Tuesday, August 01, 2006
Suppliers of Affordable Variable Speed Drives Likely to Hold an Edge in Cost-Conscious Market
North American manufacturers of variable speed drives (VSDs) have to contend with a shrinking client base. This is because original equipment manufacturers (OEMs) -- the core customers of the VSD market -- are shifting production to newly industrialized countries.
New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), North American Variable Speed Drives Markets, reveals that this market generated revenue of $1.54 billion in 2004. Total market revenue expects to reach $1.73 billion in 2010.
If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the North American Variable Speed Drives Markets, then send an e-mail to Melina Gonzalez - with the following information: your full name, company name, title, telephone number, fax number and e-mail. Upon receipt of the above information, an overview will be sent to you via e-mail.
Emerging nations' benefits of improved productivity and lower manufacturing costs encourage OEMs to establish foreign subsidiaries and factories. Even while fostering greater global penetration, this move is depleting the North American end-user market.
"The OEMs seek component sources closer to the countries where their facilities are located and this reduces demand for variable speed drives in the domestic market," says Frost & Sullivan Industry Analyst Liliya Navarrete.
Due to the transfer of activities Several North American drives, plants have either shut down or restructured to produce smaller volumes. To retain business, manufacturers have to develop strategies to meet customers' overall needs -- both locally and internationally.
Cost reduction is one way of staying competitive in the mature VSD market, especially since features and capabilities provide little advantage as differentiating factors. Intense competition between manufacturers is fermenting price wars, making the products more affordable and encouraging adoption.
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