BRIC countries benefit from local industrial motor controls production

As these emerging economies become more developed and labor costs in the countries rise, shifts towards other developing regions are inevitable as suppliers look to take advantage of the benefits an emerging market offers for industrial motor controls.

07/13/2012


http://www.imsresearch.comWith record growth levels in motor controls consumption following the recession, and further growth in 2012, the importance of locating motor controls production closer to consumption is a rising trend resulting in production shifts closest to demand, including China, Brazil, and Eastern Europe, according to IMS Research, recently acquired by IHS Inc.

“As these emerging economies become more developed and labor costs in the countries rise, shifts towards other developing regions are inevitable as suppliers look to take advantage of the benefits an emerging market offers,” states  Analyst John Kendall. Production movement from Poland to other Eastern European nations has already begun, and in China, suppliers are locating facilities in more remote areas of Western China or near Mongolia. As suppliers try to maintain local presence while at the same time keeping labor costs down Southeast Asia and India are expected to see a rise in manufacturing facilities over the next decade as well.

China is the fastest growing regional market for motor controls, and many manufacturers have and will continue to shift portions of their production load to the country. Another contributing factor to production expansion in China is directly related to the restrictive tax policies and import duties suppliers face. The Asia Pacific region, excluding Japan, is expected to produce 49% of motor controls units in 2015, up from 41% in 2010.

Although currently few suppliers manufacture motor controls in Brazil, many are expanding production facilities in the region. Economic and industrial growth in Brazil provides large opportunities to suppliers opening manufacturing locations in the country, as presence in the region is necessary due to restrictive import duties of 14% on all factory automation products and minimum production requirements for local projects.  

Eastern Europe, and, in particular, Poland and Romania, have benefited from the localization trend as suppliers continue to set up new facilities in reaction to European demand for motor controls. The cost of labor in Eastern Europe and the close proximity to some of the largest machine producing countries, including Germany and Italy, is attractive to many suppliers. The EMEA market for motor controls was the largest regional market until Asia Pacific surpassed the region in 2010. With motor control demand continuing to increase across Europe and in large markets such as Germany and Italy, additional manufacturing solutions will be necessary for many suppliers.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
Safety standards and electrical test instruments; Product of the Year winners; Easy and safe electrical design
Safer human-robot collaboration; 2017 Maintenance Survey; Digital Training; Converting your lighting system
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation modernization; Predictive analytics enable open connectivity; System integration success; Automation turns home brewer into brew house
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Natural gas for tomorrow's fleets; Colleges and universities moving to CHP; Power and steam and frozen foods

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
Compressed air plays a vital role in most manufacturing plants, and availability of compressed air is crucial to a wide variety of operations.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me