One aftermarket company weighs in on the state of the aftermarket industry.
Business in 2008 and 2009
Quadna, Inc., always has maintained a strong commitment to the aftermarket business. We not only engineer, construct and troubleshoot industrial and commercial pumps and systems applications, but we also provide an equal array of crucial parts, components and system services.
The aftermarket business was lucrative in 2008 and provided many unique work expansion opportunities. With that said, there were challenges due to significant competition in the marketplace. During 2008, we captured numerous projects that allowed us to install a lot of equipment, which will lead to increased aftermarket business in the short- and long-term.
With the current manufacturing slowdown, existing plants must continue to operate and maintain their critical equipment and systems, often with fewer personnel. As a result, there will be more opportunity for quality aftermarket suppliers to provide needed services.
Critical Issues
Due to a decreased number of projects, the aftermarket industry will become more attractive to suppliers that have not been aftermarket-oriented in the past. This will place new pressures on companies that have been providing expertise in this area for decades. Other issues of note include increasing foreign competition, lower quality non-original equipment manufacturers and a more competitive business environment, which may lead to decreased profitability.
Solutions
We have to increase our knowledge and stay more current than ever with new technologies, offer customer training opportunities and provide professional and timely services to maintain our aftermarket relationships.
We already have embarked into this arena through the establishment of a customer training program that we have offered multiple times at our locations in Phoenix, Ariz., and Golden, Colo. During these sessions, our team members focus on mechanical seals, pump repair, troubleshooting and laser alignment-among other subjects-by teaching our customers more about their equipment and systems.
Other solutions include increasing the investment in our own capabilities so we continue to become more self-supportive and outsource less work.
Trends
A key technology trend in our core market sectors is predictive maintenance tools. Our customers are becoming more aware and receptive to the value of these tools, which include laser alignment and vibration/temperature monitoring, among others. This area presents a lucrative opportunity for companies as long as the technological acumen remains at high levels.
Additional Thoughts
The aftermarket business always has been extremely important to us and will remain critical in the future. We plan to follow this path, coupled with steady sales activity and enhanced employee training. Employee expertise and qualifications are what make a company attractive to its customers.
Pumps & Systems, February 2009