Pump manufacturers must expand growth tactics: Study
March 11, 2013 by Manufacturing AUTOMATION
North America is a mature market for submersible pumps, a scenario that challenges suppliers to sharpen their strategic thinking and expand their toolbox of tactics to grow beyond today’s market averages.
With 2012 growth estimated at approximately 3 per cent, pump manufacturers must find the dynamic seams in the market that can provide growth that is more in line with their corporate objectives.
New analysis from Frost & Sullivan’s Analysis of the North American Submersible Pumps Market research finds that the market earned revenues of $264.5 million in 2011 and estimates this to reach $364.7 million in 2018. This analysis reveals that battling maturity in the North American region means manufacturers need keen market oversight to spot opportunities to best nominal industry growth rates. This research showcases key market metrics, expected growth over the next seven years, and market drivers anticipated to influence strategic activities of market suppliers.
“There are a number of factors currently affecting the general market – economic uncertainties, regulatory shifts, and so on,” said Frost & Sullivan research analyst Anudeep Yegireddi. “Add to that the maturity of the technology and overall industry, and it is a challenging scenario that is not offering tremendous growth.”
Among competitive factors, the service play continues to gain importance, as with other pump types. Service is becoming the critical factor for large institutional end-users — without regular maintenance, they risk downtime that would result in a significant drop in productivity, lower profitability, and high energy consumption. Continuous process industries such as oil and gas, chemicals, and pulp and paper, as well as vital industries such as power generation, cannot afford downtime. The presence of local customer service personnel aids in reducing service lead times and ensures high uptime. This is a major reason that end-users prefer to associate with manufacturers that have a local presence.