NEWS RELEASE                                                                                    June 2021

Total Cost of Ownership Factors Dictate Flow and Treat Purchases

Lowest Total Cost of Ownership is the basis for purchase decisions in the air and water flow and treat markets. Nearly 50 percent of the $400 billion spent per year is for products with very little performance differences. The lowest cost of ownership is then based just on price and delivery.

The other $200 billion is spent on products which can perform far differently. This difference in performance means little by itself.  The needs of the application have to be matched with the product which best meets those needs. 

These needs can be characterized as total cost factors. The product which proves best for the combination of factors will have the lowest total cost of ownership. The supplier can persuade the customer of this superiority and make the sale.


The McIlvaine Company supplies market forecasts and market share projections which rely on understanding TCO Factors.

Advancements in the Industrial Internet of Things (IIoT) have reshaped TCO Factors. The purchaser no longer limits his judgement to the quality of the pump or filter but to how it will perform at the lowest cost. This may include the ability to provide feedback on health and safety.

This feedback can be acted upon  in a routine manner. However for unusual events the supplier of the product can access data remotely and even see current video of what maintenance people are seeing. 

This is a revolutionary development in the flow and treat industry. Very top level niche expertise can be leveraged without travel to a site.

The supplier who can provide the lowest total cost of ownership by guiding the purchaser throughout the life of the product has the opportunity to greatly increase profitability as well as revenues.

McIlvaine has compiled some of the TCO factors based on IIoT and Remote O&M in various industries and for various products. These examples are included in

Bob McIlvaine can answer your questions at 847 226 2391 or email: This email address is being protected from spambots. You need JavaScript enabled to view it.