North American Pneumatic Filters / Regulators / Lubricators and Accessories Markets

Research Overview

Outsourced Manufacturing Aids Participants in Reducing Expenses

The mass manufacturing exodus from the United States to low-cost Asian regions such as China is changing the dynamics of the filters, regulators, lubricators, and accessories (FRLAs) market. Labor being the largest source of expense for North American manufacturers, outsourcing is proving to be a highly economical option. Manufacturers are gaining large savings margins by shifting manufacturing to countries such as China which offer low cost labor at 50 cents an hour coupled with a lenient regulatory atmosphere. On the other hand, wages are as high as $19 per hour for a U.S. worker. However, despite all steps taken to ensure maximized cost cutting, labor continues to be the largest expense in this manufacturing sector.

This Frost & Sullivan insight into the North American pneumatic FRLAs markets studies the scenario in the United States, Canada, and Mexico ? Current market challenges, restraints, drivers, and trends, and competitive issues. The research is segmented into the various product types such as the pneumatic filters, regulators, lubricators, and accessories (including couplings, tubing/hoses, soft start valves, and fittings).

U.S. Economy Key Deciding Factor in Pneumatic Components Market

The recent U.S. economic recession had shaken consumer confidence and hit most manufacturing sectors including pneumatic components. The reduced revenues and declining demand in the U.S. economy affected the economies of Canada and Mexico as well, due to their proximity.

"However, anticipated improvement in the economies of all three North American countries, along with the performance of key industry user segments is expected to bring some nominal growth back to the industry in the near future," says the analyst of this research. "The overall manufacturing sector is finally experiencing growth and key pneumatics FRLA end users are projecting growth, including the materials handling and biomedical sectors."

Enhanced Customer Service Helps Participants Retain Market Share

Competition is increasing in the FRLAs markets and customers are shifting loyalties while brand value falls. To retain market share and arrest fluctuating customer loyalty, it is imperative that manufacturers revamp policies, thereby making them more customer centric. Differentiating technology and customer friendly policies are primary to market success in the near future.

"A strategic consumer policy includes more than just giving good customer service by being timely and accessible, and having the support/information needed by a customer," explains the analyst. "It also means including that customer in research and development issues regarding machine innovations and upgrades, and knowing the customers market so as to understand the clients needs at the point of production."

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