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Level Sensing – Is it a Flight of Production? - The Chinese market is growing and able to maintain the manufacturing position in the United States.
Level Sensing – Is it a Flight of Production?

 

PRZOOM - /newswire/ - San Antonio, TX, United States, 2006/04/04 - The Chinese market is growing and able to maintain the manufacturing position in the United States..

   
 
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Much of the technology that is developed in United States has its production and manufacturing in Asia. Asia’s lower cost of production and manufacturing, especially in China, is attracting manufacturers from the West. Countries like India are also promoting or trying to sell level controls in the United States. Though technology from Asia is not as high as the United States, they still penetrate the market because of lower prices.

The Chinese market is growing and able to maintain the manufacturing position in the United States. This is supported by the fact that most leading manufacturers like Emerson (Rosemont Div), Endress and Hauser have established their production and manufacturing plants in China.

New analysis from Frost & Sullivan, World Level Sensors Market, reveals that revenue in this market totaled $1.86 billion in 2004 and projects to reach $2.83 billion in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end-users, and other industry participants with an overview of the latest analysis of the World Level Sensors Market then send an e-mail to Tori Foster - Corporate Communications at tori.foster[.]frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information via email upon receipt of the above information.

U.S. manufacturers also have to compete against outsourcing to drag the cost down, without shifting to some offshore suppliers. These manufacturers keep sourcing within the United States to control costs internally. The challenge is mostly for the low priced sensors. The impact of this factor is expected to remain high through out the forecast period, unless a shrewd strategy and plan is worked out to compete with low cost Asian manufacturers.

“Having a prolonged or an extended sales contract with the customer is very much needed,” says Frost & Sullivan Industry Analyst Dr. Rajender Thusu. “This can help suppliers forecast the future needs of the customer and also estimate the component requirements needed for product manufacturing. But customers nowadays don’t opt for this kind of a long-term sales contract. They choose the short-term contract which places the supplier in a difficult situation.”

This type of sales contract has many negative consequences for the supplier. The suppliers are left in a dilemma when it comes to production of products being more than needed or in shortage; both have an adverse effect on the overall results of a company. More production leads to a greater purchase of components than are required. Whereas if there is less production and customers need more, then that leads to delayed shipments.

“This results in a loss of customer satisfaction or even the loss of a good customer, “ says Frost & Sullivan Research Analyst V. Sankaranarayanan. “In a market, where there is cutthroat competition, a loss of customers would bring down the net results and revenues for sure. Manufacturers are now currently facing this problem of shorter contracts. Market share, which is the key to growth and profits, depends on the number of customers one holds for a longer period of time.“

The most critical part in level measurement is the environmental conditions to which the level sensors are exposed. Level sensors come in contact with various types of environments and materials. This interaction can cause an error in the quality of level measurement or even may pose a threat to the life of the level sensors itself. This can be a significant menace to the level sensors used in the chemical and petrochemical industries, as they get subject to corrosion. Irrespective of exposure to a variety of environmental conditions simultaneously these level instruments are expected to produce accurate measurement. Salinity, pollution, corrosion, temperature and pressure can pose a threat to the accuracy, reliability and life of the sensor.
“Finding out ways to eliminate this threat would be a tough task for the level sensor manufacturers,” says Dr. Thusu. “The impact of harsh environments and corrosion is expected to be high during the initial forecast period, as newer chemicals and compounds are used and introduced everyday. This factor would have a moderate impact during the mid and long term forecast period as new technologies with better designs are also evolving to combat such issues.”

The intensive research and development has proved that the price of high technology level sensing like ultrasonic can be made affordable to ensure strong end user acceptance.

World Level Sensors Market, a part of the sensor subscription service, provides an overview and outlook for the market. This research includes detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews and executive summaries are available to the press.

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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Level Sensing – Is it a Flight of Production?

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