Business in 2008 and 2009
Business in 2008 was solid, with a steady rate of growth in the single digits; the economy never entered recession (as of the fourth quarter). Automation suppliers provide the solutions that help end users not only utilize every kilowatt of energy effectively, but, in the process, save the energy costs that may have been lost or wasted prior to retrofits of automation equipment. This equipment simultaneously increases the productivity of these end user's equipment and processes.
It is too early to know, or predict with any surety, what 2009 will bring. In the current energy environment (expensive oil and fast-growing demand), it is safe to assume and predict that automation equipment able to deliver real energy savings will continue to be in demand. It is likely that the retrofit market and brownfield updates will continue, as end users seek to optimize their existing equipment, as opposed to "risking" large capital outlays. Time, the election and a renewed calmness to the economic environment will provide the foundation for continued investment in drives, motors and automation technology that ensure throughput and uptime for processors.
Critical Issues
One critical issue is continuing to make it compelling for end users to invest both in retrofits and new-product installations. The economic changes in the fourth quarter of 2008 make the entire market more cautious and create a "wait and see" environment that should begin to steady and re-find footing by midyear 2009.
Business and Technology Trends
Some trends include a fast-growing demand for equipment that helps end users meet the IEEE-519 standard for harmonics as well as drives and motor products capable of capturing and using regenerated energy from processes that have residual energy. Every kilowatt of energy entering both commercial and industrial environments is more prized than ever as a resource that needs to be utilized fully and completely.
Additional Thoughts
For automation suppliers, this economy affords an absolute opportunity. Both the economy and the energy environment now create a foil to the energy saving capabilities inherent in automation equipment. The additional upside is that retrofit and installation of such equipment is "green" by definition; the equipment reduces the CO2 stream, and helps facility managers optimize their use of pumps, fans and virtually all motor-driven equipment.