NEWS RELEASE April 2021
578,000 Valve Forecasts for Strategy and Sales Planning
With 578,000 continually updated and reliable valve forecasts market research can be the basis for strategic planning and sales management. In the past market reports have been a minor tool viewed yearly.
With 200,000 forecasts the McIlvaine Industrial Valves report has already become a basic tool for setting individual salesman quotas, making R&D and manufacturing investment decisions, and guiding promotional choices. Individual forecasts are provided in each country for 17 applications and for eight valve types within each application. There are separate sets of forecasts for control and isolation valves.
What is new is further segmentation by performance which adds more than 500,000 additional forecasts.
Purchasers make decisions based on price versus performance. One adage is that there is price, performance, and delivery time. You can only have two out of the three.
Valve companies should forecast markets based on performance for several reasons.
- to be able to maximize production to match sales potential
- determine the best distribution routes
- create the best sales strategy
- determine best manufacturing techniques e.g. in house hard coating vs sub-contracting
General performance involves valves of standard construction which are likely to be replaced rather than maintained when problems occur.
This is a category where price and delivery are of higher importance than minor performance differences. Substantial quantities of these valves are manufactured in countries with low labor costs and weak environmental standards. They are often non actuated valves.
Severe Service: Corrosion, pressure, temperature, and process operating fluctuations are all conditions that qualify an application as severe service.
Critical Service: Safety, product purity, continuous operation, and product toxicity are criteria of critical service. These are also considered essential for the operation of the plant. However, this category excludes critical valves which are also in severe service.
Unique Service: The distinction is often made between an engineered valve versus an off the shelf or standard valve. So unique valves would be engineered valves which are not in severe or critical service but would be engineered because of size or special flange designs.
The forecast of valve revenues based on valve performance will allow management to better determine manufacturing and sales strategies and to optimize the opportunities and maximize profits. Higher profit margins are achievable with valves which are considered to be better than general performance.
Details on the report are found at http://home.mcilvainecompany.com/index.php/markets/water-and-flow/n028-industrial-valves-world-market