Challenge 1 - Lack of proper standardization and certification creating issue for backward and forward integration with field devices

The major area of concern where the current focus lacks is to implement proper standardization and certification for ensuring authenticity which is creating issue for backward and forward integration with field devices.  

This has been a concern as in the last couple of years, the valve manufacturing industry was focused on identifying low-cost manufacturing destinations as ‘Outsourcing’ had huge pricing benefits. Despite the pricing benefits, low quality and late delivery were serious concerns to the manufacturers and end users.

This has been a major problem faced by most of the buyers sourcing from low-cost countries as high rejection rates and delayed delivery were also a result of this failing quality of products. Growing supply chain demands development for new standards to ensure the quality compliance for products and processes. The existing standards organizations include all international associations such as the American Petroleum Institute (API), the American Society of Mechanical Engineers (ASME), the American National Standards Institute (ANSI), and regional associations such as European Committee for Standardization (CEN), BSI Valve Standards (the United Kingdom), CSA Valve Standards (Canada), DIN Valve Standards (Germany), EEMUA Valve Standards (the United Kingdom), and JSA Valve Standards (Japan) are some of the predominant industry standards when we speak from global prospective.

TechSci Research one of the leading management consulting firm extensively working with Valve Manufacturers has been helping clients to implement such standards by providing key elements and protocols the manufacturer needs to follow which will comply with the protocols that are requisite for the certification. The mandate steps the manufacturer needs to follow, and cost involved into it can also be provided much in advance before the client files for the same, so that with minimum alteration the manufacturer can streamline the processes.

Challenge 2 - In India approximate 600 plus valve manufacturers are present hence product differentiation is a big issue for positioning

Another major concern is the ambiguity in this industry related to fragmented nature of smaller players active in the market.

This has been a concern because in India the competition and market situation greatly vary with varied demands and expectation from the end user. Considering there are almost 600 plus valve manufacturers present in the said territory hence product differentiation is a big issue for positioning the portfolio in right context and with clear demarcations.

TechSci Research have found solution to this by providing real-time visibility to the industry to conduct product benchmarking analysis. By providing strategic reports in this regard TechSci cover specification, price, type, material, application wise comparison in a much-detailed way which saves time and effort of the industry leaders.

Challenge 3 - The current industry is facing challenges from compatibility issues

Another major concern noticed in the ecosystem is to understand the compatibility parameters based on demand from the market and the portfolio range available with the manufacturer.

As an expert from application prospective TechSci Research carries out need-gap analysis wherein they showcase the type of product line and specification wise demand from the market to streamline the portfolio. This helps valve manufactures to create best fit portfolio with respect to the changing market behavior and can plan short and long-term portfolio management in a much diligent way.

Thirdly TechSci Research also conducts focused research study on each type of product and has projected market forecast for 5 years (Ex: Ball Valves, Knife Valves etc.). This research has helped Valve manufacturer with identification of new untapped markets where manufacturers with specific focus on fewer top of the line products are evaluated in an independent way to lead the market rather than following competition.

Valve manufacturers are recommended to conduct Innovation management analysis wherein they need to understand the best practices in the industry by assessing the performance area to stay ahead from competition.

Challenge 4 - Downtime for repairing and mining is a big issue for the market specially if involved in critical processes like primary flow path

Next major problem is downtime for repairing which has been a big issue for the said industry specially if involved in critical processes like primary flow path. This has been a major concern as many small-scale valve manufacturers are not versed with power of automation and the precision it can provide recurrently.

TechSci Research has helped Valve manufacturers by conducting research studies that provides latest automation updates, solution provider’s new offerings that will help the Valve manufacturers to stay updated about the recent development from Industrial automation and process control fraternity.

Considering predictive maintenance management, inventory management, process optimizations solutions are some of the key pain point areas for the valve industry, as proper consultation is lacking in most of the cases where only adequate solution offering is not prescribed properly.

In order to resolve this Valve manufacturers are recommended spend more on market research to identify available solution to target end user verticals based on benchmarking analysis in real-time.

Challenge 5 – Major brown field projects need change management which majority failing to understand.

Change management is the most difficult part which requires correct assessment of CAPEX and OPEX related investments. This predominantly needs clear understanding that from backward and forward integration prospective what all elements need to be crucial so that the architecture upgradation does not obsolete majority of the current asset, TechSci Research as an expert understands the changing technology environment with clear knowledge on associated entities hence they help Valve manufacturers to visualize the same much ahead of the initial planning that would make the transition smoother in the long run. TechSci Research brings on the table use case scenarios justifying the ROI so that the client knows all the alternatives and are able to take much more informed decision which brings radical optimization in the brown field projects.

TechSci Research as a leading market research and consulting company working in the valves industry sees global and regional valve industry as key entities which needs extreme changes in the strategic deployment. In order to cope up with promising trend for Oil and Gas Up, Mid and down-stream industries, remote monitoring technologies become predominant across Oil and gas operations as SCADA is fighting fit in driving actionable intelligence and achieving superior operational efficiency. Regardless of being challenged by evolving technologies like M2M, SCADA solutions still find a sweet spot in the mid-stream due to the complex end-user architecture. Another key trend observed is dependency on third party compatibility with field instruments considering refresh rates for operational optimization and to have better flexibility to synchronize with legacy systems. Hence it is need of the hour that field device industries like Valve industry needs to take into account the critical problems they are facing which leads to ambiguity to arrive at clear demarcation of future proof product portfolio.

Author: Mr. Deepankar Bose, Research Manager, TechSci Research

Mr. Deepankar Bose is a seasoned research and consulting professional with over 9 years of experience. Mr. Bose has been instrumental in devising winning strategies for many leading conglomerates and has been an avid speaker in some of the most prestigious conferences such as Bloomberg, CII, etc.