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Today’s news is filled with the closings of newspapers and magazines as the current economy continues to struggle. I recently received a press release that one publishing company is closing 23 controlled circulation publications. A record 279 magazines closed in the first half of 2009, according to a report by Mediafinder.com. The report revealed that 22 magazines have already folded in the first quarter of 2010.

Pumps & Systems is proud to report that business is strong. As we continue to provide high-quality, valuable and practical editorial, our readers continue to be loyal. In producing this useful information, our advertisers also find value. All these components keep us healthy and confident about opportunities for growth. We constantly reach out to our readers and advertisers for input on market trends and information about advancements in technology, and we thank them for their support.

We feel so strongly about the future of the pump industry, we have expanded our coverage of the oil & gas sector with a new publication, Upstream Pumping Solutions, which offers drilling contractors and well-completion professionals practical, hands-on information. We had a successful launch of the new publication this month, and showcased it at the Offshore Technology Conference (OTC) in Houston last month. The premier issue—which features frac pump technology, mud pumps and artificial lift—can also be found at the Global Petroleum Show in Calgary June 8-10. To subscribe to Upstream Pumping Solutions, please visit www.upstreampumping.com.

Currently, we are working on our 2011 editorial calendars for both publications. We continue to search for the most recent advancements in technology and strive to stay informed of industry trends. Our readers will always have an impact on our editorial focus.

Please contact me directly and tell me what regular columns and technical articles interest you. Voice your opinions about our coverage at our social networking site, www.pumpconnect.com as well as on our online forum, PumpChat.

In the meantime, there are many opportunities to chat with us in person as we enter a heavy tradeshow season. Please stop by our booths at AWWA’s ACE 2010 in Chicago June 20-23 and in Orlando for EASA June 27-29.

Each year, Pumps & Systems gathers critical industry insight at the Gabelli Pump, Valve & Motor Symposium in New York. Thanks to about 20 in of snow, this year I spent the entire conference at LaGuardia airport. However, Gabelli’s chief analyst for the pump industry, Jim Foung, was kind enough to share with me his candid observations and expert interpretations of the state of the pump industry for 2010.

“A combination of the weak global economy and lack of inventory stocking exasperated the downturn, which bottomed in late 2009,” Foung says. Without much re-stocking in 2009, Foung said the Gabelli Symposium speakers alluded that if nothing else happened in 2010 but re-stocking, we could see growth again soon. “But right now we are in a holding pattern.”

Simply put, “The economy has not gotten worse, but it has not gotten better,” Foung explains. “Distributors are not building inventories and this could be a new trend for a while. However, if history repeats itself, companies will have to restock at some point.”

Foung said many executives indicated growth in some areas, in particular the shorter cycle, book-to-ship markets in pumps and valves. “Major projects with normal lead time actually held up in 2009, but may be weakening a little now,” he says. “Major projects with longer cycles have caused more price competition, forcing some users to want to renegotiate contracts.”

Another trend for 2010 is a search for strategic acquisitions because of weak organic growth. “Quite a few companies indicated they have financial teams in place that can manage larger companies than they currently have.”

In retrospect, “Last year, cash was king,” Foung says. “The banks were not lending. There was a big concern about liquidity. Now, with some modest growth, metrics indicate that the market has picked up sequentially month over month.”

Foung says he is also hearing from companies beginning to see some benefits from the Stimulus Plan. “Two-thirds of the Stimulus spending has not impacted the economy yet,” he says. “It is a long process. A little bit of that is picking up the demand, which could help to make this a pretty good year.”

In general, “We should see modest growth in 2010 . . . maybe 1-2 percent,” Foung says. “The U.S. is consumer driven. If we have job growth and income growth, consumers will begin to spend again.”

Chuck Stolberg was one of the first people I met in the pump industry. We immediately connected. We were both former sportswriters who made the transition from newspapers to the world of pumps. “The pump industry can be a sport,” he told me when I joined him and his wife, Carol, for a lovely dinner in St. Louis in the spring of 2008. “The good news . . . we are all on the same team.”

It is with great sadness that the entire Pumps & Systems family says goodbye to Stolberg, long-time executive director of the Submersible Wastewater Pump Association (SWPA) and a loyal member of the P&S Editorial Advisory Board. He was an engaging man with a passionate dedication to work and family. It was my pleasure to know him.

He was 61.

Stolberg led the development of SWPA engineering guides such as The Submersible Pump Handbook and The Submersible Grinder Pump Handbook, as well as educational PowerPoint-based programs focused on promotion of submersible pump technology.

“He has been the backbone of the Association for decades,” says Bob Domkowski, business development manager for ITT Water & Wastewater and a SWPA Executive Board Member. “Through his tireless efforts, the Association membership grew, serving the needs of the member submersible pump manufacturers. Under his leadership, membership statistical reporting programs were expanded and the annual Submersible Pump Industry Outlook and SWPA college scholarship programs were initiated.”

Stolberg was involved in SWPA for about 25 years and served as executive director most of that time.

“He has always been the driving force behind the organization, and has used his extensive industry knowledge and contacts to develop and improve the SWPA organization to the point it is today,” says Chris Caldwell, director of engineering for ABS USA and president of SWPA. “Chuck was a very kind and gentle man, with a friendly easygoing nature. He cared deeply about the SWPA organization and its members. I will miss his knowledge and leadership, but the organization will continue, and we are determined to recover from this loss.”

Stolberg is survived by his wife, three children and seven grandchildren. Please leave your comments to this post, and I will be sure to send your condolences to his family.

Top level industry executives are returning to basic business fundamentals in order to survive in an economic climate that remains uncertain. Each January, Pumps & Systems publishes a report on the State of the Industry. As a sign of the times, this year we decided to take a new spin and focus specifically on “Succeeding in Today’s Economy.”

We once again asked a distinguished panel of industry executives to comment on business trends and strategies and more important, we asked them to forecast ideas for moving forward in 2010.

Based on their expert insight, the impact of the Stimulus Package continues to be a common topic of discussion. The industry is finally feeling some positive effects from the bill that has promised to provide a multi-billion dollar boost to the pump industry, particularly in the water and wastewater sectors.

Most executives are not waiting on (or counting on) government funds. They are focusing on business fundamentals and finding creative ways to produce more efficient products and services. Key strategies on the minds of industry executives include managing talent, streamlining processes, reducing operating costs, improving plant performance, managing and controlling inventory, becoming globally diverse and continuing to focus on improving technology.

According to Grundfos Pumps USA President Dennis Wierzbicki, managing supply chains will also be an important strategy for 2010. “As the U.S. begins to grow again, and it will, manufacturers’ approach to markets will be critical for supply chain partners to understand,” he says. “Confusing people in the supply chain will only make it difficult to sell your products and more important for end users to get access.

“Beyond this, the basic business axioms will be needed. Continue to improve processes to be more efficient for the customer and reduce costs. Continue to focus on inventory management, manufacturing excellence and relationship management with shareholders.”

One theme that seems to be a unanimous strategy for companies to succeed in today’s turbulent economy is a continued focus on the customer. “In the end, it is the customers’ perception that matters,” Wierzbicki says. “Interestingly enough, the customers’ needs are what always seem to provide the compass to develop plans.”

Pumps & Systems publishes its annual State of the Industry report in the January issue. We ask top-level executives from large and small companies to give us critical insight on business trends and to help forecast what to expect in the coming year.

This year, we want some perspective from the heart and soul of our readership . . . the end users. Let me know what you think about the State of our Industry as we wrap up a troublesome 2009 and look forward to the possibilities of 2010.

What do you think are the critical issues our industry faces in 2010?

What do you think will be the positive or negative impact of the Stimulus Package?

What do you see as crucial business and technology trends?

What other insight can you give us from the perspective of the end user?

Please comment here, or contact me directly at msegrest@pump-zone.com.

The Pumps & Systems team recently returned from a well-attended WEFTEC, where the word on the street is that business in the industry is increasing and optimism is abundant.

Of course, energy efficiency continues to be a major topic. This is not surprising, particularly coming from a water show. Several key industry players demonstrated products and services with “Energy” as the key buzzword. At an ITT news briefing, we learned some interesting statistics about energy use in water and wastewater. This industry consumes 56 billion kWh of electricity, generates 45 million tons of greenhouse gases and spends $4 billion on electricity each year. ITT tells us the demand is expected to grow 20 percent by 2025, confirming the tremendous recurring savings potential available. For example, anywhere from 15 to 60 percent of energy use can be saved in pumps and motors with the use of VFDs, non-clog pumps and high efficiency selection.

We had discussions with other major pump and motor companies—including Moyno, Grundfos, ABS, ABB and Baldor Electric Company, among others—regarding the importance of using premium efficiency products to reduce energy consumption and environmental impact.

Pumps & Systems has covered energy efficiency for several years, while the interest and concern has continually increased. We recently released our 2010 Editorial Calendar and have continued coverage planned for next year. We would like to hear from you regarding energy issues. What types of technical articles and case studies will help you prepare for new energy efficient standards in the industry? Comment here or contact me directly at msegrest@pump-zone.com.

In the meantime, please view our video coverage of WEFTEC for information on some of the latest products and technologies introduced in Orlando in October. And don’t miss our much anticipated December issue, which reveals the winner and finalists of our inaugural Product Innovation of the Year Award!

This month, visit us at Booth #855 at The Chem Show in New York (Nov. 17-19).

It seems appropriate that our Aging Infrastructure issue coincides with a recent influx of information on municipalities and other organizations (finally) feeling the benefits of the American Recovery and Reinvestment Act. While the immediate impact has certainly not yet come close to the projected promise of significant economic recuperation, at least we have begun to see some activity.

The $787 billion program promised to create four million jobs and allowed for approximately $150 billion in emergency funding for public works infrastructure, with more than $7 billion earmarked for drinking water and wastewater projects.

One of the biggest concerns among pump and motor manufacturers continues to be the controversial “Buy American” clause. John Engman of Emerson Motors says shipping to the site is the critical factor contributing to the confusion over the clause’s compliance requirements. “You may be buying a pump from an American manufacturer, but if the vertical pump is shipped in two sections (pump and motor), then both items must meet the criteria,” he explains.

The paperwork required to ask for the money, as well as the red tape involved with receiving it, has contributed to the confusion and political backlog.

This month we introduced a new online blog and monthly update in print from consultant David Courtney that should help us sort it all out. He uses several tools to closely monitor stimulus activity that affects our industry and post lists of projects in the works. Visit his blog frequently for updates and continue to read Pumps & Systems for vital news and information regarding the ongoing impact of the stimulus package. Be sure to comment about projects for which you would like more information and continue to let us know if you receive orders as a direct result of a stimulus-funded project.

Our October issue features in-depth commentary from ITT’s Colin Sabol on aging infrastructure in municipalities with specific evidence of the impact on our industry and insight on possible solutions.

On the tradeshow front, I just returned from the ISA Expo in Houston where I got a first-hand look at some amazing new industry technology, which will be featured in future issues of the magazine. The Pumps & Systems team will be on the road next week at WEFTEC in Orlando. Visit us at Booth #2851.

Many months have passed since Barack Obama’s stimulus package promised economic relief to our industry. I finally have good news to share.

Sopchoppy, Fla., the first city to receive stimulus money from the Department of Environmental Protection, was awarded $4.3 million from the state’s Clean Water State Revolving Fund. Environment One Corporation is providing at least 200 grinder pumps to the project, which will convert the problematic septic tanks of 300 Sopchoppy residents into a new and improved sewer system by May 2010. City officials say the project would not be possible without the help from the state and federal grants.

The City of Sopchoppy is known for its pristine waters and scenic areas, but because of the city’s layout and some interference from Mother Nature, keeping the water sanitary is a big concern.           

“The fact of inundated septic tanks is over. It’s going to work,” City of Sopchoppy Mayor Robert Greener told Tallahassee’s WCTV. Almost all of the money provided for the Sewer Collection System project will stay within 100 miles of Sopchoppy.

Pumps & Systems reader, David Courtney, a marketing consultant with extensive experience in the pump industry, directed me to www.stimuluswatch.org, which chronicles a list of stimulus projects requested for pumps. He also sent me some great information on a few stimulus-funded projects soon to be in progress, including:

• Corps of Engineer Projects – List of ARRA Approved Civil Works Projects include some pump stations
• Department of Defense – ARRA Fund distribution by State – There are a few for fire and drinking water systems
• Village of Blandchester, OH – To pay for construction of a wastewater treatment plant pump station and equalization basin via ARRA
• Central Valley, CA – To receive $45 million in stimulus funds for water
• Hamel, IL – To receive 1.4 million to modify booster pump and improve pipeline system
• Olanta, SC – Receives $600,000 in stimulus funds to pay for pump station repairs
• Puerto Rico – $72 million for water infrastructure projects via EPA

Stay tuned for more updates. Do you know of any other stimulus-funded projects in the works?

It was not a shocking newsflash when U.S. Vice President Joseph Biden acknowledged in a recent CNN report (July 6, 2009) that the $787 billion economic stimulus program has not yet provided the positive impact originally predicted by the White House. “We misread how bad the economy was,” Biden told CNN correspondent Julian E. Zelizer.

One big criticism is that the stimulus plans were unclear until after the bill was passed and that implementation has been flawed, according to the CNN report. Only a small percentage of the funds have been spent.

The biggest concern for the pump industry, according to experts I’ve spoken with directly, is the Buy American clause. WWEMA Chairman Dave Angelo stated in his association’s March/April 2009 newsletter that the big question and the source of much confusion is what does “produced in the U.S.” really mean? According to the Office of Management and Budget’s latest guidelines, a manufactured good produced in the United States is one that has been “processed into a specific form or shape; or combined with other raw material to create a material that has different properties than the properties of the individual raw materials.”

Angelo says, “Now, doesn’t that clear up the confusion?”

WWEMA has fought to keep grant money out of the equation in order to protect manufacturers that produce high quality products and know how to offer value. Angelo insists that Federal handouts have never been a good solution. “Our industry needs to move away from reliance on the federal government and become more self reliant through full cost of service rates,” he said. “While no one wants to pay more for services, necessity does drive innovation. Paying for the full cost of water will certainly create awareness with the general public and that will ultimately drive the overall costs down either through more productive use of water or through innovation.”

Pumps & Systems will continue to cover this issue, and we hope to soon find positive news to share. Look for the September issue for a report on a project partially funded by stimulus money! The October issue will feature a special section on our aging infrastructure.

Please give us some feedback on how the stimulus package is affecting your business.

For many months, Pumps & Systems has been reporting about the stimulus package and how it could positively affect the pump industry.  We are eagerly awaiting good news. Based on discussions with industry experts, product managers and top-level executives, we may not feel its impact until at least 2010.

Whenever this happens, we want to be the first to report it. P&S plans to feature the first pump purchased with stimulus money. If you are involved with a project supported by stimulus funds, please tell us about it!

In the meantime, we recently returned from the Offshore Technology Conference in Houston and will be covering AWWA in San Diego and EASA in St. Louis next week. We have booths at both shows, so be sure to visit us.

In the meantime, don’t miss our July issue which features our first Success Story of the Year award winner!