GROWTH STRATEGY FOR THE $750 BILLION AIR, WATER, ENERGY MARKET
Growth strategies have been characterized as organic, selective, or programmatic. The McIlvaine system is comprehensive.
• The challenge is analyzing the puzzle pieces without the full picture.
• McIlvaine provides the full picture with an umbrella report and dozens of product reports covering the $750 billion AWE market.
• Forecasts are supplemented by acquisition databases and analyses covering decades
• Market share analysis is continuous and covers thousands of companies.
• The AWE NO64 report has the overview of the entire market
• The individual product reports include millions of forecasts plus acquisition and market share analysis
• Expert consulting is offered to fully analyze targeted niches.
Specific reports include:
Air
Fabric Filter, Scrubber, FGD, DeNOX, Thermal/Catalytic, Air Filtration. Hose And Fittings, Fans, Blowers Compressors
Liquid
Liquid Filtration, Sedimentation, Centrifugation, Membranes, Pumps, Valves, Ultrapure Water
Solutions
IIoT - Guide, IIoT- Control, IIoT - Measure, Cleanroom Hardware,
Cleanroom Consumables
Cleanroom Services, Treatment Chemicals
PRODUCT REPORT CONTENTS
• Each of the product reports forecasts multiple products for each industry in each country.
• The five-year future forecasts include extensive analysis of the purchasing industries.
• Consulting services and reports for system suppliers, users and governments provide McIlvaine with the application intelligence needed in the product forecasts.
• Market share and acquisition indices from the individual reports are also available for those involved in the new product analysis.
• Millions of forecasts by product, industry and country allow a company to set targets for increasing market share in the specific niches which are ranked as most potentially profitable.
VALUE OF ACQUISITION INFORMATION USING CURTISS WRIGHT AS AN EXAMPLE
• Acquisition activity and market share data has been retained since 2004.
• The database format provides an index to detailed articles.
• This allows unique analysis as shown in the following Curtiss Wright example.
• McIlvaine has forecasts of markets by product and country from 1990 to present.
• A number of acquisitions have been followed by divestitures. Present Curtiss Wright valve sales are less than the 2012 sales of one of the companies they just sold.
• The detailed background information has data on the valve types and markets.
• The conclusion is that Curtiss Wright is a major player in safety relief valves for nuclear and process but not in other valve types or industries.
• Given just the information revealed in CW acquisitions and divestitures it can be a guesstimate that present safety valve sales are around $40 million.
• At least half the total is in the power industry.
• This leads to an estimate that
• CW has a 0.1% share of the total valve market
• Safety relief valve share is 3%
• Power industry safety relief valve share is 6%.
• The nuclear share is likely more than 15%
• The $750 billion AWE market can be divided into 15,000 segments of $50 million each. Curtiss Wright has a 15% market share in a $100 million nuclear power plant safety relief valve market.
• There is the opportunity for high margins when a company has a 15% market share.
• For Curtiss Wright one such market is not significant compared to its total revenues.
• However, companies such as IDEX have generated high market shares in many small markets and are obtaining EBITDA of 30%.
• Nuclear is a highly specialized market with a significant cost of entry.
• As reported in our September Valve Acquisitions and Market Shares Curtiss Wright is bullish about the nuclear future due to climate change and small modular reactors.
• The organization of information such as displayed for safety relief valves in the nuclear power industry allows tentative conclusions without any significant effort.
• This data greatly reduces the amount of effort needed to provide more accurate information.
• Other acquisition data is also relevant. Emerson bought Tyco which in turn had purchased Crosby. Crosby is a major supplier of safety relief valves to the nuclear industry.
• So, the data provided at the time of these acquisitions will be useful in an assessment of the nuclear safety relief valve market shares.