHE Energy)
• All players interconnecting with each other in new ways
  • User controlled groups expanding scope to create decision systems and through digital technologies become international (Suppliers with lowest TCO can support and sponsor this activity)
  • Supplier controlled groups focused on total cost of ownership studies (Major HEPA filter competitors combining forces to provide TCO for gas turbine inlet filtration)
  • Associations expanding role to create decision systems and periodic webinars to integrate with annual meetings
  • Individual User programs for suppliers expanding to create IIoW (examples are AEP Bro Forum and the SABIC bi annual conference and exhibition)
• Creation of Subject Matter Ultra Experts (SMUEs).   Tomorrow's experts will master the massive TCO data generated from IIoT.  The SMUE will need to be very focused and to continually utilize and help create the decision systems around his specialty.  The suppliers of the high-performance products with the lowest TCO products will benefit from the SMUE validation of their claims.
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IIoT is growing up but IIoW is in its infancy.  Suppliers have the opportunity to grow along with it.  McIlvaine has a program to help them do so. 

Bob McIlvaine can answer questions and can be reached at: rmcilvaine@mcilvainecompany.com 847-784-0012 ext. 112.