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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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 fewer than 20 workers, and generates about $15 million annually.

    • The process control instrument manufacturing industry consists of about 740 companies which employ about 59,200 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

                                    Coronavirus Update

                                    Nov 2, 2021 - Data Suggests Unvaccinated Workers Would Abide By Vaccination Mandate
                                    • Several surveys have shown that as many as half of unvaccinated workers say that they would leave their jobs if vaccination is required, but a June 2021 survey, funded by the Robert Wood Johnson Foundation found that 16% of employed respondents would quit, start looking for other employment, or both, if their employer instituted a mandate. Among those who said they were “vaccine hesitant” – almost a quarter of respondents – about 48% would quit or look for another job. Scientific American magazine found, however, that based on a sample of companies that already have vaccine mandates in place, the actual number who do resign rather than get the vaccine is much smaller than the survey data suggest.
                                    • Workers in many industries have been quitting their jobs at high rates in recent months, according to the US Bureau of Labor Statistics, but quitting in manufacturing is not as high as in the low-pay service sectors. It has accelerated, however, as factories race to poach one another’s workers and increase production as supply-chain issues reshuffle the global manufacturing landscape. Nick Bunker, economist at the jobs site Indeed, said the numbers were a reflection of the options workers have in the current economic market, with job openings outnumbering unemployed workers and people reevaluating what they want to do.
                                    • About 83% of North American manufacturers who responded to a June survey by industrial sourcing platform and marketing firm Thomas are likely or extremely likely to re-shore, up from 54% in March 2020. “We are witnessing the wholesale reexamination of supply chain relationships, which will realign global manufacturing for decades to come,” said Tony Uphoff, Thomas president & CEO. Process control instrument manufacturers are likely to benefit from an increase in domestic manufacturing.
                                    • While the procurement professionals surveyed by Thomas did identify challenges to sourcing materials locally, including barriers of price (40% of respondents) and speed (23% of respondents), the overwhelming majority of respondents still planned to re-shore operations.
                                    • Production of microcontroller semiconductor units in Taiwan increased 60% year over year during the first half of 2021, according to Taiwan's Economy Minister Wang Mei-hua. Microcontrollers are very small computers that are used for things such as engine control systems, according to New Street Research analyst Pierre Ferragu. The semiconductor shortage has been particularly disruptive for firms supplying auto manufacturers because the production of vehicles relies on dozens of computer chips for electronic components that control engines, transmissions, entertainment systems, brakes, and other systems.
                                    • Semiconductor manufacturers worldwide will have started construction on 19 new high-volume manufacturing facilities by the end of this year and will break ground on another 10 in 2022 to meet accelerating demand for chips across a wide range of markets, including construction machinery. The chips used in process control instruments tend to be basic products such as microcontrollers made under contract at older foundries, not the leading-edge production technology in which chipmakers would prefer to invest.
                                    • Employment in the process control instrument manufacturing industry decreased 1% year over year in August.
                                    • The Federal Reserve expects economic growth to remain above trend for at least two years to come, with GDP growth expected to be 3.3% in 2022 and 2.2% in 2023, compared to estimated long-term potential growth of just 1.8%.
                                    • The federal Equal Employment Opportunity Commission said that employees may be barred from the workplace if they refuse the COVID-19 vaccine. "Requiring a vaccine is a health and safety work rule, and employers can do that," said Dorit Reiss, a professor at the University of California Hastings College of Law. There are, however, some exceptions to a blanket requirement. A collective bargaining agreement may require negotiating with a union before mandating a vaccine. The Americans with Disabilities Act allows workers who don't want to be vaccinated for medical reasons to request an exemption.
                                    • Imports of process control instruments increased 8.5% year over year in the first eight months of 2021 while exports increased 11.6%.
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