China’s PLC market will see moderate recovery
The PLC market in China is expected to recover from a recent downward spiral as more domestic suppliers begin to emerge, particularly in the micro PLC market, according to ARC Advisory Group.
China’s economic growth is at a critical juncture. After 30 years of high-octane growth, it is seeing a comparative slowdown due to internal and external pressures. The macroeconomic data released from the China State Statistics Bureau showed the declining GDP growth rate — 7.8 percent in 2012, lower than 9.2 percent of 2011. This is the slowest China GDP YoY growth in the past 13 years.
The market trend of PLC and PLC-based PACs in China shows a high correlation with the macroeconomic scenario. In 2012, China’s PLC and PLC-based PAC market seems to have declined significantly. But this is a natural fallout; when industrial growth is lackluster, the demand for automation reduces.
ARC Advisory Group’s report, “PLC and PLC-based PACs for China Market Research Study” states that the PLC market in China is experiencing fierce competition and this trend will not change in the short-term. Almost all global PLC suppliers have forayed into the China market, and domestic players are emerging, especially in the micro PLC market. According to David Cao, Country Manager, ARC Advisory Group China, and author of this study, “To succeed in the competitive marketplace, suppliers must differentiate themselves and continue to offer increasing value propositions to end users and OEMs and respond with agility to market dynamics. This is especially important because the market is expected to grow steadily during the forecast period and beyond as users in many industries have recognized that increased automation is vital for increasing productivity, efficiency, and energy conservation.”
China’s PLC market will continue to grow across main industry verticals
From a short-term perspective, ARC believes that China will see a slight recovery in 2013; from the medium and long-term perspective, China’s PLC and PLC-based PAC’s market, which experienced strong growth during the past years, is expected to grow at a modest pace. ARC believes that some of the industries, including oil & gas, automotive, food & beverage, pharmaceutical & biotech, and infrastructure will have better market performance in the next five years—and this bodes well for China’s PLC market.
- Edited by CFE Media. See more Control Engineering discrete manufacturing stories.
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Annual Salary Survey
In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.
Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.