NEWS RELEASE November 2021
AWC Markets Forecast for Thousands of Food and Beverage Niches
The food industry accounts for a significant percentage of World GDP. Purchases of Air, Water, and Combustion (AWC) products for food are in excess of $60 billion per year.
For each product it is necessary to understand the application and the general total cost of ownership factors. For each corporation it is necessary to understand the total cost of ownership factors at each plant, The AWC provider needs to compare TCO factors for his product to that of competitors. He then needs to validate his lowest total cost of ownership (LTCOV).
This whole process starts with identifying the processes and markets in each food and beverage sector.
The following questions need to be answered.
- How big is the market?
- What is its growth rate?
- What are the processes and to what extent do they require AWC products for general, critical, severe, and unique service?
- What % is AWC of the total retail sales
The market has been divided into beverages and food and then to specific products in each .
Beer is the largest beverage market. AWC represents a relatively large percentage compared to industry revenues. There are critical and severe service applications.
The poultry, meat, seafood industry is the largest food market. It is a big market for AWC products but in relationship to total industry sales it is small.
The air segment for food is much bigger than for beverages. Industries such as flour involve major investments in dust collection and pneumatic conveying. Screening and drying are frequently employed.
Information on each one of these food segments has been analyzed and for each process the TCO factors for each AWC product have been compiled.
This additional insight is applied to forecasts already generated by country and industry. For example the Thailand forecast already has food forecasts for 10 valve types. The custom analysis will show that in the sugar segment, Thailand is a major AWC purchaser even though it is a small purchaser in other food segments.
Thailand has eight major sugar producers and 49 sugar factories. Its electricity prices are in the middle at $0.11/kwh.
Other generic TCO factors are easily compiled before the harder work of analyzing the performance of the better product compared to competitors.
Information on specific market reports such as ones on pumps, valves, instrumentation, centrifuges, cartridges, cross flow membranes, filter presses, treatment chemicals, dust collectors and scrubbers is shown at www.mcilvainecompany.com under markets.
Information on the Most Profitable Market Program is also linked from the home page.
Bob McIlvaine can answer your questions at 847 226 2391.