NEWS RELEASE                                                                                                                APRIL 2016

New Route to Reach Prospects in Flow Control and Treatment Applications

The sales process for air, water, liquid and gas flow control and treatment equipment can be likened to a trip using GPS with a series of zoom steps.  It is all possible because of digital technology. There was a time when the national road atlas was the major tool for a trip across country.  To find local information you had to stop and ask questions. 

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This older system can be likened to the most common market approach to flow control and treatment: a general market report and a continuous flow of sales leads. The general market report is used by senior management to set the course but is not detailed enough to help set targets for individual sales people.  The deficiencies in this approach are:

  • A general report may not provide the best forecasts,
  • A report which is not continually updated is obsolete,
  • The specific relevant market segments may not follow general trends.

A general report may not provide the best forecasts.  A top-down general forecast is suspect.  McIlvaine reports contain many thousands of individual forecasts which aggregate to a general forecast.  How do you reliably determine the aggregate without determining the components? The suppliers of these general reports claim to interview the experts and analyze all the financial information.  Any expert who does not have access to all the individual forecasts is hampered in making a general forecast.

General reports typically rely on data provided by governments and associations. These sources are good for determining the past but not the future. The most useful data is very detailed.  Use of government data which assess the mining activity in each country is of questionable value compared to the use of specific coal, iron ore, bauxite, potash, copper, gold and other mineral production data. McIlvaine uses individual mineral forecasts. An approach which tries to assess the mining opportunities generally in a region without a specific breakout for each ore is flawed because mining activity varies widely depending on the ore.  Chile is a leading copper producer, whereas Canada is a leading potash producer.

A report which is not continually updated is obsolete.  The sudden drop in oil prices resulted in an immediate need to evaluate and change many flow control and treatment forecasts.  The magnitude of the drop and the remaining political uncertainties require continuous adjustment of forecasts.  It is desirable for management to set a flexible course for the year but also to make periodic adjustments in advertising, promotion and manufacturing based on revised forecasts.

The specific relevant market segments may not follow the general trends.

Flow control and treatment markets are frequently impacted by environmental or other regulations. So the general industry trends do not reflect the markets. The huge flue gas desulfurization (FGD) expenditures for pumps, valves, scrubbers, monitors and belt filters are a function of regulations which impact not only new plants but existing ones as well.

SALES LEADS: A large amount of money is spent on sales leads.  They are often too late if you are selling based on the best product rather than the lowest cost.  Since they are also provided simultaneously to competitors, the unique value is diminished.  Much of this expense can be avoided with the new McIlvaine program: Detailed Forecasting of Markets, Prospects and Projects

This program can be likened to the road trip with several zoom steps on the GPS. The first step is to identify the markets which should be prioritized. McIlvaine provides a number of standard reports on air, water, contamination and energy markets:MARKETS

The second step is to zoom in on the most relevant markets.  Customized segmentation provides forecasts which can be used at the individual salesman level.

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The next zoom step is to identify the large users and decision makers. The large oil and gas, power, cement, food and mining companies buy the majority of the flow control and treatment products. These companies should be a continuous focus for the supplier.

The final zoom step is to focus on the projects being developed by the large users, OEMs, and A/Es.  The systems to provide this data are shown at: Databases