NEWS RELEASE July 2023
Customer Access to AWE Niche Value Propositions
The Mcilvaine Most Profitable Market Program entails identifying each $10 million niche where 20% market share and 30% EBITDA can be expected. Each is identified through one or more value propositions. Every salesperson has a budget with the number of days/yr. to spend on a specific niche. This is based on continually updated niche forecasts.
Communicating the value propositions is challenging due to their narrow scope. Each can be included in a searchable database on the company website. In addition, Mcilvaine will publish them in AWE Niche Value Propositions Directory. This searchable database will include summaries as per the following example.
Description: For decades, Marmon Industrial Water has supplied wastewater treatment systems to the power generating utilities. To meet the recent more stringent ELG regulations for coal plants in the U.S, Marmon will provide wastewater solutions with proven physical / chemical technologies! The western U.S. has a number of plants which have lower operating costs due to access to cheaper low heating value coals. These coals present special challenges which Marmon can meet. The unique value offered by Marmon Industrial is to meet the pollution limits while recycling the maximum amount of water. The resultant water savings plus cost effective treatment results in the lowest total cost of ownership. There is also an extensive service network to assist in minimizing operating costs. The long history with U.S. coal plants under the Graver Water name is testimony to the success which has been achieved. Marmon Industrial understands each of the following processes and variations and takes them into account.
There is a similar opportunity in the UK and Europe where fly ash is in short supply it will be attractive to mine the ash stored in landfills.
The name and contacts for the responsible person can be included in the proposition summary. Much of the value of the system is the direct connection between the salespeople and the customer around a clearly identified subject. If the initial contact is with a company person who understands the proposition it can be an advantage.
The sales budget comes from the Mcilvaine niche forecasts. The market forecast for Western U.S. coal fired power plant wastewater upgrades in 2023 is over $ 80 million and will grow slightly before peaking in 2027. However at that time there are plans for some coal plants such as in Gillette Wyoming to convert to blue hydrogen. Others are likely to be converted to BECCS and become carbon negative. So, the wastewater treatment systems will continue to be reused at some plants for decades to come.
Value Proposition Directory for Both Supplier and Customers
The Value Propositions are not only a guide for the company personnel but when combined into a directory utilized by customers, they become an important selling tool.
Mcilvaine is creating a comprehensive easily searchable directory of Value Propositions. Here are some examples.
Searches quickly reveal the value proposition summaries which are relevant. The power is in the matching of the customer with a specific interest and a supplier representative who is uniquely qualified to answer the questions.
The value propositions tie directly to the niche forecasts as per the examples in italics which are not included in the directory.
The gas turbine inlet filter market for platforms and other floating seashore applications is more than $60 million.
There are a number of U.S. coal fired power plants which will remain in service for the next decade. So, the recycle knife gate market will exceed $10 million per year. This includes plants which may switch to biomass. Most have limestone FGD systems and will need valve replacements. There is multiple recycle valves and also smaller valves for the ball mill slurry.
The near-term European market for BECCS carbon capture is well over $ 10 million per year. The larger carbon capture market for Europe is presently over $100 million. The new capability to remove almost all the CO2 could make carbon capture as important as renewables and make direct air capture an unattractive alternative.
Market: Japan is being used to gather the experience. The market is presently above $ 10 million/yr. and is much larger if you also include combustion of ammonia. It can be converted to hydrogen but can also be used directly, Japan is importing millions of tons of blue ammonia from Australia.
SE Asia is a growing market for limestone FGD systems with substantial activity in Indonesia, Philippines, Thailand, Pakistan among others. This is in addition to the big market in India.
The listings are meant to be the genesis of in-depth discussions and not necessarily a way to promote small orders. They are designed to discuss the relationship between the value proposition and the customer cost of ownership. Distributors and others are likely to be involved in the details of pricing and delivery.
Suppliers receive some free listings with subscription to Mcilvaine reports. Listings can also be purchased individually.