Abstract
Research Overview
Providing Customising Solutions Likely to Soften the Impact of Price Pressures felt by Measurement Gage Manufacturers
The lack of recent technological advancements combined with heavy capital
expenditure (CAPEX) poses a daunting challenge to the world measurement gages
industry. As a result, manufacturers are facing mounting pressure as end users
try to limit their CAPEX spending. With an increase in globalisation, there is
a shift in focus towards eastern European countries as well as a few Asian
ones, including China and India. As the price performance ratio and
value-added services gain importance, customised solutions are being
preferred. Understanding the degree of sophistication required by customers as
well as the price they are willing to pay for upgraded systems is expected to
aid manufacturers in gaining a firm hold in the measurement gages market.
Rapid Development in Asia Pacific Leads to Increased Demand for Measurement Gages
"Due to globalisation, there is a shift towards Asian and east European
markets for cost optimisation and China is one the largest producer as well as
consumer associated with gages," says the analyst of this study. "There is a
trend among market participants of setting up new branch offices in China and
India to showcase their global presence and dominance."
Most countries in Asia are witnessing growth in terms of construction and
infrastructure expansion. This is leading to a heightened need for measurement
gages, thus driving demand. In addition, the automotive industry is
developing, which is in turn increasing the demand for measurement gages used
by this industry.
Increased Measurements Needs Drives Demand for Gages
The growth of the automotive industry in turn creates demand for critical
measurements from the aerospace and defence as well as metal industries. End
users prefer tighter tolerances coupled with custom specifications, thus
increasing the need for gages. Due to the lack of technological advancement,
end users are retaining their old machines with regular calibrations.
Understanding the specific needs of end users and discovering new application
needs with the available technology are likely to bode well for manufacturers
of measurement gages.
"China and India, being the two most populated countries in the world, offer
immense growth opportunities in the automotive, telecommunication and
electronic industries," notes the analyst. "As these industries develop, their
dependency on measurement gages to deliver value to their customers is in turn
likely to increase, thus buoying the measurement gages market."
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