07012016Fri
Last updateFri, 01 Jul 2016 3pm

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Fugitive Emissions—Issues and Opportunities

Fugitive Emissions—Issues and Opportunities

Fugitive emissions, ppm, consent decrees...

Problem-Driven Innovation

Problem-Driven Innovation

Developing Alternative Technology to Imp...

Valve Repair Takes Center Stage in Houston

Valve Repair Takes Center Stage in Houston

Attendees gathered June 2-3 in Houston t...

What Internal Best Practices Can Do for Valve Selection

What Internal Best Practices Can Do for Valve Selection

As time goes by, technology moves forwar...

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Industry Headlines

ISM: Manufacturing Activity Expanded in June

Friday, 01 July 2016  |  Chris Guy

Manufacturing expanded in June as the PMI registered 53.2%, an increase of 1.9% from the May reading of 51.3%, indicating growth in manufacturing for ...

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Industry Headlines

Watson Valve Upgrades Oxygen Clean Room

1 DAY AGO

In an effort to ensure proper cleaning procedures are performed on valves intended for oxygen service, Watson Valve Services has upgraded its existing clean room within its manufacturing plant in Houston. Watson Valve Services’ clean room is operated by trained technicians, and is constructed wi...

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Emerson Selected to Upgrade SE Virginia Wastewater Utility

2 DAYS AGO

Emerson Process Management is replacing an outdated supervisory control and data acquisition (SCADA) system as well as remote terminal units (RTUs) used throughout Hampton Roads Sanitation District’s (HRSD) wastewater collection system. Currently, HRSD serves about 1.7 million people over an are...

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U.S. Natural Gas Making Up for Coal Plant Closures

1 DAY AGO

"Five years ago, opponents of newly proposed clean-air rules sounded dire warnings of blackouts and surging electricity prices if coal-burning plants were shuttered,"  Bloomberg  reports .

"Instead of rising, the price of electricity in the nation’s largest grid is now 40% lower than it ...

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U.S. Crude Storage Capacity Utilization Rises Even as Capacity Grows

2 DAYS AGO

Weekly U.S. commercial crude oil inventories have increased by more than 71 million barrels (15%) since the end of September, pushing crude oil storage capacity utilization to a near record high of 73% for the week ending June 10.

The U.S. Energy Information Administration (EIA) measures crude oil stor...

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ISM: Manufacturing Activity Expanded in June

7 HOURS AGO

Manufacturing expanded in June as the PMI registered 53.2%, an increase of 1.9% from the May reading of 51.3%, indicating growth in manufacturing for the fourth consecutive month, and is the highest reading since February 2015 when the PMI registered 53.3%.

Of the 18 manufacturing industries measured b...

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NAM Reacts to Trump’s Anti-Trade Comments

2 DAYS AGO

GOP presidential candidate Donald Trump, speaking Tuesday near Pittsburgh, expressed fierce opposition to free-trade agreements and criticized Hillary Clinton for supporting them. Trump blamed Clinton and her husband for the loss of millions of manufacturing jobs and threatened to pull the U.S. out ...

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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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