2009 MARKET OUTLOOK
RIDING OUT
THE STORM
BY GENILEE PARENTE
AND JUDY TIBBS
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:
RECURRING THEMES
GREEN. What’s happening with
climate change and consumer
perceptions of industry permeated
most discussions, from power—
which has seen a decline in coal’s
popularity—to pulp & paper—which
is being asked to produce greener
products in greener ways.
CHINA. The “
gee-what-an-opportunity” attitude in some
industries is starting to be replaced
by: “oh-oh, look who we have to
compete with,” as China’s power and
capabilities expand.
SKILLS. Virtually every industry that
relies on labor and engineering know-
how is suffering from the lack of both.
STICKER SHOCK. The pace at
which oil prices rose this year was an
unpleasant surprise to every market,
even refining, because no one could
keep up with the pace. Add to that the
skyrocketing costs of materials (think
steel), and it’s no wonder profit
margins are cut to the quick.
