09292016Thu
Last updateWed, 28 Sep 2016 7pm

i

Caution: Horizontal Stem Installation Ahead

Caution: Horizontal Stem Installation Ahead

When it comes to linear valve installati...

The Critical Stem Nut: Who is Responsible for Maintenance?

The Critical Stem Nut: Who is Responsible for Maintenance?

One of the most important components of ...

An Alternative Basics Education: Valve Ed Comes to You!

An Alternative Basics Education: Valve Ed Comes to You!

For the first time in the seven-year his...

Give Your Flow Meter a Happy Home

Give Your Flow Meter a Happy Home

Increased emphasis on the need to improv...

The Weekly Report

New Products

  • ja-news-2
  • ja-news-3

Industry Headlines

Advertisement
i

Industry Headlines

Wolseley Reports 2016 Full Year Results

1 DAY AGO

Wolseley plc delivered an improvement in overall results for the fiscal year ending July 31, 2016, up 8.5% from last year. Revenue of $18.7 billion was 4.2% ahead at constant exchange rates and 2.4% ahead on a like-for-like basis. Price deflation, particularly in the U.S., reduced revenue by 1.5%. Imp...

Readmore

ValvTechnologies Joins MSS of the Valve and Fittings Industry Committee

1 DAY AGO

ValvTechnologies, Inc. has been unanimously approved for membership in the Manufacturers Standardization Society (MSS) of the Valve and Fittings Industry Committee. Representing ValvTechnologies is Tony Majka, director of engineering.

The MSS is a non-profit technical association organized for develo...

Readmore

Construction Chemicals Market to Reach $40,154M by 2022

10 HOURS AGO

According to a new report published by Allied Market Research, the construction chemicals market is poised to reach $40,154 million by 2022, from $27,162 million in 2015, growing with a CAGR of 5.6% from 2016 to 2022. The concrete admixtures segment leads the construction chemicals market with more th...

Readmore

Goldman Sachs: U.S. Shale Firms to Pump More Oil by 2017

11 HOURS AGO

“Though the collapse in prices caused a wave of bankruptcies, total U.S. oil production has only fallen by about 535,000 barrels a day so far this year compared with 2015, when it averaged 9.4 million barrels, according to the latest federal data,” The Wall Street Journal reports .

“As...

Readmore

Durable Goods Orders Unchanged in August

8 HOURS AGO

New orders for manufactured durable goods in August were little changed at $226.9 billion, the U.S. Department of Commerce announced, following a 3.6% July increase. Economists were predicting a 1.5% decrease in August. Excluding transportation, new orders decreased 0.4%. Excluding defense, new orders...

Readmore

U.S. Consumer Confidence Surges to Nine-Year High

1 DAY AGO

The Conference Board Consumer Confidence Index, which had increased in August, improved further in September. The Index now stands at 104.1, up from 101.8 in August. The 104.1 figure is the highest since August 2007.

“Consumer confidence increased in September for a second consecutive month and i...

Readmore

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.).

  • Latest Post

  • Popular

  • Links

  • Events

Advertisement

Looking for a career in the Valve Industry?

ValveCareers Horiz

To learn more, watch the videos below or visit ValveCareers.com a special initiative of the Valve Manufacturers Association