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From Cannon Balls to Pressure Seals: Graphite for Sealing

From Cannon Balls to Pressure Seals: Graphite for Sealing

From time to time, we re-publish well-re...

Gaskets Are Not Created Equal

Gaskets Are Not Created Equal

Gaskets are near the bottom of the food ...

Your Valves May Be Weaponized

Your Valves May Be Weaponized

The advent of the Internet of Things (Io...

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Industry Headlines

SVF Flow Controls Joins VMA

Friday, 22 June 2018  |  Chris Guy

This week SVF Flow Controls became a full member of the Valve Manufacturers Association (VMA). This is the fourth new VMA member in 2018 so far.

For over...

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Industry Headlines

SVF Flow Controls Joins VMA

1 DAY AGO

This week SVF Flow Controls became a full member of the Valve Manufacturers Association (VMA). This is the fourth new VMA member in 2018 so far.

For over 35 years SVF Flow Controls of La Palma, CA has been manufacturing ball valves, actuators and controls for all industrial applications.

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Emerson Wins Global Tank Storage Award

2 DAYS AGO

Emerson’s Rosemount 5900S 2-in-1 Radar Level Gauge has won the Outstanding Terminal Safety Technology Award at the 2018 Global Tank Storage Awards. This award is given to a product or technology that adds an additional layer of safety to the terminal and reduces risk to employees and the surroun...

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U.S. Specialty Chemicals Markets Continue to Gain

2 DAYS AGO

The American Chemistry Council (ACC) reported that U.S. specialty chemicals market volumes continued to gain during the second quarter, increasing 0.5% in May after an upwardly revised 1% gain in April and a 0.4% gain in March. All changes in the data are reported on a three-month moving average (3M...

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Global LNG Trade Growing, Led by Australia and the U.S.

3 DAYS AGO

Global trade in liquefied natural gas (LNG) reached 38.2 billion cubic feet per day (Bcf/d) in 2017, a 10% (3.5 Bcf/d) increase from 2016 and the largest annual volume increase since 2010, according to the Annual Report on LNG trade by the International Association of Liquefied Natural Gas Importers...

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Optimism an All-Time High in NAM Survey

2 DAYS AGO

In the latest Manufacturers’ Outlook Survey from the National Association of Manufacturers (NAM), it’s clear that businesses continue to experience highly elevated levels of activity as a result of policies like tax reform, with optimism once again breaking records —95.1% of responde...

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Texas Economy Continues to Expand at “Solid Pace”

3 DAYS AGO

The Texas economy is expanding at a solid pace. Employment has grown at a 3.6% annualized rate through May, driven by job gains in the goods-producing sector. Unemployment remains near its historical low, and labor markets are tight. The Dallas Fed’s Texas Business Outlook Surveys (TBOS) suggest...

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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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