Liquid and Air Filter Element Solution Provider’s Revenue Potential Will Exceed $32 Billion
Sales of filter elements to separate particles from air, gases, water, oil and other liquids will exceed $28 billion in 2015. There is a potential for "Solutions Providers" to increase this market by $3.5 billion. This creates a potential for Solutions Providers of $32 billion. This is the latest forecast in the McIlvaine Air/Gas/Water/Fluid Treatment and Control: World Markets.
Commercial and industrial filter users are spending more than necessary on their filtration purchases for two reasons:
- Filters do not last as long as they should, so more new purchases are necessary.
- The administrative and inventory management costs for purchasing small quantities of many different filter types are substantial.
Solutions Providers can help lengthen filter life and relieve the purchaser of the administration and inventory management.
The filter manufacturer retains his margins but sells fewer filters because filter life is lengthened. Distributors are virtually eliminated. The Solutions Provider bears administrative and management costs. The total cost to the purchaser is 9 or 10 percent less and yet the Solutions Provider obtains as much revenue as the filter producer.
Where the filter is being used in a critical process, the true filter cost can easily be twice the filter purchase cost. Lost production and equipment maintenance can be very costly. For these applications it is important that the Solutions Provider thoroughly understand the process. This knowledge can be translated into margins above 50 percent and very high returns on capital.
Picture: Filter Element Revenues $ Millions 2013 (Image: McIlvaine)
Source: The McIlvaine Company