NEWS RELEASE July 2018
Forecasting Combust, Flow and Treat Purchases of OEMs
It is now possible to forecast purchases of valves, pumps, instrumentation, fans, compressors, nozzles, filters, centrifuges and other products and services used in applications involving combustion, flow and treatment (CFT). There are forecasts for owners and forecasts for OEMs. Forecasts are provided for thousands of companies comprising over 90 percent of the market. These forecasts can be uploaded into the supplier CRM System. Most of the repair, replace and upgrade decisions will be made by the end users. Decisions regarding CFT products for new systems will be made by the OEMs but with specifications provided by the owner.
The owner forecasts are easily predictable. The forecasts of purchases by OEMS are difficult because the OEM sales revenue can fluctuate greatly from year to year. However, average annual estimates for the next five years can be provided along with details on large projects which will have near term impact. The purpose is not to identify specific sales leads but to provide insights to further assist in an ongoing sales program.
The big advantage of a sales program based on purchase forecasts is the opportunity to work with the customer on a continuing basis and position the supplier for favorable consideration when specific projects do occur. McIlvaine tracks large project activity in many different industries with databases and alerts.
One important CFT component purchaser is the merged Mitsubishi-Hitachi group. A new division within the group is Power & Energy Systems Business (PESB). This group includes the operations designing, delivering and supporting combustion systems. The group has been the leading supplier of gas turbines worldwide in the most recent quarter. It has full involvement in coal fired boilers and is the world’s largest supplier of Flue Gas Desulfurization Systems outside of China.
PESB has adopted a new solution service process known as “CAP-D”. “C” stands for “communication” with the customer and the market. “A” stands for “analysis” in order to provide optimal solutions. “P” stands for “product” and finding the exact products and technologies to resolve the customer's needs. Finally, “D” stands for “delivery of service” and the provision of compound services.
From the sales perspective of component suppliers this new initiative offers an additional route to replacement and repair revenue. PESB is analyzing products and providing services for monitoring and replacement. PESB therefore becomes a purchaser of CFT components for the initial installation but also for replacement and service on a continuing basis.
McIlvaine is providing the purchase forecasts for each CFT OEM but also supplying details on major projects. The Utility E Alert published weekly by the McIlvaine company contains two articles about MHPS projects in the Alert issued June 29, 2018. The first involves environmental systems upgrade work at Unit 3 of the Boryeong Power Station operated by Korea Midland Power Co., Ltd. (KOMIPO). These systems incorporate valves, pumps, oxidation compressor, nozzles and other CFT components. The second details an upgrade of the boiler combustion tuning system using artificial intelligence (AI) technologies at Taiwan Power Company's Linkou Thermal Power Plants. Both projects include a range of liquid, gas and free flowing solids measurement devices.
The sales program based on forecasting end user and OEM purchases is not founded on sales leads such as details on these two projects. Instead the program is built on establishing long term relationships with customers. On the other hand information on major projects is an additional tool which can be useful.
For more details on the sales program based on OEM and end user forecasts click on www.mcilvainecmpany.com
For more information on power plant project tracking click on 42EI Utility Tracking System and 59EI Gas Turbine and Reciprocating Engine Supplier Program