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Slimming Margins Compel UPS Manufacturers to Control Production Costs - New analysis from Frost & Sullivan, Singapore UPS Market, reveals that the market earned revenues of $32.1 million in 2006 and estimates this to reach $57.7 million in 2013
Slimming Margins Compel UPS Manufacturers to Control Production Costs

 

PRZOOM - /newswire/ - Singapore, Singapore, 2007/07/04 - New analysis from Frost & Sullivan, Singapore UPS Market, reveals that the market earned revenues of $32.1 million in 2006 and estimates this to reach $57.7 million in 2013.

   
 
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The express growth of the Singapore uninterrupted power supply (UPS) market is likely to run into roadblocks due to increased competition and higher costs of production. To protect their revenue in the competitive, yet lucrative market, manufacturers will have to devise ingenious methods to control production costs as well as to set themselves apart in the market.

New analysis from Frost & Sullivan (powersupplies.frost.com), Singapore UPS Market, reveals that the market earned revenues of $32.1 million in 2006 and estimates this to reach $57.7 million in 2013.

"Participants can significantly lower costs of production by recycling usable parts from older UPS systems, using substitute technologies such as fuel cells, and sourcing alternative raw material suppliers," says Frost & Sullivan Research Analyst John Ong. "By doing so, they can counter the rise in raw material costs and eventually, preserve their revenue and market shares."

UPS companies’ shares could also be under threat by the influx of new participants. As the market is characterized by largely undifferentiated products to serve an expanding customer base, manufacturers have to implement distinctive tactics such as providing niche and customized solutions to specific end-user groups.

This business strategy will not only help market participants meet the increasingly challenging customer demands but also operate outside the confines of the large and established manufacturers’ dominance.

Manufacturers can leverage enhanced technological capabilities to garner substantial revenue, if the success of ‘modular’ UPS systems is anything to go by. However, they have to publicize these innovations to attract greater consumer interest.

"Manufacturers and distributors are increasingly focusing on marketing and market penetration strategies, as is evident from the rise in promotions and campaigns targeted at businesses and consumers," notes Ong. "They should focus on establishing clear and strong signals about their systems’ capabilities to gain market share."

The significant growth of the Singapore UPS market in the last five years has been largely directly or indirectly derived from strong government initiatives. With Singapore becoming Asia’s financial hub, there has been a marked increase in demand for UPS systems from the finance sector.

Meanwhile, the Government’s initiatives to develop core industries have catalyzed demand from the IT sector and datacenters. Marine and manufacturing industries also offer sales prospects.

This spurt in demand, especially for large kVA systems, has induced manufacturers to focus on servicing and offering a complete package to end users. They can lure more customers by offering value-added services such as warranties and after-sales service.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Singapore UPS Market, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

Singapore UPS Market is part of the Power Supplies & Batteries Growth Partnership Service, which includes research service in the following: Australia and New Zealand UPS markets, Chinese UPS markets, World UPS report. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Slimming Margins Compel UPS Manufacturers to Control Production Costs

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Contact: Donna Jeremiah 
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