NEWS RELEASE                                                                                        May 2019

Bottoms Up Collaboration Around Each Major Flow and Treat Prospect

Flow and treat companies have successfully implemented a strategy of independent action by each subsidiary or division. However, even the most successful can benefit from a Most Profitable Market program which identifies the potential profits to be made from each major prospect and allows bottoms up collaboration among divisions to pursue these targets. IDEX is one of the most successful corporations to pursue the independence strategy. If it can benefit from the new approach so can all the other suppliers.

IDEX fluid and metering technologies division has sales approaching $1 billion and a 30% EBITA. However, its market share in pumps, valves, and flow control is small compared to some competitors. So one question is whether it can build market share and still maintain the high EBITA. Each division operates independently with very little joint activity. However, there are changes in purchasing patterns which need to be considered. With remote monitoring and data analytics the corporate office can evaluate each valve, pump, and instrument in each plant and make purchasing decisions based on prolific cost of ownership information.

In addition large system suppliers such as Mitsubishi Heavy Industries (MHI) are furnishing complete systems and then remotely operating them. The MHI subsidiary MHPS can be injecting magnesium oxide into its furnaces using OBL pumps and injecting ammonia into its catalytic reduction systems using Corken pumps and compressors. It might be using Liquid Controls flow measurement and Pulsafeeder metering pumps. It could be pumping slurries with Warren Rupp diaphragm pumps. MHI could be monitoring all these components from its center in the Philippines or the one in Florida.

Once the customers and system suppliers have this comprehensive performance information, flow and treat companies will find that they need to match this knowledge with their own. It then becomes desirable for each division to collaborate. In order not to reduce the independent activity of each division, the collaboration can be bottoms up. The local sales people can share or not share information with their peers in the other divisions. Each will have a specific sales target for each major purchaser.

Most IDEX divisions differ in terms of the specific products which they produce. There is also some regional difference. Richter has great insights into the European chemical industry given its history and location. There are more than 16 distinct operations in IDEX Fluid and Metering Technologies.

1 ADS Flow Control Software Municipal Wastewater
2 AEGIS Hazardous Service Valves Chemical
3 Alfa Valvole Severe Service Valves Energy, Chemical
4 Banjo Electric Valves, Pumps Agriculture, Industry
5 Corken Compressors, Pumps Energy, Chemical
6 Ipek Pipeline Inspection Municipal
7 Knight Proportioning Commercial, Industrial
8 Liquid Controls Precision Measurement Fuels and Liquids
9 OBL Metering Pumps Fossil Power, Beverage
10 Pulsafeeder Metering Pumps Municipal, Industrial
11 Richter PFA Lined Centrifugal Pumps, Valves Chemical, Fertilizer
12 S.A.M.P.I Measurement Oil and Gas Terminals
13 Trebor PFA   AAOD Pumps Chemical
14 Viking Pump Rotary Pumps Food, Fuels, Chemicals
15 Warren Rupp Diaphragm Pumps Mining, Industry
16 Wright Flow Control Rotary Lobe Pump Beverage, Chemical

Japan has a number of large end users for flow control instrumentation, pumps, and valves. Some of the world’s largest OEMs are Japanese based. The following chart shows the Total Available Market (TAM) for instrumentation, pumps, and valves for some of the major Japanese purchasers. It also shows the Serviceable Available Market (SAM)for each IDEX entity. The chart does not contain the actual forecasts but does show enough detail to illustrate the following points. They are:

  • The major OEMS are large prospects for many products.
  • Most of the companies are purchasing enough IDEX products to warrant a targeted marketing effort.
  • The potential is spread among multiple divisions.
  • Single purchase orders to OEMS are likely to include multiple products such as made by IDEX.
  • The potential is large enough to warrant better understanding of the specific processes and product requirements.
  • This understanding can lead to better products and even higher margins.
  • The IDEX market share in Asia is low. So a focused approach on specific targets is a good way to build share.
Japanese Annual Instrumentation, Pump, and Valve Purchases by Selected Companies*
Company Industry



Serviceable Available Market $ 1000s for Each Numbered Division


$ 1000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Takeda Pharma 36   10         20 10   400 100   40 50 300   930
J-Power Power 138     20   30     40 100 500       40 400   1130
Oji Paper Company Pulp & Paper 84               30 50 300       40 250   670
Nippon Paper Pulp & Paper 60               20 50 200       30 200   500
Mitsubishi Chemical Chemical 180   100 30   40     60 100 600 200   100 200 500 200 2130
Toray Industries Chemical 114   50 15   20     30 50 400 100   50 100 250 100 1165
JXTG Holdings  Oil & Gas, refining 363     50   10     200 300 700   300   400 500   2460
Idemitsu Kosan Oil & Gas 153     30 10 10     50 150 200   100   300 150   1000
MHI EPC 600   40 50 20 30     250 400 700   50   400 300   2240
Sumitomo EPC 390 100 30 40 15 20 60   250 300 500   50   300 500   2165
Chiyoda EPC 330 10 100 20 10 15     200 150 450 400 30 200 100 200 50 1935
IHI EPC 300 10 30 40 15 15     200 150 400   30   150 150   1190
Total $ 1000   2748 120 360 295 70 190 60 20 1340 1800 5350 800 560 390 2110 3700 350 17515

* not actual forecasts but just representative values for demonstration

The TAM is $2.7 billion. The IDEX SAM is $17.5 million. This is a share well under 1%. Many of the end users and all the EPCs are utilizing some flow control products in countries other than Japan. Sumitomo purchased the Foster Wheeler coal fired boiler operations in the U.S. It is also building wastewater treatment plants in many countries. MHI operates worldwide. It has had success in the Indian coal fired power market. Toray has multiple plants in the U.S. These companies prefer to deal with international suppliers who can address their global needs. A bottoms up collaborative program which can provide global service for each of these major purchasers will be an advantage.

The Most Profitable Market program to identify each major purchaser is explained at

The program for instrumentation suppliers is covered at N031 Industrial IOT and Remote O&M.

The program for pump suppliers is covered in N019 Pumps World Market.

N028 Industrial Valves: World Market explains the program for Valve Suppliers.

 Bob McIlvaine can answer your questions at This email address is being protected from spambots. You need JavaScript enabled to view it. 847 784 0012 ext. 122.