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.


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 2013 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...
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

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.