Andy Gravitt, vice president, automation and control, Schneider Electric North America, perhaps describes it best when he says he approaches 2009 with "guarded optimism," and tells us, ". . . the overall market will grant us no favors in the coming year."

Most companies report growth and opportunities despite financial market turmoil and share ideas to offset the unpredictability. "Today, some of the United States' brightest minds are grappling with issues they did not need to address decades ago-working hard to understand how we can best position ourselves to compete overall in this new global economy," says Tom Seymour, VP, sales and marketing, The Gorman-Rupp Company. "In the end, we believe it all boils down to how you best manage sourcing, product development, technology and manpower to meet the customer's ever evolving needs."

Critical Issues

The Economy
The impact of the chaotic global economy weighs heavily with most industry experts. "The critical question is how quickly the global financial situation turns around and companies return to normal investment strategies," says CEO Carl Christenson, Altra Industrial Motion.

Energy Efficiency

"You cannot talk to an engineer, consultant or contractor in any sector working on a project today where energy efficiency, sustainability or green is not an essential part of these projects," says Grundfos Pumps USA President Dennis Wierzbicki. "Accordingly, government legislation will continue to increase in this area."

Ken Graber, team leader-marketing, ABB Low Voltage Drives, Low Voltage Products & Systems, agrees. "Every kilowatt of energy entering both commercial and industrial environments is more prized than ever as a resource that needs to be utilized fully and completely."

Water Crisis

"At the end of the day, we never really question where our water is coming from, whether it is clean and disease free," says Seymour. ". . . putting forth solutions to maximize water so it can be reused is reshaping the way we do business."

Terry Rouse, president and CEO, WILO EMU USA LLC, says, "The [issue] that is most pressing for the water and wastewater industry is funding-both short term and long term. For much too long, the public has not been included in the dialogue regarding the actual cost of the water and wastewater services they receive."

Infrastructure

Rebuilding the U.S. infrastructure is a key initiative for the new presidential administration and one that directly affects our industry, says Hanson Pressure Pipe President Clifford Hahne, "Under-investing in our infrastructure has put us in a challenging position, but choosing to address it now could be the first step in helping our economy."

ITT Fluid Technology President Gretchen McClain adds, " . . . we are working with various industry alliances to convince state and federal lawmakers that water and wastewater infrastructure investment is just as important as the more visible roads and bridges."

Tom Ferguson, president of Flowserve Corporation's Pump Division, sees this issue as an opportunity for aftermarket projects. "We expect continued, overall strength in infrastructure spending, driven by several factors that include the need to add new or upgrade aging infrastructure, projected growth in demand for potable water and energy security."

Engineering Talent Shortage

"As the ‘boomer' generation moves into retirement, the potential loss of skills and knowledge is serious and requires immediate action," says Dean Douglas, president and CEO, Peerless Pump.

Hydro, Inc., President George Harris adds: ". . . even effective recruiting and training programs introduced now will not solve the current shortage of skilled workers."

Globalization

Markus Seitenberg, executive VP/GM, Lutz-JESCO America Corp., says, "Rising raw material costs have increased the demand for global sourcing. On the other end of the value chain, companies also need to capitalize on currency fluctuations by expanding into emerging international markets like the BRIC countries (Brazil, Russia, India and China). Moreover, global alliances will become increasingly important in order to maximize revenues, profitability and expand global presence in a weakening domestic U.S. economy."

Strategies

Improve Productivity, Reliability and Response Time

"Companies should view the expected moderation and market uncertainty over the next several months as an opportunity to creatively approach their operations with a renewed commitment to optimizing production and improving reliability," says Emerson Process Management President Steve Sonnenberg.

Robert Dotson, western regional manager, RSC Equipment Rental-Pump and Power Division, agrees. "While the economic ‘storm' is in full swing, it has a downstream effect, causing business owners to look for less capital intensive alternatives. . . . with Americans tightening their belts, the most critical issue looking forward for 2009 will be how to best control the cost of a project"

Improve Technology

"I would anticipate a technology resurgence," says Godwin Pumps President John Michael Paz. "We are seeing many different computer-aided or computer-driven components for the pumping solutions we offer."

Focus on Customer Service

One way to offset the downturn trend in the economy, according to KSB, Inc., President Ed Harvie, is a renewed focus on the customer's needs: ". . . those companies that have focused on building relations with their customers and suppliers will become more prominent as the number of projects decrease."

Forming Partnerships to Provide Customized Solutions

"2009 will provide an opportunity for progressive organizations to distance themselves from the norm, and there are partners out there to help them achieve success," says Chris Wilder, CEO of SEPCO.

Pumps & Systems will continue to report about these and other key industry issues.

Tags: January 2009 Issue , Pump Industry , State of the Industry