Industrial Control Products Manufacturing

Industrial Control Products Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture industrial controls and control accessories such as relays, motor starters, and controllers. Major companies include Emerson Electric, Honeywell, and Rockwell Automation (all based in the US), as well as ABB (Switzerland), Beijing Sifang Automation (China), OMRON (Japan), Schneider Electric (France), and Siemens (Germany).

COMPETITIVE LANDSCAPE

Demand is driven by overall industrial production and by demand for machinery used to automate various types of manufacturing. The profitability of individual companies depends on technological expertise and efficient operations. Large companies have economies of scale in purchasing and greater ability to offer a wide variety of products to a diverse customer base. Small companies can compete by specializing in niche products. The US industry is concentrated: the top 50 companies account for about 70% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include general-purpose industrial controls, which account for about 45% of the industry revenue, followed by other general-purpose controls (about 30%) and specific-purpose industrial controls (more than 20%). Other products include flow actuated electrical switches, crane and hoist controls, and marine auxiliary controls. Companies may also offer?integrated systems?that combine hardware, software, and communications components to control customers' industrial and manufacturing processes.