See more of our State of the Industry 2016 coverage.Pumps & Systems staff spoke with Darryl Mayhorn, president and CEO of Colfax Fluid Handling, about upcoming technologies and the state of the industry.
Q. What are the major trends and/or regulations that will affect the pump industry in 2016?
A. Close customer interaction will continue to be a key priority in our industry. As we have experienced a general compression across some key pump markets, customers are internalizing formerly outsourced purchasing processes, requiring successful pump OEMs to foster trusted relationships with their end users.
Q. What global news/occurrences will affect the pump market and economy next year and into the future?
A. Geopolitical and market instabilities continue to be a key consideration for our industry. While some of the uncertainties around South American countries seem to be normalizing, others, such as those for Russia and Iran, continue to remain open. Potential policy alterations could have market-shifting implications. We expect that next year will continue to be tempered by depressed oil and gas pricing. This downturn in the oil and gas market is intensifying pump user focus on equipment specification and procurement practices. Customers are increasingly willing to consider sensible alterations to long-standing equipment specifications. Pump companies that are nimble enough to adapt to these shifts in customer practices will continue to stand out and lead in the depressed market.”
Q. What are some things that pump and related equipment OEMs should be doing to prepare for the changing landscape in 2016?
A. Prolonged downturns in pump-heavy industries (i.e. oil and gas, marine, mining) are creating an acquisition-favorable environment. Industry-centric OEMs will continue to be squeezed as their market stagnates, enabling exciting acquisition entry points for well-capitalized, diversified companies.
Q. What new technologies will have the most dramatic effect on process industries?
A. Data. The pump industry is lagging behind heavy equipment companies in real-time performance data collection, which can be used to prolong equipment life and ensure optimal operations.