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Industry and Regulatory Changes in Offshore Operations

Industry and Regulatory Changes in Offshore Operations

On May 13, 2016, the offshore oil and ga...

Strategies for Successful SIS Valve Diagnostic Implementation

Strategies for Successful SIS Valve Diagnostic Implementation

End users and contractors alike strive t...

Stop Check Valves

Stop Check Valves

Stop check valves are vital to several i...

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Industry Headlines

ValvTechnologies Names Garcia, Mermelstein to New Positions

4 DAYS AGO
ValvTechnologies Names Garcia, Mermelstein to New Positions

ValvTechnologies, Inc. has named David Garcia director of manufacturing and Steve Mermelstein as regional director, Americas and director, channel management.

Previously, West Point graduate Garcia served as director of operations for Merla Wellhead Solutions and held plant manager positions at Hallib...

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Emerson Automating UK Waste-to-Energy Plant

4 DAYS AGO

Emerson will provide control systems and project services for a new waste-to-energy power plant near Knaresborough Allerton, North Yorkshire, UK. Construction is expected to be completed in 2017, with the plant fully operational in 2018.

The plant , which will also incorporate biogas and recycling faci...

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U.S. Still Top Producer of Petroleum, Natural Gas Hydrocarbons

3 DAYS AGO

The U.S. remained the world's top producer of petroleum and natural gas hydrocarbons in 2015, according to U.S. Energy Information Administration estimates . U.S. petroleum and natural gas production first surpassed Russia in 2012, and the U.S. has been the world's top producer of natural gas since 20...

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Why $50/Barrel Oil Means Stability to U.S. Producers

3 DAYS AGO

The rise to $50-per-barrel oil means a return to stability, particularly for domestic shale producers, according to Dan K. Eberhart, CEO, Canary, LLC. At this level , companies that saw the value of their product drop more than 75% in less than two years might have the confidence to resume drilling ac...

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Survey: Manufacturing Execs Investing in Advanced Tech

3 DAYS AGO

 A convergence of disruptive factors such as new technologies, increasing competition, and pricing pressures, is forcing manufacturers to increase investment in new products and services as they seek to innovate manufacturing capabilities, according to the 2016 KPMG Global Manufacturing Outlook ...

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Durable Goods Orders Surge 3.4%, But Demand Soft

3 DAYS AGO

New orders for manufactured durable goods in April increased $7.7 billion or 3.4% to $235.9 billion, the U.S. Census Bureau announced today. This increase, up three of the last four months, followed a 1.9% March increase. Excluding transportation, new orders increased 0.4%. Excluding defense, new or...

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2009 Market Outlook: Riding Out The Storm

The atmosphere at VMA's Annual Market Outlook Workshop, held Aug. 14-15 in Boston, was more somber than in years' past as attendees-primarily manufacturers of valves, actuators, controls and pumps-listened to speaker after speaker predict continued, even worsening, troubles in the economy, in the United States and around the world.

 

Still, there were a few bright spots among the gloomy news: The power industry in general will remain strong, driven globally by the world's increased need for energy and affected here in North America by the need to tap into new and existing alternative energy sources. Nuclear in particular appears poised to take off in the U.S. as the general public, legislators and other policy-makers accept that nuclear can be a safe, cleaner way to get power. And for the short term, the upstream oil and gas marketplace is actually doing better than predicted a year ago as a reacceleration plays out that may well last into 2009.

Most left knowing that darker times may be coming, but that the North American valve industry has "been there, done that," and with proper preparation and knowledge about new markets and opportunities-global and domestic-their companies can survive this inevitable downturn and come out the other side stronger than ever.

Here's what our speakers had to say:

DOMESTIC ECONOMY
Yes, the Recession is Still Coming

Many people who attended past forecasting conferences were anxious to hear what Alan Beaulieu, economist with the Institute for Trend Research, had to say-not just because he's an entertaining speaker, but because his prediction last year for the U.S. economy was rather bleak-a good 2008, but a recession by 2009.

As far as 2008: "I'm glad you've been enjoying the year," Beaulieu joked, "but the U.S. is softening. Everything you heard in the first half of 2008-all that concern-was just the band warming up."

"This time next year, we will be recognizing that we are in a full-fledged recession," he said. The same will be said in Europe and in China (whether that country recognizes it or not, Beaulieu commented).

Consumers will lead the parade into the downturn, he said, helped along in part by the fact that despite the current woes, we have had poor leadership in this country. For example: "We are a debtor nation. The richest nation on Earth but we can't pay our bills."

Inflation will be a major pressure, he added, because even though officials and experts say the core inflation rate is "only" 3 to 4%, that rate doesn't take into account energy and food. The Consumer Price Index, on the other hand, is 5.6%, which is high, he pointed out.

When people's budgets are hit as hard as they are being hit at present by food, energy and other daily needs, "they stop spending, and that brings a recession," Beaulieu said.

As far as other locations around the globe, "when the U.S. gets a cold, so does the rest of the world," he said.

Still, Beaulieu was not all doom and gloom.

U.S. industry is "doing wonderful things," he exclaimed. They are proficient in selling to the rest of the world, they have the most competitive work force in the world, and they have twice the output of the emerging giant China.

What it will come down to for industry is what's happening at the company level, he said. "If you are doing well, you have to ask: how can I prepare?"

Among his suggestions:

  • Help your margins by differentiating your company from competitors, and then let everyone who works for your company know how you're different.
  • Develop quantifiable reasons you are better than your competition. "What people want in a downturn is a metric. [They want to hear:]
  • 'I can fix this problem on the first go-around, and I can fix it in four hours, not six,'" Beaulieu explained. Clients want to know that quality is more than an adverb.
  • Consider taking on subcontract work if the backside of the cycle begins to look recessionary.
  • Begin missionary efforts into new markets.
  • Freeze expansion plans unless they are related to the logical next step for a particular company. If those plans are made just to expand the company's reach, rethink those plans.

When things start leaning into a recessionary cycle, Beaulieu suggested:

  • Begin reducing work forces. Don't tell employees that everyone will keep their jobs, but let them know most people will be okay-we've been through this before.
  • Set budget reduction goals by department.
  • Avoid long-term purchasing commitments.
  • Find a way to do business in the counter cyclical or unaffected areas (e.g. energy, travel, green, Canada/exports, higher education, healthcare, etc.).

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