The water pump market in the water supply and drainage industry is increasingly fiercely competitive and price pressures are increasing. All of this forces the pump manufacturer to adopt a more service-oriented approach to its end users. The maturing market is strongly demanding that pump manufacturers seek new ways to increase sales and revenue. Providing packaged services and repairs that are compatible with the product seems to be a correct move that can help it gain much-needed customer loyalty in a white-hot competitive market.
According to reports from the Far East Pump, the market realized revenue of $8.73 billion in 2005 and it is expected that this figure will reach $12.08 billion in 2012. Dushyant Mehra, Frost & Sullivan Research Analyst, said: A key success factor for manufacturers is to provide a one-stop shop for all end-user service and solution requirements, such as on-site assistance, repairs, and spare parts. This trend is increasingly prevalent because end users can obtain information from them with minimal risk while ensuring the proper application and work of the equipment.
Providing solutions that meet the needs of end-users can significantly increase the demand for pumps. The upgrading of old water treatment plants and new construction projects in emerging economies can also significantly increase the demand for water pumps. For pump manufacturers, Latin America and the Asia-Pacific region seem to have particularly great potential because the economies of these regions are growing strongly and there has been corresponding growth in water supply and drainage engineering.
Other factors that may increase pump demand include the energy-saving features of the pump, as well as its longer life and ability to monitor water flow. However, manufacturers can only enjoy the benefits of energy saving by substantially increasing the efficiency of the pump. This is a big challenge for manufacturers, especially after the management of energy consumption may be more stringent from 2006 to 2007.
Mehra said: In order to remain competitive and provide lower prices for products and services, pump manufacturers must minimize administrative and production costs. At present, the loss of energy is as high as 70%, which requires manufacturers to increase product efficacy to solve this problem.
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