End users will defer to OEMs, EPCs and consultants to make the purchasing decision for 17 percent of the flow control and treatment purchases. The total purchases determined by these companies will exceed $68 billion in 2015. This is the latest forecast in N064 Air/Gas/Water/Fluid Treatment and Control: World Market from McIlvaine Company.
The 20,000 companies responsible for these purchases are identified in the McIlvaine OEM networking directory.
The average annual purchase per company will be in excess of $3 million. The largest category will be valves where the non-users will purchase or direct purchase of valves totaling $20 billion. OEMs and EPCs are direct purchasers of the products. Consultants and engineering firms are specifiers but leave the actual purchase to the end user or OEM. The largest EPCs and consultants such as Fluor and Bechtel will each account for hundreds of millions of dollars worth of flow control and treatment equipment.
Large OEMS such as Mitsubishi, Babcock &Wilcox, Veolia and others providing complete power, wastewater, or industrial systems are purchasers rather than manufacturers. Large coal-fired power plant suppliers purchase entire sub systems as well as proprietary products. In cases where they supply proprietary products, they are typically purchasing castings and fabrications.
The critical decisions on smaller products such as valves and pumps are usually made on a local level. Some of the consulting and engineering companies have hundreds of offices worldwide. For larger system decisions the local offices will often defer to a specialist who is assisting the local offices globally.
McIlvaine has identified each OEM and consultant with a financial entity number. This is critical in identifying the subsidiaries of conglomerates and for Chinese companies where there are a variety of English names for the same entity.
Picture: Gas/Water/Fluid OEM, EPC and Consultant Driven Revenues 2015 ($ Billions) - Image: McIlvaine Company