WaterBriefs: Key factors set to drive growth in European SCADA, DCS markets
Also in this report: Dutch water management groups choose Datastream 7i; Singapore-Tuas seawater desal project earns B&V award; World's largest Filmtec desalination plant now fully commissioned; SPL Enterprise suite enters 2006 with strong momentum; Stormwater360 filtration system certified by N.J. DEP; Vanson HaloSource now just HaloSource; New TiPS white paper discusses alarm management; Blue-White names VP of manufacturing; Stockholm Industry Water Award seeks nominees...
In other news below:
-- Dutch water management organizations choose Datastream 7i
-- Singapore-Tuas seawater desalination project earns award
-- World's largest desalination plant with Filmtec membranes now fully commissioned
-- SPL Enterprise Asset & Work Management enters 2006 with strong momentum
-- Stormwater360 filtration system receives conditional certification from N.J. DEP
-- Vanson HaloSource changes name to HaloSource
-- New TiPS white paper exposes broader implications of alarm management
-- McWane Inc., executive plead guilty, sentenced for environmental crimes
-- Gledhill named Blue-White Industries vice president of manufacturing
-- ABB notes 37,000 attendees at AHR Show
-- Best practices by water sector business sought for Stockholm Industry Water Award
-- Ofwat, Ofgem issue joint discussion paper on financing networks
-- Aqua Society climbs into the ring with UNESCO ambassador
-- Bandersnatch Research 'Observations' newsletter examines coalbed methane development
New product developments, enhanced production efficiency set to drive growth in European SCADA, DCS markets
LONDON, Feb. 8, 2006 -- In response to rising raw material costs and increased competition from low-cost manufacturing regions such as China, European manufacturers are paying greater attention to their operational efficiency. As a result, investment in automation and control solutions is on the rise and providers of supervisory control and data acquisition (SCADA) as well as distributed control system (DCS) solutions are likely to see greater opportunities since these systems are crucial in achieving production synergies and eliminating costs in the manufacturing process.
An added factor aiding the uptake of SCADA and DCS systems is the enhanced value proposition derived from new product developments. Advances on the DCS front have seen the development focus widen from traditional process control to an extended range of applications such as production management, safety instrumented systems, information management and documentation, all handled in one single system. Likewise, advances in SCADA technologies have ensured improved IT compatibility along with the capability to support higher-level business systems such as manufacturing execution systems (MES) and enterprise resource planning (ERP).
"New SCADA systems increasingly offer features traditionally associated with DCS products, such as in-built redundancy," notes Frost & Sullivan (http://automation.frost.com) Industry Analyst Jonas Westlund. "This enables a primary host computer to automatically switch to a secondary computer in the event of a system failure, thereby ensuring that the data remains available to clients in the event of server disruptions."
As a result of these product advancements, differentiation between SCADA and DCS systems has blurred and this has also changed the degree to which these systems compete against each other. Further, with a growing share of the revenues being generated from system upgrades and retrofits, the general reluctance of end users to switch suppliers is restraining competition.
With the retrofit market offering healthy revenue opportunities, large suppliers will benefit from their greater installment base and are thus in a better position to pursue retrofit opportunities. Nevertheless, these suppliers will also be under pressure to extend their offerings through new retrofit product development, a heightened focus on which could negatively impact profit margins and force suppliers to review their costs.
This pressure, coupled with the relative lack of organic growth among many large firms, may in turn trigger a degree of divestment among those firms whose control system business is not a core element. Conversely, this could also force larger market participants to acquire other manufacturers with particular strengths in new product development or with a brand presence in vital end-user sectors.
In response to this challenge, smaller suppliers stand to gain from aligning with competitors in order to reach a wider customer base. This is likely to become increasingly important as multinationals look to source products from a selected short list of large firms with global supply capabilities. Although this may seem improbable in some cases because domestic participants would require a significant incentive to enter into such an agreement, this proposition could be relevant in specific end-user sectors.
The European SCADA and DCS markets across major end-user sectors such as oil and gas, pharmaceuticals, food and beverage, chemicals, power generation and pulp and paper is expected to generate a revenue growth of $691.0 million between 2005 and 2011. With a projected increase of 36.9 per cent, the food and beverage sector is likely to show the highest growth rate and the power generation sector is poised to lead the growth in monetary terms, exceeding $300.0 million for a growth of 28.4 per cent. Individually, SCADA system growth is likely to be $188.0 million compared to DCS growth of $503.0 million.
"While future growth trends between SCADA and DCS do not show any significant changes, the lack of new system opportunities is expected to have a significant impact on future growth patterns," says Westlund. "This is reflected by the expansion of the retrofit market, projected to generate growth of $476.0 million by 2011 as compared to new system growth of just $214.0 million over the same time period."
Frost & Sullivan (www.frost.com), a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
Among other recent headlines:
• Dutch water management organizations choose Datastream 7i -- Waterschap Brabantse Delta and Waterschap Zeeuwse Eilanden select asset performance management solution for water quality infrastructure -- GREENVILLE, SC, Feb. 8, 2006 -- Datastream Systems Inc. today announced that two Dutch water management organizations -- Waterschap Brabantse Delta and Waterschap Zeeuwse Eilanden -- have selected the Datastream 7i™ Asset Performance Management solution to facilitate and automate maintenance, workflow and procurement processes across more than 29 water and sewage treatment plants. Datastream emerged as the vendor of choice due to the company's record of success in the water management industry and its superior product functionality. The Datastream 7i Web architecture, multi-language and multi-org capabilities, usability and configurability were key factors in the selection process...
• Singapore-Tuas seawater desalination project earns award -- Black & Veatch honored for work on prominent Asian desalination facility -- KANSAS CITY, MO, Feb. 8, 2006 -- Black & Veatch, a global engineering, consulting and construction company, was recently distinguished with a 2005 Environmental Business Achievement Award from the Environmental Business Journal (EBJ). The company earned a Project Merit award for its work on the Singapore-Tuas Seawater Desalination Project, which began successful operation in September 2005. Each year EBJ recognizes companies and executives for outstanding achievements in the preservation and protection of the environment. The awards will be presented March 1 at EBJ's Environmental Industry Summit IV in Coronado, CA...
• World's largest desalination plant running with Filmtec membranes now fully commissioned -- MIDLAND, MI, Feb. 8, 2006 -- The second phase of the world's largest desalination plant is now successfully running. Due to the successful start up, the entire plant was fully commissioned and turned over to operations. The plant continues to rely on Filmtec® membrane technology from The Dow Chemical Company for the plant's highly demanding seawater reverse osmosis (SWRO) process. Located in Ashkelon, Israel, the plant serves one of the most water-challenged areas of the world. The plant, owned and operated by VID Desalination Company, is designed to produce a total of 330,000 m3 per day of water. This will provide a sustainable source of fresh water to approximately 15 percent of the households in Israel located in areas with extremely dry conditions and limited fresh water sources. VID Desalination Company is a consortium of IDE Technologies Ltd. equally owned by Israel Chemicals Ltd. (ICL) of the Israel Corporation Ltd. and Delek Group, as well as Veolia Water S.A...
Also see: "Dow's global presence redefined around five major regions"
• SPL Enterprise Asset & Work Management enters 2006 with strong momentum -- Highlights include new contracts, expansions, and successful implementations -- SAN FRANCISCO, Feb. 8, 2006 -- SPL WorldGroup today announced that recent customer sales, expansions and implementations within the SPL® Enterprise Asset & Work Management (EAM) product group demonstrate continued success and momentum and are testimony to SPL's solution being recognized as an industry leader. Among new customers, contract expansions and implementations:
-- The City of Las Vegas Public Works Environmental Division, Water Pollution Control Facility
-- The City of Portland, OR, expanded usage to include Bureau of Environmental Services
-- The City of Tucson, AZ -- expanded functionality to access their EAM from a GIS Web-based mapping interface on mobile computers
-- The City of Calgary, Canada, Waterworks and Wastewater business units
-- The City of Carrollton, TX , initial phase implementation in the Public Works department
-- New York City Department of Environmental Protection, Bureau of Wastewater Treatment -- has completed implementation of SPL in the first two of their 14 plants...
• Stormwater360 filtration system receives conditional interim certification from N.J. DEP -- WEST CHESTER, OH, Feb. 8, 2006 -- The New Jersey Department of Environmental Protection (NJDEP) has issued a Conditional Interim Certification (CIC) for the VortFilter®. The filter is ideal for sites with low hydraulic drop conditions for stormwater treatment. Verified through laboratory performance data, the VortFilter cartridge, in combination with the VortFilter sump sized at a treatment rate of no more than 15 gpm, is rated by the NJDEP to provide 80% TSS removal efficiency. In accordance with the CIC, the it must be used with a pretreatment device as part of a treatment train. Stormwater360 is embarking on a monitoring program to gather acceptable field data in accordance with the Tier II monitoring protocol...
Also see: "Stormwater 360 Endorsed for Stand-Alone Treatment by Delaware Department of Natural Resources and Environmental Control"
• Vanson HaloSource changes name to HaloSource -- REDMOND, WA, Feb. 8, 2006 -- Vanson HaloSource Inc. is changing its company name to HaloSource, effective immediately. The name change was made to present a clear, strong and unified brand in the global marketplace. The company's health science technologies focus on antimicrobial and disease prevention solutions that reliably and effectively kill germs. It provides reliable, tested and proven solutions in the product categories of water purification, industrial fluid treatment, wastewater treatment, infection control and wound healing...
• New white paper exposes broader implications of alarm management -- GEORGETOWN, TX, Feb. 8, 2006 -- TiPS Inc. recently published a white paper that expands the concept of alarm management beyond previous assumptions. Where other alarm management initiatives target the alarm system as the cause of "too many alarms," TiPS paper encourages searching further for the root cause of the problem and stresses a holistic approach to solving it. The underlying theme being: "Alarms are a symptom, not the problem"...
• McWane Inc., executive plead guilty, sentenced for environmental crimes -- WASHINGTON, DC, Feb. 8, 2006 -- Cast-iron pipe manufacturer McWane Inc. and former vice president and general manager, Charles Matlock, plead guilty today in federal court to environmental crimes in connection with the operation of Pacific States Cast Iron Pipe Company (Pacific States). Specifically, McWane pleaded guilty to two counts of submitting a document to the State of Utah containing falsified emission test results. Matlock pleaded guilty to one count of rendering inaccurate a testing method required by the Clean Air Act (CAA). McWane was ordered to pay a $3 million fine-the largest criminal environmental fine in the state of Utah-and to serve a three-year period of probation. Sentencing for Charles Matlock is scheduled for May 2...
• Gledhill named Blue-White Industries vice president of manufacturing -- HUNTINGTON BEACH, CA, Feb. 8, 2006 -- Robert Gledhill was elected vice president of manufacturing at the annual Blue-White stockholder's meeting held in January 2006. Blue-White's CEO Fran King made the official announcement at Blue-White's January board of director's meeting. He began his Blue-White career while still a student at Orange Coast College, coming on board full-time after earning his degree...
• ABB on AHR Show: What happened and what it signifies -- CHICAGO, IL, Feb. 8, 2006 -- A record 37,000 visitors walked the more than 411,000 square feet of exhibits occupying the North and South Halls of McCormick Place in Chicago Jan. 23-25, as part of the 76th Annual AHR Expo -- the world's largest HVAC&R trade show event. Those numbers, along with the 1,981 exhibitor companies on the floor, shattered all previous records for attendance at the show. Among the exhibitors, ABB showed its latest drive technology and BACnet serial communications...
• Best practices by water sector business sought for Stockholm Industry Water Award -- STOCKHOLM, Feb. 8, 2006 -- Companies that have contributed to pollution elimination or reduced freshwater consumption through innovative programs, policies, processes or products now have the opportunity to be nominated for the prestigious 2006 Stockholm Industry Water Award. The Stockholm Water Foundation presents the award in collaboration with the Royal Swedish Academy of Engineering Sciences and the World Business Council for Sustainable Development. Nominations are now being taken...
• Ofwat, Ofgem issue joint discussion paper on financing networks -- BIRMINGHAM, UK, Feb. 8, 2006 -- United Kingdom water industry regulator Ofwat and Ofgem, the energy regulator, have today published a joint discussion paper looking at ideas for regulating the efficient financing of utility companies' capital investment programs. The paper also looks at ways these companies and the regulators could deal with the financial constraints arising from the need to deliver large capital programs. Although the focus of the discussion paper is on the water and energy sectors, the analysis will also have relevance to other regulated sectors such as rail and civil aviation. The publication, Financing Networks, was commissioned by Her Majesty's Treasury (HMT) and the Department for Trade and Industry (DTI) who wanted to look at financial issues facing regulated utility businesses...
-- "Fletcher appointed as chairman of new Water Services Regulatory Authority"
-- "Ofwat publishes consultation paper on length of price limit periods"
• Aqua Society climbs into the ring with Dr. Wladimir Klitschko -- HERTEN, Germany, Feb. 8, 2006 -- Aqua Society today announced that in view of the humanitarian activities of professional boxer,and Doctor of Sports Medicine and Philosophy, Wladimir Klitschko, the company recently invited Mr. Klitschko to attend a private presentation on Aqua Society's activities. Following a meeting that lasted several hours between Dr. Klitschko, his management agency Sportfive and Aqua Society executives, the parties agreed that Aqua Society acting as the main sponsor of the upcoming IBF World Championship match between Mr. Klitschko and Chris Byrd would be an outstanding way to draw public attention to the organization's activities. The match will be held this coming April 22nd at the SAP Arena in Mannheim. Mr. Klitschko, who is a UNESCO special ambassador and holds a Ph.D in sports medicine and philosophy, explained the reason for the alliance as follows: "In view of the worldwide water shortage, the issue of drinking water resources is of major international significance"...
• Bandersnatch Research 'Observations' newsletter examines coalbed methane development -- BOZEMAN, MT, Feb. 7, 2006 -- Bandersnatch Research examines coalbed methane development in 'Observations', its free weekly newsletter that helps connect the dots for investors and researchers interested in the energy industry. The following excerpt from the Feb. 1 edition leads off the discussion. Coalbed methane (CBM) is an unconventional form of what most of us know as natural gas. Drilling for CBM has raised environmental and agricultural concerns in the western U.S., and as development begins of CBM deposits in Appalachia, IL, and elsewhere around the country, these areas will grapple with these concerns and the biggest issue of all -- water. In some drilling fields, thousands of barrels of water a day are pumped out of CBM wells and discharged either into rivers and streams or impoundments where the water eventually evaporates. The main problem with this water is that it is often so full of minerals and salts that it kills plants and animals refuse to drink it. The water issue, which has united some environmental and agricultural interest groups, can be solved at a price. The U.S. needs to determine what the CBM deposits are worth, and who will pay the price for developing them...
In earlier newsbriefs, see: "WaterBriefs: Siemens deploys industry's largest mobile water filtration system" -- Also in this report (Feb. 7, 2006): Australia's Western Water selects ViryaNet for customer care, asset management; Fujitsu to support EPCOR on regulatory reporting, accountability requirements; Funding for protecting PA streams threatened in proposed federal budget; Baker awarded environmental contract from National Park Service; GE Energy to provide SCADA distribution management system to KeySpan; ESCO announces acquisition of Hexagram; SecureWave unveils Santuary for Windows server control functionality; McCrometer opens Asia Pacific sales & service hub in Australia; Telvent names oil & gas business development director; Rohm & Haas elects vice president, declares dividend; Pennsylvania wastewater facility wins EPA award; Cla-Val celebrates 70th year serving water industry; Itron unveils positive outage, restoration functionality for fixed networks at DistribuTECH; Maricor Group, Steven Winter Associates terminate proposed acquisition...