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Automation & Control Solutions Focus on Booming Services Market in the Southern African Metals and Mining Industry - New analysis from Frost & Sullivan, Automation and Control Solutions in the Southern African Metal and Mining Industry, finds that the market earned revenues of $149.2 million in 2006 and estimates this to reach $492.2 million in 2013
Automation & Control Solutions Focus on Booming Services Market in the Southern African Metals and Mining Industry

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2007/09/17 - New analysis from Frost & Sullivan, Automation and Control Solutions in the Southern African Metal and Mining Industry, finds that the market earned revenues of $149.2 million in 2006 and estimates this to reach $492.2 million in 2013.

   
 
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With the Southern African metal and mining industry set to expand, the demand for automation and control solutions (ACS) in the industry is increasing.

New analysis from Frost & Sullivan (industrialautomation.frost.com), Automation and Control Solutions in the Southern African Metal and Mining Industry, finds that the market earned revenues of $149.2 million in 2006 and estimates this to reach $492.2 million in 2013.

"A strong pipeline of Greenfield projects and end-user demand for services will drive revenues in this market over the next 7 years," says Frost & Sullivan Research Analyst Litiya Matakala. "Most business will come from new installations of ACS products."

End users have high expectations for product quality and the services they receive from their suppliers. Additionally, the shortage of skills at the end-user level has created a market opportunity for suppliers to provide more value-added services, as end users look for more extensive maintenance and service level agreements. This will increase the proportion of revenues derived from services from the level of 47.9 per cent in 2006.

In addition, booming commodity prices have led to augmented investments in the Southern African metal and mining sector. This will drive the demand for ACS, as end users seek new ways to improve operational efficiency and leverage record high prices.

The biggest challenge the industry faces is the shortage of skilled labour at the end-user level. The lack of experienced end-user representatives will hinder the movement of the industry from process automation solutions such as programmable logic controllers (PLC) and supervisory control and data acquisition (SCADA) to improvement solutions such as manufacturing execution systems (MES) and IAM, as selections are typically based on price, rather than a price-benefit ratio.

This situation puts pressure on supplier margins. At the same time, the rising demand for engineering services from end users further strains the already thin in-house resources of suppliers to meet this need.

"The current revenue share of services - nearly 50 per cent - will continue to increase as the skills shortage is unlikely to be reversed in the short to medium term," states Matakala. "Suppliers that rise up to this challenge and meet customer service needs will gain market share and enhance their revenues."

Market leadership can be obtained through the quality of value-added services and the efficiency with which suppliers respond to the needs and requirements of end users. It is critical for suppliers to partner with end users to devise solutions that go beyond process automation to integrated solutions, meeting all end-user requirements.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the Automation and Control Solutions in the Southern African Metal and Mining Industry, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com with your full name, company name, title, telephone number and email address. Upon receipt of the above information, an overview will be sent to you by email.

Automation and Control Solutions (ACS) in the Southern African Metal and Mining Industry is part of the Industrial Automation Growth Partnership Service, which also includes research in the following markets: Customer Satisfaction Analysis for Automation and Control Solutions in the African Metals and Mining Industry and Automation and Control Solutions Market in the South African Chemical Sector. All research included in subscriptions provide detailed market opportunities and industry trends that have been 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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Automation & Control Solutions Focus on Booming Services Market in the Southern African Metals and Mining Industry

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