Pumps under pressure

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Pumps producers focus on efficiency while battling raw materials shortages and increased competition.

The global pumps market is in the midst of an unprecedented boom. Rapid population growth and industrialisation, along with the need for improved sanitation and more robust water networks throughout the world, are driving the rise in sales volumes.

The world market for industrial pumps was worth US$29 billion in 2006, according to market researcher McIlvaine Company, with just 10 companies supplying 50% of this total. The firm predicts that sales will hit US$38 billion by 2011, with centrifugal pumps accounting for 70% of this figure.

Municipal wastewater is the fastest growing end-use application, followed by municipal drinking water and then the oil and gas market. The power sector is forecast to be the fourth largest market segment in 2011.

Sales of valves are inextricably linked to developments in the pumps market, and this sector is expected to climb from being worth US$43 billion in 2006 to some US$52 billion in 2010.

China's vast expenditure on water and wastewater facilities and its huge pumps and valves requirements for coal-fired power plants and petrochemical, steel and iron manufacturing is driving much of this growth and it is set to overtake the US as lead centrifugal pumps consumer in the next few years.

Region shines

The surge in demand for pumps and valves is as much visible in the Middle East as elsewhere in the world. The region is experiencing a multi-billion dollar wave of commercial and residential development projects, which has triggered a massive programme of water and wastewater infrastructure investments.

Urbanisation creates huge needs for both primary and secondary treatment plants, in addition to the expansion of water production and distribution systems.

"The Middle East is a huge and a fast-growing market. Oil and gas is one of the big markets for pumps here, but there are also infrastructure projects for water and sewerage. Water includes desalination projects and water supply to houses. The collected water is sewage and this requires treatment plants. Then there is water reuse for irrigation and water re-polishing for district cooling: all these applications need pumps," explains Erwin Maier general manager for pumps and valves manufacturer KSB.

Fotis Poulopoulos, general manager at Grundfos Gulf Distribution adds: "The building and utility sectors are driving the boom in pumps sales. In the construction sector, there are four main applications for pumps: water boosting in high rise buildings; air conditioning or cooling; drainage; and firefighting.

Delays mount

The strength of demand from these areas is such that manufacturers are straining to match supply to market requirements. Pumps producers are further hampered by the global squeeze on key raw materials.

Consequently, efficient supply chain management is becoming a critical aspect of the pump business in the Middle East.

"We are trying very hard to meet the demand in the market," remarks Poulopoulos, whose company sells around 20 million pumps worldwide each year.

"The business potential is huge. There is not a shortage of pumps, but there are difficulties and some delays. The difficulty is meeting the tight time schedule of projects over here."

Maier agrees: "Delivery times are too long as factories are too full. Buyers require very short delivery times and reliable delivery times. A client the other day said 'don't come with excuses that castings will not be delivered in time - we know this already but we want pumps in time'."

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