Process Control Instrument Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 740 process control instrument manufacturers in the US produce instruments and devices for measuring, displaying, recording, transmitting, and controlling industrial process variables such as temperature, pressure, flow, viscosity, and concentration. Customers are wide ranging but include manufacturers, distributors, utilities, natural resource extractors, military, and equipment repair services.

Dependence on International Trade

US process control instrument manufacturers are highly dependent on sales to foreign manufacturing markets, which exposes them to foreign currency exchange risks and trade tensions between countries.

Product Obsolescence

The industry rapidly introduces new and improved process control instruments and related technology and services that render older products less effective or obsolete.

Industry size & Structure

A typical process control instrument manufacturer operates out of a single location, employs about 77 workers, and generates about $15 million annually.

    • The process control instrument manufacturing industry consists of about 740 companies which employ about 57,200 workers and generate about $11 billion annually.
    • Customer industries include manufacturers, distributors, utilities, natural resource extractors, military, and equipment repair services.
    • The industry is concentrated with the 20 largest firms representing 59% of industry revenue.
    • Large companies include Emerson, Hayward, Parker Hannifin, and Furness Controls.
                                    Industry Forecast
                                    Process Control Instrument Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Mar 19, 2024 - Firms Increase Prices
                                    • Process control instrument manufactures increased prices slightly during 2023, according to the US Bureau of Labor Statistics (BLS). Wages for nonsupervisory employees decreased during mid-2023 but rebounded to a 10-year high in at year end, according to the BLS. Manufacturers increased their inventories during the first nine months of the year, according to the US Census Bureau. Industry employment increased slightly during mid-2023 but decreased to January levels at year end, according to the BLS.
                                    • The Institute for Supply Management’s Purchasing Managers Index, a leading measure of US manufacturing activity, decreased 1.3% in February to 47.8 amidst a decrease in new orders and employment levels. Readings below 50.0 indicate contraction in the manufacturing sector. Process control instrument manufacturers are likely to be negatively impacted by decreasing manufacturing activity. The current 16-month stretch of contraction is the longest since August 2000 to January 2022. New orders decreased 3.3% to 49.2 in February; production decreased 2 points to 48.4 and employment decreased 1.2% to 45.9.
                                    • US oil production reached an all-time high in 2023. Some 13.5 million barrels a day were produced during the year, according to the US Energy Information Administration. Process control instrument manufacturers are likely to benefit if production volumes remain at or near record levels. The US is currently exporting more oil than any member of OPEC except Saudi Arabia.
                                    • Process control instrument manufacturers benefiting from reshoring may also benefit from nearshoring, according to the Reshoring Initiative (RI). Harry Moser, founder of RI, says that if a product is so labor intensive that you can’t bring it to the US, then companies are sometimes surprised to find that wages in Mexico are far lower than in China. The average Mexican manufacturing worker earns $4 an hour, while the rate in China — where wages have been gaining 10% to 15% a year — is currently around $7, and in the US, it’s roughly $23. Products coming from Mexico end up with an average 40% US content, while in China they have 5% US content.
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