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CAPITALIZE ON MARKET CHANGES TO INCREASE MARKET SHARE Rod Smith

Compressed Air BEST PRACTICES Magazine. CAPITALIZE ON MARKET CHANGES TO INCREASE MARKET SHARE Rod Smith. We are kicking #!%! No need for change. 5 Stages of Decline Hubris Born of Success Undisciplined Pursuit of More Denial of Risk & Peril Grasping for Salvation

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CAPITALIZE ON MARKET CHANGES TO INCREASE MARKET SHARE Rod Smith

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  1. Compressed AirBEST PRACTICESMagazine CAPITALIZE ON MARKET CHANGES TO INCREASE MARKET SHARE Rod Smith

  2. We are kicking #!%! No need for change 5 Stages of Decline Hubris Born of Success Undisciplined Pursuit of More Denial of Risk & Peril Grasping for Salvation Capitulation to Irrelevance “How the Mighty Fall” New Book by Jim Collins “The Best Leaders Worry Incessantly About How to be Stronger and Better-Positioned” - Jim Collins

  3. We are busy and with the MARKET CONTRACTION - there isn’t cash growing on trees for “new ideas” • People Make Mistakes which are Magnified in Market Contractions: • Analyze your Competitors • Are they mistreating a customer? • Are they neglecting a geography? • Are you close enough to your market to hear the rumblings of discontent? Choose 1 “New Idea” and throw your Company’s talents at it.

  4. Two Strategic Market Changes 2. The Emergence of SUSTAINABLE MANUFACTURING This is the focus of this presentation. Is your firm positioned to capitalize on this change? The Down-Sizing of U.S. Industry and the Growth of Population-driven Industries Bill Scales Presentation at AICD in New York City New customers: hospitals, dry cleaners, automotive, HVAC, universities

  5. Sustainability = Reducing the Enviromental Footprint

  6. Sustainability at PEPSICO Focus is on the Consumption of: Water Electricity Fuels

  7. Sustainable Manufacturing at Coca Cola Energy is consumed by our system's nearly 850 plants in the manufacturing process to provide the power for equipment such as boilers, chillers and air compressors.

  8. CHALLENGE: TRUST There are Distributors TRULY Committed to Sustainability and Customers TRUST THEM Do Sustainability Program Managers = “Tree Huggers”, “Birkenstock-People”, and “Greenpeace Soldiers”? I have found that they balance the environment with profits evenly. What is your company culture? Is “green” uncool in the machinery world?

  9. Sustainability Receives Investment TODAY because it is a Win/Win ROI’s are Compelling PR is Great - for small companies too Threat of Carbon Credit Legislation

  10. The American Recovery & Reinvestment Act of 2009- $61.8 B • DOE EERE (Energy Efficiency and Renewable Energy) $16.8 B (last year was $1.7 B) • EECBG (Energy Efficiency Conservation Block Grants) $3.2 B • SEP (State Energy Programs) $3.1 B Is your firm the “gatekeeper” to Rebate $’s ?

  11. “Energy Awareness is similar to where Plant Safety was years ago.” “Plant Safety has gone through generations of change and evolution. Now most operations begin every meeting with a Safety Minute. Safety is measurable and visible to every employee.” “We predict the same evolution will happen with Energy Awareness.” Mike Roberts Program Manager Energy & Sustainability SKF FOCUS on Energy Awareness Marketing Opportunity: How Can Your Firm Help Customers with Energy Awareness? SKF Factories 110 globally, 19 in the U.S.

  12. Tools Required Flow Meters Power Meters Leak Detectors “Posters and banners without substance are not enough. You must give plant personnel measurement data”. Mike Roberts Program Manager Energy & Sustainability SKF How Can Your Firm Help Customers with Energy Awareness? How good is your firm at measurement for all customers?

  13. Selling and Deploying Measurement Devices • Flow, temperature, pressure, kW, dewpoint, oil measurement • Data logging Sell software to get the data to the computer screen of the customer so he can manage it. Can you help build energy awareness ?

  14. “Posters and banners are a start. Shop floor awareness cards are effective for us when we hold Energy Minutes on the floor”. Mike Roberts Program Manager Energy & Sustainability SKF How Can Your Firm Help Customers with Energy Awareness? • Market Your Companies Brand Name with Energy Awareness Promotional Items • Leak Tag Boards • Shop Floor Cards/Posters with Measured Energy Data How good is your firm at making energy data visible?

  15. Production Nonproductive “Air compressors are generally our largest horsepower electric motors on-site, and the overall efficiency of a typical compressed air system can be as low as 10-15%. Paul Lukitsch Regional Facilities Manager Millipore Growth in Demand-side Projects

  16. World Wide View Total ~ 2000 HP Or 13,000,000 KWH/yr Or ~ $ 2 Mil/yr Jaffrey NH 4= 600 HP Reciprocating Cork Ireland 8= 550 HP Rotary Screw Bedford MA 3=350 HP RotaryScrew Molsheim France 7= 400 HP RotaryScrew “After two years of demand-side projects, we have reduced the energy consumption of the compressed air systems by 2 million KWH and saved over $270,000”. Paul Lukitsch Regional Facilities Manager Millipore GROWTH in demand-side projects

  17. Trend: Energy Managers need help with compressed air, lighting, steam, boilers, water, vacuum Trend: ENERGY RECOVERY 20-30% of rotaries sold in Europe are sold with heat recovery systems Heat recovery systems are 74% efficient. They heat water for other processes.

  18. Trend: Energy Managers need help with compressed air, lighting, steam, boilers, water, vacuum, HVAC Trend: There are auditors out there who gain 85% expertise in multiple industrial processes…and do very well. Can your firm help your customer save energy in another process besides compressed air? This is a growth opportunity.

  19. Trend: Customers want tailored solutions for their industry….and some are starting to receive them ! Those offering “one size fits all” are in trouble. THIS GROUP DOES NOT HAVE BIG MARKETING DOLLARS FOCUSING ON VERTICAL MARKETS (other brands do and it’s working). Auditors do this. Vacuum and Pneumatics Industries do this…..you are on your own on this one. Trend: VERTICAL MARKET FOCUS There are auditors and firms gaining system efficiency expertise in specific industries….and doing very well. MARKETING: Can your firm bring all your plastic molding customers together to discuss Best Practices? Can you bring some non-customers in plastics together with your happy customers? This is a growth opportunity.

  20. Thank You.

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