POQUOSON, Va. (June 17, 2016) -- The Measurement, Control & Automation Association (MCAA) has published its Annual Market Forecast for 2016. The report focuses on the process instrumentation and automation (PI&A) markets in both the U.S. and Canada. Twelve industry segments and product categories are examined in-depth, with a forecast timeline extending to the year 2020. The PI&A market in the U.S. did experience growth in 2015, however that growth was minimal. At $11.6 billion, the increase was 0.3 percent above the 2014 level of $11.1 billion. Lack of growth was attributed to a decline in oil prices as well as a downturn in mining and mineral spending due to falling commodity prices. Another factor is surplus capacity in the metals, cement, and pulp and paper sectors that is suppressing demand for those products. A strong dollar and weaker economies in China, Russia and Brazil have also reduced U.S. domestic demand for PI&A products and services. Five industries within the U.S. are expected to experience above-average growth for the period 2015-2020: electric utilities, pharmaceuticals, chemicals, refining, and food and beverage. These industries will account for $7.8 million in 2015, expanding to $9.4 million in 2020. In Canada, process industries will grow slightly slower than in the U.S. Mining and oil production comprise nearly 20 percent of the Canadian economy. The drop in oil and gas and mining and minerals spending resulted in a 4 percentage-point drop in the PI&A growth rate for 2015. Canadian process industries are positioned for growth over the forecast period. Metals, cement, water/wastewater and chemicals are all expected to profit from increased government spending on infrastructure. MCAA exists to help the management teams of process and factory automation product and solution providers run and grow successful businesses by offering timely, unique and highly specialized resources acquired from shared management benchmarks where proprietary company information is secure.
Fri, 06/17/2016 - 15:17