NEWS RELEASE June 2017
60 Percent of the World Industrial Pumps and Valves will be Purchased by just 550 Companies
Five hundred and fifty-five companies in 13 different industries will spend $36 billion or 60 percent of the total amount that will be spent in 2018 for industrial valves. Forecasts of purchases by each of the 550 companies is included in N028 Industrial Valves: World Market .
These same companies will spend $32 million for pumps. The pump purchases for each company are estimated in N019 Pumps World Market Here are the number of companies covered in each sector.
|Oil and Gas||50|
|Pulp & Paper||50|
The forecast for each company will be adjusted periodically during the year to take into account changing markets and mergers such as Dow-DuPont.
In addition to the Valve Report and Pump Report, McIlvaine has a program to pursue these 555 companies based on a new sales environment. The way these companies make buying decisions is changing.
- Large companies are increasing their share of purchases through mergers and acquisitions.
- Global sourcing is becoming common.
- Industry 4.0 and IIoT are generating continuous analyses of flow and treat performance.
- As most valve and pump products and services become integrated in IIoT and data analytics systems, purchasers will have the ability to buy based on known lowest total cost of ownership (TCO) parameters.
- This availability of lowest TCO information will raise the revenues and profits for those companies with the best products.
- Instant communication is becoming dominant. Mobile devices are now the most important tool for initiating buying decisions.
- The empowerment of IIoT with IIoW (Wisdom) will be a major influence on buying decisions.
Most suppliers already have separate sales efforts for the large potential purchasers. Since 60 percent of the products will be purchased by just 555 companies, suppliers can justify the prioritization of sales to this group. McIlvaine has a program to identify the companies, projects, people, and the ways not only to reach them, but to convince them.
The plant details and projects for the 555 companies are reported in Databases
Contacts at those 550 plants are included in several ways including several databases People
Some systems to document the lowest TCO are shown in Decisions
A program to boost sales through smart valves and pumps is described at N031 Industrial IOT and Remote O&M.
We suggest starting with the valve or pump report and then considering a customized program which not only provides interconnection between supplier and purchaser, but interconnection to other influencers and interconnection among company employees.