Price Hike in DC Motors Markets follows Global Rise in Value of Raw Materials
Palo Alto, CA 10/03/2005 02:42 PM GMT (TransWorldNews)
Palo Alto, Calif. — October 3, 2005 — The global swell in prices of raw materials such as steel, copper and aluminum has forced the direct current (DC) integral horsepower (IHP) motors manufacturers to choose to increase the price of motors in order to offset high production costs.
New analysis from Frost & Sullivan (www.industrialautomation.frost.com), North American DC Integral Horsepower Motors Markets, reveals that revenue in this industry totaled $127.8 million in 2004 and projects to reach $139.3 million in 2011.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the North American DC Integral Horsepower Motors Markets then send an e-mail to Tori Foster- Corporate Communications at firstname.lastname@example.org with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information via email upon receipt of the above information.
“The rise in price of motors as well as the lack of development on the technological front could restrain the market,” says Frost & Sullivan Research Analyst Kishan Bhat. “Motor manufacturers are struggling to balance cost escalations and the need for productivity improvement vital for customer satisfaction.”
To achieve this, the manufacturers are looking for new and enhanced DC motor designs that will decrease the amount of raw materials required in the manufacturing process without compromising on product quality. They ensure customer satisfaction in price and product and expand the consumer base aggressively.
The stiff competitive environment has aided the growth of the giants in the market. These companies have adopted the private labeling concept – buying and selling foreign and cheaper domestic motors in the local market with their labels on it. However, this has resulted in loss of market share for smaller companies as the bigger ones eventually acquire them.
Market participants are under severe pressure to solve price and lead time reduction issues brought to them by their customers, especially original equipment manufacturers (OEMs). Lead time reduction requires heavy investments, while price reduction can harm profit margins. Yet, achieving them simultaneously can fuel the growth of the market.
As the economy starts recovering, most manufacturers are enjoying sales increases and a few are even seeing double-digit growth.
“There is an increase in demand for OEM products due to the global economic recovery and the improved financial situation,” remarks Kishan. “The favorable business climate is in turn leading OEMs to invest in new systems and increase their orders for the DC motors.”
Though there is competition from alternate current (AC) motors, DC motors have cornered niche markets since they afford greater control and efficiency over the other in applications such as industrial (material handling, hydraulic pump drives) and traction (hydraulic lifts, battery operated vehicles).
Further, brushless DC motors is a huge potential segment due to advantages such as low maintenance levels, quiet and smoother operation, and its cost effectiveness, assuring a steady level of growth in the DC motors market.
North American DC Integral Horsepower Motors Markets is part of the 9406 subscription. The study analyses the North American markets for DC IHP motors, segmenting it into wound field, permanent magnet DC (PMDC), brushed, and brushless motors. It discusses the various market trends and opportunities while providing market share analysis, forecasts, drivers, restraints, and revenues. Executive summaries and analyst interviews are available to the press.
Frost & Sullivan, 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. For more information, visit http://www.frost.com.
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Keywords in this release: DC motors, integral horsepower, IHP, North America, wound field , permanent magnet, PMDC , brushed, brushless, research, information, market, trends, technology, service, forecast, market share.