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 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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 4, 2022 - Semiconductor Shortage Becomes Surplus
                                    • Demand for computers, peripherals, and other high-tech products is decreasing after a pandemic-driven surge, and a semiconductor shortage is now turning into a surplus. Firms that could not get enough chips or paid near-record prices for them may see greater availability at lower prices. Semiconductor manufacturer AMD warned that third-quarter sales would be about $1 billion below the already subdued forecast it issued in August. "The PC market weakened significantly in the quarter," AMD's CEO said. Technology giant Samsung also warned that third quarter operating profit would miss consensus forecasts. Intel is planning its first major layoffs in almost six years, according to Bloomberg News. The company warned in July that 2022 sales would be about $11 billion lower than it previously expected. Analysts are predicting a third-quarter revenue drop of roughly 15%. Slowing consumer spending amid high inflation are key causes of slowing sales.
                                    • Companies in Europe that make steel, fertilizer, and other feedstocks of economic activity are shifting operations to the US, according to The Wall Street Journal. Firms are being attracted by more stable energy prices and muscular government support. Some economists have warned that natural-gas producers including Canada, the US, and Qatar may struggle to fully replace Russia as a supplier for Europe in the medium term. The continent could face high prices, at least for gas, well into 2024, threatening to make the scarring on Europe’s manufacturing sector permanent. The US federal government has created many incentives for manufacturing and green energy, resulting in a playing field increasingly tilted in the US’s favor, executives say. The incentives are particularly enticing for companies placing bets on projects to make chemicals, batteries, and other energy-intensive products.
                                    • Domestic process control instrument manufacturers are likely to benefit as China struggles with several problems affecting a broad swath of industries. Drought, heat, and coronavirus outbreaks have reduced output in many areas. Coronavirus outbreaks have caused lockdowns that stop production, while drought and heat have caused some regions to suspend industrial production to ensure residential power supply. Economists also warn of weakening external demand that may hinder China's exports.
                                    • Process control instrument manufacturers may be negatively impacted by restrictions imposed by the US government on exports to Russia of equipment for Arctic, deepwater, and shale oil and gas exploration and production. Restrictions have also been placed on exports of oil refining equipment. Export of onshore and conventional shallow-water drilling gear are still allowed. Experts say that the US likely has held off on barring those items to limit collateral impact on the European Union, which is more dependent than the US on Russian oil and gas imports.
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