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Achieving Predictable Valve Performance for Safety Applications

Achieving Predictable Valve Performance for Safety Applications

A focus on having the proper specificati...

Putting Servo Valves Back to Work

Putting Servo Valves Back to Work

Industries as varied as paper production...

Corrosion and Fouling: Is There a Solution?

Corrosion and Fouling: Is There a Solution?

According to a 1998 study released by the ...

Valves with All the Trimmings

Valves with All the Trimmings

The term valve trim has been around for ...

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Industry Headlines

Date Set for Largest Oil & Gas Lease Sale in U.S. History

Tuesday, 20 February 2018  |  Chris Guy

Deputy Secretary of the Interior David Bernhardt announced that the Department will offer 77.3 million acres offshore Texas, Louisiana, Mississippi, A...

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Valve Positioners Offer Improved Control Valve Performance

Valve Positioners Offer Improved Control Valve Performance

Monday, 19 February 2018  |  David Matherly

From time to time, we are re-posting well-received or particularly valuable articles that have previously run on VALVEMagazine.com so that those who m...

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Industry Headlines

Curtiss-Wright Acquires Dresser-Rand Government Business

6 HOURS AGO

Curtiss-Wright has entered into an agreement to acquire the assets that comprise the Dresser-Rand Government Business (Dresser-Rand), a business unit of Siemens Government Technologies, for $212.5 million in cash.

Dresser-Rand designs and manufactures mission-critical, high-speed rotating equipment sol...

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ValvTechnologies ITC 2018 Recap

4 DAYS AGO

The biennial ValvTechnologies’ International Technical Conference and Users Group (ITC) was held on February 8-9 in Houston. Seeking to educate, inspire and engage attendees over a two-day period, the event brought together hundreds of attendees from across the globe to share valuable insight ...

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Date Set for Largest Oil & Gas Lease Sale in U.S. History

3 HOURS AGO

Deputy Secretary of the Interior David Bernhardt announced that the Department will offer 77.3 million acres offshore Texas, Louisiana, Mississippi, Alabama, and Florida for oil and gas exploration and development. The region-wide lease sale, which is the largest in U.S. history, is scheduled for Ma...

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Strong Momentum for M&A Activity in the Chemical Industry

1 DAY AGO

Global chemical mergers and acquisitions (M&A) activity in 2018 is expected to remain strong, as higher valuations continue to be mitigated by improving global economic conditions, continued inexpensive financing, and an appetite amongst industry participants for growth and transformative M&...

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Construction Starts in 2017 Decline 7%

1 DAY AGO

Many of the leading U.S. metropolitan areas for commercial and multifamily construction starts showed reduced activity in 2017 compared to levels reported during 2016, according to Dodge Data & Analytics. Of the top ten markets ranked by the dollar amount of construction starts, seven registered...

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Philly Fed: Manufacturing Activity Expanded Solidly

1 DAY AGO

The index for manufacturing activity in the Philadelphia Federal Reserve region increased 4 points in February to a reading of 25.8. The index has stayed within a relatively narrow range over the past nine months. Nearly 41% of the firms indicated increases in activity this month, while 15% reported...

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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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