2 May 2002
AC motor makers eye high-efficiency products
San Jose, Calif. - Manufacturers of alternating current (AC) integral horsepower motors are striving to increase the efficiency of motors beyond governmental requirements, a new study concludes.
High-efficiency motors are expected to appeal to original equipment manufacturer (OEM) customers, since their customers are demanding better performing and more reliable equipment. Interest is already growing for these products, but manufacturers must continue to communicate the cost savings associated with high-efficiency motors to customers in order to accelerate sales.
New analysis from market research firm Frost & Sullivan (F&S), North American Alternating Current Integral Horsepower Motor Markets, shows that industry generated revenues totaling $2.96 billion in 2001. Combined revenues for premium efficiency, standard efficiency, and large induction motors could surpass $3.46 billion by 2008. However, North American firms will still have to overcome threats from new market entrants.
"Foreign competitors from Eastern Europe and Asia are offering competitive products at lower prices within North American markets," said F&S research analyst Liliya Santalova. "These new entrants are seeking large OEMs, which buy in large unit volumes."
The researcher said overseas companies are likely to target lower-volume markets in the future, threatening to usurp revenues from North American firms. While price will remain a key issue, North American firms can retain customers by emphasizing other qualities, the report suggests.
"Service, technical expertise, a broad product range, and an understanding of customer demands will help manufacturers compete more effectively in this marketplace," said Santalova.
"Meanwhile, the Mexican sector is showing great promise for industry participants. Having recently signed a free trade agreement with the European Union, Mexico has open trading abilities unparalleled in North America," the analyst added.
The agreement with Europe will enable Mexican companies to export products to Europe without any penalties. Less expensive Mexican products are expected to significantly appeal to motor customers.
The growth of Mexican trade should inspire an increase in manufacturing facilities and a resultant increase in the demand for AC integral horsepower motors in production processes, Santalova said.
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