NEWS RELEASE JUNE 2009
World Industrial Markets Will Be Impacted By Widely Varying GDP Growth
While most developed countries will experience Gross Domestic Product (GDP) declines in 2009 a number of developing countries will show growth. As a result, the market share of industrial equipment purchases in the developing world will outpace the developed world by the biggest margin in decades. This is the conclusion of the McIlvaine Company in its continually updated World Markets for Your Products which, forecasts GDP and product sales in each country.
2009 increases and decreases of GDP for selected countries
China will purchase more environmental equipment than any other country this year. It will also lead in purchases of equipment for cement, steel, and waste-to-energy plants. The mining industry will help sustain growth on the African continent and in Chile. Construction of coal-fired power plants will also boost the Chilean economy and also start to positively impact the Indian economy. The Indian longer term forecast is to operate twice as many coal-fired power plants as the U.S. Presently it has only one third as many.
Stimulus spending will boost municipal water and wastewater treatment plant spending in China. The lack of acceptable water supplies will also boost expenditures in much of the developing world this year.
GDP growth next year is lkely to be slow in the developed world. This will result in another increase in the market share for industrial purchases in Asia where growth will be substantial. Climate change regulations will contribute to slower growth in Europe next year and are already having a negative effect in the U.S. where a number of coal-fired power plant projects have been canceled or postponed.
There is an indirect but significant relationship between GDP growth and future industrial equipment purchases. By forecasting this growth and combining it with analysis of specific industries such as power, refining, steel, pulp and paper, mining, municipal water and wastewater treatment, McIlvaine generates specific product forecasts.For more information on World Market for Your Products, click on: http://www.mcilvainecompany.com/brochures/water.html#n039