Power plant managers say OEM prices are too high
A
Frost and Sullivan product story
Edited by the Engineeringtalk editorial team
Oct 11, 2001
A new study by industry analysts Frost and Sullivan has found European power plant managers are unhappy with the level of service being provided by original equipment manufacturers
A new study by industry analysts Frost and Sullivan has found European power plant managers are unhappy with the level of service being provided by original equipment manufactures (OEMs).
Based on 150 in-depth interviews with power plant managers, the study - European Power Plant End-User Survey - found significant changes in the maintenance, repair and overhaul strategies of utilities, industrial power plants and IPPs are underway.
An increasingly competitive business environment has forced OEMs to reduce their own manpower and increasingly rely on contract staff.
This has happened at the same time as power utilities themselves, seeking to slash costs to survive under newly competitive market conditions, have reduced their overall staffing levels, including maintenance.
This has led to longer waiting times and a deterioration both in terms of quality of work and technical knowledge.
The study found price was of particular concern to dissatisfied power plant managers.
The report's author, Harald Thaler, explains: "Many respondents have indeed mentioned that they regard the service prices charged by OEMs as too high." "There is a feeling that the OEMs exploit their virtual monopoly in certain parts of the service market and keep prices artificially high.
Although some companies can sometimes go to other firms for part of the work, the major overhauls and major replacement parts can only be had from the big suppliers and therefore many power plant managers feel trapped in this highly priced scenario.
"Over the past year or so in particular, power plant managers have seen extreme price rises in the aftermarket.
Many feel these have not been adequately explained to them." Another critical factor is quality of work.
This has allegedly deteriorated among some of the largest OEMs, with power plant managers in key markets complaining that increased use of subcontractors by OEMs has led to failing standards and a dearth of technical knowledge centres within some OEMs.
"The results contained in this study serve as a healthy reminder for OEMs that, despite their virtual monopoly in some sectors of the power generation industry, customers still have the power to switch equipment suppliers and seek out alternative ways to obtain crucial spare parts and MRO services," Mr Thaler continues.
"OEMs need to establish strategic priority areas that they wish to improve in order to gain competitive advantage in the European power generation aftermarket." Detailed ratings for OEMs' performance in the aftermarket across a number of categories can be found in the report.
Not what you're looking for? Search the site.
Google Ads
Contact Frost and Sullivan
Related Stories
- Parker opens new store in Gillingham
- National Instruments - latest company news
- Our new lead generation service!
- Schaeffler - latest company news
- Leuze Electronic - latest company news
Articles by product category
- Consultancy and Services (903)
- Machine Building (4,517)
-
Engineering Design Software (6,179)
- Engineering Design Software (12)
- 2D CAD software (200)
- 3D CAD software (1,157)
- FEA and structural analysis software (369)
- Fluid, thermal, noise, vibration software (334)
- Simulation, modelling, validation software (914)
- Rendering, visualisation, styling software (196)
- Materials design and moulding design software (151)
- Process, instrumentation, automation software (258)
- Electrical design software (164)
- Publishing and documentation software (229)
- Maths, charting, statistics, QA software (317)
- Data, document management software (310)
- CAM, CNC, production management software (568)
- File conversion software, data capture (351)
- PLM and collaboration software (649)
-
Drives, Motors and Controls (3,361)
- Drives, Motors and Controls (1)
- Precision Motors and Gears (411)
- Industrial Drives/Controls (1,276)
- Linear Drives and Motors (114)
- Industrial Motors (497)
- Stepper and Servo Drives, Motors, Controls (1,060)
- Small Mechanical Components, Joining, Tools (1,975)
-
Control and Instrumentation (5,028)
- Plantwide control (1,324)
- Plant- and Machine-Wide Communications (1,174)
- Smaller-Sized PLCs (387)
- CNC and Motion Controllers (184)
- Mid-range and Large PLCs (201)
- Power Supplies, Uninterruptible Power (562)
- HMIs/Operator Interfaces (294)
- Logic Controllers, Timers and Relays (96)
- Cabling, Conduit, Signal Conditioning (806)
-
Monitoring, Measurement and Quality (5,459)
- Monitoring, Measurement and Quality (1)
- Data acquisition Software and Communications (494)
- Data Acquisition Hardware and PC I/O Boards (472)
- Electrical and Electronic Testing, PAT Equipment (630)
- Form/co-ordinate, optical, vision instruments (703)
- Gauges, Indicators and Instruments (440)
- Data loggers (422)
- Materials testing equipment (421)
- Telecomms/network test equipment, software etc (154)
- Testing and Calibration Services and Information (500)
- Testing, analysing and monitoring equipment (1,222)
-
Electrical and Electronic Equipment Design (4,160)
- Batteries, chargers and circuit protection (555)
- Connectors, Terminals, Busbars, Slip Rings (679)
- Enclosures and Equipment Cooling Fans (709)
- Knobs, Handles and Enclosure Hardware (420)
- PCs and Embedded Systems (798)
- Electrical and Electronic Subassemblies (369)
- Electrical and Electronic Components (630)
-
Materials and Processing (2,963)
- Materials and Processing (5)
- Materials and components (2,215)
- Rapid Prototyping (458)
- Materials processing and testing (285)
-
Engineering Industry News, Resources (6,093)
- Engineering Industry News, Resources (4)
- Engineering Business News, Views (388)
- Engineering Exhibitions, Events (562)
- Engineering Conferences (425)
- Engineering Seminars (400)
- Engineering Industry Developments, Awards (633)
- Engineering Guides, Newsletters (349)
- Engineering Recruitment, Employment (219)
- Engineering Training Courses (433)
- Engineering Education, Resources, Standards (838)
- Engineering Industry Reports, Surveys (597)
- Electronic Resources for Engineers (278)
- Health and Safety Legislation (402)
- Health and Safety Strategy, Risk Assessment (113)
- Health and Safety Consultancy, Software (175)
- Health and Safety Events, Training, News (277)
-
Powertrain Design (3,598)
- Powertrain Design (2)
- Bearings (939)
- Chains and belts (326)
- Gears, brakes, couplings and engines (1,441)
- Hydraulic Components (471)
- Lubricants (418)
-
Capital Equipment (3,387)
- Capital Equipment (1)
- Manufacturing Machinery and Plant Equipment (468)
- Production line blowers and fans (62)
- Compressors and Air Treatment (510)
- Electronics Manufacturing, Tools, Instruments (192)
- Electrical hardware (131)
- Machinery and Production Equipment (1,093)
- Robotics, Handling and Storage (930)
-
Sensors (7,080)
- Sensors (8)
- Accelerometers and Vibration Sensors (427)
- Loadcells, Force Sensors, Torque Sensors (699)
- Pressure sensors (621)
- Flowmeters and Flow Sensors (618)
- Level Sensors and Leak Detectors (527)
- Linear Position Sensors (399)
- Rotary Position, Tilt and Angular Sensors (546)
- Proximity Sensors (700)
- Gas, Chemical, Radiation, Magnetic Sensors (284)
- Humidity and Environmental Sensors (152)
- Temperature sensors (612)
- Vision and Colour Sensors (1,384)
- Barcode Sensors (103)
- Valves, Pumps, Process Hardware (3,623)
