Product category:
Valve Hardware (Filters, Flow Controls, Positioners etc)
News Release from: ARC Advisory Group
Edited by the Engineeringtalk Editorial
Team on 01 June 2001
Control valve suppliers can be
optimistic - study
Control valve suppliers are racing to become stronger in the services business as prices and profitability for hardware continued to plummet, acording to a new study
The past two years have been real ugly for the control valve suppliers - they were shunned while attention went to the new and pretty The dot-com's beauty proved to be superficial and now it's back to basics - including valves! "The focus of manufacturers on Y2K and e-business shut-off many of the capital investments for valve automation," said Dave Clayton, ARC Senior Analyst, author of Control Valve Worldwide Outlook, a recently updated study from ARC Advisory Group
This article was originally published on Engineeringtalk on 10 Nov 2004 at 8.00am (UK)
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"Now that the dot-com bubble has burst, many control valve suppliers have reasons to be optimistic." One of the leading factors opening this opportunity is the shift in manufacturers' focus back to the plant floor process, and, consequently, valve automation.
The study reviews the growth opportunities and continuing challenges facing control valve suppliers as the market continues to evolve.
Even though business is soft, suppliers need to change their business model from selling hardware by means of products to solutions with services.
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This is particularly painful for the "old economy" entrenched control valve suppliers, many of whom are having difficulty moving away from a product business model and competing in the solutions business.
Control valve suppliers are racing to become stronger in the services business as prices and profitability for hardware continued to plummet.
Some of the control valve suppliers are positioned to enjoy the market turnaround.
However, despite the shift in capital spending back to automation, other control valve suppliers are being left behind.
They must still learn to address new industries, new applications, and provide customers with a wider range of products, services, and solutions than ever before.
Control valve suppliers need to continue repositioning themselves as solutions providers and learning to help their customers solve problems as opposed to just selling them products.
This requires changing the way they interact with customers, business partners, and their own employees.
They must collaborate with their customers and provide the products and services they are demanding before lean times take their toll.
2001 shows promise for a control valve market turnaround, as a result of innovation on the part of suppliers, changing global economic conditions, and changing user interest to the importance of the manufacturing process.
The dot-com shakeout and downturn in the US economy has manufacturers rolling up their sleeves and getting back to basics as quickly as they had jumped on the e-business bandwagon.
In fact, the mantra for many manufacturers continues to be B2B, but the meaning of the term is now "Back to Basics".
As investors turn their focus towards blue chip stocks and manufacturers turn their attention back to the manufacturing process, ARC feels the control valve market is poised to rebound from its recent losses.
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