BRIC countries benefit from local industrial motor controls production

As these emerging economies become more developed and labor costs in the countries rise, shifts towards other developing regions are inevitable as suppliers look to take advantage of the benefits an emerging market offers for industrial motor controls.

07/13/2012


http://www.imsresearch.comWith record growth levels in motor controls consumption following the recession, and further growth in 2012, the importance of locating motor controls production closer to consumption is a rising trend resulting in production shifts closest to demand, including China, Brazil, and Eastern Europe, according to IMS Research, recently acquired by IHS Inc.

“As these emerging economies become more developed and labor costs in the countries rise, shifts towards other developing regions are inevitable as suppliers look to take advantage of the benefits an emerging market offers,” states  Analyst John Kendall. Production movement from Poland to other Eastern European nations has already begun, and in China, suppliers are locating facilities in more remote areas of Western China or near Mongolia. As suppliers try to maintain local presence while at the same time keeping labor costs down Southeast Asia and India are expected to see a rise in manufacturing facilities over the next decade as well.

China is the fastest growing regional market for motor controls, and many manufacturers have and will continue to shift portions of their production load to the country. Another contributing factor to production expansion in China is directly related to the restrictive tax policies and import duties suppliers face. The Asia Pacific region, excluding Japan, is expected to produce 49% of motor controls units in 2015, up from 41% in 2010.

Although currently few suppliers manufacture motor controls in Brazil, many are expanding production facilities in the region. Economic and industrial growth in Brazil provides large opportunities to suppliers opening manufacturing locations in the country, as presence in the region is necessary due to restrictive import duties of 14% on all factory automation products and minimum production requirements for local projects.  

Eastern Europe, and, in particular, Poland and Romania, have benefited from the localization trend as suppliers continue to set up new facilities in reaction to European demand for motor controls. The cost of labor in Eastern Europe and the close proximity to some of the largest machine producing countries, including Germany and Italy, is attractive to many suppliers. The EMEA market for motor controls was the largest regional market until Asia Pacific surpassed the region in 2010. With motor control demand continuing to increase across Europe and in large markets such as Germany and Italy, additional manufacturing solutions will be necessary for many suppliers.



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
integrated building networks, NFPA 99, recover waste heat, chilled water systems, Internet of Things, BAS controls
40 Under 40; Performance-based design; Clean agent fire suppression; NFPA 92; Future of commissioning; Successful project management principles
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
Tying a microgrid to the smart grid; Paralleling generator systems; Previewing NEC 2017 changes
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me