Author:
George Harris, Hydro Inc.
Publisher:
Pumps & Systems
Date Published:
April, 2007
Observations on the changes, trends and challenges that both suppliers and pump users may face in the coming years.
Changes
Perhaps the most pronounced change we have experienced is that the customer we serve is no longer a “local” customer, but is increasingly a large national or global organization with locations throughout the world.
These global customers are interested in working with suppliers that can provide a comprehensive range of specialized services with a high degree of professionalism. Because they are interested in reducing the number of suppliers with which they work, they often prefer to deal with suppliers that can effectively service multiple locations.
Over time, this will change the landscape of aftermarket suppliers, with smaller, local organizations being reduced. The aftermarket providers that emerge from this period of change will be larger companies with broader capabilities and services, particularly those that are strong in engineering and technical services and in employing new technologies.
When industrial capital projects in the U.S. were in a slump during the 1980s and 1990s, a dramatic consolidation of pump companies resulted in only a few major broadbased OEMs dominating the industry. Today, the pump industry enjoys resurging demand – new power plants, major refinery expansions, oil sands projects in Canada and so on – that is straining productive capacity, with deliveries for both pumps and replacement parts often exceeding acceptable parameters.
This strain, in turn, creates opportunities for qualified aftermarket parts suppliers.
Trends
The focus of our business is no longer the “machine shop,” but rather technological improvements that continue to change and advance the way we operate.
Continue reading →