The marketplace for industrial automation has been and will continue to be robust into the foreseeable future. The projected global growth rate for automation is 10% with North America at 6%. The primary market drivers are oil and gas, refining, power and energy, bio-fuels, minerals, and food and beverage. Weaker markets for automation include paper, plastics and chemicals. Most industrial end users are continually evaluating their needs for improved and upgraded control systems. The cost justification is usually routine, and if capital is available the work is often approved by management.
The industrial marketplace in the US is comprised of plants greater than 20 years old with legacy control systems. These plants will require upgrades to their control systems in the next 5 to 10 years because the lifetime is generally less than 20 years. Many of these users are looking for independent Control System Integrators who are not tied to a single supplier. They require responsive and professional engineering services that meet their requirements by providing flexibility to engineer, design and configure several platforms (DCS and PLC), third party software packages and a willingness to take responsibility for turnkey solutions.
In addition, a superior Control System Integrator must have the depth and expertise to stay abreast of the tools and technology of several Control System suppliers, such a company will have a winning niche in the automation marketplace. The market for new industrial plants (versus upgrades to existing plants) is not as strong except for bio-fuels and power. As the corn based ethanol industry saturates in the next few years, ethanol plant designs will use biomass materials such as wheat straw, corn stalks and wood. These processes are undergoing development and pilot plant testing now, and will become commercially viable during the next 5 to 10 years.
US Industry must also remain focused on reducing costs and running plants more efficiently. Automation is at the heart of meeting these goals. It allows personnel reduction to occur safely (fewer operators) and allows plant data and information to be effectively used to reduce energy usage, material waste and plant downtime. In addition, data from the plant, available from the control system, can be used to manage the supply chain, production planning and inventory reduction and improve financial performance of a given plant process.
This information was taken from a presentation given at the CSIA 2008 Executive Conference by Rick Devolve, the Directory of Advisory Services from ARC Advisory Group. His presentation, as distributed to the attendees of the conference, can be found here.