MCAA Annual Forecast
MCAA Annual Market Forecast 2008 - 2011 Process Instrumentation and Automation United States and Canada
Prepared by
The Global Foresight Group™ Rasmusson & Willey LLC Minneapolis, Minnesota
www.gfgroup.net
Measurement, Control & Automation Association PO Box 3698, Williamsburg, VA 23187 www.measure.org
©2009 Rasmusson & Willey LLC and Measurement, Control & Automation Association
MCAA Annual Market Forecast Process Instrumentation and Automation United States and Canada Trademark: The Global Foresight Group™ is a trademark of Rasmusson & Willey LLC Disclaimer: This market assessment represents our interpretation and analysis of information generally available to the public, resident in the Rasmusson & Willey LLC market database or specifically released by responsible persons in the subject field. We believe that our sources are reliable; however, we do not assume any liability for the ultimate use of this information. Proprietary Product: This market assessment is a proprietary product of Rasmusson & Willey LLC. The market assessment final report constitutes the entirety of its obligation. MCAA and its member companies agree that no disclosure will be required of (1) data and information contained in any Rasmusson & Willey LLC physical or electronic databases, (2) methods and techniques of analysis, work practices, etc. or (3) any proprietary and confidential information of Rasmusson & Willey LLC, its clients and/or its subcontractors. COPYRIGHT ©2009 RASMUSSON & WILLEY LLC AND MEASUREMENT, CONTROL & AUTOMATION ASSOCIATION. ALL RIGHTS RESERVED. A copyright in the material of this report is owned by Rasmusson & Willey LLC. The report is only to be used by Authorized Users and then only for internal use. MCAA members agree to use such information solely for ordinary business use. Members of the Association will not distribute, resell, or copy this material for individuals outside of their own corporate entity without prior permission of Rasmusson & Willey LLC or MCAA.
Table of Contents Section
Page
1.
Introduction
1
2.
Report Overview
3
3.
Definitions
6
4.
Executive Summary & Discussion
7
5.
Industry Analysis
13
6.
Gas Analytical Instruments
30
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 7.
Liquid Analytical Instruments
35
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 8.
Pressure Transmitters
40
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada
22591R
Page i
Table of Contents (Continued) Section 9.
Page Electronic Flowmeters
45
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 10.
Mechanical Flowmeters & Primary Elements
50
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 11.
Electronic Level Instruments
55
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 12.
Mechanical Level Instruments
60
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 13.
Temperature Instruments
65
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada
22591R
Page ii
Table of Contents (Continued) Page Section 14.
Control Systems
70
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 15.
Remote I/O
75
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 16.
Data Acquisition Systems
80
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 17.
Final Control Elements
85
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 18.
Appendix – Data Tables
90
22591R
Page iii
MCAA Annual Market Forecast 2008 - 2011 Process Instrumentation and Automation United States and Canada Reference No.22591R May 2009
1. INTRODUCTION This is the third annual publication of the MCAA Annual Market Forecast Process Instrumentation and Automation, United States and Canada. This addition to the family of MCAA products and services continues to provide additional resources to its members with the current year (2008) annual market value and three year (2008 through 2011) annual market forecast for 12 MCAA product categories. Due to the dramatic changes in the economy since its last report in October of 2008, The Global Foresight Group™ (GFGroup) prepared this report for presentation at the MCAA Industry Forum in May of 2009. This report will contain the core information concerning industry trends and product category forecasts for the 3-year period 2008 to 2011. The report omits the discussions of Emerging Technologies and the ReMaPtm assessment of the earlier reports. GFGroup will prepare a brief update presentation for the MCAA ISA Breakfast in October, 2009. The October update will highlight market changes since the May 2009 report. MCAA and GFGroup will publish the annual market forecast in May and a brief update in October of each year. GFGroup has been a member of MCAA since 1995. The company specializes in business consulting and research for the Process Instrumentation and Automation (PI&A) Industry. Its Principals and Consultants collectively have over 150 years of industry experience. Through its custom study services, it has completed over 450 separate proprietary reports.
In the past 7 years, GFGroup has brought two new products to its clients. The first, ReMaP™, is a sophisticated sales and field service planning tool. ReMaP™ can provide market potential by product by industry in over 900 22591R
Page 1
3-digit zip code areas in the United States and 10 provinces in Canada. The second is Executive Briefings. An Executive Briefing is designed to specifically address the needs and expectations of PI&A suppliers and suppliers of auxiliary and associated products and software. The overall objective is to provide our client with a good basis for future business planning and provide the basis for identifying areas where further “drill down” research into specific product technologies, industry segments, etc. would support specific strategic and tactical business planning.
22591R
Page 2
2. REPORT OVERVIEW Forecast Product Categories The product categories used in the Forecast are: • • • • • • • • • • • •
Gas Analytical Instruments Liquid Analytical Instruments Pressure Instruments Electronic Flowmeters Mechanical Flowmeters / Primary Elements Electronic Level Mechanical Level/Tank Gauging Temperature Instruments Control Systems Remote I/O Data Acquisition Systems Final Control Devices
The Product Categories are defined as follows: Gas Analytical – All process gas analytical instruments including Photometers, Optical Spectrometers, Chromatographs and Electrochemical and Other Oxygen instruments. Liquid Analytical – All process liquid analytical instruments and sensors including pH, Conductivity, ORP and other analytes (e.g., chlorine, ozone, etc.) Pressure Instruments – All absolute, gauge and differential pressure instruments, not including the primary elements. This category does not include pressure indicators, manual gauges or pressure switches. Electronic Flowmeters - Ultrasonic, Vortex, Magnetic, Coriolis, Multivariable etc. Mechanical Flowmeters/Primary Elements – Positive Displacement, Turbine, Variable Area, etc. and all Primary Flow Elements.
22591R
Page 3
Electronic Level – All non-differential pressure continuous and point level electronic instruments including Capacitance, Ultrasonic, Microwave, Nuclear, Magnetostrictive, Conductance, Vibration, and Thermal technologies Mechanical Level/Tank Gauging – All Inventory Tank Gauging and other mechanical level measurement devices including Floats, Tapes, Servo Gauging, Hydrostatic Tank Gauging, Microwave Tank Gauging and other mechanical devices. Temperature Instruments – All temperature instruments and sensors including RTD’s, Thermocouples, Transmitters, etc. Control Systems – All continuous and batch Distributed Control Systems and Programmable Logic Controllers used in process control including the basic operating and control software normally included as part of these systems. Also included are project services and HMI (Human Machine Interface) devices. Remote or Distributed Input/Output devices- I/O used in process control systems. Data Acquisition Systems – PC Front Ends, Standalone Systems, Recorders etc. Final Control Devices – Control Valves, Actuators and Positioners Scope This report covers markets in the U.S. and Canada. The term North America used in this report refers to the combination of the U.S. and Canada. All market values are reported in U.S. Dollars.
22591R
Page 4
Industry Segments Industry segments used in this report are: • • • • • • • • • • • •
Oil & Gas (Production and Transmission) Petroleum Refining Chemicals Bio-Pharmaceutical Food & Beverage Pulp & Paper Electric Utilities Municipal Water & WasteWater Primary Metals Mining Stone, Clay, Glass and Cement All Other (Semiconductor, Textiles, etc.)
22591R
Page 5
3. DEFINITIONS Abbreviations
CAGR CEMS Cont Sys DA DO Elec Flow Elec Level EPA FCE FID Gas An Liq An Mech Flow Mech Level MRO NDIR ORP PH PI&A Pres RIO Temp UV XRF
Compound Annual Growth Rate Continuous Emissions Monitoring Control Systems Data Acquisition Equipment Dissolved Oxygen Sensors Electronic Flowmeters Electronic Level Instruments Environmental Protection Agency Final Control Elements (valves, etc) Flame Ionization Detector Instruments Gas Analytical Instruments Liquid Analytical Instruments Mechanical Flowmeters Mechanical Instruments Maintenance Repair and Operations Non Dispersive Infra Red Instruments Oxidation Reduction Potential Sensors PH Sensors Process Instrumentation and Automation Pressure Instruments Remote I/O Temperature Instruments Ultraviolet X-Ray Fluorescence Instruments
22591R
Page 6
4. EXECUTIVE SUMMARY AND DISCUSSION The process industries have all been affected by the recent recession to varying degrees. Those industries with served markets in construction, transportation equipment and consumer white goods have been hit the hardest. This includes chemicals, glass & cement, mining, metals production, and semiconductor production. Spending reductions planned for 2009 compared with 2008 ranged from 30 to 50 percent with modest recovery over the forecast period. Industries producing “staples”; pharmaceuticals, food & beverage, electric utilities and refining are maintaining reductions at flat to minus 20 percent in 2009 from 2008 with recovery to mid to high single digit annual growth through 2011. Water & wastewater spending will be down as revenues drop due to lower industrial use and local government struggles with deficit budgets. Infrastructure, treatment upgrades and automation will be the focus of remaining spending. Finally, spending in the oil & gas industry will be down from its record levels in the prior few years due to the drop in crude oil prices and drop in petroleum products demand. The PI&A annual change in market value over the three year forecast period by industry will range from about plus 3 percent in pharmaceuticals to a negative 9 percent in the chemicals industry. The overall three-year PI&A compound annual growth rate (CAGR) for all of the MCAA product categories is forecasted to be a negative 3.2 percent in the United States and a negative 3.8 percent in Canada. Remote I/O, electronic flow, electronic level, control systems and liquid analytical will have smaller negative growth rates. The remainder of the products will experience negative growth greater than the overall market. Electronic flow and level are expected to increase their share of the market at the expense of mature technologies. The market for remote I/O will continue to grow the fastest of all categories, as retrofits and upgrades drive demand for interfaces to legacy control systems. Mechanical level will experience greater market share loss than shown, since this category also includes inventory tank gauging products that will not experience such a large drop in market value. Over the 5-year period 2003 to the end 2008, the annual market value for the U.S. PI&A market (MCAA definition) grew from about $6.1 Billion to almost $7.3 Billion (5-year CAGR is 3.5 percent.) It is expected that the total PI&A annual market value will experience a negative 13 percent 22591R
Page 7
change in 2009 compared with 2008. 2009 will end at a market value slightly less than that in 2005. By 2011 it is expected that the market will recover to a value larger than 2005, but still below the market value of 2006. Total - All MCAA Product Categories
7,400
4.1%
7,200
Market Value ($M)
Forecast
4.2%
7,000 4.3%
6,800
2.9%
6,600
3.6%
6,400
-13.1%
1.5%
1.2%
6,200 6,000 5,800 5,600 5,400 03
04
05
06
07
08
09
10
11
Year
While this drop in market value is extreme, the historical perspective shows that it is not outside the long term trend of the PI&A market in the United States. GFGroup has tracked each 5-year CAGR since 1976 as shown in the chart below. The forecasted 5-year CAGR from 2006 to 2011 is -0.4 percent. The intervening years 2009 through 2011 will see significant negative growth as in previous recessionary periods. By 2011, the forecasted industry recovery will bring the latest 5-year CAGR in line with the historic PI&A market change trends of the last 30 years. 16%
14%
5 Year CAGR PI&A Market
12%
10%
8%
6%
Actual
Fcst
4%
2%
0% 1976
1981
1986
1991
1996
2001
2006
2011
-2%
Year
22591R
Page 8
CAGR 2008-2011
Mech Flow
Temp
FCE
Pres
Mech Level
Gas An
DA
Liq An
Cont Sys
Elec Level
Elec Flow
-1%
RIO
0%
TOT
USA Process Instrumentation and Automation 2008 – 2011 Growth Rate and Percent of Total Market By Product Category
-2% -3% -4% -5% -6%
TOTPRODUSA
2008 Annual Market Value - $7,283.7 Million 2011 Annual Market Value – $6,583.5 Million
22591R
Page 9
CAGR 2008-2011
-2%
Mech Flow
FCE
Mech Level
Pres
Gas An
DA
Temp
Elec Level
Liq An
Cont Sys
Elec Flow
-1%
RIO
TOT
CANADA Process Instrumentation and Automation 2008 0%– 2011 Growth Rate and Percent of Total Market By Product Category
-3% -4% -5% -6% -7%
TOTPRODCAN
2008 Annual Market Value - $835.9 Million 2011 Annual Market Value – $744.8 Million
22591R
Page 10
USA Process Instrumentation and Automation 2008 – 2011 Growth Rate and Percent of Total Market By Industry
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
TOTUSA
2008 Annual Market Value - $7,283.7 Million 2011 Annual Market Value – $6,583.5 Million
22591R
Page 11
CANADA Process Instrumentation and Automation 2008 – 2011 Growth Rate and Percent of Total Market 4% By Industry
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
TOTCAN
2008 Annual Market Value - $835.9 Million 2011 Annual Market Value – $744.8 Million
22591R
Page 12
5. INDUSTRY ANALYSIS Spending for both major capital projects and MRO (Maintenance, Repair and Operations) in the continuous process industries is the main driver for the growth of Process Instrumentation and Automation (PI&A) products. “Industry Spending” discussed in this report is the combination of MRO and capital spending. Oil & Gas The Oil & Gas segment covered in this forecast includes exploration, production, and transportation (pipelines). The distribution of residential and commercial gas is not included. The worldwide drop in spending in the Oil & Gas industry for 2009 compared with 2008 is expected to be in the neighborhood of 10 to 15 percent. The drop in the North America spending is expected to be even greater, with the large integrated producers down over 10 percent and independents down 25 to 30 percent. Companies will concentrate much of their spending during the forecast period to areas with better exploration economics. These areas currently tend to be outside of the North America. Even with the depth of this recession, the large integrated oil & gas companies will only slightly reduce their spending over the forecast period. Oil & gas companies must commit to multi-year investments in order explore, drill, and complete large production fields that will support a company’s replacement and growth of reserves. These large investments are based on an organized decision making process that result in a Financial Investment Decision (FID). Once the FID is made, the project is generally carried forward regardless of intervening unanticipated economic changes. The majors made adjustments, however, to their planned 2009 spending as the recession deepened in late 2008. The chart below shows the global capital spending plans and recent corrections for selected major oil companies. Exxon Mobil is actually counter to the trend of either reducing spending or holding it flat in 2009.
22591R
Page 13
30.0
2008 Act 2009 Orig
Capital Spending $B
25.0
2009 Corrected
20.0 15.0 10.0 5.0
British Petroleum
Chevron
Exxon Mobil
Conoco Phillips
Hess Corp
0.0
Source – Company Financial Reports
In North America the spending cuts are projected to be greater than those in other world areas. While Exxon Mobil is planning to raise their worldwide capital spending slightly in 2009, their spending in North America is expected to drop by almost 20 percent, as will ConocoPhillips. British Petroleum, Chevron, and Shell spending will be down by about 10 percent in North America. During the last few years of substantial growth in the North American oil & gas industry, many independent companies utilized credit to fund their growth projects. The tight credit situation combined with lower prices will drive independent company spending much lower than the global companies. Anadarko, Devon Energy, Marathon, Newfield, Husky Energy, and Talisman should all be down between 25 and 40 percent. The drop in natural gas prices and demand in the United States has caused companies to substantially cut back on their capital spending in the gas segment of the industry. The U.S. Energy Administration reported for the week ending March 20, 2009 that the United States has 1.654 trillion cubic feet of natural gas in storage, 29 percent more than in the same period last year. After that report, the price of natural gas fell to less than $4 for 1 million BTUs, down about 70 percent from the July 2008 prices. Chesapeake Energy Corporation, the nations leading independent producer of natural gas has announced that they will substantially cut their capital spending in the short term. For the balance of 2009 and through 2010 they expect to cut their industry spending 17 percent from previously 22591R
Page 14
planned spending. The economic stimulus package is not likely to change this outlook in North America in any substantive way. There might be some slight increase in Oil & Gas demand due to the additional energy spending to support the construction part of the spending, but this impact on the industry spending overall will be minimal. Prior to the recession, trends in U.S. and Canadian O&G spending were expected to decline due to dropping production in Canada and completions in the Gulf of Mexico. This existing situation, combined with the current recession, means spending will probably not recover substantially over the forecast period. With this outlook on Oil & Gas industry spending, we expect that 2009 will result in a reduction in spending on Process Instrumentation and Automation equipment compared with 2008 in North America. This spending pull back will likely hold into 2010 before recovering. Refining In the first quarter of 2009, North American refinery utilization was the lowest it has been in the last 4 years. This period is typically the low point in utilization as refineries take capacity offline for turnarounds, repairs, and upgrades prior to the high demand summer season. Continuing weak demand for fuels (lowest demand since 2003) and imports (13 percent of total supply) have prompted suppliers to take entire refineries offline, accelerate maintenance and turnarounds and extend lower operating levels through the first quarter and into second quarter of 2009. During the 80’s and 90’s no major refinery projects were initiated in the United States to replace older equipment and technology. This lead to the surge in maintenance shutdowns and, most recently upgrades and capacity expansions as demand accelerated during the recent economic expansion. During the downturn, the major oil companies and the EPC engineering contractors divested themselves of professionally qualified and experienced engineers of all disciplines. Re-staffing is taking place slowly by hiring furloughed or laid-off engineers and new graduates, but a major experience gap still exists in staffing for maintenance and upgrade projects. This has created opportunities for PI&A suppliers to expand the scope of 22591R
Page 15
their field service business. Suppliers are adding on-site turnaround project management, equipment repair/rebuilding, diagnostics and other services to their traditional field and factory repair in order to help fill the gap. Overall, North American refining capital spending in 2009 will be down between 15 and 20 percent. BP, Tesoro, Valaro, and Western all project 2009 spending down about 20 percent from 2008. Chevron spending will be flat and AlonUSA will be up slightly. The primary driver behind this apparently moderate decline in spending is the need to meet regulatory mandated plant and product changes. This regulatory spending will account for 50 to 75 percent of the total planned capital investments. Additional projects include annual turnarounds, modifications to accommodate different grades of crude, and selected equipment and automation upgrades that specifically address unit and plant reliability. PI&A annual market growth should remain slightly positive over the forecast period. Regulatory spending will favor the field measurement and analytical instrument markets. Chemicals About 25 percent of the global chemical industry capacity will be shut down during some or all of 2009. Companies are cutting operating rates, closing facilities, and performing maintenance shutdowns earlier than scheduled. In North America, capacity utilization will probably fall below 60 percent, with lower rates in olefins production. For 2009, the North American chemical industry spending is expected to be down between 25 and 30 percent. The reductions in spending are a combination of delayed or cancelled capital spending and lower MRO spending due to plant shutdowns. At the beginning of 2008, energy prices and raw material prices spiked, driving down margins in basic chemicals worldwide. At mid-year two major hurricanes disrupted a large portion of North American production capacity in the Gulf, driving customers to import sources from the Middle East and Asia. As oil and natural gas prices dropped and hurricane repairs were completed in late summer, the unraveling of the financial markets resulted in an unprecedented draw-down of retail and wholesale inventories in the second half of 2008. The fourth quarter of 2008 was the worst seen by many companies in two decades. 22591R
Page 16
Most chemical companies initiated restructuring activities to reduce costs in the third quarter of 2008. As the recession spread to the remainder of the world, many companies implemented a second set of restructuring activities in late 2008 and early 2009 to further reduce costs. The first round of restructuring activities was dominated by workforce reductions. The second round included a substantial number of temporary, and some permanent, plant shutdowns. China, India, and Singapore all reduced capacity utilization to about 75 percent through cutting operating rates, idling facilities, and performing maintenance shutdowns earlier than scheduled. North America and Europe took the brunt of the plant idling and shutdowns. Dow has closed eight plants in the United States and one in Canada so far. Other major U.S. based companies have closed 11 olefins plants in the United States. Only the Middle East has maintained higher capacity utilization rates by cutting prices and leveraging its lower energy and raw material costs. Inventory reductions in the primary chemical industry markets (new home construction, automotive, and packaging) have continued through the first quarter of 2009. Packaging is expected to recover first, since underlying demand for food, beverage, pharmaceutical and other staples packaging remains reasonably constant worldwide. Plants idled or closed, lower operating rates, and reduced staffs result in severance costs, write-downs, etc. that will be paid for by reduced spending. Capital spending at all major U.S. based companies is now planned to be down. Dow Chemical reported in February 2009 that 2009 capital spending would be down by 47 percent from the mid-2008 plan. Dupont expects capital spending to be down by 20 percent. The other companies will have similar reductions. Much of the chemical companies’ planned capital spending was destined for non-North American investments. A few areas are expected to maintain flat or see some growth during 2009. These include agriculture chemicals and products, water chemicals, and in Europe, higher efficiency standards are driving insulation demand. Finally, the potential affects of the stimulus package spending remains to be seen. According to the American Chemistry Council, every $1,000 spent on nonresidential construction yields an estimated $160 to $230 in chemical 22591R
Page 17
sales. Spending on green energy projects, such as wind turbines and solar cells, could boost chemical demand by an even higher amount. With total North America capacity utilization at or below 60 percent and 11 or more olefin plants closed, MRO spending will be significantly reduced over the forecast period as well. Planned and unplanned maintenance, turnarounds, etc. at some of the idled plants will be completed in the first half of 2009, extending MRO spending into that period. The worst of the drop in MRO spending should occur later in 2009 and probably into early 2010. PI&A spending in the chemicals industry is expected to suffer a substantial drop in the forecast period. The combination of closed or idled plants, reduced operating levels, and reduced capital and MRO spending will result in a negative annual growth rate of 9 percent in the U.S. and negative 6 percent in Canada for all of the MCAA product categories for 2008 through 2011. Pharmaceuticals As with food and other staples, an underlying demand for pharmaceutical products will blunt the impact of the recession on pharmaceutical companies. However, most companies have responded to customer inventory reductions and reduced consumer spending with cost cutting efforts – predominantly headcount reductions. Most pharmaceutical companies had initiated substantial restructuring two or three years ago so current cost cutting is an acceleration of already planned headcount reductions and plant closings. As a result, pharmaceutical spending is expected to be about flat for 2009 compared with 2008 and move into mid single digits in 2010 and 2011. Pharmaceutical spending in this decade peaked in 2006. By the end of 2008, it appears to have dropped to the level at the beginning of the decade. By mid-decade, pharmaceutical companies were seeing their record profits eroded by competition from generic products, expensive lawsuits, and increasingly costly new product development. Beginning after 2006 most companies initiated multi-year restructuring programs to achieve a company-wide lower cost base. At the onset of the recession in late 2008, many companies had already completed portions of their cost-cutting programs. 22591R
Page 18
At the end of 2006, the Pfizer company reported that they were going to set out to establish a lower and more flexible cost base. This objective was accomplished by the end of 2008 by reducing headcount by approximately 16,000 employees, eliminating unnecessary layers of bureaucracy, refocusing the work in R&D labs to high priority disease areas and optimizing the manufacturing network by closing 15 manufacturing sites. The result was a cost base equal to that for the company at the beginning of the decade. Bristol-Myers Squibb reported that they had made solid strides resetting their cost base since December of 2007. The company is at the mid-point in reducing its number of manufacturing plants by half by 2011. In 2008, Merck completed their 2005 restructuring program and expects to realize total cumulative savings of approximately $4.5 to $5.0 billion by 2010. This will include closing at least 4 plants and a 10 percent reduction in headcount. While pharmaceutical companies have needed to adjust their cost base in the later half of the decade, the market drivers for the pharmaceutical market have continued to drive investment in new product development. Chief among these drivers are the aging population and associated rising prevalence of chronic health care. Longer term trends such as consumerdriven health care, focus on wellness and prevention, and evolving health care delivery models will continue to drive new product and process development in the pharmaceutical industry. However, the pharmaceutical industry has not avoided the economic impact of the recession. Companies are experiencing slower growth trends in the drug market, cutbacks in health care treatment, postponement of some surgeries, and tighter inventory levels and health care budgets. They have reacted by closer management of spending and accelerating cost reduction activities, particularly headcount reductions. Industry spending for 2009 is expected to be about flat when compared to 2008 and increase in the mid to high single digits through 2011. Even with the company cost base reduction programs over the past few years, annual growth in pharmaceutical spending for PI&A products has remained in the mid to high single digits. In 2009, it should drop to the low single digits and then recover to the mid single digits in 2010 and 2011. The PAT (Process Analytical Technologies) initiative will continue to create new opportunities for both gas and liquid analytical products. On-going 22591R
Page 19
regulatory requirements and process improvement efforts will continue to support sales of all PI&A product categories. Food & Beverage The food industry has always been relatively unaffected by both expanding and contracting economics, since demand for food is primarily a function of population size. Alcoholic beverages are largely unaffected by economic fluctuations while non-alcoholic demand for non-alcoholic beverages tend to move to generic brands and lower consumption The resistance to economic fluctuations has weakened as a larger portion of the total food and beverage demand is accounted for by moderate and upscale out-ofhome dining and higher priced specialty foods. The U.S. and Canadian food industry relies on substantial export revenue that will be affected by both lower demand worldwide and less favorable exchange rates. Beginning in late 2007 through the end of 2008 raw material prices saw exceptional increases. Companies reported that commodity prices were raised 9 times in eleven months. Raw milk prices increased by 80 percent in the second half of 2008. These increases caused most food and beverage companies to initiate substantial cost containment programs including closing marginal plants and redundant plants due to acquisitions and mergers. In addition, the cost containment programs included better supplier contract management, reduction in logistics costs, outsourcing selected services, reductions in general and administration expenses and acceleration of Lean and Six Sigma manufacturing programs. Most food and beverage companies have maintained capital spending between 3 and 4 percent of annual sales. Tyson reported plans to keep spending in 2009 only slightly below 2008, first for maintenance needs, but also to make sure that they continue to optimize revenue and cost structures. Both Kellogg and General Mills plan only small, single digit reductions in spending over the forecast period as do Anheuser Busch and Pepsi. Even with reduced demand, the food and beverage industry is currently operating at 80 percent to as high as 100 percent capacity in North America due to reduced production facilities as a result its restructuring efforts. To expand capacity, most F&B companies are planning to invest in process improvements and upgrades to process equipment and 22591R
Page 20
automation. A recent Grant Thorton/Food Processing survey reported that a majority of food and beverage manufacturers indicate that their top investments in 2009 will target process improvements (55% of companies) and new or upgraded equipment/automation (54%) Over the forecast period, the first half of 2009 is expected to be the worst as the industry works off the high cost raw material inventory and the less favorable exchange rates affect profits. The companies are generally positive for the remainder of the year and expect revenues and profits to be up slightly over 2008. The strength of the industry through 2009 combined with its emphasis on upgrading automation supports the expectation that the PI&A market value for F&B to grow by the low single digits over the next 3 years. Pulp & Paper The worldwide Pulp & Paper market is expecting a decline as a result of the overall global economic turndown, but the decline may not be as dramatic as in other industries. Declines in graphic papers are being seen due to the drops in circulation and size of newspapers and magazines while sanitary/toilet tissue markets are less affected by the downturn. China is a key factor in how the decline will play out in other world areas. China has increasingly been supplying demand in the rest of the world and in the last decade has invested in highly efficient paper lines. This could come to bear more significantly as the worldwide demand drops. China could pull market share from other higher cost parts of the world as China tries to find outlets for its excess capacity. Germany is another area where significant investment has taken place since 2003 that should make them competitive in a tough world market. All of this is not good news for the Pulp & Paper market in North America in 2009 and on into 2010. The drop in newsprint demand has caused several suppliers to cut production. AbitibiBowater closed its Covington, Tennessee. converting plant late in 2008 and shut a newsprint mill in Newfoundland. In addition, it has shut an Alabama newsprint mill and two paper machines in Tennessee. Other companies involved in cutbacks in production were Boise, MeadWestvaco, International Paper and Domtar. Spending in the Pulp & Paper industry in North America is down, in 22591R
Page 21
general, compared to a decade ago. In our last annual forecast we identified the Pulp & Paper as the weakest of all of the Process Industries. Even before the dramatic economic downturn in late 2008, spending in the ten largest U.S. paper companies was down about 3 percent compared to 2007. In Canada 15 of Ontario’s 18 primary mills have been impacted by business reductions since 2004. Half of the 18 have been shut down and only 3 of the 18 continue with the same owners. Weyerhouser is dropping their capital spending 50 percent in 2009 over 2008. Packaging and tissue products are the least affected product lines but weakness in other product lines have put most companies in a maintenance mode rather than a growth mode. The drop in PI&A spending is expected to be greatest in 2009 and moderate in 2010 and 2011. The magnitude will be smaller than other industries, simply because the past decade of decline has reduced the Pulp & Paper market need to a bare minimum before the recession. Electric Utilities Worldwide capital spending in the Electric Utilities industry in 2009 is expected to be close to 2008 levels despite the downturn in the economy. Funding will be directed to projects planned in 2008 for advanced metering, updated control systems and grid infrastructure improvements including smart grid initiatives. This is being driven by a combination of regulatory pressures and required updates of obsolete equipment. Long-term views of the industry are positive and spending is also being used to position the Electric Utilities for future growth. These projects are subject to long term regulatory and planning constraints that require investment even when the short term economy is poor. In North America, some Electric Utilities will be cutting capital and MRO spending in 2009 compared with 2008. North American Electric Utilities have been hit by declining demand, higher borrowing costs and lower fuel costs, which have cut electric prices. These three factors will likely cause reductions in capital spending into 2010. American Electric Power (AEP), one of North America’s largest utilities, is planning to reduce its capital budget for 2010 to $1.8 billion from the previous planned capital budget of $3.4 billion. AEP had already reduced its 2009 capital budget to $2.6 billion from the more than $3.3 billion it had planned. Discretionary projects are being deferred until the economic climate warrants the additional 22591R
Page 22
investment. On the other hand, the company intends to keep its MRO spending unchanged for 2009 and 2010 at a level of $3.4 billion. A broader review of selected large utilities in North America shows that some are going ahead with their plans while others are cutting back. The investments in renewables, environmental controls and smart grid are at the top of the list, while investments in distribution were at the bottom. Transmission and generation were somewhere in the middle. The chart below shows the latest projections of 2009 capital spending compared to 2008 for six large Independent Operating Utilities. The average decline in capital spending of these six is approximately 10 percent.
Capital Spending $Millions
6000 2008 Capital 2009 Capital
5000 4000 3000 2000 1000 0 Duke Energy
Southern Co
FPL Group
AEP
Dominion
PSEG
Stimulus spending planned by the new administration in the United States will likely have a positive longer term effect on capital spending, as it is supporting a one trillion dollar investment in infrastructure upgrades. A significant amount of this funding will go to improving electric transmission. In 2009 and 2010, however, spending is likely to be lower in North America. This view into capital spending trends will play into the forecast of investments that Electric Utilities will be making in Instrumentation and 22591R
Page 23
Automation equipment in the forecast period. The fact that renewables, environmental controls and smart grid have high priority is generally good for process control suppliers. Overall for the forecast period, we see about 2 percent CAGR growth for the Electric Utilities industries in PI&A spending. Water and Wastewater Water and wastewater spending has suffered the loss of federal funding over the past few years. This has pushed the burden on to state and local governments to maintain water and wastewater treatment, facilities, expand treatment and distribution capacities with increasing population and industrial demand, and meet federal and state regulatory requirements. The infusion of capital through private operating companies has provided much needed longer-term investments. American Water, a large public company providing water treatment in the United States and parts of Canada, plans to maintain capital spending in 2009 at, or slightly below, 2008 levels. American plans to maintain spending at approximately $1 Billion through 2012. Aqua America, Inc. will be flat to around $300M. But these companies still account for a small portion of total spending. Local government spending remains the largest spending entity. The recession has put substantial pressure on local governments as state funding is reduced. Spending by local governments is being focused on near term infrastructure and treatment upgrades and automation. Investments in longer term, larger projects are being postponed. Overall spending is expected to be down substantially, but remaining spending will have a higher PI&A content, keeping the annual market change near zero over the forecast period. Mining Thus far, the Coal industry announced more than 60 million tons of production cuts from producers representing more than half the U.S. production base. U.S. production has declined 8 million tons year so far in the first quarter 2009 and is likely to accelerate over the remainder of 2009 as producers work through existing commitments and begin to implement announced pullbacks. Metallurgical coal production is expected to drop even more than energy coal as steel production falls off. Coal producer, Peabody Energy, expects to reduce capital spending by over 30 percent in 22591R
Page 24
2009. Other producers are making similar reductions. Over half of capital spending will be for continuing operations, including MRO, as major projects are delayed. Over the forecast period, U.S. coal demand will benefit from new coal-fueled generation coming on line. Between now and 2012, a number of new coal-fueled generating plants are expected to begin operation. Currently, 30 units are under construction in 19 states, representing more than 16,500 MW of capacity and approximately 70 million tons of annual coal use. The metal mining industry is considerably more affected by the current recession than the coal mining industry. Rio Tinto and Freeport-McMoran will reduce capital expenditures over 50 percent in 2009. FreeportMcMoran further cancelled over $650 million in equipment orders. Spending over the forecast period is expected to not exceed sustaining levels. PI&A spending will drop significantly, due to the combined reduction in mining new project and upgrade activities and reduced MRO needs as production rates drop, primarily in metals mining. Primary Metals Overall, primary metals industry spending is expected to drop 30 to 40 percent in 2009 versus 2008. Most companies have slowed or stopped large growth capital spending projects in North America. Maintenance spending, typically accounts for 30 to 50 percent of a companies total spending. With growth projects slowed or stopped, maintenance spending will rise to as much of 80 percent of total industry spending over the forecast period. Priorities for maintenance spending will be directed at compliance with the law (safety and environment requirements) and keeping the facility operating at capacities predicated on customer requirements. Capacity utilization has dropped from over 91 percent in 2008 to less than 50 percent in North America in the first quarter 2009. Much of the maintenance spending is expected to occur in the first half of 2009, with production ramping up to meet rebounding demand later in 2009 and through the forecast period.
22591R
Page 25
PI&A spending by the metals industry will drop in 2009, even with the emphasis on maintenance spending in the first half. It should recover later in the forecast period, as postponed growth projects are restarted. Stone Clay & Glass Overall, the current North America capacity of the glass and cement industries appear to be sufficient to meet any increase in demand occurring during the forecast period. Both industries will make substantial cuts in capital spending and, during 2009, will limit MRO spending. The glass industry is dominated by products for construction, automotive, consumer packaging, and electronics. The recession has caused substantial reductions in the demand for all these products. Glass suppliers have responded with equally substantial cuts in spending for the forecast period. NSG will reduce North American capacity by 15 percent by mid2009. Both PPG and Corning have reduced 2009 planned capital spending by 50 percent. Much of this capital spending will occur in the first half of 2009, as 2008 commitments are worked off. Associated PI&A spending will rapidly drop to MRO only levels through the forecast period. Spending should increase slightly in 2010 and 2011, as demand increases. The cement industry will make very large cuts in capital spending. Heidelberg Group (Lehigh Cement) will reduce capacity by 15 percent in North America. Texas Industries said 2009 capital spending will be down about 10 percent in 2009 and spending in 2010, will drop off dramatically. Eagle Materials expects 2009 spending will be down by over 60 percent. They reported “We anticipate our capital spending to remain at these low levels during the current economic downturn.” Capacity reductions and spending reductions, particularly in 2009 will cause large decreases in PI&A demand. Cement companies do not expect any significant increase in spending over the forecast period. Other Industries Semiconductor spending is expected to be down by over 50 percent in 2009 over 2008. This comes on top of a spending decline of over 25 percent in 2008 over 2007. Annual spending growth is expected to move into the positive mid-teens over the forecast period. This will put spending levels well below 2008 values in 2011. 22591R
Page 26
Captive and commercial heat treating spending will drop below 40 percent in 2009 over 2008. Over the forecast period, the heat treating industry annual spending change will be in the -20 to –25 percent. The PI&A 3-year annual market change is forecasted to be a negative 4.0 percent CAGR for the Other Industries category. This growth will occur primarily in the recovering semiconductor business. Summary The impact of the recession on the PI&A annual market value is best seen in the change in the 2008 forecast versus this 2009 forecast in the tables below. The 2008 forecast was to be an almost 4 percent positive 3-year CAGR 2007 to 2010. With the onset of the worldwide recession, the 2008 forecasted 3 year CAGR is almost a negative 4 percent. Annual growth in spending in refining, pharmaceuticals, food and beverage, electric utilities, and water and wastewater should remain nearly flat over the forecast period. The remainder of the industries will experience negative change through 2011.
22591R
Page 27
Comparison of 07-10 Forecast with 08-11 Forecast – United States Total of All MCAA Product Categories
10.0% 8.0% 07_10 USA Fcst 08_11 USA Fcst
6.0% 4.0%
TOTAL
Pulp & Paper
Stone Clay Glass
Mining
Primary Metals
Other
Chemical
Food & Bev
Water & Wastewater
-6.0%
Pharmaceutical
-4.0%
Electric Power
-2.0%
Refining
0.0% Oil & Gas
CAGR (%)
2.0%
-8.0% -10.0% -12.0%
22591R
Page 28
Comparison of 07-10 Forecast with 08-11 Forecast – Canada Total of All MCAA Product Categories
6.0% 07_10 CAN Fcst 08_11 CAN Fcst
4.0% 2.0%
TOTAL
Stone Clay Glass
Pulp & Paper
Primary Metals
Other
Mining
Oil & Gas
Refining
Chemical
Water & Wastewater
-6.0%
Food & Bev
-4.0%
Electric Power
-2.0%
Pharmaceutical
CAGR (%)
0.0%
-8.0% -10.0% -12.0% -14.0%
22591R
Page 29
6. GAS ANALYTICAL INSTRUMENTS The instruments in this product category are: • Photometers (Filter Photometers, Refractometers, UV Fluorescence, Tunable Diode Lasers, Cavity Ringdown, etc) • Optical Spectrometers NIR,FT-NIR, FT-IR, Raman, Open Path, NMR, Ion Mobility, Mass Spectroscopy, etc) • Chromatographs (Gas and BTU Chromatographs) • Electrochemical (ZrO2) and Other Oxygen. • TOC, Chemiluminescence, FID, Thermal conductivity etc The forecasted growth for Gas Analytical instruments is -3.8 percent CAGR in the United States for the period 2008 to 2011 and -4.3 percent CAGR in Canada. In the United States Chemicals, Refining and Electric Utilities make up almost 55 percent of the total demand for Gas Analytical products. In Canada, Chemicals, Food & Beverage, Refining and Metals make up 55 percent of the total demand for Gas Analytical Products.
22591R
Page 30
Gas Analytical Instruments By Industry – USA The 2008 base year value for Gas Analytical Instruments in the United States is $341.2 Million. The segmentation by industry is shown below
Gas Analytical Instruments USA 2008 Annual Market Value - $341.2 Million By Industry
W&WW 3% P&P Metals 4% 5% Oil & Gas 5%
Stn Cl Gls 2%
Mining 1% Chem 29%
F&B 8% Other 9% Pharm 9% GAUSA
Refining 15% Utilities 10%
22591R
Page 31
Gas Analytical Instruments Forecast By Industry – USA The forecasted growth for Gas Analytical Instruments is -3.8 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Gas Analytical Instruments Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
GAUSA
2008 Annual Market Value - $341.2 Million 2011 Annual Market Value - $303.9 Million
22591R
Page 32
Gas Analytical Instruments By Industry – Canada The 2008 base year value for Gas Analytical Instruments in Canada is $38.1 Million. The segmentation by industry is shown below:
Gas Analytical Instruments Canada 2008 Annual Market Value - $38.1 Million By Industry
Mining 4%
Pharm 5%
W&WW 3%
P&P 5%
Oil & Gas 6%
F&B 16%
Utilities 8%
GACAN
Stn Cl Gls 2% Chem 20%
Other 10% Metals 10%
Refining 11%
22591R
Page 33
Gas Analytical Instruments Forecast By Industry – Canada The forecasted growth for Gas Analytical Instruments is -4.3 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Gas Analytical Instruments Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Chem
Oil & Gas
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
GACAN
2008 Annual Market Value - $38.1 Million 2011 Annual Market Value - $33.4 Million
22591R
Page 34
7. LIQUID ANALYTICAL INSTRUMENTS The instruments in this product category include all process Liquid Analytical instruments: • • • • • • • • • •
PH Sensors and Instruments Conductivity Sensors and Instruments ORP Sensors and Instruments DO Sensors and Instruments Other Electrochemical (Chlorine, Analytes, etc) Water Analyzers Consistency Instruments Density instruments Viscosity Instruments Petroleum Properties Instruments
The market demand for Liquid Analytical instruments and sensors will grow at an average growth rate of -3.2 percent per year in the United States over the forecast period and -3.5 percent per year in Canada. PH, Conductivity, DO, and other electrochemical Sensors and Instruments account for approximately 65 percent of the Liquid Analytical Instruments market. In the United States five industries; Chemicals, Pharmaceuticals, Water & Wastewater, Electric Utilities and Food & Beverage account for over 75 percent of the market for Liquid Analytical instruments. In Canada those same five industries; Chemicals, Pharmaceuticals, Water & Wastewater, Electric Utilities and Food & Beverage account for over 70 percent of the market for Liquid Analytical instruments.
22591R
Page 35
Liquid Analytical Instruments By Industry – USA The 2008 base year value for Liquid Analytical Instruments in the United States is $198.6 Million. The segmentation by industry is shown below.
Liquid Analytical Instruments USA 2008 Annual Market Value - $198.6 Million By Industry
Metals Oil & Gas 2% 2% Other 5% P&P 5% Refining 7% F&B 8%
Mining 1% Stn Cl Gls 1% Chem 23%
Utilities 10% Pharm 16%
W&WW 20%
LAUSA
22591R
Page 36
Liquid Analytical Instruments Forecast By Industry – USA The forecasted growth for Liquid Analytical Instruments is -3.2 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Liquid Analytical Instruments Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
-4%
Chem
Mining
Stn Cl Gls
P&P
Metals
Other
Oil & Gas
W&WW
Refining
F&B
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
LAUSA
2008 Annual Market Value - $198.6 Million 2011 Annual Market Value - $180.3 Million
22591R
Page 37
Liquid Analytical Instruments By Industry – Canada The 2008 base year value for Liquid Analytical Instruments in Canada is $21.9 Million. The segmentation by industry is shown below:
Liquid Analytical Instruments Canada 2008 Annual Market Value - $21.9 Million By Industry Metals 4% Refining 5%
Oil & Gas 3% Stn Cl Gls 1% W&WW 19%
Mining 5% Other 5% P&P 6%
F&B 18%
Pharm 8% LACAN
Utilities 9%
Chem 17%
22591R
Page 38
Liquid Analytical Instruments Forecast By Industry – Canada The forecasted growth for Liquid Analytical Instruments is -3.5 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Liquid Analytical Instruments Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
LACAN
2008 Annual Market Value - $21.9 Million 2011 Annual Market Value - $19.7 Million
22591R
Page 39
8. PRESSURE TRANSMITTERS Included in this product category are: • • • •
Differential Pressure Transmitters Gauge Pressure Transmitters Absolute Pressure Transmitters Multivariable Pressure Transmitters
*Primary Elements are included in the Mechanical Flowmeter Category The Pressure Transmitter category of this report included continuous indicating pressure instruments described above and does not include pressure indicators, manual gauges or pressure switches. The Pressure Transmitter market growth for the period 2008 to 2011 is forecasted to be -4.1 percent CAGR in the United States, -4.6 percent in Canada. Almost 60 percent of the market is accounted for by the Chemicals, Oil & Gas, and Utilities industries in the United States. In Canada these three industries and Food & Beverage account for about 65 percent of the market for Pressure Transmitters.
22591R
Page 40
Pressure Transmitters By Industry – USA The 2008 base year value for Pressure Transmitters in the United States is $425.5 Million. The segmentation by industry is shown below:
Pressure Transmitters USA 2008 Annual Market Value - $425.5 Million By Industry
W&WW 4% Pharm 5%
Stone Clay & Glass Metals 3% Mining 2% 1% Chem 30%
Other 6% F&B 7% P&P 7% Refining 8%
Utilities 11%
Oil & Gas 17%
PTUSA
22591R
Page 41
Pressure Transmitters Forecast By Industry – USA The forecasted growth for Pressure Transmitters is -4.1 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Pressure Transmitters Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Chem
Stn Cl Gls
-4%
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
PTUSA
2008 Annual Market Value - $425.5 Million 2011 Annual Market Value - $375.4 Million
22591R
Page 42
Pressure Transmitters By Industry – Canada The 2008 base year value for Pressure Transmitters in Canada is $46.1 Million. The segmentation by industry is shown below:
Pressure Transmitters Canada 2008 Annual Market Value - $46.1 Million By Industry Stone Clay & Glass Pharm W&WW Mining 3% 2% 3% 4% Refining Oil & Gas 5% 22% Metals 6% Other 6% P&P 7% Utilities 9%
Chem 20% F&B 14%
PTCAN
22591R
Page 43
Pressure Transmitters Forecast By Industry – Canada The forecasted growth for Pressure Transmitters is -4.6 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Pressure Transmitters Growth Rate Forecast
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
W&WW
Refining
-4%
F&B
-2%
Utilities
CAGR 2008-2011
0%
Pharm
2%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Total
4%
-6% -8% -10% -12% -14%
PTCAN
2008 Annual Market Value - $46.1 Million 2011 Annual Market Value - $40.0 Million
22591R
Page 44
9. ELECTRONIC FLOWETERS Flow technologies included in this product category are: • • • • •
Magnetic Flowmeters Ultrasonic Flowmeters Coriolis Flowmeters Vortex Flowmeters Thermal Mass Flowmeters
Electronic Flowmeters define a grouping of flow measurement technologies that, although not exclusively electronic, do have similar characteristics such as no moving parts, are enhanced or enabled by modern electronic technology and minimize the interruption or intrusion into the process. The Electronic Flowmeter market is expected to grow on average -1.9 percent CAGR over the forecast period in the United States. In Canada, the market will grow at -2.0 percent CAGR. In the United States Chemicals, Food & Beverage, Water & Wastewater, and Oil & Gas account for over 60 percent of the market for Electronic Flowmeters. In Canada, slightly less than 60 percent of the market is accounted for by Food & Beverage, Chemicals and Water & Wastewater.
22591R
Page 45
Electronic Flowmeters By Industry – USA The 2008 base year value for Electronic Flowmeters in the United States is $550.7 Million. The segmentation by industry is shown below:
Electronic Flowmeters USA 2008 Annual Market Value - $550.7 Million By Industry Stn Cl Gls 1% Metals Other 3% Mining 4% 1% Utilities Chem 6% 26% P&P 6% Pharm 7% Refining 7%
F&B 15% Oil & Gas 10%
W&WW 14%
EFLUSA
22591R
Page 46
Electronic Flowmeters Forecast By Industry – USA The forecasted growth for Electronic Flowmeters is -1.9 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Electronic Flowmeters Growth Rate Forecast
6%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Stn Cl Gls
-4%
Refining
-2%
Utilities
0%
Pharm
2% Total
CAGR 2008-2011
4%
-6% -8% -10%
EFLUSA
2008 Annual Market Value - $550.7 Million 2011 Annual Market Value - $520.6 Million
22591R
Page 47
Electronic Flowmeters By Industry – Canada The 2008 base year value for Electronic Flowmeters in Canada is $60.4 Million. The segmentation by industry is shown below:
Electronic Flowmeters Canada 2008 Annual Market Value - $60.4 Million By Industry Pharm 3% Mining Other 3% Refining 4%
4%
Stn Cl Gls 1% F&B 29%
Utilities P&P 5% 6% Metals 6% Oil & Gas 11%
W&WW 11%
Chem 17%
EFLCAN
22591R
Page 48
Electronic Flowmeters Forecast By Industry – Canada The forecasted growth for Electronic Flowmeters is -2.0 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Electronic Flowmeters Growth Rate Forecast
6%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Chem
Metals
Oil & Gas
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
EFLCAN
2008 Annual Market Value - $60.4 Million 2011 Annual Market Value - $56.8 Million
22591R
Page 49
10. MECHANICAL FLOWMETERS & PRIMARY ELEMENTS Flow technologies included in this product category are: • • • •
Positive Displacement Flowmeters Turbine Meters Variable Area Meters All Primary Flow Elements o Orifice Plates o Venturies o Pitot Tubes and Bars o All Other Primary elements
Mechanical Flowmeters set themselves apart from Electronic Flowmeters in that they have moving parts. The two most common measurement techniques are fixed volume chambers or gears and rotational speed of a turbine or rotor. The Mechanical Flowmeter annual market growth is forecast to be -5.2 percent CAGR in the United States, and a lower -5.9 percent CAGR in Canada. In the United States Chemicals, Oil & Gas and Refining account for approximately 60 percent of the value of the Mechanical Flowmeter market. In Canada Chemicals, Oil & Gas and Food & Beverage account for about 60 percent.
22591R
Page 50
Mechanical Flowmeters By Industry – USA The 2008 base year value for Mechanical Flowmeters in the United States is $374.8 Million. The segmentation by industry is shown below:
Mechanical Flowmeters USA 2008 Annual Market Value - $374.8 Million By Industry Stn Cl Gls 2% Pharm 5%
Mining 2% Metals 2% Chem 28%
P&P 5% Other 6% F&B 6%
Utilities 7%
MFLUSA
W&WW 7%
Oil & Gas 18% Refining 12%
22591R
Page 51
Mechanical Flowmeters Forecast By Industry – USA The forecasted growth for Mechanical Flowmeters is -5.2 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Mechanical Flowmeters Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Chem
Mining
Stn Cl Gls
P&P
Metals
Other
Oil & Gas
W&WW
Refining
F&B
Pharm
-2%
Utilities
CAGR 2008-2011
0%
Total
2%
-4% -6% -8% -10% -12%
MFLUSA
2008 Annual Market Value - $374.8 Million 2011 Annual Market Value - $318.9 Million
22591R
Page 52
Mechanical Flowmeters By Industry – Canada The 2008 base year value for Mechanical Flowmeters in Canada is $40.6 Million. The segmentation by industry is shown below:
Mechanical Flowmeters Canada 2008 Annual Market Value - $40.6 Million By Industry
Stn Cl Gls 2% Metals 5% Utilities 6% P&P
Pharm 2%
Mining 2% Oil & Gas 23%
6% W&WW 6% Other 6%
MFLCAN
Refining 8%
Chem 21% F&B 13%
22591R
Page 53
Mechanical Flowmeters Forecast By Industry – Canada The forecasted growth for Mechanical Flowmeters is -5.9 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Mechanical Flowmeters Growth Rate Forecast
-4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
Refining
F&B
W&WW
Pharm
-2%
Utilities
CAGR 2008-2011
0%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011 Total
2%
-6% -8% -10% -12% -14%
MFLCAN
2008 Annual Market Value - $40.6 Million 2011 Annual Market Value - $33.8 Million
22591R
Page 54
11. ELECTRONIC LEVEL The products in this category are: • • • • • • • •
Capacitance Ultrasonic Microwave (contact and non contact) Nuclear Magnetostrictive Conductance Vibration Thermal
Electronic Level devices include a category of devices that have no moving parts (with the exception of the vibrating sensor in vibration level devices). This includes applications for continuous level as well as point level (level switches) in both Liquid and Solid environments. The annual market growth of Electronic Level devices is forecast to be -2.7 percent CAGR in the United States and -3.5 percent CAGR in Canada. In the U.S. the Chemical industry accounts from almost 25 percent of the total market value for Electronic Level instruments. Food & Beverage, Biopharmaceuticals and Water & Wastewater account for another approximately 33 percent. In Canada, Food & Beverage, Chemicals, Mining and Oil & Gas account for over 60 percent of the annual market value.
22591R
Page 55
Electronic Level By Industry – USA The 2008 base year value for Electronic Level in the United States is $226.1 Million. The segmentation by industry is shown below:
Electronic Level USA 2008 Annual Market Value - $226.1 Million By Industry
Metals Stn Cl Gls 3% 4% Other Utilities 3% 5% Chem 25%
Mining 5% Refining 7% P&P 7% Oil & Gas 8%
W&WW 13% Pharm 9%
F&B 11%
ELEUSA
22591R
Page 56
Electronic Level Forecast By Industry – USA The forecasted growth for Electronic Level is -2.7 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Electronic Level Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
6%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
Refining
Stn Cl Gls
-4%
F&B
-2%
Utilities
0%
Pharm
2% Total
CAGR 2008-2011
4%
-6% -8% -10%
ELEUSA
2008 Annual Market Value - $226.1 Million 2011 Annual Market Value - $208.6 Million
22591R
Page 57
Electronic Level By Industry – Canada The 2008 base year value for Electronic Level in Canada is $24.9 Million. The segmentation by industry is shown below:
Electronic Level Canada 2008 Annual Market Value - $24.9 Million By Industry
Refining 5% Pharm 5%
Utilities 4%
Other 3% Stn Cl Gls 1% F&B 20%
P&P 6% Metals 7% W&WW 8% Oil & Gas 11%
Chem 18%
Mining 12%
ELECAN
22591R
Page 58
Electronic Level Forecast By Industry – Canada The forecasted growth for Electronic Level is -3.5 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Electronic Level Growth Rate Forecast
6%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
W&WW
F&B
Refining
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
MFLCAN
2008 Annual Market Value - $24.9 Million 2011 Annual Market Value - $22.3 Million
22591R
Page 59
12. MECHANICAL LEVEL / INVENTORY TANK GAUGING
Specific products include: • • • • • •
Floats Tapes Servo Gauges Hydrostatic Tank Gauging used for Inventory Microwave Tank Gauging All other Mechanical Level devices
Mechanical Level / Inventory Tank Gauging meters include all other level measurement technologies other than Electronic Level as well as all technologies used for Inventory Tank Gauging. The annual market growth of Mechanical Level, including Inventory Tank Gauging devices is forecast to be -3.9 percent CAGR in the United States and -5.2 percent CAGR in Canada. Chemicals, Oil & Gas and Refining make up over 60 percent of the market value of Mechanical Level / Tank Gauging in the U.S. and Canada
22591R
Page 60
Mechanical Level / Inventory Tank Gauging By Industry – USA The 2008 base year value for Mechanical Level / Inventory Tank Gauging in the United States is $169.5 Million. The segmentation by industry is shown below:
Mechanical Level / Inventory Tank Gauging USA 2008 Annual Market Value - $169.5 Million By Industry Stn Cl Gls 1% Other Mining Metals 3% 1% 1% P&P Chem Utilities 5% 24% 6% W&WW 6% Pharm 7% F&B 7%
MLEUSA
Refining 16%
Oil & Gas 23%
22591R
Page 61
Mechanical Level / Inventory Tank Gauging Forecast By Industry – USA The forecasted growth for Mechanical Level / Inventory Tank Gauging is -3.9 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Mechanical Level / Inventory Tank Gauging Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
MLEUSA
2008 Annual Market Value - $169.5 Million 2011 Annual Market Value - $150.6 Million
22591R
Page 62
Mechanical Level / Inventory Tank Gauging By Industry – Canada The 2008 base year value for Mechanical Level/Inventory Tank Gauging in Canada is $21.5 Million. The segmentation by industry is shown below:
Mechanical Level / Inventory Tank Gauging Canada 2008 Annual Market Value - $21.5 Million By Industry Other Pharm 3% 3% Mining 3% P&P 4% W&WW 4% Utilities 5%
Metals Stn Cl Gls 2% 1%
Oil & Gas 31%
F&B 13%
MLECAN
Refining 14%
Chem 17%
22591R
Page 63
Mechanical Level/Inventory Tank Gauging Forecast By Industry – Canada The forecasted growth for Mechanical Level/Inventory Tank Gauging is -5.2 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Mechanical Level / Inventory Tank Gauging Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Pharm
-2%
Utilities
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
MLECAN
2008 Annual Market Value - $21.5 Million 2011 Annual Market Value - $18.3 Million
22591R
Page 64
13. TEMPERATURE INSTRUMENTS Specifically included are: • • • • • • •
Thermocouples RTD’s IC sensors Thermisters Mechanical Sensors Temperature Transmitters Auxiliary Hardware
Temperature instruments include all temperature instruments including all of the sensors, transmitters and auxiliary hardware. Auxiliary hardware items include thermowells, probe protection hardware, etc. The temperature measurement market will grow about -4.1 percent annually over the forecast period (-3.9 percent in Canada). Six industries make up almost 75 percent of the market value of temperature instruments in the United States and Canada. These include Chemicals, Oil & Gas, Refining, Food & Beverage, Pharmaceuticals and Electric Utilities.
22591R
Page 65
Temperature Instruments By Industry – USA The 2008 base year value for Temperature Instruments in the United States is $499.6 Million. The segmentation by industry is shown below:
Temperature Instruments USA 2008 Annual Market Value - $499.6 Million By Industry
Stn Cl Gls 3% Metals 2% W&WW Mining Pharm 3% 1% 5% P&P 6%
Chem 31%
Other 6% F&B 7% Oil & Gas 8%
Utilities 11%
Refining 17%
TMPUSA
22591R
Page 66
Temperature Instruments Forecast By Industry – USA The forecasted growth for Temperature Instruments is -4.1 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Temperature Instruments Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
-4%
Chem
Mining
Stn Cl Gls
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
TMPUSA
2008 Annual Market Value - $499.6 Million 2011 Annual Market Value - $439.9 Million
22591R
Page 67
Temperature Instruments By Industry – Canada The 2008 base year value for Temperature Instruments in Canada is $54.6 Million. The segmentation by industry is shown below:
Temperature Instruments Canada 2008 Annual Market Value - $54.6 Million By Industry W&WW 3% Mining Stn Cl Gls Metals 3% 2% Chem 5% 22% Other 6% P&P 7% F&B Oil & Gas 13% 7% Utilities 9% Pharm 12%
Refining 11%
TMPCAN
22591R
Page 68
Temperature Instruments Forecast By Industry – Canada The forecasted growth for Temperature Instruments is -3.9 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Temperature Instruments Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
TMPCAN
2008 Annual Market Value - $54.6 Million 2011 Annual Market Value - $48.4 Million
22591R
Page 69
14. CONTROL SYSTEMS Products included in this category are: • • • • • • •
Continuous Distributed Control Systems Batch Distributed Control Systems Continuous Programmable Logic Control Systems Batch Programmable Logic Control Systems SCADA (Supervisory Control and Data Acquisition) systems Other Equipment Engineering and Services required to configure and start up the systems
Control Systems include all Continuous and Batch control system implementations used in the Process Industries. This includes all control hardware and I/O, human machine interfaces (HMI’s) and system level software usually included with the systems. Control Systems analyzed in this report are limited to those used in Process Industry Applications only. There may be applications in other industries outside of the Process Industries where these systems are used, but these are not included here. The Control System market is forecasted to grow at approximately -2.8 percent CAGR in the United States and slightly lower (-3.2 percent) in Canada. Chemicals, Food & Beverage, Electric Utilities and Pulp & Paper industries make up over 55 percent of the total market for Control Systems in the U.S. and Canada.
22591R
Page 70
Control Systems By Industry – USA The 2008 base year value for Control Systems in the United States is $2,738.0 Million. The segmentation by industry is shown below: Control Systems USA 2008 Annual Market Value - $2,738.0Million By Industry
Pharm 6%
Mining 4%
Metals 4%
Stn Cl Gls 3% Chem 19%
W&WW 6% Oil & Gas 7%
F&B 14%
Other 7% Refining 8%
P&P 9%
Utilities 13%
CSUSA
22591R
Page 71
Control Systems Forecast By Industry – USA The forecasted growth for Control Systems is -2.8 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Control Systems Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
Stn Cl Gls
P&P
Metals
Oil & Gas
Other
W&WW
F&B
Refining
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-4% -6% -8% -10%
CSUSA
2008 Annual Market Value - $2,738.0 Million 2011 Annual Market Value - $2,513.7 Million
22591R
Page 72
Control Systems By Industry – Canada The 2008 base year value for Control Systems in Canada is $341.2 Million. The segmentation by industry is shown below:
Control Systems Canada 2008 Annual Market Value - $341.2 Million By Industry Mining 4% Pharm 5%
Metals 4%
Stn Cl Gls 3% Chem 18%
W&WW 6% Other 7%
F&B 16%
Refining 7% Oil & Gas 8%
P&P 9%
Utilities 13%
CSCAN
22591R
Page 73
Control Systems Forecast By Industry – Canada The forecasted growth for Control Systems is -3.2 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Control Systems Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
Refining
F&B
W&WW
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-4% -6% -8% -10%
CSCAN
2008 Annual Market Value - $341.2 Million 2011 Annual Market Value - $309.3 Million
22591R
Page 74
15. REMOTE I/O Remote (or Distributed) Input/Output hardware includes all input/output hardware used as part of process monitoring or control application. It is distinguished from the I/O included in the control systems category by the fact that it is not generally sold as part of a Control System, but is purchased separately. Remote I/O covered in this report includes those products used in Process Industry Applications only. There may be applications in other industries outside of the Process Industries that are not included here. The forecasted growth for Remote I/O is -1.8 percent CAGR in both the U.S. and Canada. In the U.S. Remote I/O use is concentrated in the Chemical, Electric Utilities, Food & Beverage and Water & Wastewater industry segments where it makes up over 55 percent of the market value. In Canada Chemicals, Food & Beverage, Electric Utilities and Oil & Gas account for over 65 percent of the market value of Remote I/O products.
22591R
Page 75
Remote I/O By Industry – USA The 2008 base year value for Remote I/O in the United States is $258.0 Million. The segmentation by industry is shown below:
Remote I/O USA 2008 Annual Market Value - $258.0 Million By Industry
Mining 4%
Other 3%
Stn Cl Gls 3%
Metals 4% Pharm 6% Oil & Gas 7%
Chem 20%
P&P 7% Refining 9% RIOUSA
Utilities 16% F&B 12%
W&WW 9%
22591R
Page 76
Remote I/O Forecast By Industry – USA The forecasted growth for Remote I/O is -1.8 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Remote I/O Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
6%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
Refining
Stn Cl Gls
-4%
F&B
-2%
Utilities
0%
Pharm
2% Total
CAGR 2008-2011
4%
-6% -8% -10%
RIOUSA
2008 Annual Market Value - $258.0 Million 2011 Annual Market Value - $244.5 Million
22591R
Page 77
Remote I/O By Industry – Canada The 2008 base year value for Remote I/O in Canada is $34.7 Million. The segmentation by industry is shown below:
Remote I/O Canada 2008 Annual Market Value - $34.7 Million By Industry
Metals Stn Cl Gls 3% 3% Pharm 6% Refining 6% W&WW 7% P&P 8%
RIOCAN
Oil & Gas 10%
Mining 2% Other 2% F&B 22%
Chem 16% Utilities 15%
22591R
Page 78
Remote I/O Forecast By Industry – Canada The forecasted growth for Remote I/O is -1.8 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Remote I/O Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
6% 4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
RIOCAN
2008 Annual Market Value - $34.7 Million 2011 Annual Market Value - $32.8 Million
22591R
Page 79
16. DATA ACQUISITION SYSTEMS Data Acquisition Systems analyzed here are limited to those used in the Process Industries. They include: • • • •
Stand Alone Systems Data Loggers PC Front ends Recorders
The forecasted growth for Data Acquisition Systems is -3.6 percent CAGR in the United States for the period 2008 to 2011, -4.2 percent CAGR in Canada. Chemical, Electric Utilities are the two largest industry users of Data Acquisition systems in the U.S., accounting for over 40 percent of the total market. In Canada, Electric Utilities and Chemicals account for over 30 percent of the total market in Data Acquisition System.
22591R
Page 80
Data Acquisition Systems By Industry – USA The 2008 base year value for Data Acquisition Systems in the United States is $232.9 Million. The segmentation by industry is shown below:
Data Acquisition Systems USA 2008 Annual Market Value - $232.9 Million By Industry
W&WW Mining 3% Metals 3% Pharm 4% 5% Refining 6%
Chem 20%
P&P 6% Stn Cl Gls F&B 6% 8%
Oil & Gas 2%
Utilities 20% Other 17%
DAUSA
22591R
Page 81
Data Acquisition Systems Forecast By Industry – USA The forecasted growth for Data Acquisition Systems is -3.6 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Data Acquisition Systems Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
DAUSA
2008 Annual Market Value - $232.9 Million 2011 Annual Market Value - $208.5 Million
22591R
Page 82
Data Acquisition Systems By Industry – Canada The 2008 base year value for Data Acquisition Systems in Canada is $25.5 Million. The segmentation by industry is shown below:
Data Acquisition Systems Canada 2008 Annual Market Value - $25.5 Million By Industry
Oil & Gas W&WW 2% Refining 2% Pharm 4% Other Stn Cl Gls6% 16% 6% P&P 7%
Utilities 15% Mining 9%
DACAN
Metals 9%
F&B 10%
Chem 14%
22591R
Page 83
Data Acquisition Systems Forecast By Industry – Canada The forecasted growth for Data Acquisition Systems is -4.2 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Data Acquisition Systems Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
Stn Cl Gls
P&P
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
DACAN
2008 Annual Market Value - $25.5 Million 2011 Annual Market Value - $22.4 Million
22591R
Page 84
17. FINAL CONTROL ELEMENTS Final Control Elements include: • Control Valves • Control Valve Actuators • Control Valve Positioners Specifically excluded are on/off valves, manual valves and safety valves. The forecasted growth for Final Control Elements is -4.1 percent CAGR in the United States for the period 2008 to 2011. In Canada it is -5.3 percent. In the U.S., Chemicals, Refining, Electric Utilities and Oil & Gas account for over 70 percent of the market value of Final Control Elements. In Canada Chemicals, Refining, Electric Utilities, Oil & Gas and Food & Beverage account for approximately 70 percent of the market value.
22591R
Page 85
Final Control Elements By Industry – USA The 2008 base year value for Final Control Elements in the United States is $1,268.8 Million. The segmentation by industry is shown below:
Final Control Elements USA 2008 Annual Market Value - $1,268.8 Million By Industry
Metals W&WW Mining 2% 1% Stn Cl Gls 2% Other 1% 3% Pharm Chem 4% 28% F&B 6% P&P 8% Oil & Gas 9% FCEUSA
Utilities 16%
Refining 20%
22591R
Page 86
Final Control Elements Forecast By Industry – USA The forecasted growth for Final Control Elements is -4.1 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Final Control Elements Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Pharm
-2%
Utilities
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
FCEUSA
2008 Annual Market Value - $1,268.8 Million 2011 Annual Market Value - $1,118.6 Million
22591R
Page 87
Final Control Elements By Industry – Canada The 2008 base year value for Final Control Elements in Canada is $126.5 Million. The segmentation by industry is shown below:
Final Control Elements Canada 2008 Annual Market Value - $126.5 Million By Industry
Pharm 2% Other Metals 3% 5%
W&WW 1% Stn Cl Gls 1% Chem 19%
Mining 9%
Utilities 14% P&P 9%
FCECAN
Oil & Gas 12%
Refining 13% F&B 12%
22591R
Page 88
Final Control Elements Forecast By Industry – Canada The forecasted growth for Final Control Elements is -5.3 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Final Control Elements Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
FCECAN
2008 Annual Market Value - $126.5 Million 2011 Annual Market Value - $107.4 Million
22591R
Page 89
21. Appendix A – Data Tables
11.6 39.9 18.1 79.3 26.6 29.7 9.9 16.1 169.6 23.8 6.3 18.2 449.2 6.2%
4.4 2.9 4.0 6.3 7.5 11.6 1.8 6.8 107.0 10.8 6.3 31.6 200.7 2.8%
14.5 3.2 10.3 14.8 6.4 8.0 1.6 11.8 106.3 11.4 9.8 23.0 221.1 3.0%
8.0 1.8 9.3 7.7 8.2 7.1 1.8 14.3 78.4 6.8 14.1 12.5 170.2 2.3%
29.8 9.0 25.7 21.2 22.1 7.1 5.0 31.9 187.5 7.3 39.0 34.4 420.0 5.8%
Total
Other
Utilities
33.5 20.5 45.8 32.6 25.2 11.2 9.4 53.1 363.1 41.6 47.0 205.8 888.8 12.2%
Stn Cl Gls
15.4 10.3 30.0 31.3 19.7 15.7 7.9 31.0 247.2 18.4 13.0 102.7 542.5 7.4%
Metals
28.4 16.6 29.0 81.4 23.8 25.0 12.6 37.1 374.5 30.3 17.7 75.0 751.4 10.3%
Mining
31.0 31.0 20.5 37.3 18.0 21.4 11.9 26.2 173.5 15.2 12.5 56.3 454.8 6.2%
W&WW
95.4 45.5 125.7 147.6 104.2 55.5 41.6 149.9 528.1 52.2 48.8 342.9 1,737.5 23.9%
P&P
51.4 13.7 36.0 37.7 46.2 16.1 26.9 80.0 221.4 21.9 12.9 247.7 812.0 11.1%
F&B
17.8 4.1 71.0 53.5 66.9 17.7 38.8 41.4 181.5 18.3 5.5 118.8 635.4 8.7%
Pharm
Ref
Gas Analytical Liquid Analytical Pressure Xmtrs Elec Flowmeters Mech Flow Electronic Level Mech Level / ITG Temp Instruments Control Systems Remote I/O Data Acq Final Control TOTAL Percent of Total
O&G
MCAA Grouping
Chem
UNITED STATES – 2008 Market Value - $ Millions
341.2 198.6 425.5 550.7 374.8 226.1 169.5 499.6 2,738.0 258.0 232.9 1,268.8 7,283.7 100.0%
22591R
Page 90
Appendix A – Data Tables
Other
11.2 38.3 17.6 81.2 25.3 29.5 9.5 15.6 168.4 24.3 6.1 17.4 444.5 6.8%
3.4 2.1 3.0 4.9 5.5 9.1 1.3 5.0 82.0 8.5 4.7 23.3 152.8 2.3%
12.2 2.6 8.7 12.6 5.3 7.0 1.3 9.8 90.9 10.0 8.3 18.9 187.7 2.9%
6.0 1.3 7.0 6.3 6.0 5.4 1.3 10.7 60.3 5.4 10.5 9.2 129.5 2.0%
25.8 7.7 22.4 20.0 18.7 6.4 4.3 27.6 167.2 6.6 33.6 29.4 369.9 5.6%
Total
Stone Clay & Glass
35.0 21.3 48.5 36.5 26.1 12.2 9.9 55.9 388.6 45.9 49.6 214.0 943.5 14.3%
Primary Metals
11.8 7.9 23.5 25.1 14.9 12.7 6.1 24.0 196.5 15.0 10.1 78.6 426.3 6.5%
Electric Utilities
Pulp & Paper
Food & Bev
28.2 16.5 29.4 86.1 23.2 26.2 12.5 37.1 385.4 31.8 17.8 74.2 768.3 11.7%
Mining
32.8 32.5 22.0 42.0 18.6 24.0 12.5 27.9 190.3 16.9 13.5 59.1 492.1 7.5%
W&WW
Gas Analytical 16.1 51.7 69.8 Liquid Analytical 3.5 13.5 33.0 Pressure Transmitters 62.8 37.0 93.4 Electronic Flowmeters 51.9 40.3 113.7 Mechanical Flowmeters / Primary 56.6 Elements 44.8 74.1 Electronic Level 16.3 16.7 43.0 Mechanical Level / Inventory Tank Gauging 34.0 27.3 30.5 Temperature Instruments 35.9 80.1 110.2 Control Systems 160.3 225.9 397.8 Remote I/O 16.7 23.0 40.4 Data Acquisition Systems 4.9 13.0 36.3 Final Control Devices 101.7 244.5 248.2 TOTAL 560.8 817.9 1,290.4 Percent of Total 8.5% 12.4% 19.6%
BioPharm
Chemicals
Refining
MCAA Grouping
Oil & Gas
UNITED STATES – 2011 Market Value - $ Millions
303.9 180.3 375.4 520.6 318.9 208.6 150.6 439.9 2,513.7 244.5 208.5 1,118.6 6,583.5 100.0%
22591R
Page 91
Appendix A – Data Tables
3.1 2.0 4.1 2.9 2.2 1.0 1.1 5.0 44.3 5.1 3.9 17.7 92.3 11.0%
1.1 4.1 1.7 6.9 2.5 1.9 0.9 1.4 21.5 2.5 0.6 1.6 46.7 5.6%
1.4 1.1 1.3 2.0 0.7 3.0 0.6 1.5 13.3 0.8 2.2 10.9 38.9 4.7%
3.8 0.9 2.8 3.7 2.0 1.8 0.4 2.7 12.7 1.0 2.2 5.9 39.9 4.8%
0.9 0.2 1.1 0.8 0.9 0.3 0.2 1.2 9.9 1.0 1.5 1.3 19.3 2.3%
3.6 1.1 2.9 2.3 2.5 0.6 0.5 3.5 23.5 0.8 4.1 3.7 49.2 5.9%
Total
Other
1.8 1.3 3.4 3.3 2.3 1.6 0.9 3.6 31.2 2.9 1.7 11.1 64.9 7.8%
Stn Cl Gls
6.2 3.9 6.3 16.7 5.4 5.0 2.7 6.8 53.6 7.2 2.6 15.6 132.1 15.8%
Metals
1.8 1.8 1.1 1.8 1.0 1.3 0.6 6.3 18.5 2.3 1.4 2.8 40.7 4.9%
Mining
7.9 3.7 9.4 10.5 8.6 4.4 3.6 12.5 62.0 5.6 3.6 24.3 156.2 18.7%
W&WW
Pharm
4.2 1.1 2.5 2.6 3.3 1.2 3.1 6.2 24.8 2.2 1.1 16.4 68.8 8.2%
Utilities
Chem
2.2 0.6 9.5 6.8 9.1 2.7 6.8 4.0 25.9 3.4 0.6 15.1 87.0 10.4%
P&P
Ref
Gas Analytical Liquid Analytical Pressure Xmtrs Elec Flowmeters Mech Flow Electronic Level Mech Level / ITG Temp Instruments Control Systems Remote I/O Data Acq Final Control TOTAL Percent of Total
O&G
MCAA Grouping
F&B
CANADA – 2008 Market Value - $ Millions
38.1 21.9 46.1 60.4 40.6 24.9 21.5 54.6 341.2 34.7 25.5 126.5 835.9 100.0%
22591R
Page 92
Appendix A – Data Tables
Other
1.1 4.0 1.7 7.1 2.4 1.9 0.9 1.4 21.6 2.6 0.6 1.6 46.9 6.3%
1.0 0.7 0.8 1.4 0.5 2.1 0.4 1.0 9.2 0.6 1.5 7.2 26.5 3.6%
3.2 0.8 2.3 3.2 1.6 1.6 0.3 2.2 10.9 0.8 1.9 4.8 33.7 4.5%
0.7 0.2 0.8 0.7 0.7 0.2 0.1 0.9 7.6 0.8 1.1 1.0 14.7 2.0%
3.1 33.4 1.0 19.7 2.5 40.0 2.2 56.8 2.2 33.8 0.6 22.3 0.5 18.3 3.0 48.4 20.9 309.3 0.7 32.8 3.6 22.4 3.2 107.4 43.4 744.8 5.8% 100.0%
Total
Stone Clay & Glass
3.2 2.1 4.4 3.2 2.3 1.0 1.1 5.2 47.4 5.6 4.1 18.4 98.1 13.2%
Primary Metals
1.3 0.9 2.5 2.6 1.7 1.2 0.6 2.6 23.7 2.2 1.2 8.1 48.8 6.6%
Electric Utilities
Pulp & Paper
Food & Bev 6.1 3.7 6.3 17.3 5.1 5.2 2.6 6.7 54.0 7.4 2.6 15.1 132.2 17.7%
Mining
2.0 1.9 1.1 2.1 1.0 1.4 0.6 6.7 20.2 2.5 1.5 2.9 44.0 5.9%
W&WW
Gas Analytical 1.8 3.7 6.3 Liquid Analytical 0.5 1.0 2.9 Pressure Transmitters 7.5 2.3 7.6 Electronic Flowmeters 5.9 2.4 8.8 Mechanical Flowmeters / Primary 6.9 Elements 2.9 6.6 Electronic Level 2.2 1.1 3.7 Mechanical Level / Inventory5.3 Tank Gauging 2.8 2.9 Temperature Instruments 3.1 5.5 10.0 Control Systems 20.2 22.6 51.0 Remote I/O 2.8 2.1 4.7 Data Acquisition Systems 0.5 1.0 2.9 Final Control Devices 11.5 14.4 19.2 TOTAL 68.1 61.7 126.6 Percent of Total 9.1% 8.3% 17.0%
BioPharm
Chemicals
Refining
MCAA Grouping
Oil & Gas
CANADA – 2011 Market Value - $ Millions
22591R
Page 93
Prepared by
The Global Foresight Group™ Rasmusson & Willey LLC Minneapolis, Minnesota
www.gfgroup.net
Measurement, Control & Automation Association PO Box 3698, Williamsburg, VA 23187 www.measure.org
©2009 Rasmusson & Willey LLC and Measurement, Control & Automation Association
MCAA Annual Market Forecast Process Instrumentation and Automation United States and Canada Trademark: The Global Foresight Group™ is a trademark of Rasmusson & Willey LLC Disclaimer: This market assessment represents our interpretation and analysis of information generally available to the public, resident in the Rasmusson & Willey LLC market database or specifically released by responsible persons in the subject field. We believe that our sources are reliable; however, we do not assume any liability for the ultimate use of this information. Proprietary Product: This market assessment is a proprietary product of Rasmusson & Willey LLC. The market assessment final report constitutes the entirety of its obligation. MCAA and its member companies agree that no disclosure will be required of (1) data and information contained in any Rasmusson & Willey LLC physical or electronic databases, (2) methods and techniques of analysis, work practices, etc. or (3) any proprietary and confidential information of Rasmusson & Willey LLC, its clients and/or its subcontractors. COPYRIGHT ©2009 RASMUSSON & WILLEY LLC AND MEASUREMENT, CONTROL & AUTOMATION ASSOCIATION. ALL RIGHTS RESERVED. A copyright in the material of this report is owned by Rasmusson & Willey LLC. The report is only to be used by Authorized Users and then only for internal use. MCAA members agree to use such information solely for ordinary business use. Members of the Association will not distribute, resell, or copy this material for individuals outside of their own corporate entity without prior permission of Rasmusson & Willey LLC or MCAA.
Table of Contents Section
Page
1.
Introduction
1
2.
Report Overview
3
3.
Definitions
6
4.
Executive Summary & Discussion
7
5.
Industry Analysis
13
6.
Gas Analytical Instruments
30
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 7.
Liquid Analytical Instruments
35
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 8.
Pressure Transmitters
40
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada
22591R
Page i
Table of Contents (Continued) Section 9.
Page Electronic Flowmeters
45
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 10.
Mechanical Flowmeters & Primary Elements
50
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 11.
Electronic Level Instruments
55
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 12.
Mechanical Level Instruments
60
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 13.
Temperature Instruments
65
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada
22591R
Page ii
Table of Contents (Continued) Page Section 14.
Control Systems
70
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 15.
Remote I/O
75
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 16.
Data Acquisition Systems
80
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 17.
Final Control Elements
85
2008 Market Value by Industry – USA 2008-2011 Forecast by Industry – USA 2008 Market Value by Industry – Canada 2008-2011 Forecast by Industry – Canada 18.
Appendix – Data Tables
90
22591R
Page iii
MCAA Annual Market Forecast 2008 - 2011 Process Instrumentation and Automation United States and Canada Reference No.22591R May 2009
1. INTRODUCTION This is the third annual publication of the MCAA Annual Market Forecast Process Instrumentation and Automation, United States and Canada. This addition to the family of MCAA products and services continues to provide additional resources to its members with the current year (2008) annual market value and three year (2008 through 2011) annual market forecast for 12 MCAA product categories. Due to the dramatic changes in the economy since its last report in October of 2008, The Global Foresight Group™ (GFGroup) prepared this report for presentation at the MCAA Industry Forum in May of 2009. This report will contain the core information concerning industry trends and product category forecasts for the 3-year period 2008 to 2011. The report omits the discussions of Emerging Technologies and the ReMaPtm assessment of the earlier reports. GFGroup will prepare a brief update presentation for the MCAA ISA Breakfast in October, 2009. The October update will highlight market changes since the May 2009 report. MCAA and GFGroup will publish the annual market forecast in May and a brief update in October of each year. GFGroup has been a member of MCAA since 1995. The company specializes in business consulting and research for the Process Instrumentation and Automation (PI&A) Industry. Its Principals and Consultants collectively have over 150 years of industry experience. Through its custom study services, it has completed over 450 separate proprietary reports.
In the past 7 years, GFGroup has brought two new products to its clients. The first, ReMaP™, is a sophisticated sales and field service planning tool. ReMaP™ can provide market potential by product by industry in over 900 22591R
Page 1
3-digit zip code areas in the United States and 10 provinces in Canada. The second is Executive Briefings. An Executive Briefing is designed to specifically address the needs and expectations of PI&A suppliers and suppliers of auxiliary and associated products and software. The overall objective is to provide our client with a good basis for future business planning and provide the basis for identifying areas where further “drill down” research into specific product technologies, industry segments, etc. would support specific strategic and tactical business planning.
22591R
Page 2
2. REPORT OVERVIEW Forecast Product Categories The product categories used in the Forecast are: • • • • • • • • • • • •
Gas Analytical Instruments Liquid Analytical Instruments Pressure Instruments Electronic Flowmeters Mechanical Flowmeters / Primary Elements Electronic Level Mechanical Level/Tank Gauging Temperature Instruments Control Systems Remote I/O Data Acquisition Systems Final Control Devices
The Product Categories are defined as follows: Gas Analytical – All process gas analytical instruments including Photometers, Optical Spectrometers, Chromatographs and Electrochemical and Other Oxygen instruments. Liquid Analytical – All process liquid analytical instruments and sensors including pH, Conductivity, ORP and other analytes (e.g., chlorine, ozone, etc.) Pressure Instruments – All absolute, gauge and differential pressure instruments, not including the primary elements. This category does not include pressure indicators, manual gauges or pressure switches. Electronic Flowmeters - Ultrasonic, Vortex, Magnetic, Coriolis, Multivariable etc. Mechanical Flowmeters/Primary Elements – Positive Displacement, Turbine, Variable Area, etc. and all Primary Flow Elements.
22591R
Page 3
Electronic Level – All non-differential pressure continuous and point level electronic instruments including Capacitance, Ultrasonic, Microwave, Nuclear, Magnetostrictive, Conductance, Vibration, and Thermal technologies Mechanical Level/Tank Gauging – All Inventory Tank Gauging and other mechanical level measurement devices including Floats, Tapes, Servo Gauging, Hydrostatic Tank Gauging, Microwave Tank Gauging and other mechanical devices. Temperature Instruments – All temperature instruments and sensors including RTD’s, Thermocouples, Transmitters, etc. Control Systems – All continuous and batch Distributed Control Systems and Programmable Logic Controllers used in process control including the basic operating and control software normally included as part of these systems. Also included are project services and HMI (Human Machine Interface) devices. Remote or Distributed Input/Output devices- I/O used in process control systems. Data Acquisition Systems – PC Front Ends, Standalone Systems, Recorders etc. Final Control Devices – Control Valves, Actuators and Positioners Scope This report covers markets in the U.S. and Canada. The term North America used in this report refers to the combination of the U.S. and Canada. All market values are reported in U.S. Dollars.
22591R
Page 4
Industry Segments Industry segments used in this report are: • • • • • • • • • • • •
Oil & Gas (Production and Transmission) Petroleum Refining Chemicals Bio-Pharmaceutical Food & Beverage Pulp & Paper Electric Utilities Municipal Water & WasteWater Primary Metals Mining Stone, Clay, Glass and Cement All Other (Semiconductor, Textiles, etc.)
22591R
Page 5
3. DEFINITIONS Abbreviations
CAGR CEMS Cont Sys DA DO Elec Flow Elec Level EPA FCE FID Gas An Liq An Mech Flow Mech Level MRO NDIR ORP PH PI&A Pres RIO Temp UV XRF
Compound Annual Growth Rate Continuous Emissions Monitoring Control Systems Data Acquisition Equipment Dissolved Oxygen Sensors Electronic Flowmeters Electronic Level Instruments Environmental Protection Agency Final Control Elements (valves, etc) Flame Ionization Detector Instruments Gas Analytical Instruments Liquid Analytical Instruments Mechanical Flowmeters Mechanical Instruments Maintenance Repair and Operations Non Dispersive Infra Red Instruments Oxidation Reduction Potential Sensors PH Sensors Process Instrumentation and Automation Pressure Instruments Remote I/O Temperature Instruments Ultraviolet X-Ray Fluorescence Instruments
22591R
Page 6
4. EXECUTIVE SUMMARY AND DISCUSSION The process industries have all been affected by the recent recession to varying degrees. Those industries with served markets in construction, transportation equipment and consumer white goods have been hit the hardest. This includes chemicals, glass & cement, mining, metals production, and semiconductor production. Spending reductions planned for 2009 compared with 2008 ranged from 30 to 50 percent with modest recovery over the forecast period. Industries producing “staples”; pharmaceuticals, food & beverage, electric utilities and refining are maintaining reductions at flat to minus 20 percent in 2009 from 2008 with recovery to mid to high single digit annual growth through 2011. Water & wastewater spending will be down as revenues drop due to lower industrial use and local government struggles with deficit budgets. Infrastructure, treatment upgrades and automation will be the focus of remaining spending. Finally, spending in the oil & gas industry will be down from its record levels in the prior few years due to the drop in crude oil prices and drop in petroleum products demand. The PI&A annual change in market value over the three year forecast period by industry will range from about plus 3 percent in pharmaceuticals to a negative 9 percent in the chemicals industry. The overall three-year PI&A compound annual growth rate (CAGR) for all of the MCAA product categories is forecasted to be a negative 3.2 percent in the United States and a negative 3.8 percent in Canada. Remote I/O, electronic flow, electronic level, control systems and liquid analytical will have smaller negative growth rates. The remainder of the products will experience negative growth greater than the overall market. Electronic flow and level are expected to increase their share of the market at the expense of mature technologies. The market for remote I/O will continue to grow the fastest of all categories, as retrofits and upgrades drive demand for interfaces to legacy control systems. Mechanical level will experience greater market share loss than shown, since this category also includes inventory tank gauging products that will not experience such a large drop in market value. Over the 5-year period 2003 to the end 2008, the annual market value for the U.S. PI&A market (MCAA definition) grew from about $6.1 Billion to almost $7.3 Billion (5-year CAGR is 3.5 percent.) It is expected that the total PI&A annual market value will experience a negative 13 percent 22591R
Page 7
change in 2009 compared with 2008. 2009 will end at a market value slightly less than that in 2005. By 2011 it is expected that the market will recover to a value larger than 2005, but still below the market value of 2006. Total - All MCAA Product Categories
7,400
4.1%
7,200
Market Value ($M)
Forecast
4.2%
7,000 4.3%
6,800
2.9%
6,600
3.6%
6,400
-13.1%
1.5%
1.2%
6,200 6,000 5,800 5,600 5,400 03
04
05
06
07
08
09
10
11
Year
While this drop in market value is extreme, the historical perspective shows that it is not outside the long term trend of the PI&A market in the United States. GFGroup has tracked each 5-year CAGR since 1976 as shown in the chart below. The forecasted 5-year CAGR from 2006 to 2011 is -0.4 percent. The intervening years 2009 through 2011 will see significant negative growth as in previous recessionary periods. By 2011, the forecasted industry recovery will bring the latest 5-year CAGR in line with the historic PI&A market change trends of the last 30 years. 16%
14%
5 Year CAGR PI&A Market
12%
10%
8%
6%
Actual
Fcst
4%
2%
0% 1976
1981
1986
1991
1996
2001
2006
2011
-2%
Year
22591R
Page 8
CAGR 2008-2011
Mech Flow
Temp
FCE
Pres
Mech Level
Gas An
DA
Liq An
Cont Sys
Elec Level
Elec Flow
-1%
RIO
0%
TOT
USA Process Instrumentation and Automation 2008 – 2011 Growth Rate and Percent of Total Market By Product Category
-2% -3% -4% -5% -6%
TOTPRODUSA
2008 Annual Market Value - $7,283.7 Million 2011 Annual Market Value – $6,583.5 Million
22591R
Page 9
CAGR 2008-2011
-2%
Mech Flow
FCE
Mech Level
Pres
Gas An
DA
Temp
Elec Level
Liq An
Cont Sys
Elec Flow
-1%
RIO
TOT
CANADA Process Instrumentation and Automation 2008 0%– 2011 Growth Rate and Percent of Total Market By Product Category
-3% -4% -5% -6% -7%
TOTPRODCAN
2008 Annual Market Value - $835.9 Million 2011 Annual Market Value – $744.8 Million
22591R
Page 10
USA Process Instrumentation and Automation 2008 – 2011 Growth Rate and Percent of Total Market By Industry
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
TOTUSA
2008 Annual Market Value - $7,283.7 Million 2011 Annual Market Value – $6,583.5 Million
22591R
Page 11
CANADA Process Instrumentation and Automation 2008 – 2011 Growth Rate and Percent of Total Market 4% By Industry
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
TOTCAN
2008 Annual Market Value - $835.9 Million 2011 Annual Market Value – $744.8 Million
22591R
Page 12
5. INDUSTRY ANALYSIS Spending for both major capital projects and MRO (Maintenance, Repair and Operations) in the continuous process industries is the main driver for the growth of Process Instrumentation and Automation (PI&A) products. “Industry Spending” discussed in this report is the combination of MRO and capital spending. Oil & Gas The Oil & Gas segment covered in this forecast includes exploration, production, and transportation (pipelines). The distribution of residential and commercial gas is not included. The worldwide drop in spending in the Oil & Gas industry for 2009 compared with 2008 is expected to be in the neighborhood of 10 to 15 percent. The drop in the North America spending is expected to be even greater, with the large integrated producers down over 10 percent and independents down 25 to 30 percent. Companies will concentrate much of their spending during the forecast period to areas with better exploration economics. These areas currently tend to be outside of the North America. Even with the depth of this recession, the large integrated oil & gas companies will only slightly reduce their spending over the forecast period. Oil & gas companies must commit to multi-year investments in order explore, drill, and complete large production fields that will support a company’s replacement and growth of reserves. These large investments are based on an organized decision making process that result in a Financial Investment Decision (FID). Once the FID is made, the project is generally carried forward regardless of intervening unanticipated economic changes. The majors made adjustments, however, to their planned 2009 spending as the recession deepened in late 2008. The chart below shows the global capital spending plans and recent corrections for selected major oil companies. Exxon Mobil is actually counter to the trend of either reducing spending or holding it flat in 2009.
22591R
Page 13
30.0
2008 Act 2009 Orig
Capital Spending $B
25.0
2009 Corrected
20.0 15.0 10.0 5.0
British Petroleum
Chevron
Exxon Mobil
Conoco Phillips
Hess Corp
0.0
Source – Company Financial Reports
In North America the spending cuts are projected to be greater than those in other world areas. While Exxon Mobil is planning to raise their worldwide capital spending slightly in 2009, their spending in North America is expected to drop by almost 20 percent, as will ConocoPhillips. British Petroleum, Chevron, and Shell spending will be down by about 10 percent in North America. During the last few years of substantial growth in the North American oil & gas industry, many independent companies utilized credit to fund their growth projects. The tight credit situation combined with lower prices will drive independent company spending much lower than the global companies. Anadarko, Devon Energy, Marathon, Newfield, Husky Energy, and Talisman should all be down between 25 and 40 percent. The drop in natural gas prices and demand in the United States has caused companies to substantially cut back on their capital spending in the gas segment of the industry. The U.S. Energy Administration reported for the week ending March 20, 2009 that the United States has 1.654 trillion cubic feet of natural gas in storage, 29 percent more than in the same period last year. After that report, the price of natural gas fell to less than $4 for 1 million BTUs, down about 70 percent from the July 2008 prices. Chesapeake Energy Corporation, the nations leading independent producer of natural gas has announced that they will substantially cut their capital spending in the short term. For the balance of 2009 and through 2010 they expect to cut their industry spending 17 percent from previously 22591R
Page 14
planned spending. The economic stimulus package is not likely to change this outlook in North America in any substantive way. There might be some slight increase in Oil & Gas demand due to the additional energy spending to support the construction part of the spending, but this impact on the industry spending overall will be minimal. Prior to the recession, trends in U.S. and Canadian O&G spending were expected to decline due to dropping production in Canada and completions in the Gulf of Mexico. This existing situation, combined with the current recession, means spending will probably not recover substantially over the forecast period. With this outlook on Oil & Gas industry spending, we expect that 2009 will result in a reduction in spending on Process Instrumentation and Automation equipment compared with 2008 in North America. This spending pull back will likely hold into 2010 before recovering. Refining In the first quarter of 2009, North American refinery utilization was the lowest it has been in the last 4 years. This period is typically the low point in utilization as refineries take capacity offline for turnarounds, repairs, and upgrades prior to the high demand summer season. Continuing weak demand for fuels (lowest demand since 2003) and imports (13 percent of total supply) have prompted suppliers to take entire refineries offline, accelerate maintenance and turnarounds and extend lower operating levels through the first quarter and into second quarter of 2009. During the 80’s and 90’s no major refinery projects were initiated in the United States to replace older equipment and technology. This lead to the surge in maintenance shutdowns and, most recently upgrades and capacity expansions as demand accelerated during the recent economic expansion. During the downturn, the major oil companies and the EPC engineering contractors divested themselves of professionally qualified and experienced engineers of all disciplines. Re-staffing is taking place slowly by hiring furloughed or laid-off engineers and new graduates, but a major experience gap still exists in staffing for maintenance and upgrade projects. This has created opportunities for PI&A suppliers to expand the scope of 22591R
Page 15
their field service business. Suppliers are adding on-site turnaround project management, equipment repair/rebuilding, diagnostics and other services to their traditional field and factory repair in order to help fill the gap. Overall, North American refining capital spending in 2009 will be down between 15 and 20 percent. BP, Tesoro, Valaro, and Western all project 2009 spending down about 20 percent from 2008. Chevron spending will be flat and AlonUSA will be up slightly. The primary driver behind this apparently moderate decline in spending is the need to meet regulatory mandated plant and product changes. This regulatory spending will account for 50 to 75 percent of the total planned capital investments. Additional projects include annual turnarounds, modifications to accommodate different grades of crude, and selected equipment and automation upgrades that specifically address unit and plant reliability. PI&A annual market growth should remain slightly positive over the forecast period. Regulatory spending will favor the field measurement and analytical instrument markets. Chemicals About 25 percent of the global chemical industry capacity will be shut down during some or all of 2009. Companies are cutting operating rates, closing facilities, and performing maintenance shutdowns earlier than scheduled. In North America, capacity utilization will probably fall below 60 percent, with lower rates in olefins production. For 2009, the North American chemical industry spending is expected to be down between 25 and 30 percent. The reductions in spending are a combination of delayed or cancelled capital spending and lower MRO spending due to plant shutdowns. At the beginning of 2008, energy prices and raw material prices spiked, driving down margins in basic chemicals worldwide. At mid-year two major hurricanes disrupted a large portion of North American production capacity in the Gulf, driving customers to import sources from the Middle East and Asia. As oil and natural gas prices dropped and hurricane repairs were completed in late summer, the unraveling of the financial markets resulted in an unprecedented draw-down of retail and wholesale inventories in the second half of 2008. The fourth quarter of 2008 was the worst seen by many companies in two decades. 22591R
Page 16
Most chemical companies initiated restructuring activities to reduce costs in the third quarter of 2008. As the recession spread to the remainder of the world, many companies implemented a second set of restructuring activities in late 2008 and early 2009 to further reduce costs. The first round of restructuring activities was dominated by workforce reductions. The second round included a substantial number of temporary, and some permanent, plant shutdowns. China, India, and Singapore all reduced capacity utilization to about 75 percent through cutting operating rates, idling facilities, and performing maintenance shutdowns earlier than scheduled. North America and Europe took the brunt of the plant idling and shutdowns. Dow has closed eight plants in the United States and one in Canada so far. Other major U.S. based companies have closed 11 olefins plants in the United States. Only the Middle East has maintained higher capacity utilization rates by cutting prices and leveraging its lower energy and raw material costs. Inventory reductions in the primary chemical industry markets (new home construction, automotive, and packaging) have continued through the first quarter of 2009. Packaging is expected to recover first, since underlying demand for food, beverage, pharmaceutical and other staples packaging remains reasonably constant worldwide. Plants idled or closed, lower operating rates, and reduced staffs result in severance costs, write-downs, etc. that will be paid for by reduced spending. Capital spending at all major U.S. based companies is now planned to be down. Dow Chemical reported in February 2009 that 2009 capital spending would be down by 47 percent from the mid-2008 plan. Dupont expects capital spending to be down by 20 percent. The other companies will have similar reductions. Much of the chemical companies’ planned capital spending was destined for non-North American investments. A few areas are expected to maintain flat or see some growth during 2009. These include agriculture chemicals and products, water chemicals, and in Europe, higher efficiency standards are driving insulation demand. Finally, the potential affects of the stimulus package spending remains to be seen. According to the American Chemistry Council, every $1,000 spent on nonresidential construction yields an estimated $160 to $230 in chemical 22591R
Page 17
sales. Spending on green energy projects, such as wind turbines and solar cells, could boost chemical demand by an even higher amount. With total North America capacity utilization at or below 60 percent and 11 or more olefin plants closed, MRO spending will be significantly reduced over the forecast period as well. Planned and unplanned maintenance, turnarounds, etc. at some of the idled plants will be completed in the first half of 2009, extending MRO spending into that period. The worst of the drop in MRO spending should occur later in 2009 and probably into early 2010. PI&A spending in the chemicals industry is expected to suffer a substantial drop in the forecast period. The combination of closed or idled plants, reduced operating levels, and reduced capital and MRO spending will result in a negative annual growth rate of 9 percent in the U.S. and negative 6 percent in Canada for all of the MCAA product categories for 2008 through 2011. Pharmaceuticals As with food and other staples, an underlying demand for pharmaceutical products will blunt the impact of the recession on pharmaceutical companies. However, most companies have responded to customer inventory reductions and reduced consumer spending with cost cutting efforts – predominantly headcount reductions. Most pharmaceutical companies had initiated substantial restructuring two or three years ago so current cost cutting is an acceleration of already planned headcount reductions and plant closings. As a result, pharmaceutical spending is expected to be about flat for 2009 compared with 2008 and move into mid single digits in 2010 and 2011. Pharmaceutical spending in this decade peaked in 2006. By the end of 2008, it appears to have dropped to the level at the beginning of the decade. By mid-decade, pharmaceutical companies were seeing their record profits eroded by competition from generic products, expensive lawsuits, and increasingly costly new product development. Beginning after 2006 most companies initiated multi-year restructuring programs to achieve a company-wide lower cost base. At the onset of the recession in late 2008, many companies had already completed portions of their cost-cutting programs. 22591R
Page 18
At the end of 2006, the Pfizer company reported that they were going to set out to establish a lower and more flexible cost base. This objective was accomplished by the end of 2008 by reducing headcount by approximately 16,000 employees, eliminating unnecessary layers of bureaucracy, refocusing the work in R&D labs to high priority disease areas and optimizing the manufacturing network by closing 15 manufacturing sites. The result was a cost base equal to that for the company at the beginning of the decade. Bristol-Myers Squibb reported that they had made solid strides resetting their cost base since December of 2007. The company is at the mid-point in reducing its number of manufacturing plants by half by 2011. In 2008, Merck completed their 2005 restructuring program and expects to realize total cumulative savings of approximately $4.5 to $5.0 billion by 2010. This will include closing at least 4 plants and a 10 percent reduction in headcount. While pharmaceutical companies have needed to adjust their cost base in the later half of the decade, the market drivers for the pharmaceutical market have continued to drive investment in new product development. Chief among these drivers are the aging population and associated rising prevalence of chronic health care. Longer term trends such as consumerdriven health care, focus on wellness and prevention, and evolving health care delivery models will continue to drive new product and process development in the pharmaceutical industry. However, the pharmaceutical industry has not avoided the economic impact of the recession. Companies are experiencing slower growth trends in the drug market, cutbacks in health care treatment, postponement of some surgeries, and tighter inventory levels and health care budgets. They have reacted by closer management of spending and accelerating cost reduction activities, particularly headcount reductions. Industry spending for 2009 is expected to be about flat when compared to 2008 and increase in the mid to high single digits through 2011. Even with the company cost base reduction programs over the past few years, annual growth in pharmaceutical spending for PI&A products has remained in the mid to high single digits. In 2009, it should drop to the low single digits and then recover to the mid single digits in 2010 and 2011. The PAT (Process Analytical Technologies) initiative will continue to create new opportunities for both gas and liquid analytical products. On-going 22591R
Page 19
regulatory requirements and process improvement efforts will continue to support sales of all PI&A product categories. Food & Beverage The food industry has always been relatively unaffected by both expanding and contracting economics, since demand for food is primarily a function of population size. Alcoholic beverages are largely unaffected by economic fluctuations while non-alcoholic demand for non-alcoholic beverages tend to move to generic brands and lower consumption The resistance to economic fluctuations has weakened as a larger portion of the total food and beverage demand is accounted for by moderate and upscale out-ofhome dining and higher priced specialty foods. The U.S. and Canadian food industry relies on substantial export revenue that will be affected by both lower demand worldwide and less favorable exchange rates. Beginning in late 2007 through the end of 2008 raw material prices saw exceptional increases. Companies reported that commodity prices were raised 9 times in eleven months. Raw milk prices increased by 80 percent in the second half of 2008. These increases caused most food and beverage companies to initiate substantial cost containment programs including closing marginal plants and redundant plants due to acquisitions and mergers. In addition, the cost containment programs included better supplier contract management, reduction in logistics costs, outsourcing selected services, reductions in general and administration expenses and acceleration of Lean and Six Sigma manufacturing programs. Most food and beverage companies have maintained capital spending between 3 and 4 percent of annual sales. Tyson reported plans to keep spending in 2009 only slightly below 2008, first for maintenance needs, but also to make sure that they continue to optimize revenue and cost structures. Both Kellogg and General Mills plan only small, single digit reductions in spending over the forecast period as do Anheuser Busch and Pepsi. Even with reduced demand, the food and beverage industry is currently operating at 80 percent to as high as 100 percent capacity in North America due to reduced production facilities as a result its restructuring efforts. To expand capacity, most F&B companies are planning to invest in process improvements and upgrades to process equipment and 22591R
Page 20
automation. A recent Grant Thorton/Food Processing survey reported that a majority of food and beverage manufacturers indicate that their top investments in 2009 will target process improvements (55% of companies) and new or upgraded equipment/automation (54%) Over the forecast period, the first half of 2009 is expected to be the worst as the industry works off the high cost raw material inventory and the less favorable exchange rates affect profits. The companies are generally positive for the remainder of the year and expect revenues and profits to be up slightly over 2008. The strength of the industry through 2009 combined with its emphasis on upgrading automation supports the expectation that the PI&A market value for F&B to grow by the low single digits over the next 3 years. Pulp & Paper The worldwide Pulp & Paper market is expecting a decline as a result of the overall global economic turndown, but the decline may not be as dramatic as in other industries. Declines in graphic papers are being seen due to the drops in circulation and size of newspapers and magazines while sanitary/toilet tissue markets are less affected by the downturn. China is a key factor in how the decline will play out in other world areas. China has increasingly been supplying demand in the rest of the world and in the last decade has invested in highly efficient paper lines. This could come to bear more significantly as the worldwide demand drops. China could pull market share from other higher cost parts of the world as China tries to find outlets for its excess capacity. Germany is another area where significant investment has taken place since 2003 that should make them competitive in a tough world market. All of this is not good news for the Pulp & Paper market in North America in 2009 and on into 2010. The drop in newsprint demand has caused several suppliers to cut production. AbitibiBowater closed its Covington, Tennessee. converting plant late in 2008 and shut a newsprint mill in Newfoundland. In addition, it has shut an Alabama newsprint mill and two paper machines in Tennessee. Other companies involved in cutbacks in production were Boise, MeadWestvaco, International Paper and Domtar. Spending in the Pulp & Paper industry in North America is down, in 22591R
Page 21
general, compared to a decade ago. In our last annual forecast we identified the Pulp & Paper as the weakest of all of the Process Industries. Even before the dramatic economic downturn in late 2008, spending in the ten largest U.S. paper companies was down about 3 percent compared to 2007. In Canada 15 of Ontario’s 18 primary mills have been impacted by business reductions since 2004. Half of the 18 have been shut down and only 3 of the 18 continue with the same owners. Weyerhouser is dropping their capital spending 50 percent in 2009 over 2008. Packaging and tissue products are the least affected product lines but weakness in other product lines have put most companies in a maintenance mode rather than a growth mode. The drop in PI&A spending is expected to be greatest in 2009 and moderate in 2010 and 2011. The magnitude will be smaller than other industries, simply because the past decade of decline has reduced the Pulp & Paper market need to a bare minimum before the recession. Electric Utilities Worldwide capital spending in the Electric Utilities industry in 2009 is expected to be close to 2008 levels despite the downturn in the economy. Funding will be directed to projects planned in 2008 for advanced metering, updated control systems and grid infrastructure improvements including smart grid initiatives. This is being driven by a combination of regulatory pressures and required updates of obsolete equipment. Long-term views of the industry are positive and spending is also being used to position the Electric Utilities for future growth. These projects are subject to long term regulatory and planning constraints that require investment even when the short term economy is poor. In North America, some Electric Utilities will be cutting capital and MRO spending in 2009 compared with 2008. North American Electric Utilities have been hit by declining demand, higher borrowing costs and lower fuel costs, which have cut electric prices. These three factors will likely cause reductions in capital spending into 2010. American Electric Power (AEP), one of North America’s largest utilities, is planning to reduce its capital budget for 2010 to $1.8 billion from the previous planned capital budget of $3.4 billion. AEP had already reduced its 2009 capital budget to $2.6 billion from the more than $3.3 billion it had planned. Discretionary projects are being deferred until the economic climate warrants the additional 22591R
Page 22
investment. On the other hand, the company intends to keep its MRO spending unchanged for 2009 and 2010 at a level of $3.4 billion. A broader review of selected large utilities in North America shows that some are going ahead with their plans while others are cutting back. The investments in renewables, environmental controls and smart grid are at the top of the list, while investments in distribution were at the bottom. Transmission and generation were somewhere in the middle. The chart below shows the latest projections of 2009 capital spending compared to 2008 for six large Independent Operating Utilities. The average decline in capital spending of these six is approximately 10 percent.
Capital Spending $Millions
6000 2008 Capital 2009 Capital
5000 4000 3000 2000 1000 0 Duke Energy
Southern Co
FPL Group
AEP
Dominion
PSEG
Stimulus spending planned by the new administration in the United States will likely have a positive longer term effect on capital spending, as it is supporting a one trillion dollar investment in infrastructure upgrades. A significant amount of this funding will go to improving electric transmission. In 2009 and 2010, however, spending is likely to be lower in North America. This view into capital spending trends will play into the forecast of investments that Electric Utilities will be making in Instrumentation and 22591R
Page 23
Automation equipment in the forecast period. The fact that renewables, environmental controls and smart grid have high priority is generally good for process control suppliers. Overall for the forecast period, we see about 2 percent CAGR growth for the Electric Utilities industries in PI&A spending. Water and Wastewater Water and wastewater spending has suffered the loss of federal funding over the past few years. This has pushed the burden on to state and local governments to maintain water and wastewater treatment, facilities, expand treatment and distribution capacities with increasing population and industrial demand, and meet federal and state regulatory requirements. The infusion of capital through private operating companies has provided much needed longer-term investments. American Water, a large public company providing water treatment in the United States and parts of Canada, plans to maintain capital spending in 2009 at, or slightly below, 2008 levels. American plans to maintain spending at approximately $1 Billion through 2012. Aqua America, Inc. will be flat to around $300M. But these companies still account for a small portion of total spending. Local government spending remains the largest spending entity. The recession has put substantial pressure on local governments as state funding is reduced. Spending by local governments is being focused on near term infrastructure and treatment upgrades and automation. Investments in longer term, larger projects are being postponed. Overall spending is expected to be down substantially, but remaining spending will have a higher PI&A content, keeping the annual market change near zero over the forecast period. Mining Thus far, the Coal industry announced more than 60 million tons of production cuts from producers representing more than half the U.S. production base. U.S. production has declined 8 million tons year so far in the first quarter 2009 and is likely to accelerate over the remainder of 2009 as producers work through existing commitments and begin to implement announced pullbacks. Metallurgical coal production is expected to drop even more than energy coal as steel production falls off. Coal producer, Peabody Energy, expects to reduce capital spending by over 30 percent in 22591R
Page 24
2009. Other producers are making similar reductions. Over half of capital spending will be for continuing operations, including MRO, as major projects are delayed. Over the forecast period, U.S. coal demand will benefit from new coal-fueled generation coming on line. Between now and 2012, a number of new coal-fueled generating plants are expected to begin operation. Currently, 30 units are under construction in 19 states, representing more than 16,500 MW of capacity and approximately 70 million tons of annual coal use. The metal mining industry is considerably more affected by the current recession than the coal mining industry. Rio Tinto and Freeport-McMoran will reduce capital expenditures over 50 percent in 2009. FreeportMcMoran further cancelled over $650 million in equipment orders. Spending over the forecast period is expected to not exceed sustaining levels. PI&A spending will drop significantly, due to the combined reduction in mining new project and upgrade activities and reduced MRO needs as production rates drop, primarily in metals mining. Primary Metals Overall, primary metals industry spending is expected to drop 30 to 40 percent in 2009 versus 2008. Most companies have slowed or stopped large growth capital spending projects in North America. Maintenance spending, typically accounts for 30 to 50 percent of a companies total spending. With growth projects slowed or stopped, maintenance spending will rise to as much of 80 percent of total industry spending over the forecast period. Priorities for maintenance spending will be directed at compliance with the law (safety and environment requirements) and keeping the facility operating at capacities predicated on customer requirements. Capacity utilization has dropped from over 91 percent in 2008 to less than 50 percent in North America in the first quarter 2009. Much of the maintenance spending is expected to occur in the first half of 2009, with production ramping up to meet rebounding demand later in 2009 and through the forecast period.
22591R
Page 25
PI&A spending by the metals industry will drop in 2009, even with the emphasis on maintenance spending in the first half. It should recover later in the forecast period, as postponed growth projects are restarted. Stone Clay & Glass Overall, the current North America capacity of the glass and cement industries appear to be sufficient to meet any increase in demand occurring during the forecast period. Both industries will make substantial cuts in capital spending and, during 2009, will limit MRO spending. The glass industry is dominated by products for construction, automotive, consumer packaging, and electronics. The recession has caused substantial reductions in the demand for all these products. Glass suppliers have responded with equally substantial cuts in spending for the forecast period. NSG will reduce North American capacity by 15 percent by mid2009. Both PPG and Corning have reduced 2009 planned capital spending by 50 percent. Much of this capital spending will occur in the first half of 2009, as 2008 commitments are worked off. Associated PI&A spending will rapidly drop to MRO only levels through the forecast period. Spending should increase slightly in 2010 and 2011, as demand increases. The cement industry will make very large cuts in capital spending. Heidelberg Group (Lehigh Cement) will reduce capacity by 15 percent in North America. Texas Industries said 2009 capital spending will be down about 10 percent in 2009 and spending in 2010, will drop off dramatically. Eagle Materials expects 2009 spending will be down by over 60 percent. They reported “We anticipate our capital spending to remain at these low levels during the current economic downturn.” Capacity reductions and spending reductions, particularly in 2009 will cause large decreases in PI&A demand. Cement companies do not expect any significant increase in spending over the forecast period. Other Industries Semiconductor spending is expected to be down by over 50 percent in 2009 over 2008. This comes on top of a spending decline of over 25 percent in 2008 over 2007. Annual spending growth is expected to move into the positive mid-teens over the forecast period. This will put spending levels well below 2008 values in 2011. 22591R
Page 26
Captive and commercial heat treating spending will drop below 40 percent in 2009 over 2008. Over the forecast period, the heat treating industry annual spending change will be in the -20 to –25 percent. The PI&A 3-year annual market change is forecasted to be a negative 4.0 percent CAGR for the Other Industries category. This growth will occur primarily in the recovering semiconductor business. Summary The impact of the recession on the PI&A annual market value is best seen in the change in the 2008 forecast versus this 2009 forecast in the tables below. The 2008 forecast was to be an almost 4 percent positive 3-year CAGR 2007 to 2010. With the onset of the worldwide recession, the 2008 forecasted 3 year CAGR is almost a negative 4 percent. Annual growth in spending in refining, pharmaceuticals, food and beverage, electric utilities, and water and wastewater should remain nearly flat over the forecast period. The remainder of the industries will experience negative change through 2011.
22591R
Page 27
Comparison of 07-10 Forecast with 08-11 Forecast – United States Total of All MCAA Product Categories
10.0% 8.0% 07_10 USA Fcst 08_11 USA Fcst
6.0% 4.0%
TOTAL
Pulp & Paper
Stone Clay Glass
Mining
Primary Metals
Other
Chemical
Food & Bev
Water & Wastewater
-6.0%
Pharmaceutical
-4.0%
Electric Power
-2.0%
Refining
0.0% Oil & Gas
CAGR (%)
2.0%
-8.0% -10.0% -12.0%
22591R
Page 28
Comparison of 07-10 Forecast with 08-11 Forecast – Canada Total of All MCAA Product Categories
6.0% 07_10 CAN Fcst 08_11 CAN Fcst
4.0% 2.0%
TOTAL
Stone Clay Glass
Pulp & Paper
Primary Metals
Other
Mining
Oil & Gas
Refining
Chemical
Water & Wastewater
-6.0%
Food & Bev
-4.0%
Electric Power
-2.0%
Pharmaceutical
CAGR (%)
0.0%
-8.0% -10.0% -12.0% -14.0%
22591R
Page 29
6. GAS ANALYTICAL INSTRUMENTS The instruments in this product category are: • Photometers (Filter Photometers, Refractometers, UV Fluorescence, Tunable Diode Lasers, Cavity Ringdown, etc) • Optical Spectrometers NIR,FT-NIR, FT-IR, Raman, Open Path, NMR, Ion Mobility, Mass Spectroscopy, etc) • Chromatographs (Gas and BTU Chromatographs) • Electrochemical (ZrO2) and Other Oxygen. • TOC, Chemiluminescence, FID, Thermal conductivity etc The forecasted growth for Gas Analytical instruments is -3.8 percent CAGR in the United States for the period 2008 to 2011 and -4.3 percent CAGR in Canada. In the United States Chemicals, Refining and Electric Utilities make up almost 55 percent of the total demand for Gas Analytical products. In Canada, Chemicals, Food & Beverage, Refining and Metals make up 55 percent of the total demand for Gas Analytical Products.
22591R
Page 30
Gas Analytical Instruments By Industry – USA The 2008 base year value for Gas Analytical Instruments in the United States is $341.2 Million. The segmentation by industry is shown below
Gas Analytical Instruments USA 2008 Annual Market Value - $341.2 Million By Industry
W&WW 3% P&P Metals 4% 5% Oil & Gas 5%
Stn Cl Gls 2%
Mining 1% Chem 29%
F&B 8% Other 9% Pharm 9% GAUSA
Refining 15% Utilities 10%
22591R
Page 31
Gas Analytical Instruments Forecast By Industry – USA The forecasted growth for Gas Analytical Instruments is -3.8 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Gas Analytical Instruments Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
GAUSA
2008 Annual Market Value - $341.2 Million 2011 Annual Market Value - $303.9 Million
22591R
Page 32
Gas Analytical Instruments By Industry – Canada The 2008 base year value for Gas Analytical Instruments in Canada is $38.1 Million. The segmentation by industry is shown below:
Gas Analytical Instruments Canada 2008 Annual Market Value - $38.1 Million By Industry
Mining 4%
Pharm 5%
W&WW 3%
P&P 5%
Oil & Gas 6%
F&B 16%
Utilities 8%
GACAN
Stn Cl Gls 2% Chem 20%
Other 10% Metals 10%
Refining 11%
22591R
Page 33
Gas Analytical Instruments Forecast By Industry – Canada The forecasted growth for Gas Analytical Instruments is -4.3 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Gas Analytical Instruments Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Chem
Oil & Gas
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
GACAN
2008 Annual Market Value - $38.1 Million 2011 Annual Market Value - $33.4 Million
22591R
Page 34
7. LIQUID ANALYTICAL INSTRUMENTS The instruments in this product category include all process Liquid Analytical instruments: • • • • • • • • • •
PH Sensors and Instruments Conductivity Sensors and Instruments ORP Sensors and Instruments DO Sensors and Instruments Other Electrochemical (Chlorine, Analytes, etc) Water Analyzers Consistency Instruments Density instruments Viscosity Instruments Petroleum Properties Instruments
The market demand for Liquid Analytical instruments and sensors will grow at an average growth rate of -3.2 percent per year in the United States over the forecast period and -3.5 percent per year in Canada. PH, Conductivity, DO, and other electrochemical Sensors and Instruments account for approximately 65 percent of the Liquid Analytical Instruments market. In the United States five industries; Chemicals, Pharmaceuticals, Water & Wastewater, Electric Utilities and Food & Beverage account for over 75 percent of the market for Liquid Analytical instruments. In Canada those same five industries; Chemicals, Pharmaceuticals, Water & Wastewater, Electric Utilities and Food & Beverage account for over 70 percent of the market for Liquid Analytical instruments.
22591R
Page 35
Liquid Analytical Instruments By Industry – USA The 2008 base year value for Liquid Analytical Instruments in the United States is $198.6 Million. The segmentation by industry is shown below.
Liquid Analytical Instruments USA 2008 Annual Market Value - $198.6 Million By Industry
Metals Oil & Gas 2% 2% Other 5% P&P 5% Refining 7% F&B 8%
Mining 1% Stn Cl Gls 1% Chem 23%
Utilities 10% Pharm 16%
W&WW 20%
LAUSA
22591R
Page 36
Liquid Analytical Instruments Forecast By Industry – USA The forecasted growth for Liquid Analytical Instruments is -3.2 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Liquid Analytical Instruments Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
-4%
Chem
Mining
Stn Cl Gls
P&P
Metals
Other
Oil & Gas
W&WW
Refining
F&B
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
LAUSA
2008 Annual Market Value - $198.6 Million 2011 Annual Market Value - $180.3 Million
22591R
Page 37
Liquid Analytical Instruments By Industry – Canada The 2008 base year value for Liquid Analytical Instruments in Canada is $21.9 Million. The segmentation by industry is shown below:
Liquid Analytical Instruments Canada 2008 Annual Market Value - $21.9 Million By Industry Metals 4% Refining 5%
Oil & Gas 3% Stn Cl Gls 1% W&WW 19%
Mining 5% Other 5% P&P 6%
F&B 18%
Pharm 8% LACAN
Utilities 9%
Chem 17%
22591R
Page 38
Liquid Analytical Instruments Forecast By Industry – Canada The forecasted growth for Liquid Analytical Instruments is -3.5 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Liquid Analytical Instruments Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
LACAN
2008 Annual Market Value - $21.9 Million 2011 Annual Market Value - $19.7 Million
22591R
Page 39
8. PRESSURE TRANSMITTERS Included in this product category are: • • • •
Differential Pressure Transmitters Gauge Pressure Transmitters Absolute Pressure Transmitters Multivariable Pressure Transmitters
*Primary Elements are included in the Mechanical Flowmeter Category The Pressure Transmitter category of this report included continuous indicating pressure instruments described above and does not include pressure indicators, manual gauges or pressure switches. The Pressure Transmitter market growth for the period 2008 to 2011 is forecasted to be -4.1 percent CAGR in the United States, -4.6 percent in Canada. Almost 60 percent of the market is accounted for by the Chemicals, Oil & Gas, and Utilities industries in the United States. In Canada these three industries and Food & Beverage account for about 65 percent of the market for Pressure Transmitters.
22591R
Page 40
Pressure Transmitters By Industry – USA The 2008 base year value for Pressure Transmitters in the United States is $425.5 Million. The segmentation by industry is shown below:
Pressure Transmitters USA 2008 Annual Market Value - $425.5 Million By Industry
W&WW 4% Pharm 5%
Stone Clay & Glass Metals 3% Mining 2% 1% Chem 30%
Other 6% F&B 7% P&P 7% Refining 8%
Utilities 11%
Oil & Gas 17%
PTUSA
22591R
Page 41
Pressure Transmitters Forecast By Industry – USA The forecasted growth for Pressure Transmitters is -4.1 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Pressure Transmitters Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Chem
Stn Cl Gls
-4%
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
PTUSA
2008 Annual Market Value - $425.5 Million 2011 Annual Market Value - $375.4 Million
22591R
Page 42
Pressure Transmitters By Industry – Canada The 2008 base year value for Pressure Transmitters in Canada is $46.1 Million. The segmentation by industry is shown below:
Pressure Transmitters Canada 2008 Annual Market Value - $46.1 Million By Industry Stone Clay & Glass Pharm W&WW Mining 3% 2% 3% 4% Refining Oil & Gas 5% 22% Metals 6% Other 6% P&P 7% Utilities 9%
Chem 20% F&B 14%
PTCAN
22591R
Page 43
Pressure Transmitters Forecast By Industry – Canada The forecasted growth for Pressure Transmitters is -4.6 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Pressure Transmitters Growth Rate Forecast
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
W&WW
Refining
-4%
F&B
-2%
Utilities
CAGR 2008-2011
0%
Pharm
2%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Total
4%
-6% -8% -10% -12% -14%
PTCAN
2008 Annual Market Value - $46.1 Million 2011 Annual Market Value - $40.0 Million
22591R
Page 44
9. ELECTRONIC FLOWETERS Flow technologies included in this product category are: • • • • •
Magnetic Flowmeters Ultrasonic Flowmeters Coriolis Flowmeters Vortex Flowmeters Thermal Mass Flowmeters
Electronic Flowmeters define a grouping of flow measurement technologies that, although not exclusively electronic, do have similar characteristics such as no moving parts, are enhanced or enabled by modern electronic technology and minimize the interruption or intrusion into the process. The Electronic Flowmeter market is expected to grow on average -1.9 percent CAGR over the forecast period in the United States. In Canada, the market will grow at -2.0 percent CAGR. In the United States Chemicals, Food & Beverage, Water & Wastewater, and Oil & Gas account for over 60 percent of the market for Electronic Flowmeters. In Canada, slightly less than 60 percent of the market is accounted for by Food & Beverage, Chemicals and Water & Wastewater.
22591R
Page 45
Electronic Flowmeters By Industry – USA The 2008 base year value for Electronic Flowmeters in the United States is $550.7 Million. The segmentation by industry is shown below:
Electronic Flowmeters USA 2008 Annual Market Value - $550.7 Million By Industry Stn Cl Gls 1% Metals Other 3% Mining 4% 1% Utilities Chem 6% 26% P&P 6% Pharm 7% Refining 7%
F&B 15% Oil & Gas 10%
W&WW 14%
EFLUSA
22591R
Page 46
Electronic Flowmeters Forecast By Industry – USA The forecasted growth for Electronic Flowmeters is -1.9 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Electronic Flowmeters Growth Rate Forecast
6%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Stn Cl Gls
-4%
Refining
-2%
Utilities
0%
Pharm
2% Total
CAGR 2008-2011
4%
-6% -8% -10%
EFLUSA
2008 Annual Market Value - $550.7 Million 2011 Annual Market Value - $520.6 Million
22591R
Page 47
Electronic Flowmeters By Industry – Canada The 2008 base year value for Electronic Flowmeters in Canada is $60.4 Million. The segmentation by industry is shown below:
Electronic Flowmeters Canada 2008 Annual Market Value - $60.4 Million By Industry Pharm 3% Mining Other 3% Refining 4%
4%
Stn Cl Gls 1% F&B 29%
Utilities P&P 5% 6% Metals 6% Oil & Gas 11%
W&WW 11%
Chem 17%
EFLCAN
22591R
Page 48
Electronic Flowmeters Forecast By Industry – Canada The forecasted growth for Electronic Flowmeters is -2.0 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Electronic Flowmeters Growth Rate Forecast
6%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Chem
Metals
Oil & Gas
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
EFLCAN
2008 Annual Market Value - $60.4 Million 2011 Annual Market Value - $56.8 Million
22591R
Page 49
10. MECHANICAL FLOWMETERS & PRIMARY ELEMENTS Flow technologies included in this product category are: • • • •
Positive Displacement Flowmeters Turbine Meters Variable Area Meters All Primary Flow Elements o Orifice Plates o Venturies o Pitot Tubes and Bars o All Other Primary elements
Mechanical Flowmeters set themselves apart from Electronic Flowmeters in that they have moving parts. The two most common measurement techniques are fixed volume chambers or gears and rotational speed of a turbine or rotor. The Mechanical Flowmeter annual market growth is forecast to be -5.2 percent CAGR in the United States, and a lower -5.9 percent CAGR in Canada. In the United States Chemicals, Oil & Gas and Refining account for approximately 60 percent of the value of the Mechanical Flowmeter market. In Canada Chemicals, Oil & Gas and Food & Beverage account for about 60 percent.
22591R
Page 50
Mechanical Flowmeters By Industry – USA The 2008 base year value for Mechanical Flowmeters in the United States is $374.8 Million. The segmentation by industry is shown below:
Mechanical Flowmeters USA 2008 Annual Market Value - $374.8 Million By Industry Stn Cl Gls 2% Pharm 5%
Mining 2% Metals 2% Chem 28%
P&P 5% Other 6% F&B 6%
Utilities 7%
MFLUSA
W&WW 7%
Oil & Gas 18% Refining 12%
22591R
Page 51
Mechanical Flowmeters Forecast By Industry – USA The forecasted growth for Mechanical Flowmeters is -5.2 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Mechanical Flowmeters Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Chem
Mining
Stn Cl Gls
P&P
Metals
Other
Oil & Gas
W&WW
Refining
F&B
Pharm
-2%
Utilities
CAGR 2008-2011
0%
Total
2%
-4% -6% -8% -10% -12%
MFLUSA
2008 Annual Market Value - $374.8 Million 2011 Annual Market Value - $318.9 Million
22591R
Page 52
Mechanical Flowmeters By Industry – Canada The 2008 base year value for Mechanical Flowmeters in Canada is $40.6 Million. The segmentation by industry is shown below:
Mechanical Flowmeters Canada 2008 Annual Market Value - $40.6 Million By Industry
Stn Cl Gls 2% Metals 5% Utilities 6% P&P
Pharm 2%
Mining 2% Oil & Gas 23%
6% W&WW 6% Other 6%
MFLCAN
Refining 8%
Chem 21% F&B 13%
22591R
Page 53
Mechanical Flowmeters Forecast By Industry – Canada The forecasted growth for Mechanical Flowmeters is -5.9 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Mechanical Flowmeters Growth Rate Forecast
-4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
Refining
F&B
W&WW
Pharm
-2%
Utilities
CAGR 2008-2011
0%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011 Total
2%
-6% -8% -10% -12% -14%
MFLCAN
2008 Annual Market Value - $40.6 Million 2011 Annual Market Value - $33.8 Million
22591R
Page 54
11. ELECTRONIC LEVEL The products in this category are: • • • • • • • •
Capacitance Ultrasonic Microwave (contact and non contact) Nuclear Magnetostrictive Conductance Vibration Thermal
Electronic Level devices include a category of devices that have no moving parts (with the exception of the vibrating sensor in vibration level devices). This includes applications for continuous level as well as point level (level switches) in both Liquid and Solid environments. The annual market growth of Electronic Level devices is forecast to be -2.7 percent CAGR in the United States and -3.5 percent CAGR in Canada. In the U.S. the Chemical industry accounts from almost 25 percent of the total market value for Electronic Level instruments. Food & Beverage, Biopharmaceuticals and Water & Wastewater account for another approximately 33 percent. In Canada, Food & Beverage, Chemicals, Mining and Oil & Gas account for over 60 percent of the annual market value.
22591R
Page 55
Electronic Level By Industry – USA The 2008 base year value for Electronic Level in the United States is $226.1 Million. The segmentation by industry is shown below:
Electronic Level USA 2008 Annual Market Value - $226.1 Million By Industry
Metals Stn Cl Gls 3% 4% Other Utilities 3% 5% Chem 25%
Mining 5% Refining 7% P&P 7% Oil & Gas 8%
W&WW 13% Pharm 9%
F&B 11%
ELEUSA
22591R
Page 56
Electronic Level Forecast By Industry – USA The forecasted growth for Electronic Level is -2.7 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Electronic Level Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
6%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
Refining
Stn Cl Gls
-4%
F&B
-2%
Utilities
0%
Pharm
2% Total
CAGR 2008-2011
4%
-6% -8% -10%
ELEUSA
2008 Annual Market Value - $226.1 Million 2011 Annual Market Value - $208.6 Million
22591R
Page 57
Electronic Level By Industry – Canada The 2008 base year value for Electronic Level in Canada is $24.9 Million. The segmentation by industry is shown below:
Electronic Level Canada 2008 Annual Market Value - $24.9 Million By Industry
Refining 5% Pharm 5%
Utilities 4%
Other 3% Stn Cl Gls 1% F&B 20%
P&P 6% Metals 7% W&WW 8% Oil & Gas 11%
Chem 18%
Mining 12%
ELECAN
22591R
Page 58
Electronic Level Forecast By Industry – Canada The forecasted growth for Electronic Level is -3.5 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Electronic Level Growth Rate Forecast
6%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
W&WW
F&B
Refining
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
MFLCAN
2008 Annual Market Value - $24.9 Million 2011 Annual Market Value - $22.3 Million
22591R
Page 59
12. MECHANICAL LEVEL / INVENTORY TANK GAUGING
Specific products include: • • • • • •
Floats Tapes Servo Gauges Hydrostatic Tank Gauging used for Inventory Microwave Tank Gauging All other Mechanical Level devices
Mechanical Level / Inventory Tank Gauging meters include all other level measurement technologies other than Electronic Level as well as all technologies used for Inventory Tank Gauging. The annual market growth of Mechanical Level, including Inventory Tank Gauging devices is forecast to be -3.9 percent CAGR in the United States and -5.2 percent CAGR in Canada. Chemicals, Oil & Gas and Refining make up over 60 percent of the market value of Mechanical Level / Tank Gauging in the U.S. and Canada
22591R
Page 60
Mechanical Level / Inventory Tank Gauging By Industry – USA The 2008 base year value for Mechanical Level / Inventory Tank Gauging in the United States is $169.5 Million. The segmentation by industry is shown below:
Mechanical Level / Inventory Tank Gauging USA 2008 Annual Market Value - $169.5 Million By Industry Stn Cl Gls 1% Other Mining Metals 3% 1% 1% P&P Chem Utilities 5% 24% 6% W&WW 6% Pharm 7% F&B 7%
MLEUSA
Refining 16%
Oil & Gas 23%
22591R
Page 61
Mechanical Level / Inventory Tank Gauging Forecast By Industry – USA The forecasted growth for Mechanical Level / Inventory Tank Gauging is -3.9 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Mechanical Level / Inventory Tank Gauging Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
MLEUSA
2008 Annual Market Value - $169.5 Million 2011 Annual Market Value - $150.6 Million
22591R
Page 62
Mechanical Level / Inventory Tank Gauging By Industry – Canada The 2008 base year value for Mechanical Level/Inventory Tank Gauging in Canada is $21.5 Million. The segmentation by industry is shown below:
Mechanical Level / Inventory Tank Gauging Canada 2008 Annual Market Value - $21.5 Million By Industry Other Pharm 3% 3% Mining 3% P&P 4% W&WW 4% Utilities 5%
Metals Stn Cl Gls 2% 1%
Oil & Gas 31%
F&B 13%
MLECAN
Refining 14%
Chem 17%
22591R
Page 63
Mechanical Level/Inventory Tank Gauging Forecast By Industry – Canada The forecasted growth for Mechanical Level/Inventory Tank Gauging is -5.2 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Mechanical Level / Inventory Tank Gauging Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Pharm
-2%
Utilities
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
MLECAN
2008 Annual Market Value - $21.5 Million 2011 Annual Market Value - $18.3 Million
22591R
Page 64
13. TEMPERATURE INSTRUMENTS Specifically included are: • • • • • • •
Thermocouples RTD’s IC sensors Thermisters Mechanical Sensors Temperature Transmitters Auxiliary Hardware
Temperature instruments include all temperature instruments including all of the sensors, transmitters and auxiliary hardware. Auxiliary hardware items include thermowells, probe protection hardware, etc. The temperature measurement market will grow about -4.1 percent annually over the forecast period (-3.9 percent in Canada). Six industries make up almost 75 percent of the market value of temperature instruments in the United States and Canada. These include Chemicals, Oil & Gas, Refining, Food & Beverage, Pharmaceuticals and Electric Utilities.
22591R
Page 65
Temperature Instruments By Industry – USA The 2008 base year value for Temperature Instruments in the United States is $499.6 Million. The segmentation by industry is shown below:
Temperature Instruments USA 2008 Annual Market Value - $499.6 Million By Industry
Stn Cl Gls 3% Metals 2% W&WW Mining Pharm 3% 1% 5% P&P 6%
Chem 31%
Other 6% F&B 7% Oil & Gas 8%
Utilities 11%
Refining 17%
TMPUSA
22591R
Page 66
Temperature Instruments Forecast By Industry – USA The forecasted growth for Temperature Instruments is -4.1 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Temperature Instruments Growth Rate Forecast
4%
By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
-4%
Chem
Mining
Stn Cl Gls
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
TMPUSA
2008 Annual Market Value - $499.6 Million 2011 Annual Market Value - $439.9 Million
22591R
Page 67
Temperature Instruments By Industry – Canada The 2008 base year value for Temperature Instruments in Canada is $54.6 Million. The segmentation by industry is shown below:
Temperature Instruments Canada 2008 Annual Market Value - $54.6 Million By Industry W&WW 3% Mining Stn Cl Gls Metals 3% 2% Chem 5% 22% Other 6% P&P 7% F&B Oil & Gas 13% 7% Utilities 9% Pharm 12%
Refining 11%
TMPCAN
22591R
Page 68
Temperature Instruments Forecast By Industry – Canada The forecasted growth for Temperature Instruments is -3.9 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Temperature Instruments Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
TMPCAN
2008 Annual Market Value - $54.6 Million 2011 Annual Market Value - $48.4 Million
22591R
Page 69
14. CONTROL SYSTEMS Products included in this category are: • • • • • • •
Continuous Distributed Control Systems Batch Distributed Control Systems Continuous Programmable Logic Control Systems Batch Programmable Logic Control Systems SCADA (Supervisory Control and Data Acquisition) systems Other Equipment Engineering and Services required to configure and start up the systems
Control Systems include all Continuous and Batch control system implementations used in the Process Industries. This includes all control hardware and I/O, human machine interfaces (HMI’s) and system level software usually included with the systems. Control Systems analyzed in this report are limited to those used in Process Industry Applications only. There may be applications in other industries outside of the Process Industries where these systems are used, but these are not included here. The Control System market is forecasted to grow at approximately -2.8 percent CAGR in the United States and slightly lower (-3.2 percent) in Canada. Chemicals, Food & Beverage, Electric Utilities and Pulp & Paper industries make up over 55 percent of the total market for Control Systems in the U.S. and Canada.
22591R
Page 70
Control Systems By Industry – USA The 2008 base year value for Control Systems in the United States is $2,738.0 Million. The segmentation by industry is shown below: Control Systems USA 2008 Annual Market Value - $2,738.0Million By Industry
Pharm 6%
Mining 4%
Metals 4%
Stn Cl Gls 3% Chem 19%
W&WW 6% Oil & Gas 7%
F&B 14%
Other 7% Refining 8%
P&P 9%
Utilities 13%
CSUSA
22591R
Page 71
Control Systems Forecast By Industry – USA The forecasted growth for Control Systems is -2.8 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Control Systems Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
Stn Cl Gls
P&P
Metals
Oil & Gas
Other
W&WW
F&B
Refining
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-4% -6% -8% -10%
CSUSA
2008 Annual Market Value - $2,738.0 Million 2011 Annual Market Value - $2,513.7 Million
22591R
Page 72
Control Systems By Industry – Canada The 2008 base year value for Control Systems in Canada is $341.2 Million. The segmentation by industry is shown below:
Control Systems Canada 2008 Annual Market Value - $341.2 Million By Industry Mining 4% Pharm 5%
Metals 4%
Stn Cl Gls 3% Chem 18%
W&WW 6% Other 7%
F&B 16%
Refining 7% Oil & Gas 8%
P&P 9%
Utilities 13%
CSCAN
22591R
Page 73
Control Systems Forecast By Industry – Canada The forecasted growth for Control Systems is -3.2 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Control Systems Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
Refining
F&B
W&WW
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-4% -6% -8% -10%
CSCAN
2008 Annual Market Value - $341.2 Million 2011 Annual Market Value - $309.3 Million
22591R
Page 74
15. REMOTE I/O Remote (or Distributed) Input/Output hardware includes all input/output hardware used as part of process monitoring or control application. It is distinguished from the I/O included in the control systems category by the fact that it is not generally sold as part of a Control System, but is purchased separately. Remote I/O covered in this report includes those products used in Process Industry Applications only. There may be applications in other industries outside of the Process Industries that are not included here. The forecasted growth for Remote I/O is -1.8 percent CAGR in both the U.S. and Canada. In the U.S. Remote I/O use is concentrated in the Chemical, Electric Utilities, Food & Beverage and Water & Wastewater industry segments where it makes up over 55 percent of the market value. In Canada Chemicals, Food & Beverage, Electric Utilities and Oil & Gas account for over 65 percent of the market value of Remote I/O products.
22591R
Page 75
Remote I/O By Industry – USA The 2008 base year value for Remote I/O in the United States is $258.0 Million. The segmentation by industry is shown below:
Remote I/O USA 2008 Annual Market Value - $258.0 Million By Industry
Mining 4%
Other 3%
Stn Cl Gls 3%
Metals 4% Pharm 6% Oil & Gas 7%
Chem 20%
P&P 7% Refining 9% RIOUSA
Utilities 16% F&B 12%
W&WW 9%
22591R
Page 76
Remote I/O Forecast By Industry – USA The forecasted growth for Remote I/O is -1.8 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Remote I/O Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
6%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
Refining
Stn Cl Gls
-4%
F&B
-2%
Utilities
0%
Pharm
2% Total
CAGR 2008-2011
4%
-6% -8% -10%
RIOUSA
2008 Annual Market Value - $258.0 Million 2011 Annual Market Value - $244.5 Million
22591R
Page 77
Remote I/O By Industry – Canada The 2008 base year value for Remote I/O in Canada is $34.7 Million. The segmentation by industry is shown below:
Remote I/O Canada 2008 Annual Market Value - $34.7 Million By Industry
Metals Stn Cl Gls 3% 3% Pharm 6% Refining 6% W&WW 7% P&P 8%
RIOCAN
Oil & Gas 10%
Mining 2% Other 2% F&B 22%
Chem 16% Utilities 15%
22591R
Page 78
Remote I/O Forecast By Industry – Canada The forecasted growth for Remote I/O is -1.8 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Remote I/O Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
6% 4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
RIOCAN
2008 Annual Market Value - $34.7 Million 2011 Annual Market Value - $32.8 Million
22591R
Page 79
16. DATA ACQUISITION SYSTEMS Data Acquisition Systems analyzed here are limited to those used in the Process Industries. They include: • • • •
Stand Alone Systems Data Loggers PC Front ends Recorders
The forecasted growth for Data Acquisition Systems is -3.6 percent CAGR in the United States for the period 2008 to 2011, -4.2 percent CAGR in Canada. Chemical, Electric Utilities are the two largest industry users of Data Acquisition systems in the U.S., accounting for over 40 percent of the total market. In Canada, Electric Utilities and Chemicals account for over 30 percent of the total market in Data Acquisition System.
22591R
Page 80
Data Acquisition Systems By Industry – USA The 2008 base year value for Data Acquisition Systems in the United States is $232.9 Million. The segmentation by industry is shown below:
Data Acquisition Systems USA 2008 Annual Market Value - $232.9 Million By Industry
W&WW Mining 3% Metals 3% Pharm 4% 5% Refining 6%
Chem 20%
P&P 6% Stn Cl Gls F&B 6% 8%
Oil & Gas 2%
Utilities 20% Other 17%
DAUSA
22591R
Page 81
Data Acquisition Systems Forecast By Industry – USA The forecasted growth for Data Acquisition Systems is -3.6 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Data Acquisition Systems Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Utilities
-2%
Pharm
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
DAUSA
2008 Annual Market Value - $232.9 Million 2011 Annual Market Value - $208.5 Million
22591R
Page 82
Data Acquisition Systems By Industry – Canada The 2008 base year value for Data Acquisition Systems in Canada is $25.5 Million. The segmentation by industry is shown below:
Data Acquisition Systems Canada 2008 Annual Market Value - $25.5 Million By Industry
Oil & Gas W&WW 2% Refining 2% Pharm 4% Other Stn Cl Gls6% 16% 6% P&P 7%
Utilities 15% Mining 9%
DACAN
Metals 9%
F&B 10%
Chem 14%
22591R
Page 83
Data Acquisition Systems Forecast By Industry – Canada The forecasted growth for Data Acquisition Systems is -4.2 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Data Acquisition Systems Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
Stn Cl Gls
P&P
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
DACAN
2008 Annual Market Value - $25.5 Million 2011 Annual Market Value - $22.4 Million
22591R
Page 84
17. FINAL CONTROL ELEMENTS Final Control Elements include: • Control Valves • Control Valve Actuators • Control Valve Positioners Specifically excluded are on/off valves, manual valves and safety valves. The forecasted growth for Final Control Elements is -4.1 percent CAGR in the United States for the period 2008 to 2011. In Canada it is -5.3 percent. In the U.S., Chemicals, Refining, Electric Utilities and Oil & Gas account for over 70 percent of the market value of Final Control Elements. In Canada Chemicals, Refining, Electric Utilities, Oil & Gas and Food & Beverage account for approximately 70 percent of the market value.
22591R
Page 85
Final Control Elements By Industry – USA The 2008 base year value for Final Control Elements in the United States is $1,268.8 Million. The segmentation by industry is shown below:
Final Control Elements USA 2008 Annual Market Value - $1,268.8 Million By Industry
Metals W&WW Mining 2% 1% Stn Cl Gls 2% Other 1% 3% Pharm Chem 4% 28% F&B 6% P&P 8% Oil & Gas 9% FCEUSA
Utilities 16%
Refining 20%
22591R
Page 86
Final Control Elements Forecast By Industry – USA The forecasted growth for Final Control Elements is -4.1 percent CAGR in the United States for the period 2008 to 2011. The growth is segmented by industry as follows:
USA Final Control Elements Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Chem
Mining
P&P
Metals
Other
Oil & Gas
W&WW
F&B
Refining
Stn Cl Gls
-4%
Pharm
-2%
Utilities
0%
Total
CAGR 2008-2011
2%
-6% -8% -10% -12%
FCEUSA
2008 Annual Market Value - $1,268.8 Million 2011 Annual Market Value - $1,118.6 Million
22591R
Page 87
Final Control Elements By Industry – Canada The 2008 base year value for Final Control Elements in Canada is $126.5 Million. The segmentation by industry is shown below:
Final Control Elements Canada 2008 Annual Market Value - $126.5 Million By Industry
Pharm 2% Other Metals 3% 5%
W&WW 1% Stn Cl Gls 1% Chem 19%
Mining 9%
Utilities 14% P&P 9%
FCECAN
Oil & Gas 12%
Refining 13% F&B 12%
22591R
Page 88
Final Control Elements Forecast By Industry – Canada The forecasted growth for Final Control Elements is -5.3 percent CAGR in Canada for the period 2008 to 2011. The growth is segmented by industry as follows:
Canada Final Control Elements Growth Rate Forecast By CAGR Percent, By Industry 3-Year Forecast Period 2008 to 2011
4%
Mining
P&P
Stn Cl Gls
Oil & Gas
Chem
Metals
Other
F&B
W&WW
Refining
-4%
Utilities
-2%
Pharm
CAGR 2008-2011
0%
Total
2%
-6% -8% -10% -12% -14%
FCECAN
2008 Annual Market Value - $126.5 Million 2011 Annual Market Value - $107.4 Million
22591R
Page 89
21. Appendix A – Data Tables
11.6 39.9 18.1 79.3 26.6 29.7 9.9 16.1 169.6 23.8 6.3 18.2 449.2 6.2%
4.4 2.9 4.0 6.3 7.5 11.6 1.8 6.8 107.0 10.8 6.3 31.6 200.7 2.8%
14.5 3.2 10.3 14.8 6.4 8.0 1.6 11.8 106.3 11.4 9.8 23.0 221.1 3.0%
8.0 1.8 9.3 7.7 8.2 7.1 1.8 14.3 78.4 6.8 14.1 12.5 170.2 2.3%
29.8 9.0 25.7 21.2 22.1 7.1 5.0 31.9 187.5 7.3 39.0 34.4 420.0 5.8%
Total
Other
Utilities
33.5 20.5 45.8 32.6 25.2 11.2 9.4 53.1 363.1 41.6 47.0 205.8 888.8 12.2%
Stn Cl Gls
15.4 10.3 30.0 31.3 19.7 15.7 7.9 31.0 247.2 18.4 13.0 102.7 542.5 7.4%
Metals
28.4 16.6 29.0 81.4 23.8 25.0 12.6 37.1 374.5 30.3 17.7 75.0 751.4 10.3%
Mining
31.0 31.0 20.5 37.3 18.0 21.4 11.9 26.2 173.5 15.2 12.5 56.3 454.8 6.2%
W&WW
95.4 45.5 125.7 147.6 104.2 55.5 41.6 149.9 528.1 52.2 48.8 342.9 1,737.5 23.9%
P&P
51.4 13.7 36.0 37.7 46.2 16.1 26.9 80.0 221.4 21.9 12.9 247.7 812.0 11.1%
F&B
17.8 4.1 71.0 53.5 66.9 17.7 38.8 41.4 181.5 18.3 5.5 118.8 635.4 8.7%
Pharm
Ref
Gas Analytical Liquid Analytical Pressure Xmtrs Elec Flowmeters Mech Flow Electronic Level Mech Level / ITG Temp Instruments Control Systems Remote I/O Data Acq Final Control TOTAL Percent of Total
O&G
MCAA Grouping
Chem
UNITED STATES – 2008 Market Value - $ Millions
341.2 198.6 425.5 550.7 374.8 226.1 169.5 499.6 2,738.0 258.0 232.9 1,268.8 7,283.7 100.0%
22591R
Page 90
Appendix A – Data Tables
Other
11.2 38.3 17.6 81.2 25.3 29.5 9.5 15.6 168.4 24.3 6.1 17.4 444.5 6.8%
3.4 2.1 3.0 4.9 5.5 9.1 1.3 5.0 82.0 8.5 4.7 23.3 152.8 2.3%
12.2 2.6 8.7 12.6 5.3 7.0 1.3 9.8 90.9 10.0 8.3 18.9 187.7 2.9%
6.0 1.3 7.0 6.3 6.0 5.4 1.3 10.7 60.3 5.4 10.5 9.2 129.5 2.0%
25.8 7.7 22.4 20.0 18.7 6.4 4.3 27.6 167.2 6.6 33.6 29.4 369.9 5.6%
Total
Stone Clay & Glass
35.0 21.3 48.5 36.5 26.1 12.2 9.9 55.9 388.6 45.9 49.6 214.0 943.5 14.3%
Primary Metals
11.8 7.9 23.5 25.1 14.9 12.7 6.1 24.0 196.5 15.0 10.1 78.6 426.3 6.5%
Electric Utilities
Pulp & Paper
Food & Bev
28.2 16.5 29.4 86.1 23.2 26.2 12.5 37.1 385.4 31.8 17.8 74.2 768.3 11.7%
Mining
32.8 32.5 22.0 42.0 18.6 24.0 12.5 27.9 190.3 16.9 13.5 59.1 492.1 7.5%
W&WW
Gas Analytical 16.1 51.7 69.8 Liquid Analytical 3.5 13.5 33.0 Pressure Transmitters 62.8 37.0 93.4 Electronic Flowmeters 51.9 40.3 113.7 Mechanical Flowmeters / Primary 56.6 Elements 44.8 74.1 Electronic Level 16.3 16.7 43.0 Mechanical Level / Inventory Tank Gauging 34.0 27.3 30.5 Temperature Instruments 35.9 80.1 110.2 Control Systems 160.3 225.9 397.8 Remote I/O 16.7 23.0 40.4 Data Acquisition Systems 4.9 13.0 36.3 Final Control Devices 101.7 244.5 248.2 TOTAL 560.8 817.9 1,290.4 Percent of Total 8.5% 12.4% 19.6%
BioPharm
Chemicals
Refining
MCAA Grouping
Oil & Gas
UNITED STATES – 2011 Market Value - $ Millions
303.9 180.3 375.4 520.6 318.9 208.6 150.6 439.9 2,513.7 244.5 208.5 1,118.6 6,583.5 100.0%
22591R
Page 91
Appendix A – Data Tables
3.1 2.0 4.1 2.9 2.2 1.0 1.1 5.0 44.3 5.1 3.9 17.7 92.3 11.0%
1.1 4.1 1.7 6.9 2.5 1.9 0.9 1.4 21.5 2.5 0.6 1.6 46.7 5.6%
1.4 1.1 1.3 2.0 0.7 3.0 0.6 1.5 13.3 0.8 2.2 10.9 38.9 4.7%
3.8 0.9 2.8 3.7 2.0 1.8 0.4 2.7 12.7 1.0 2.2 5.9 39.9 4.8%
0.9 0.2 1.1 0.8 0.9 0.3 0.2 1.2 9.9 1.0 1.5 1.3 19.3 2.3%
3.6 1.1 2.9 2.3 2.5 0.6 0.5 3.5 23.5 0.8 4.1 3.7 49.2 5.9%
Total
Other
1.8 1.3 3.4 3.3 2.3 1.6 0.9 3.6 31.2 2.9 1.7 11.1 64.9 7.8%
Stn Cl Gls
6.2 3.9 6.3 16.7 5.4 5.0 2.7 6.8 53.6 7.2 2.6 15.6 132.1 15.8%
Metals
1.8 1.8 1.1 1.8 1.0 1.3 0.6 6.3 18.5 2.3 1.4 2.8 40.7 4.9%
Mining
7.9 3.7 9.4 10.5 8.6 4.4 3.6 12.5 62.0 5.6 3.6 24.3 156.2 18.7%
W&WW
Pharm
4.2 1.1 2.5 2.6 3.3 1.2 3.1 6.2 24.8 2.2 1.1 16.4 68.8 8.2%
Utilities
Chem
2.2 0.6 9.5 6.8 9.1 2.7 6.8 4.0 25.9 3.4 0.6 15.1 87.0 10.4%
P&P
Ref
Gas Analytical Liquid Analytical Pressure Xmtrs Elec Flowmeters Mech Flow Electronic Level Mech Level / ITG Temp Instruments Control Systems Remote I/O Data Acq Final Control TOTAL Percent of Total
O&G
MCAA Grouping
F&B
CANADA – 2008 Market Value - $ Millions
38.1 21.9 46.1 60.4 40.6 24.9 21.5 54.6 341.2 34.7 25.5 126.5 835.9 100.0%
22591R
Page 92
Appendix A – Data Tables
Other
1.1 4.0 1.7 7.1 2.4 1.9 0.9 1.4 21.6 2.6 0.6 1.6 46.9 6.3%
1.0 0.7 0.8 1.4 0.5 2.1 0.4 1.0 9.2 0.6 1.5 7.2 26.5 3.6%
3.2 0.8 2.3 3.2 1.6 1.6 0.3 2.2 10.9 0.8 1.9 4.8 33.7 4.5%
0.7 0.2 0.8 0.7 0.7 0.2 0.1 0.9 7.6 0.8 1.1 1.0 14.7 2.0%
3.1 33.4 1.0 19.7 2.5 40.0 2.2 56.8 2.2 33.8 0.6 22.3 0.5 18.3 3.0 48.4 20.9 309.3 0.7 32.8 3.6 22.4 3.2 107.4 43.4 744.8 5.8% 100.0%
Total
Stone Clay & Glass
3.2 2.1 4.4 3.2 2.3 1.0 1.1 5.2 47.4 5.6 4.1 18.4 98.1 13.2%
Primary Metals
1.3 0.9 2.5 2.6 1.7 1.2 0.6 2.6 23.7 2.2 1.2 8.1 48.8 6.6%
Electric Utilities
Pulp & Paper
Food & Bev 6.1 3.7 6.3 17.3 5.1 5.2 2.6 6.7 54.0 7.4 2.6 15.1 132.2 17.7%
Mining
2.0 1.9 1.1 2.1 1.0 1.4 0.6 6.7 20.2 2.5 1.5 2.9 44.0 5.9%
W&WW
Gas Analytical 1.8 3.7 6.3 Liquid Analytical 0.5 1.0 2.9 Pressure Transmitters 7.5 2.3 7.6 Electronic Flowmeters 5.9 2.4 8.8 Mechanical Flowmeters / Primary 6.9 Elements 2.9 6.6 Electronic Level 2.2 1.1 3.7 Mechanical Level / Inventory5.3 Tank Gauging 2.8 2.9 Temperature Instruments 3.1 5.5 10.0 Control Systems 20.2 22.6 51.0 Remote I/O 2.8 2.1 4.7 Data Acquisition Systems 0.5 1.0 2.9 Final Control Devices 11.5 14.4 19.2 TOTAL 68.1 61.7 126.6 Percent of Total 9.1% 8.3% 17.0%
BioPharm
Chemicals
Refining
MCAA Grouping
Oil & Gas
CANADA – 2011 Market Value - $ Millions
22591R
Page 93
