Supply Market Insight

Transcription

Volume 1, February 2013
Supply Market Insight
In this issue:
Introduction -
Richard Reynolds
Market Analysis
Market Trends
Industry Outlook -
In Focus -
Global Metals & Materials
Category Profile -
Hot Topic -
Mining & Aluminium
Valves
Modularization
Keeping counterfeits out
of the supply chain
Introduction
Welcome to your copy of the 2013 Volume 1
edition of WorleyParsons Supply Market
Insight. This bi-annual newsletter provides a
snapshot of current industry trends in pricing
and delivery for some of the key products that
directly affect our projects in the Engineering
and Construction industry. The newsletter is
built on various industry price indices (Sources:
SSB, IHS, PMI-Markit) and suppliers who tell
us what they see in the market place that’s
affecting their price and delivery.
2
WorleyParsons - Supply Market Insight - Volume 1, February 2013
Contributions/Feedback - [email protected]
This edition contains the latest trends in
pricing, demand and supply covering electrical
equipment, pressure vessels, mining and oil
equipment, industrial valves, heat exchangers,
turbines, concrete, steel, wages, non-ferrous
metals, stainless steel and ferro-alloys.
The newsletter also provides news on market
trends, industry outlook (Mining), Category
Profile (China Valve Industry) Logistics,
Modularization and a Hot Topic section on
keeping counterfeits out of the project supply
chain.
Because of constantly changing market
conditions, data is subject to change.
Supply Market Insight is available from the
Procurement SharePoint site portion of
WorleyParsons intranet at: http://knowledge.
worleyparsons.com/procurement/market/
Supply%20Markets/Forms/AllItems.aspx
For more information, additional copies, or to
be added to SharePoint alerts, please contact
Nagesh Thiagarajan, +1 (403) 385 2082
email [email protected]
or Rob Simmonds, +1 (403) 692 3640
email [email protected]
We continue to work with the Procurement
Network to share changing conditions in
the market place throughout the year and
issue market updates as events dictate via
SharePoint alerts.
Richard Reynolds
Sincerely,
Global Procurement Director
Market Analysis
The End of an Era
Richard Reynolds – Global Director Procurement
3
Five years on and counting from the onset of the global
financial crisis, and the world continues to be embroiled in
economic turmoil. While few – if any – markets seem immune
from the continued uncertainty in the economy, all eyes are
sharply focused on Europe. Indeed, the ongoing debt crisis that
continues to grip many of the markets within the Eurozone has
created unprecedented uncertainty for businesses across the
globe. Against this backdrop, the pace of change in the business
environment has continued to pick up speed; regulation is being
introduced at an uncompromising rate; new technologies are
being launched into the market on an almost weekly basis; and
business models are rapidly evolving in almost every industry
sector.
Despite near-term narrowing of demand, the world remains at
risk of long-term supply constraints. This danger will grow as
customer’s slow production in the face of capital cost increases
and growing shareholder demands for more immediate returns.
Although customers are hesitant to invest aggressively, one
thing is clear: failure to replace depleting assets will result in
higher future commodity prices. Significant rewards will be
available to the customers that invest today.
Projects all over the world are feeling the heat associated with
rising operational and capital costs at a time when the economics
of projects are starting to look less attractive as commodity
prices head south. This is forcing customers to put much greater
focus on projects returns versus production volumes.
Market Analysis
Projects need to earn their keep and only the highest quality
projects will get the green light.
Yet the news isn’t all bad. For example China’s ongoing
commitment to its current five-year plan has seen the country
vow to spend an estimated CNY10 trillion (USD6.25 trillion) by
2015 in seven strategic industries.
In the first four months of 2012, these initiatives translated
into spending of CNY700 billion (USD4.4 billion) on
selected infrastructure projects. Ongoing urbanization and
industrialization around the globe also promises to spur
heightened demand for commodities in the years to come.
These conflicting global indicators leave customers in a
quandary. On the one hand, making investments decisions
without a clear understanding of future demand patterns
can result in an ineffective allocation of capital resources –
squeezing margins, threatening profitability and sparking
shareholder ire. On the other hand, taking a wait-and-see
approach will prevent customers from meeting future demand,
potentially spurring a new commodity super-cycle that could
push prices to unsustainable levels.
Given shifting market realities, customers need the ability to
develop accurate business cases, but the frequency of capital
project overruns calls this competency into question. Around
the world, we see projects exceeding budgets, alienating
customers and shareholders in the process. Valid reasons for
these overruns exist; more technically challenging projects;
both skilled labor and specialized equipment are in short
supply; compliance costs are rising; infrastructure bottlenecks
are interfering with project delivery. Yet the external cost
environment is not entirely to blame for cost overruns and
schedule slippage. Other factors also contributing to poor
performance include insufficient governance systems, poorly
developed risk and control mechanisms, and inadequate project
scoping processes.
With customers under sustained pressure in the face of
rapid change and economic uncertainty WorleyParsons is
proving capable of seizing opportunities and thriving in this
environment – work sharing and sourcing-led change is being
used successfully to deliver a competitive advantage. This is
forcing greater standardization and off shoring of work to drive
the right cost bases for new revenue growth. Standardization
of processes and tools is giving us more control and making
performance more predictable.
4
Another supply market trend is a consolidating supplier market.
There have been some outstandingly sharp companies popping
up in recent years offering an agile and adaptable service and
frequently taking advantage of technology in ways that some
of the larger companies rarely managed.
The future presents another challenge – are the movements in
the market taking away competition and tailor-made solutions
and reducing their offering? Procurement will need to ask
tough questions of their suppliers and watch the market closely
for the opportunity to find the right fit despite the frequent
acquisitions.
In sourcing terms, much has been written about the shifts in
China and its position as a low-cost provider of labor; in a sense,
that trajectory has been followed as many said it would and
businesses have been in a position to, if not anticipate, then
at least prepare a reaction. Europe meanwhile has spluttering
growth, political strife, a shaky unified currency and a still
inflexible labor market. That’s not to write off the appeal of a
whole continent for business, but it’s hard for industries that
are looking to press on into the huge demand of faster growing
economies to ignore the fact that Europe presents a problem.
Supply chains will need to be more agile and, increasingly
transparent. More simply said than done, one problem is that
the pressure to redesign existing supply chains is coming from
two directions. Internal customers who introduce demand
volatility as they try to capture market share which entails
the use of any number of techniques to make the supply
and the price of a product more responsive to the needs of
the customer. Meanwhile, there are still customers who do
not understand the complexity inherent in supply chains
and continue to grapple with the risks and immediate costs
associated with sourcing from suppliers one level below the
first tier.
Speaking of risk – for all the focus that gets placed on
everything from natural disasters, terrorism and currency
collapse, the obvious risks are possibly the political ones. With
the standout example of the Arab Spring, it’s not hard to think
back to when political shifts changed the supply chain dynamics
of a region.
In short, the times … they have changed. For me, it is the end of
an era.
Market Trends
Global
Manufacturing
and Services
Purchasing
Managers Index
5
The global economy continued to expand at the start of 2013,
with output increasing in both the manufacturing and service
sectors. At 53.3 in January, the Global All-Industry Output Index
– produced by JPMorgan and Markit in association with ISM and
IFPSM – signalled that global output has now risen throughout
the past three-and-a half years, albeit the latest increase had
weakened since December.
The easing seen at the global level was almost entirely centred
on the US, with the rate of expansion ticking slightly higher (on
average) outside of the world’s largest national economy. The
US nonetheless remained a strong performer overall, with its
rate of growth comfortably above the global average.
India continued to expand at a solid pace, growth accelerated in
China, while conditions stabilized in Japan. The downturn in the
euro area also eased further.
Growth of economic activity was underpinned by improved
inflows of new business, work on existing contracts and rising
levels of employment. The level of new business rose for the
forty second successive month in January, with the rate of
growth ticking higher to its fastest since March last year.
Manufacturers and service providers both reported modest
increases in new business, while there were also signs that
international trade flows – a key bellwether of global market
strength – were close to stabilizing.
Market Trends
The level of outstanding business contracted
for the ninth consecutive month in January,
with the rate of reduction broadly in line with
the average for that sequence of decrease.
Manufacturers and service providers achieved
broadly similar rates of contraction in work-inhand. Meanwhile, global employment rose for
the fourth successive month, with the rate of
jobs growth reaching a near two-year high.
PMI™ data summary
The US remained the strongest performing
economy overall in January, followed closely by
India. However, the rate of expansion slowed
sharply in the US, accounting for much of the
slowdown seen at the headline global level.
Encouragingly, the rate of increase in output
(on average) picked up outside of the US. There
were signs of a further growth acceleration
in China, while the downturn in the Eurozone
eased further. Japan returned to (marginal)
growth.
2013
A diverse picture was seen among the four
largest euro members, with strong growth in
Germany contrasting with ongoing downturns
in France, Italy and Spain.
Output in France fell at the steepest rate of
these four countries, causing the gap between
the headline indices for France and Germany to
increase to the widest in the survey history.
The US saw the most substantial increase
in payroll numbers of the nations covered
by the surveys, with the rate of expansion
in workforce levels in the US hitting a near
seven-and-a-half year peak. Employment also
continued to rise in China, India, Brazil and
Ireland.
There was a return to jobs growth in the
UK, while Japanese payroll numbers showed
little change over the month. In contrast,
the Eurozone saw further job losses, with
reductions reported in each of the big-four
euro area nations.
6
Source: Markit Economics Ltd.
Global
Metals PMI
Production expands in Asia and
the US, but falls in Europe
7
Commodities PMI data from Markit signalled
an expansion of output at copper, aluminium
and steel users worldwide in January. Growth
accelerated from December, with output rising
at marked rates at copper and steel users,
and modestly at aluminium users. Purchasing
activity also increased at global metal users
in January. Stocks of purchases fell modestly
at steel and aluminium users, and slightly at
copper users.
moderate rates of growth. This was the second
successive month where output increased
at aluminium and copper users, with growth
rates increasing for both metals from marginal
rates in December. Steel users registered
growth for the third month in a row, with the
rate of expansion also quickening slightly
from December. Across the monitored regions,
output increased in Asia and the US but fell in
Europe.
at a modest pace. Aluminium users registered
an increased amount of purchasing activity
for the second month in a row, with growth
quickening from December to a modest pace.
The quantity of purchases at steel users also
rose, and for the third successive month.
Furthermore, the rate of growth accelerated
from December. Across the monitored regions,
input buying increased in Asia and the US, but
fell solidly overall in Europe.
Global metal users signalled an increased level
of production in January. Copper-, aluminiumand steel-intensive firms all registered
Purchasing activity increased at global metal
users in January. Input buying at copper users
increased for the first time in 16 months, and
Stocks of purchases at global metal users fell
in January, extending the current trend to
21 months.
30
Europe
25
World
Decreasing purchases
20
PMI, Output, 50 = no change
The rates of reduction were modest at both aluminium and
steel users, while copper users posted only a slight fall. Metal
users in Europe signalled a sharp reduction in inventories,
while stocks in Asia were either unchanged or fell marginally.
Conversely, stocks of purchases increased in the US.
Suppliers’ delivery times lengthened at metal users worldwide
in January, albeit at a modest pace. Metal users in the US
signalled some of the strongest rates of deterioration. The
weakest rates of deterioration were at metal users in Asia,
where times increased marginally.
Total new orders increased in the US and Asia, with the US
signalling the stronger rate of growth. However, new business
continued to fall in Europe.
Copper PMI
Increasing output
70
70
65
65
60
60
Global
copper users’ quantity of purchases
55
50
• Purchasing activity at global copper users increased for the
45
first time in 16
months in January, and at a modest pace.
Asia
40
US
• 35
Purchasing activity
fell solidly in Europe, but strengthened
Europe
WorldUS.
in Asia and the
30
Decreasing output
• Copper users in the US signalled a marked rate of growth,
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
while
input
buying
in Asia
increased
at the
fastest
rate
since September 2011.
25
PMI, Quantity of Purchases, 50 = no change
Increasing purchases
70
35
Increasing output
70
65
60
40
35
30
US
Europe
World
Decreasing output
25
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Europe
45
World
2040
Jan-07
35
Asia
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
US
Europe
World
US
Europe
25
World
20
Jan-07
PMI, Stocks
Jan-07of Purchases,
Jan-08 50 = no
Janchange
-09
40
Asia
30
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
PMI, Stockscopper
of Purchases, users’
50 = no change
Global
stocks of purchases
Increasing stocks
60
• Stocks of purchases at copper users worldwide fell in
55
January.
Inventories have now declined in each of the past
21
50 months.
35
Asia
25
US
Jan-10
Jan -11
Jan -12
Jan-13
Increasing stocks
Shorter lead times
65
• Average
lead times lengthened at copper intensive firms
45
60
worldwide
for the fifth successive month in January.
Asia
45
30
50
• However, the rate of stock depletion eased from December
40
and
was only slight.
50
Asia
50
55
45
55
35
Global
copper users’ supplier lead times
PMI, Supplier Delivery Times, 50 = no change
40
4055
60
65
45
• Copper users in Asia and the US registered solid rates of
expansion, whilst those in Europe signalled a reduction.
45
Increasing stocks
60
Decreasing stocks
50
• The rate of growth accelerated from December to a
moderate pace, and the fastest since April 2011.
50
25
55
• Output at copper-intensive firms worldwide increased for
the second successive month in January.
Jan-11
Jan-12
Jan-13
55
PMI, Stocks of Purchases, 50 = no change
30
60
Global copper users’ output
PMI, Quantity
= no change Jan-10
Jan-07 of Purchases,
Jan-08 50 Jan-09
US
• Copper users
Europeacross all three monitored regions signalled
30
World
divergent
trends, with stocks falling sharply in Europe,
Decreasing stocks
increasing
solidly in the US, and remaining unchanged in
25
Jan-07
Jan-08
Jan -09
Jan-10
Jan -11
Jan -12
Jan-13
Asia.
55
Asia
• Times
lengthened
across all three monitored regions,
US
35
50
with copper Europe
users in Europe noting a marked rate of
30 45
World
deterioration.
Decreasing stocks
25 40
• In Asia,
users
registered
deterioration
Jan-07 copper
Jan-08
Jan -09
Jan-10 the
Janweakest
-11
Jan -12
Jan-13
Asia
35
US
in vendor performance,
with times lengthening only
Europe
30
marginally.
World
Longer lead times
25
PMI, Supplier
Times, 50Jan-09
= no changeJan-10
Jan-07 Delivery
Jan-08
Jan-11
Jan-12
Jan-13
Shorter lead times
65
60
55
50
45
40
35
30
Asia
US
Europe
World
Longer lead times
25
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-13
Shorter lead times
65
70
65
60
55
8
60
50
55
45
50
40
US
Europe
30
25
65Jan-07
Global aluminium users’ output
• Output expanded at global aluminium users for the second
month in a row in January.
• The rate of growth was modest overall. That said, it was the
quickest since September 2011.
• Output increased at aluminium users in Asia and the US. In
contrast, output fell at aluminium users in Europe, albeit
modestly.
Increasing output
65
Jan-11
25
45
Jan-07
40
45
Global
aluminium users’ supplier lead times
Europe
Decreasing output
World
Jan-08
Jan-09
Jan-10
Jan-11
40
Jan-13
Europe
World
25 Quantity of Purchases 50 = no change
PMI,
Decreasing
purchases
20
65
60
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
55
50
Global
aluminium users’ stocks of purchases
US
20
Asia
US
Europe
Decreasing output
World
Jan-09
Jan-10
Jan-11
Jan-12
Jan-07
Jan-08
Jan-09
Jan-11
Jan-12
Jan-13
• 40Aluminium
users in
the USJan-10
registered
a marked
increase
in
Asia
stocks.
35
Purchasing activity at global aluminium users increased for
the second successive month in January, and at a modest
pace.
25
55Jan-07
30
55
20
Asia
60
US
Europe
55
World
50
45
40
35
Longer lead times
30
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
US
Jan-08
Jan-09
Jan-10
Jan-11
40
40
25
Shorter lead times
Decreasing stocks
Increasing stocks
Jan-12
Jan-13
45
65
35
60
Asia purchasing activity continued to fall sharply
•35 Meanwhile,
in Europe.USThat said, it was the weakest reduction in ten
30
Europe
months. World
65
50
50
• Input buying increased in Asia and the US, with aluminium
45 users in Asia registering solid growth.
Europe
World
Jan-13
Global
aluminium users’ quantity of purchases
PMI, Quantity of Purchases 50 = no change
World
• 30
Suppliers’ delivery
times lengthened at a modest pace
overall, with vendor performance deteriorating
across
Decreasing
stocksall
25
three
monitored
regions.
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
• Aluminium users in the US signalled a solid rate of
deterioration while, in Asia, times lengthened at only a
fractional pace.
30
55
Jan-12
US
Jan-07
40
• Average leadAsia
times at aluminium-intensive firms worldwide
US the fifth consecutive month in January.
lengthened for
35
•30 The rate of
depletion was modest overall, and the weakest
Europe
50
World Stocks declined sharply at aluminium users in
in
11
months.
25
45Europe, but only marginally at those in Asia.
45
Jan-08
Increasing stocks
55
50
Asia
35
3555
50
60
Jan-13
Stocks of of
Purchases,
50 = no change
•PMI,Stocks
purchases
at global aluminium users decreased for
40
Increasing stocks
the twenty-first
successive month in January.
Asia
55
•65
Jan-12
45
60
Jan-07
Jan-10
50
PMI, Quantity of Purchases 50 = no change
45
65
40
60
Asia
35
US
55
Europe
30
50
30
25
Jan-09
55
Aluminium PMI
30
Jan-08
60
35
Decreasing output
Increasing output
World
25
50
Jan-07
Shorter lead times
Asia
Asia
US
USEurope
Europe
World
World
Decreasing stocks
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
45
40
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
9
35
30
Jan-07
Jan-08
Jan-09
Jan-10
65
Asia
60
US
Europe
Longer lead times
Jan-11
Shorter lead times
Jan-12
Jan-13
65
30
Decreasing output
60
25
Jan-07
55
Jan-12
Jan-13
45
• Output increased in Asia and the US while in Europe, it fell
for the eleventh consecutive month (albeit fractionally).
Increasing output
65
Europe
7035
65
30
60
25
55
Jan-07
50
World
Decreasing output
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
45
40
35
Asia
US
30
70
Europe
25
World
65
20
60
Jan-07
Jan-08
Jan-09
Jan-10
55
Jan-11
Jan-12
Jan-13
40
30
45
US
Europe
World
Decreasing output
25
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
• Meanwhile, steel users in the US registered a marked
40 increase in stocks.
35
PMI, Stocks ofAsia
Purchases, 50 = no change
60
30
Global steel users’ quantity of purchases
•70 Purchasing activity at global steel users increased for the
65 third successive month in January.
60
• Overall, growth was marked, with steel users in Asia
55
registering solid growth. In the US, purchasing activity
50
increased slightly.
45
•40 Steel users in Europe registered a further solid reduction in
35 input buying,
Asia although it was the weakest in ten months.
30
US
25
World
Europe
55
25
Jan-07
50
Increasing stocks
US
Europe
Decreasing stocks
World
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
45
40
6535
6030
55
25
Jan-07
50
Shorter lead times
Asia
US
Europe
Decreasing stocks
World
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
45
40
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Shorter lead times
US
Europe
Longer lead times
10
60
25
Asia Times, 50 = no change
PMI,
35 Supplier Delivery
65
30
Jan-07
55
Increasing stocks
65
60
45
40
35
Asia
30
Europe
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
US
Longer lead times
25
Jan-07
45
30
Jan-08
Europe
55 The rate World
•25
of depletion was modest, and the weakest since
December
2011. Steel users in Europe signalled a solid
20
50
Jan-07
Jan-08
Jan-09
Jan-10was Jan-11
Jan-12
Jan-13
reduction
while, in
Asia, there
only a marginal
decline.
Asia
Shorter lead times
50
•PMI,Stocks
purchases
at steel-intensive firms worldwide
Stocks of of
Purchases,
50 = no change
Increasing stocks
35
Asia
the twenty-first consecutive month in January.
60 declined for
US
50
There was a slightly stronger fourth quarter and sentiment is
firmer for activity until Chinese New Year in mid-February.
55
Global
steel users’ stocks of purchases
45
55
Economic indicators and Purchasing Managers’ Indices in
40
Europe
continue to be generally below 50, anticipating lower
activity. WSA’s latest prediction of 2.4% growth in apparent
35
Asia
consumption US
in EU-27 is also looking out-dated, though short30 sentiment
term
at the start of January is brighter. Most Asian
Europe
Decreasing
stocksannual
World
economies are
likely to achieve WSA’s predicted
average
25
growth
of 2.8%
in 2013
and steel
demand
should
rise slightly
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
year-on-year.
50
60
55
50
Asia
• Overall, production rose at a marked pace. Moreover, it was
the quickest expansion since September 2011.
20
Jan-07
Jan-11
PMI,40
Quantity of Purchases,
50 = no change
US
• Output at steel-intensive firms worldwide increased for the
third month in a row in January.
Jan-07
Jan-10
45
Global steel users’ output
35
Jan-09
50
Steel PMI
40
Jan-08
Increasing stocks
60
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Electrical Equipment
Forecast Highlights: Buying Strategy
Electrical Equipment Price Forecast Drivers (Percent change)
Spare production capacity, slowing input cost escalation, and
slowing demand for electrical equipment will lead to a favorable
buying environment over the near term.
Demand for electrical equipment from the manufacturing sector
has slowed as capital expenditure cycles wind down. Also,
demand from construction markets, although growing stronger,
remains at low levels. Moreover, there will be minimal upward
pressure from commodities and key intermediate good inputs.
The softer global growth trajectory over the next 12 months
will limit the upward risk to commodity prices. This, combined
with increasing supply, as evidenced by a higher industrial
production index and a higher capacity utilization rate for
electrical equipment, will lead to continued weak pricing.
2013Q1
In 1 Year
(2013Q4)
Change in
Conditions
Prices
Flat
Flat
No Change
Supply
Ample
Ample
No Change
Demand
Neutral
Stronger
No Change
Forecast Highlights: Summary
2007
2008
2009
2010
2011
2012F
2013F
2014F
-1.1
-0.2
0.0
-0.2
0.0
0.2
-0.8
-0.6
Copper Costs
5.9
-2.3
-26.0
46.3
17.1
-9.9
2.2
-12.6
Lead Costs
100.1
-18.9
-17.8
25.0
11.8
-14.3
0.8
-6.9
Metal Stampings Costs
5.6
8.0
-1.9
0.8
5.4
-0.2
1.0
0.4
Real Investment, Equipment and Software
3.3
-4.3
-16.4
8.9
11.0
6.5
5.5
7.2
Electrical Machinery and Equipment Prices
Forecast Drivers
Electrical Equipment New Orders Recovering
(Share of total)
4.0
3.7
Electrical equipment production growth decelerated over the
second half of last year and is expected to post moderate gains
going forward. US industrial production of electrical equipment
is slated to increase 4.2% in 2013 and 3.1% on average over
the next two years.
Overall electrical equipment pricing is expected to remain
subdued over the next several years as minimal escalation in
key input costs tempers any upward pricing risk. The Producer
Price Index for electrical equipment is expected at slip 0.7%
each year on average during 2013 and 2014.
Source: IHS Global Insight
11
Energy
2%
3.4
3.1
Machinery
and Parts
23%
2.8
2.5
2005
Demand for electrical equipment enjoyed strong growth in
2010 and 2011. Real nonresidential fixed investment for
electrical transmission, distribution, and industrial apparatus
jumped 5.5% on average annually over those two years.
However, 2012 year-to-date through third-quarter growth has
been negative, confirming that the resurgence is losing steam.
Electrical Equipment Cost Structure
(3-month moving average, billions of US dollars)
2006
2007
2008
2009
2010
2011
2012
Other Metals 4%
Iron and Steel Mills 1%
Electrical Equipment New Industrial Production Still Well Off Peak level
(Index, 2007=100)
105
98
91
84
77
70
2007
2008
2009
2010
2011
2012
2013
2014
Other
Materials
25%
Steel 5%
Labor
40%
US Shipments of Electrical Equipment
Electrical Machinery and Equipment Price Forecast
(Share of total)
(1982=100)
117
116
Switch
gears
24%
Relays
29%
115
113
Transformers
14%
112
Motors and
Generators
34%
111
2004
2006
2008
2010
2012
2014
Near-term risks to the forecast
Forecast Highlights: Risk
The Pricing Risk is on the Downside for the Near Term
Historical Volatility:
PPI, Electrical Machinery and Equipment
Average Annual Escalation (1990 to present) 3.6%
Average Annual Range (1990 to present) 1.4 to 1.6%
Pricing Risk - Medium/Downside
There is medium risk that prices could escalate at a lower rate than
our current forecast.
Note: Price risk is defined by its historical price volatility (as measured
by standard deviation): low (lowest quartile), medium (middle
quartiles), and high (highest quartile).
12
Business investment for electrical equipment is slowing
and input costs are seeing minimal escalation. Moreover,
there remains some slack capacity for electrical equipment
production. Consequently, price increases will be minimal.
A greater risk stems from the economic recovery becoming
more tumultuous and moving at an even slower pace
than planned. Persistent economic headwinds (such as weak
employment and global macroeconomic concerns)
could constrain the recovery of key end markets (such as
construction and infrastructure projects like utilities) to a
greater degree than our current forecast. As a result, electrical
equipment prices would also experience minimal, if any, gains.
Pressure Vessels
Pressure Vessels Price Forecast Drivers (Percent change)
The price outlook will be relatively favorable over the next
three months.
The correction in upstream commodities markets, which began
in May 2012 and gave way to a general softness in pricing
pressures over the second half of the year, has not been
reflected in pressure vessel prices. While demand remains
supportive of higher prices, the input pricing landscape
does not. Advantageous buying opportunities will present
themselves through the first half of 2013. The weakness in
commodity markets that began in the middle part of 2012 is
just now starting to pass downstream. The buying advantage
will shift away from manufacturers over the near term. The
recommendation is to seize the opportunity when it does.
2013Q1
In 1 Year
(2013Q4)
Change in
Conditions
Prices
Lower
Slightly Higher
No Change
Demand
Stronger
Stronger
No Change
Supply
Slowly
Tightening
Slowly
Tightening
No Change
As we enter 2013, buyers can expect softer price increases.
The pricing profile in 2012 has been at times confounding.
Prices strengthened 3.5% in the third quarter of this year, the
highest rate of escalation since 2004.
The fourth quarter of 2012 will mark a sixth consecutive
quarterly price increase. This comes despite the softer global
economic growth trajectory that has emerged in 2012, and it
has completely diverged from fundamentals. The correction
in upstream commodities markets that began in May 2012
and gave way to a general softness in pricing pressures over
the second half of the year has not been reflected in pressure
vessel prices.
The supply outlook continues to tighten, but if new orders do
not pick up, this tightness will not persist for long as unfilled
orders continue to be worn down. Capacity continues to be
brought online, breaking a streak of nearly three years of
declining capacity.
13
2007
2008
2009
2010
2011
2012F
2013F
2014F
8.7
7.4
-1.3
1.0
2.3
7.1
3.1
1.2
Cold Rolled Steel Sheets and Strip Costs
17.3
-8.6
-28.2
36.3
19.1
-6.5
-3.7
0.4
Carbon Plate Costs
-5.1
40.2
-40.4
4.3
52.7
-11.3
-11.9
12.0
Spot Price Merchant Bar Carbon Steel Costs
13.7
41.5
-16.1
2.5
11.8
-4.1
-14.5
7.0
Real Prive Investment, Industrial Facilities
18.2
24.8
4.6
-27.6
0.4
14.1
-1.1
16.5
Pressure Vessel Prices
Forecast Drivers
A Confounding Year for Prices...
20
(Percent change year ago)
...Only Partly Explained by Stronger Demand
150,000
PPI, Pressure Vessels
10
120,000
0
(Value of exports, thousands of dollars)
2010
2011
2012
90,000
-10
60,000
-20
Spot Price, Steel Plate
-30
2012Q1
2013Q1
30,000
0
Jan
Capacity utilization rates have been trending upward since
the start of 2012, but remain steady just shy of the 85%
prerecession levels. Shipments have begun to slow, mirroring
the demand outlook in which unfilled orders remain elevated,
but new orders are not keeping pace.
The demand outlook is slightly downbeat as the pessimism
surrounding the slower growth profile in the global economy
has emerged. While unfilled orders of fabricated metal products
have remained elevated (currently 8% higher than this point
last year), new orders have slowed and were just 2.9% higher
year over year in August. New orders of fabricated metal
products began the year 11.6% higher than where they started
2011, but have softened through the third quarter.
Mar
May
Jul
Sept
Nov
Pressure Vessel Cost Struture
(Share of total)
Other
28%
SteelOther
All Other
33%
59.6%
Materials
25%
Labor
35.0%
Nonferrous
Metals
2%
Energy
2%
Pressure Vessel End-Market Demand
Pressure Vessels Price Forecast
(2001: 12=100)
(Share of total)
200
180
Basic Chemicals
All OtherOther
Manufacturing
59.6% Materials
45%
25%
160
240
120
Petroleum and Coal
Producte Manufacturing
55.0%
100
2004
2006
2008
2010
2012
2014
PPI, Pressure Vessels
Average Annual Range (2003 to present) -1.2 to 13.8%
Pricing Risk - Low/Downside
There is low risk that prices could escalate at a slower rate than our
current forecast.
14
The downside risks this quarter remain largely unchanged.
Contagion risks from the European debt crisis cannot be
discounted and continue to threaten global growth. Our outlook
is now for an orderly Greek exit from the Eurozone in 2014.
As we have seen this year, uncertainty prolonged by political
paralysis in the United States is having an adverse impact on
business capital expenditure plans. The biggest risk to the US
economy remains an advertent or inadvertent fiscal tightening.
This will continue to shadow markets into the coming year and
will remain a downside risk.
While growth in the developing world appears to have
stabilized for the time being, there is no suggestion yet of a
reacceleration. As we enter the middle of China’s 12th FiveYear Plan, it is possible that we will begin to see a number of
infrastructure plans break ground. This could very well act as
a form of stimulus to commodity markets and would pose an
upside pricing risk in the coming year.
Mining & Oil
Equipment
Mining and Oilfield Equipment Price Forecast Drivers (Percent change)
2007
2008
2009
2010
2011
2012F
2013F
2014F
7.3
8.1
1.9
-0.6
2.6
2.9
3.1
2.5
Iron and Steel Costs
7.8
22.6
-25.3
21.5
13.3
-5.2
-5.8
7.7
Hot-Rolled Bars, Plates and Structural Shapes Cost
9.9
21.5
-25.1
13.0
15.6
-4.0
-7.3
7.8
Fabricated Pipe and Fittings Costs
-1.3
7.6
5.5
10.8
6.5
4.1
0.1
2.1
Industrial Production, Oil and Gas Extraction & Drilling
1.5
1.4
-3.4
6.3
7.7
7.2
4.1
1.7
Electrical Machinery and Equipment Prices
Equipment buyers have faced higher prices thus far in 2012.
However, orders for new equipment have weakened and we
expect escalation rates to remain tame in the near term. As we
move through 2013 and into 2014, global economic activity
should improve, resulting in a more favorable tilt to the energy
and commodity supply/demand/price landscape, in turn leading
to more robust increases in equipment prices.
Forecast Drivers
Mining and Oil & Gas Field Machinery and Equipment New Orders
2013Q1
In 1 Year
(2013Q4)
Change in
Conditions
Prices
Higher
Higher
No Change
Supply
Higher
Higher
No Change
Demand
Ample
Higher
No Change
(3-month moving average, millions of dollars)
4,000
3,000
Machinery All OtherOther
and Parts 59.6% Materials
25%
23%
2,000
Production of mining and oil field and gas field machinery and
equipment is slated to rise 13% in 2012 following a 21% jump
in 2011. Industry output is likely to grind to a halt in 2013
before ramping up once again and expanding 5.9% in 2014,
7.0% in 2015, 6.2% in 2016, and 4.5% in 2017. Energy and
commodity prices have softened as the supply/demand climate
developed an unfavorable tilt. With adequate supply, low prices,
and lackluster demand growth, there has been less incentive to
drill for oil and gas. Efforts to expand existing mine productive
capacity and open up new facilities have been tabled or cut
back. Capital expenditure programs both here and offshore
have been cut and will remain modest in 2013.
The renaissance in North American oil and gas production
has given equipment manufacturers a shot in the arm and
will continue to do so following the lull in the action we are
experiencing right now. The US coal industry has been under
siege from cheap natural gas and stringent environmental
regulations. Capital spending programs have been dramatically
reduced and mines shuttered.
15
Mining and Oilfield Equipment Cost Structure
(Share of total)
1,000
Energy
0.5%
Labor
10.8%
1998
2000
2002
2004
2006
2008
2010
Labor
Materials
40%
29.0%
2012
A Worrying Trend
(Percentage change y/y, fabricated metal products)
25
25
Unfilled Orders (LS)
New Orders (RS)
20
20
15
15
10
10
5
5
0
0
Jan-11
Jul-11
Jan-12
Jul-11
Mining and Oilfield Equipment End-Markets
Oil and Gas Field Machinery Price Forecast
(Share of total)
(1980: 12=100)
280
258
North America
48%
236
Rest of World
18%
Asia/Aus/NZ
13%
Europe
29.0%
214
192
170
2004
2006
2008
2010
2012
2014
PPI, Electrical Machinery and Equipment
There is medium risk that prices could escalate at a slower rate than
our current forecast.
There is clearly a risk that the always shaky Middle East
could come unglued. The situations in Egypt and Syria remain
problematic, the Israeli/Palestinian ceasefire may or may not
hold, and the Iranian nuclear crisis remains.
Should our worst fears come to pass, crude oil prices would
surge and the fragile global economy would take a major hit.
This being the case, energy and mining industry investment
projects, which have already been scaled back, could be
stopped dead in their tracks. Additionally, the Eurozone crisis
is anything but behind us and a deterioration of the situation
would negatively impact commodity markets and the demand
for new equipment.
Alternatively, the unlikely emergence of a stable Middle East
would allow prices to be influenced largely by supply/demand
considerations, which would benefit global economic activity
and bolster energy and mining industry activity and capital
spending.
Even more stringent environmental regulations in the United
States, such as anti-fracking rules, could spell trouble for
domestic mining and energy industry capital expenditure
programs.
16
Industrial Valves
Industrial Valves Price Forecast Drivers (Percent change)
The buying environment for industrial valves remains
unfavorable over the next three months.
The buying advice through much of 2012 was to not delay
purchases as moderate price increases would be spread evenly
through the year, buoyed by a moderately strong demand
outlook and elevated unfilled orders. Price increases in 2013
are poised to be softer as pressures from input costs will be
virtually nonexistent through most of the year. Buyers should
expect strong price increases entering 2014 and should plan
accordingly.
2013Q1
2008
2009
2010
2011
2012F
2013F
2014F
9.3
5.8
2.4
1.5
5.3
4.7
2.3
1.6
Iron and Steel Mills Costs
6.5
17.7
-27.0
18.5
12.5
-4.2
-5.3
3.8
WTI Crude Oil Costs
9.3
37.8
-38.1
28.7
19.7
-0.7
-5.6
-2.2
Steel Foundries Costs
7.8
5.3
-1.0
3.5
3.5
3.9
1.5
2.2
Real Private Investment, Industrial Facilities
18.2
24.8
4.6
-27.6
0.4
14.1
-1.1
16.5
Industrial Valve Prices
Forecast Drivers
A Worrying Trend
Relative Importance
(Percentage change y/y, fabricated metal products)
(Percentageof total capex in the chemcials industry)
25
25
In 1 Year
(2013Q4)
Change in
Conditions
20
20
15
15
Prices
Higher
Higher
No Change
Demand
Slightly
Stronger
Stronger
No Change
Tightening
Tightening
Supply
2007
No Change
As has been the consistent message for a few quarters now,
the catalyst behind stronger valve prices can be attributed
more to supply and demand forces and less to input costs.
Strong capital expenditures in the chemicals and refined
petroleum industries are driving demand and sending prices
higher despite a lack of pressure from input prices. Prices will
increase 0.7% in the first quarter and 2.3% over 2013.
The supply outlook continues to tighten, but if new orders do
not pick up, this tightness will not persist for long as unfilled
orders continue to be worn down. Capacity continues to be
brought online, breaking a streak of nearly three years of
declining capacity. Capacity utilization rates have been trending
upward since the start of 2012, but remain steady just shy of
the 85% prerecession levels.
17
Unfilled Orders (LS)
New Orders (RS)
2012
2008
Africa
Middle East
Latin America
10
10
5
5
0
0
Eastern Europe
Asia Pacific
Western Europe
Jan-11
Jul-11
Jan-12
Jul-11
North America
0%
20%
40%
60%
Industrial Valves Input Cost Structure
There is little change on the demand front as the slightly
pessimistic outlook that emerged over the second half of 2012
has not dissipated. New orders and unfilled orders of fabricated
metal products kicked off 2012 approximately 11.6% and 8.9%
higher year over year, respectively. However, as the year has
unfolded, the softer global growth profile weighed on demand
channels. New orders in November were down 0.9% from a
year earlier, while backlogs were progressively worn down and
currently sit just 5.2% higher than at this point last year.
(Share of total)
Steel
44%
Other
12%
Nonferrous
Metals
11%
Labor
33%
80%
Industrial Valves End-Market Demand
Industrial Vavles Price Forecast
(Share of total)
(1991: 12=100)
230
210
Energy,
Mining and
Quarrying
40%
Basic
Industrial
Chemicals
30%
190
170
150
Electricity,
Gas and Water
130
2004
2006
2008
2010
2012
2014
30%
PPI, Industrial Valves
Pricing Risk - Low/Downside
Global economic headwinds pose a risk to growth in emerging markets
that may in turn affect end market channels for industrial valves.
18
The downside risks this quarter remain largely unchanged.
Contagion risks from the European debt crisis cannot be
discounted and continue to threaten global growth. Our outlook
is for an orderly Greek exit from the Eurozone in 2014.
As we have seen this year, uncertainty prolonged by political
paralysis in the United States is having an adverse impact on
business capital expenditure plans. The biggest risk to the US
economy remains an advertent or inadvertent fiscal tightening.
This will continue to shadow markets into the coming year and
will remain a downside risk.
While growth in the developing world appears to have
stabilized for the time being, there is no suggestion yet of a
reacceleration. As we enter the middle of China’s 12th Five
Year Plan, it is possible that we will begin to see a number of
infrastructure plans break ground. This could very well act as
a form of stimulus to commodity markets and would pose an
upside pricing risk in the coming year.
Concrete
Concrete Price Forecast Drivers (Percent change)
Buying conditions for concrete will remain favorable over
the next six months. Ready-mix prices advanced in 2012 on
stronger energy prices in the first half of the year and rising
demand from residential construction in the second half.
Prices are expected to move sideways during 2013, before
making strong gains in 2014–16 as demand from nonresidential
construction strengthens. Spare production capacity remains
ample.
2013Q1
Prices
Flat
2007
2008
2009
2010
2011
2012F
2013F
2014F
4.3
2.6
2.4
-2.5
-0.6
2.0
1.4
2.9
Labor Costs
2.6
2.0
1.5
0.0
5.6
0.0
1.8
1.8
Electricity Cost
3.3
5.0
2.5
2.4
2.5
0.7
3.5
3.5
Cement Price
5.4
-0.3
-1.7
-5.6
-3.5
0.8
1.5
4.5
US Investment in All Structures
14.1
6.4
-21.1
-15.6
2.7
9.2
-0.5
9.2
Ready-Mixed Concrete Price
Forecast Drivers
In 1 Year
(2013Q4)
Change in
Conditions
Slightly Higher
No Change
15
Ready-Mix Concrete Cost Structure
Concrete Prices Gradually Strengthen
(Share of total)
(Percent change from a year earlier)
Demand
Flat
Rising
No Change
10
Supply
Ample
Ample
No Change
5
Ready-Mixed
Concrete Products
Pipe
Cement
22%
0
Ready-mix concrete prices are expected to finish the fourth
quarter on a flat note, with the producer price index up
approximately 2.0% for the year as a whole. Given the subdued
outlook for nonresidential construction next year, ready-mix
prices are expected to rise a mere 1.4%. By the middle of 2014
we expect the recovery in nonresidential construction to begin
exerting pressure on prices, which should rise 2.9% in 2014,
4.9% in 2015, and 4.0% in 2016.
Subsequent years will see annual growth rates more in line
with the historical average.
Production in the US ready-mix concrete industry continues
to be restrained by soft demand. Production of cement and
concrete products is expected to move sideways during
2012, before falling 1.8% next year. As construction activity
accelerates, annual production will see three years of strong
growth, rising 7.4% in 2014, 11.1% in 2015, and 9.8% in 2016.
Concrete demand benefited from a boost in housing activity
that helped lift prices 2.0% in 2012. However, the majority
of concrete is used in nonresidential projects, which are still
suffering from a lack of business confidence and shrinking
government . Until this segment of the construction market
recovers, demand will not be a major force driving prices higher.
19
-5
-10
2006
2008
2010
2012
2014
2016
Labor
29%
Non-residential lags Residential
(Billions of chained 2005 dollars)
800
680
Residential
Non-residential
500
440
320
200
2006
2008
2010
All Other
28%
2012
2014
2016
Sand
and Gravel
19%
Energy
2%
Ready-Mix Concrete End-Market Demand
Ready-Mix Concrete Price Forecast
(Share of total)
(1981: 12=100)
250
234
218
Housing
25%
Non-residential
Construction
75%
202
186
170
2005
2007
2009
2011
2013
2015
The Pricing Risk is on the Downside for the Near Year
PPI, Ready-Mix Concrete
Average Annual Range (1990 to present) -2.5 to 12.0%
There is low risk that prices could escalate at a slower rate than our
current forecast.
20
Pricing risk is weighted toward the downside over the next
year. Lower escalation in concrete prices could occur if the
recovery in US nonresidential construction markets falters.
Broader deterioration in US economic conditions or a “lost
decade” of weak growth and high unemployment would
severely limit concrete demand, thereby keeping a tight lid on
prices.
Nevertheless, the upside risks cannot be ignored. On the
geopolitical front, further instability in the Middle East could
lead to a spike in energy prices, pushing input costs for
concrete higher. Although the market remains well supplied
and capacity utilization is well below historical averages, the
increase in production over 2014–16 to meet rising demand
could lead to stronger escalation rates than currently forecast
if tightness develops anywhere in the supply chain. The risk of
such an event occurring is quite small, though, given the current
slack in the market.
WorleyParsons Supplier Survey
Current
Lead
Time
(Weeks)
Category
Sub Categories
Current
Lead
Time
(Weeks)
Pump
API610 Centrifugal - Horizontal
65
Pressure Vessel Average
64
API610 Centrifugal - Single-stage Overhung
47
Pipe Spool
12
API610 Centrifugal - Vertical
65
Above Ground Storage Tank (>100' Diameter)
48
Firewater
45
Switchgear
26
ANSI/ASME
32
Transformer
14
Pump - Other or category level only*
45
Motor
24
50
DCS and Instrumentation
18
API 618 Reciprocating
59
Motor Control Center (MCC LV & MV)
16
API 617 Centrifugal
59
Generator
32
Compressor - Other or category level only*
60
Variable Speed Drive
24
59
E-House Power Distribution Center
30
Light Industrial (< 34,000 hp)
52
10
Frame Units (> 34,000 hp)
58
Electrical Equipment - Other than listed above
or category level only*
Aero-Derivative
65
E&I Equipment Average
0
58
Industrial Control Systems
24
Dry Gas
10
Instrumentation
6
Mechanical API 682
12
Bulks
3
11
Automation Equipment Average
11
Exchangers - Shell & Tube
36
Pipe
Exchangers - Air Cooler
Pump Average
Compressor
Compressor Average
Gas Turbine
Gas Turbine Average
Seals
Seals Average
Exchanger
20
52
Stainless Steel
24
Exchangers - Plate
51
Seamless Steel Pipe & Tube
20
Exchangers - Other or category level only*
55
Welded Steel Line Pipe & Tube (UOE) <16" (Sm. Diam.)
10
49
Welded Steel Line Pipe & Tube (UOE) >16" (Lg. Diam.)
28
Alloy/Chrome Steel Plate
14
Hot Rolled Plate (Carbon Steel)
10
Structural Shapes (Columns, Girders, Beams, etc)
8
Structural Steel Pipe (Seamless or Welded)
2
Structural Plate (Floor Plate checkered/smooth, Deck Plate, etc)
8
Fired Process Heaters
Boilers
55
Plate
40
Structural Steel
Furnace & Boiler - Other or category level only*
48
Furnace & Boiler Average
Pressure Vessel
Sub Categories
Subsea Pipe & Tube
Exchanger Average
Furnace & Boiler
Category
Reactors - Forged Ring
80
Reactors - Rolled Ring
72
Pressure Vessels - <4" Carbon Steel
55
Pressure Vessels - <4" Alloy
63
Pressure Vessels - Other or category level only*
21
52
Steel Average
14
Valves - Alloy
44
Valves - Carbon Steel
42
Control Valves
20
Valves Average
35
Logistics
Emerging markets slowed along with the rest
of the global economy in 2012. The impact
of the European crisis, years of continuing
stagnation in Japan, and fiscal uncertainty
in the United States, weakened trade and
financial flows, resulting in slower growth than
was expected for many emerging economies.
However, their economic performance was
still generally stronger than that of developed
markets. The US economy grew at a 2.2% pace;
the EU contracted 0.2% (provisional estimates).
Consequently, the developing world continues
to remain at the forefront for investors.
While the BRIC countries (Brazil, Russia, India
and China) have played a significant role in
global growth for a number of years, other
emerging markets are now showing increased
promise as potential investment alternatives.
There are signs that increased labor costs
and skill shortages are eroding China’s oncecommanding edge over other markets. That
said, China continues to benefit from strong
domestic growth and acts as a major driver of
growth in the global economy.
Separately, increasing transport costs are
driving decisions about preferred production
locations. ‘Near-sourcing’ – the effort to control
costs by producing in countries adjacent or
close to major destination markets - is again on
the rise.
Markets close to the United States and Europe,
such as Mexico and Turkey, are attracting
increased attention. Offsetting the nearsourcing trend is the growing attractiveness of
more distant emerging economies as growth
markets. Weakened demand in Europe, the
United States and other developed economies
means emerging markets have been less
able to depend on these countries as export
markets.
22
At the same time, several of the larger, more
advanced emerging economies are fueling
demand and have become attractive markets.
That has powered increased trade between
emerging markets and led to development
of vibrant industry sectors, increasing
opportunities for domestic-based logistics
operations.
In 2013, emerging markets growth will still
depend heavily on demand from Europe and
the United States and the overall health of the
global economy.
Despite or because of political change, the
‘Arab Spring’ countries face significant hurdles
before they become attractive investment
opportunities.
Elsewhere, Sub-Saharan Africa continues to
draw increased attention, despite uneven
performance. Due to the region’s low-exposure
to the European crisis (except for South Africa)
growth rates in top performers have remained
reasonably strong.
Key Findings:
• Emerging markets felt the slowdown
in global economic growth in 2012 but
generally continued to grow at a faster pace
than traditional developed markets.
• Logistics providers remain wary about
prospects for global growth in 2013. Most
believe there will be modest growth due
to global GDP being flat. Prospects for the
Eurozone continue to look bleak as the
Eurozone will experience no growth or
continue to contract in 2013. By contrast,
many see a year of modest growth for the
United States, and resumption of strong
growth in the US.
• China, India and Brazil – three of the so-called
BRIC countries – remain the most dominant
emerging markets for investors, exporters,
producers of goods, and logistics providers.
For the second consecutive year, logistics
and trade providers ranked China, India,
Brazil and Russia as the likely places to
emerge as logistics hubs over the next five
years.
• Despite their size, growth and relatively
sophisticated logistics networks, China, India,
Brazil and Russia need to do more to address
underlying weaknesses that could hurt
performance and dim their attractiveness as
an increasingly competitive group of secondtier markets (Saudi Arabia, Indonesia, UAE,
Malaysia, Mexico and Turkey) becomes more
alluring. China confronts rising labor costs, a
skills shortage, and a growing gap in income
disparity. India’s weak infrastructure and
bureaucracy threaten its prospects. Brazil’s
export sector is slowing. Russia remains
overly dependent on energy exports.
• Manufacturers face an increasing dilemma
when it comes to locating production. The
savings and efficiencies gained by ‘nearsourcing’ on the doorstep of large developed
markets – for instance, producing in Mexico
to be close to the United States or in Turkey
for proximity to the European Union – must
be balanced with their ability to tap into
the emerging markets of Asia, the Middle
East, Latin America and Africa. Logistics
professionals see production going away
from China to other emerging markets.
• For logistics and trade providers, economic
growth remains the leading driver of a
country’s prospects as a logistics market,
but cheap labor is no longer as important.
They identified foreign investment and trade
volumes as greater barometers of a country’s
potential than labor costs.
• Ongoing political unrest has done grave
damage to the ‘Arab Spring’ countries of
Egypt, Bahrain and Tunisia, leaving them less
competitive and less attractive as markets
and destinations for investment. Logistics
providers agreed that the Arab Spring
countries are ready to grow and absorb
investment. Many felt those countries were
too unstable for growth and investment;
while others are uncertain.
• The United Arab Emirates, Oman and
Qatar are standouts among countries that
are smaller markets with good economic
prospects and easy market entry. Sri Lanka
also was part of that group.
• Qatar, Morocco, Oman, UAE and Cambodia
experienced dramatic surges (20%+) in
ocean freight exports to either the United
States, Europe or, in the case of Oman, both.
Ethiopia and Algeria showed large increases
in air cargo to the United States and/or
Europe.
• Paraguay, Cambodia, Uruguay, Kazakhstan,
Vietnam and Morocco experienced large
year-over-year increases in ocean freight
imports from the United States and/or
Europe. On the air cargo side, Ukraine,
Oman, Ethiopia, Bahrain and Qatar imported
significantly more from the United States
and Europe on a year-over-year basis.
• The United States overtook the European
Union as the leading destination for air
freight from China. Air freight volume from
China to the United States was relatively
flat, but fell sharply (11.7%) to the EU.
Iran, Syria and Iraq – were identified by logistics
and trade professionals as having the least
potential as emerging logistics markets.
Trade and logistics providers see the greatest
growth potential for Intra-Asia trade lanes. The
Asia-Africa route is also attracting increased
attention by logistics professionals. They are
not as optimistic about trade between Asia and
Europe and between Asia and Latin America as
they were a year ago.
Industry Outlook
Mining
Mining companies in 2012 faced external
factors that prompted them to postpone a
large number of capital projects at both the
feasibility and pre-feasibility stages. The
trends stemming from the highlighted global
economic volatility and continuing delivery
cost inflation are:
• Uncertainty around the rate of growth in
demand for metals and energy from the
‘growth engine’ economies
• Uncertainty as to the price for key
commodities, impacting economic hurdle
rates for capital investments
23
• Uncertainty as the regulatory obligations
impacting environmental, labor and
taxation requirements
• Increasing project delivery costs resulting
in frequent and substantial cost variances
on recent capital projects.
Given the length of time it takes to bring a
mine into production, the current slowdown
could translate into supply constraints in
the near term. Although global indicators
are waning now, long term demand forecast
remain bullish.
According to UN estimates, the global
population will exceed nine billion by 2050,
with much of the growth occurring in large
emerging economies.
As per capita income rises in these countries,
demand for housing, cars, electronics and
other resource-intensive consumer goods will
climb.
While mining companies may plan to ramp
up production from existing operations in
the event of short-term spike in demand,
production capacity constraints, stemming
from a range of factors.
Industry Outlook
Obtaining permits, negotiating with local
communities, attracting qualified labor and
procuring sufficient equipment and materials
are all activities that require years of advance
planning. Against this backdrop, companies
eager to grow require proven access to funds,
a strong track record of delivery and solid local
and regional relationships.
Mining and metals companies are making the
hard call to prioritize their capital expenditure.
The assessment of strategic alignment
requires mining and metal companies to
determine how mega-projects investments
align to the company’s long-term business
plans. The projects that pass the test will
typically be sound candidates to advance
towards the front of the queue. Having
put forward robust business cases, and
effectively prioritized capital expenditure,
project teams will need to embed the right
project management disciplines to not only
drive delivery against plan, but to do so in a
standardized and consistent manner.
In light of the rapid labor and equipment
cost inflation facing delivery teams globally,
the objective of these project controls is not
necessary to reduce absolute cost – rather,
project controls emphasize through planning,
and controlled change and performance
accountability to deliver predictable outcomes.
As miners have sought to increase supply, they
have been increasingly dependent on suppliers
to provide goods and services in greater
quantities than before. Many mining services
and equipment companies have enjoyed higher
profit margins in recent years due to scarcity
of these required products and services,
which range from freight-based services to
equipment. Huge premiums have been paid
for tyres, assays, acid and port access. Price
increases were originally driven by shortages
of such equipment, but now that supply has
caught up with demand, this is no longer the
case.
24
A trend we expect to continue is sourcing of
goods and services from China. Customers
have looked towards the Mining Equipment
Manufacturing industry in China for excavation
equipment, underground transportation
equipment, mineral washing and screening
equipment. The manufacturing industry for
these products has expanded rapidly in recent
years, due to high domestic demand from its
coal and metal mining industries. Although
China imports large volumes of coal, iron ore,
bauxite and other resources, the government
has authorized greater mining levels in recent
years, which has contributed to growth in this
industry sector. As China’s economy is heavily
reliant on manufacturing and the energy
sector, demand for natural resources drives
the need for mining equipment. The industry’s
total production volume output increased from
355,500 tons in 1998 to 5.06 mt in 2012.
The industry’s exports are forecast to increase
from $5.87 billion in 2011 to $13.62 billion
in 2016, which is an annualized increase of
18.3%. China has become the second-largest
manufacturer of mining equipment in the
world, which means export volumes will
continue to increase rapidly during these
years. As the industry’s technology level
improves, the quality of domestic products
continues to increase. While pricing levels
remain relatively competitive demand from
foreign markets, especially emerging countries,
will increase significantly during the next five
years.
The industry’s major export destinations
include the United States (12.9% of total
exports by value), Japan (11.4%), India (5.1%),
South Korea (4.6%) and Indonesia (3.4%).
Some major companies in the industry have
developed foreign markets in developed
countries such as Australia, Japan and
South Korea. Medium and low-end products
manufactured in China have competitive
advantages in both good quality and lower
prices. Exports are expected to increase
strongly in future years at an annualized rate
of 18.3% in the five years to 2016. The global
resources boom is expected to continue in
these years, which will greatly benefit China’s
mining equipment manufacturers.
Category Profile
Valves
China Valve Industry
China’s output of valves hit 2.62mt, up 14.6%
year-on-year, amid the severe economic
downturn in China, ‘steady growth’ once
again became the focus of national policy,
and fixed asset investment in such sectors
as steel, water, conservancy and hydropower,
and railway. Value output maintained a stable
growth in 2012 fueled by investment in these
segments.
This article provides the reader with an insight
into the Chinese valve market with a special
emphasis on petrochemical valves.
25
In 2002-2008, China’s valve output maintained
an average annual growth rate of 24.8%. In
2009, the growth of China’s valve industry
slowed down due to the financial crisis,
and output increased by only 3.7% year on
year to 4.584mt. Output snapped back with
increase of around 15% between 2010 and
2011 against the backdrop of recovering
downstream industries; and grew steadily and
reached 5.959mt in 2011.
Valve output showed steady growth with
increase of 14.6% year-on-year for 2012.
China over the last 10 years has become one
of the most important valve production bases
around the world due largely to transfer of
technology from America and Europe and
its low cost base. Valve producers in China
today can now meet the various international
standards due to major investments in their
technologies. Nowadays, more and more
multinational corporations regard China as
one of the most important valve suppliers,
which in turn brings opportunities to China’s
valve producers and continues to drive the
development of the whole industry.
Category Profile
Zhejiang
Zhejiang is the largest valve producer in China. In 2011, output
reached 2.093mt or 35.1% of the total, up 3% points over 2010.
Zhejiang boasts the largest number of valve manufacturers
and the largest production and sales of valve, and has
approximately 3,000 valve companies. The valve industry in
Zhejiang is characterized by a concentration of companies and
closely related industry supply chain.
The valve industry is mainly distributed in Yongjia, Longwan,
Yuhuan, Qingtian and Fuyang regions which form the major
manufacturing base in Zhejiang.
Henan
In 2011, valve production in Henan was 1.31mt, accounting
for 22% of the total output. Valve manufacturers in Henan
are mainly concentrated in Xinyang. Valves are a traditional
industry of Xinyang, and product standards of Xinyang valve
companies are adopted as the national standards for China’s
butterfly valves. For instance, Xinyang valves are applied in
national key projects such as Three Gorges and West-East
natural gas transmission. Early in 1990, Xinyang valves were
exported to Russia, Australia and Canada, etc. Now Xinyang is
witnessing the development of its high-tech valve products.
Jiangsu
The valve output from Jiangsu made up 7.4% of the total in
2011. Jiangsu started early in the valve industry and has
laid a solid foundation for its development. Currently, Jiangsu
has stock companies, private enterprises and foreign-funded
corporations engaging in the valve industry, and valve
development in Northern and Southern regions keeps abreast
of one another.
The valve industry in Jiangsu is mainly located in Suzhou,
Yancheng, Wuxi, Nantong, Changzhou and Nanjing. At present,
large-scaled production base focusing on high and medium
pressure valves and are supplemented by other types of valves
including nuclear power valve and special valves developed in
Suzhou.
26
The manufacturing base has a strong competitive edge both
at home and abroad, and continues to develop in scale and
professionalization. In Yancheng, the valve industry has seen
large volumes of valves exported and manufacturers are
developing related valve products such as castings, forgings,
stainless steel, sealing element and standard parts in order to
lay the basis for establishing a complete valve supply chain.
Jiangsu 7.4%
There are many famous valve companies in Jiangsu, CNNC
SUFA is engaged in special valves and nuclear power valves,
Neway specializing in manufacturing and exporting of generalpurpose valves including ball valves and Jiangsu Shentong Valve
is involved in the production of valves for nuclear power and
metallurgy valves.
Henan
35.1%
22%
Valve Output
by China
Region 2011
Zhejing
Liaoning
In 2011, valves from Liaoning reached 350,000t or 5.8% of
the total output. Yingkou, Liaoning is one of the pipe fitting
valve production bases in China. In 2009, the output value of
Yingkou’s pipe fitting valve industry hit over RMB 2B. Yingkou is
considered as a leader in the domestic industry for quality and
technical contents of its valves and enjoys a good reputation
in the international market, with its Beifang, Sifang and Yatai
brands in the domestic and foreign market.
Shandong
In 2011, valves produced by Shandong Province increased by
0.4% over 2010 to 340,000t or 5.7% of the total output. The
main companies in Shandong include Shandong Taifeng Valve
Industry Limited and Shandong Yidu Valve Co., Ltd.
Shanghai
Compared with Zhejiang and Henan, valve output in Shanghai
is smaller. The figure in 2011 was 270,000t, accounting
for 4.6% of the total output. Shanghai valve industry is
originally interconnected with Wenzhou valve, because many
manufacturers first gained a foothold in the Wenzhou market,
and then Shanghai. Shanghai valves feature good quality and
high brand reputation.
4.6%
Lianoning
5.8%
5.7%
Shandong
Shanghai
Category Profile
Valve export
In 2011, China’s valve export maintained rapid growth, with
export volume totaling USD7.501b, up 29.2% year-on-year. This
increase was due to the robust demand for valves in the global
market which pushed prices up, especially from Asian countries
and regions where the recovery of the economy was much
faster and their demand for valves larger. The export structure
of valves made in China was further optimized and valves with
higher added value occupied a larger market share, causing a
surge of export price and export value.
2005
2006
1440
2002
3118
2007
4721
6126
2008
2009
2010
4514
5806
2011
Market Overview
The petrochemical industry in China sees the widest application
of valves. Valves purchases are valued at around RMB2.2b
each year. Domestic valves are able to meet the demand for
the industry. However, for special valves, China is forced to rely
on imports from its foreign counterparts with their advanced
technology. However, in recent years there has been a rise in
domestic petrochemical valves. In particular, some companies
such as SUFA Technology Industry Co., Ltd. and Lanzhou High
Pressure Valve Co., Ltd. have established a foothold in the highend market.
Export Value of Valves in China (USD million)
2004
As more and more new entrants tap into this market segment,
competition becomes much fiercer, causing the profit of the
low-end valve market to decline. In general, many domestic
valve companies are small scale operations, lagging far behind
foreign counterparts in terms of scale and capital strength.
In the high-end valve application field the competitiveness of
domestic companies will become very weak due largely to the
small quantity of manufacturers. More than 10% of the valve
market in China is occupied by foreign valve companies.
7501
Year
Downstream clients of valves such as PetroChina, Sinopec and
CNOOC have all established their own equipment purchase
networks. International related certification systems include:
IS09001 quality management system certification, IS014001
environment management system certification, API6D, API591,
etc. and only companies that have gained these certifications
are permitted to participate in bidding to these clients.
Leading Petrochemical Valve Companies in China
Revenue
2009 (RMB)
Revenue
2010 (RMB)
1,528.3
1,104.5
SUFA Technology Industry Co., Ltd
563.1
594.2
Liangjing Group Valve Co., Ltd
467.2
506.9
Zhejiang Petrochemical Valve Co., Ltd
403.9
451.3
Zhejiang Chaoda Valve Co., Ltd
379.4
292.0
Lanzhou High Pressure Valve Co., Ltd
363.6
372.6
Hubei Hongcheng
General Machinery Co., Ltd
222.0
237.1
Company
Competition Pattern
China has a total of 6,000+ valve companies, among which,
more than 2,400 have annual revenue above RMB 5m. According
to the statistics from the China General Machinery Industry
Yearbook, the total industrial output value of the 2,400 valve
enterprises reached RMB167.3b, with a total profit of RMB9.7b
and exports approximating USD6b.
Restricted by technology and research & development, the vast
majority of domestic valve companies are in the mid-and lowend market where competition is fierce.
27
Neway Valve (Suzhou) Co., Ltd
In Focus
Modularization a smarter approach
28
The sheer scale and convoluted nature of today’s mega projects
plants are unprecedented. The fact that these plants often coexist with rich, fragile natural ecosystems adds a further layer
of complexity for construction and production. It follows that
environmental as well as safety constraints, are unyielding.
And naturally, budgetary concerns are high on the agenda
of customers seeking to commercialize the product. All in all,
this is an intensely challenging scenario. It calls for meticulous
project management strategies developed by the best and
brightest minds in the industry.
in the USA, Canada, Russia and the North Sea – is now being
embraced around the world.
An evolution in the approach of engineering, procurement
and construction (EPC) managers has developed. Modular
construction – a method historically favored by oil companies
Benefits of a modular approach are many. It’s seen as delivering
better quality, efficiency and cost-effectiveness and safety. The
‘plug and play’ concept brings all the advantages associated
In a nutshell, modularization refers to a jigsaw-like mode of
construction. Assets are manufactured and tested remotely,
shipped to modular fabrication yards, then assembled onto preassembled skids with other assets, before being shipped to the
end destination and pieced together in-situ. The advantages
of this approach for the early generation of large North Sea
Oil and Gas projects were immense. It greatly facilitated
construction in this most hostile of environments.
In Focus
with shop fabrication as opposed to field construction. The
manufacture can take place in controlled conditions with a
highly experienced, permanent workforce. This reduces field
construction costs in adverse environments, enhances startup schedules and overcomes workmanship limitations at the
end destination. Moreover, construction is faster overall, so the
revenue stream can be generated earlier.
The long-term value of the equipment is improved, since it
can easily be dismantled and moved to a future location. An
additional factor that compelled some owners is that the
impact of construction on the surrounding environment is
significantly reduced.
What is involved?
While modularization addresses some of the challenges of
mega projects, the approach does bring its own complexities.
It requires disciplined methods and multi-level synchronization
from the EPC/EPCM contractor. There are multiple, independent
hubs of activity and each needs to work to the same rigorous
layered timeframes.
Equipment and materials are specified at the front end of the
project. Once they are manufactured and tested, these are
shipped to modular yards and incorporated into pre-assembled
skid units before shipping to the end destination. Needless to
say, accuracy and on-time delivery are absolutely vital.
Typically, delivery requirements stagger over a set timescale.
Establishing a priority list of onsite need dates is a core
focus, as opposed to just shipping all the equipment and
materials when their ready. This is especially critical with
fabricators building modules, where completion has to occur
in pre-determined phases. It is impossible to move to a new
phase without satisfactory closure of the previous phase. All
specification and design happens upfront. At a given point, all
designs are “frozen” so manufacturing can begin. Each supplier
needs to work actively with the module fabricator, planning a
schedule of manufacture and supply that dovetails with their
exacting requirements.
Challenges of modularization
The precise demands of modular projects have wider
implications for companies supplying equipment and materials.
For valve manufacturers, the challenges are rooted in the
29
severe nature of the applications. For instance, the long-lead
times usually associated with complex materials and specialist
valves aren’t simply acceptable with modular projects. It
follows that many standard work processes are challenged,
or turned on their head by modularization. The requirement
to freeze designs at an early stage means that dimension and
weight requirements need to be finalized sooner than with
conventional projects.
Critical analysis and decision making also needs to be fasttracked. All of these need to be achieved without compromising
accuracy, quality or safety.
Critical success factors
The surest route to success is for all parties to work cohesively
and supportively with the module fabricator. In many cases, it
is necessary to re-write the rule book and evolve or reinvent
traditional processes in order to meet the exacting demands.
We have a five-pronged best practice approach that underpins
modular projects.
1. Establish a tight roadmap - Concentric Project Management
is the approach favored in modular projects. Manufacturers
would do well to adopt this ethos, albeit on a smaller
scale. This concept holds the project itself at the heart of
operations and considers how it coexists within the bigger
picture. It is inevitable that the journey from specification to
delivery will involve problems such as resource bottlenecks
and shifting priorities. Not to mention obstacles and
complications resulting from inter-dependencies with other
organizations involved. Taking a concentric view can help
managers foresee and ease some of the difficulties that
may be encountered. The ethos is rooted in integration, with
role appropriate data and information shared at every level.
This means resources can be planned more effectively and
managers can quickly see what has been accomplished, and
what needs to be done. It helps streamline management,
control performance and enable real-time communication
and decision-making. More importantly, it empowers
individuals to take appropriate levels of responsibility from
the front to the back end of the project.
2. Enhance efficiency - The sheer size and demanding
specification of some of the equipment and materials
destined for mega projects bring their own set of challenges.
Any company serious about working on a modular basis
needs to scrutinize internal processes and facilities and
improve efficiencies. This may involve significant investment
to boost capacity and proficiency.
3. Integrate and collaborate - Whilst many update meetings
can be attended remotely, nothing beats having specialists
on the ground. Getting face-to-face enhances relations as
well as ensuring better understanding and a more cohesive
approach overall.
This is particularly true when requirements dictate for
example that valves need to be highly engineered to
operate beyond the normal realms of functionality. It is vital
to identify upfront which valves are likely to require a higher
level of attention in design and manufacture.
4. Facilitate breakthrough thinking - Some projects demand
products with truly exceptional performance, eg. control
valves in terms of speed of travel, range and response
time. Employing and empowering top-class specialists, then
encouraging them to work collaboratively and openly with
third parties that are also at the top of their game, can make
the seemingly impossible possible.
5. Cultivate knowledge and intelligence - Engineering should
always be a discipline of continuous improvement. The
emerging challenges posed by modular plants throw this
into sharp focus. Establishing and harnessing a continuous
loop of operational feedback drives and nurtures innovation
for better performance, reliability and safety. This approach
is set to become a key capability indicator as modularization
becomes the norm for mega projects.
Conclusion
Modular mega projects are set to dominate methods of
construction over the coming decades. The new generation
of modular builds learns from processes initiated and refined
during the North Sea boom. Performance can be further
enhanced with recent technological advancements. Contractors,
fabricators and suppliers need to look at their capability profile
and take strategic measures to ensure they can meet the
demanding requirements of modularization.
Hot Topic
Keeping
counterfeits
out of the
project supply
chain
30
We’ve all seen them for sale during our travels,
displayed in markets or piled in shopping malls;
replica DVDs, handbags, designer clothes and
sports shoes. Many are happy to snap up so
called bargains without sparing much thought
for the copyright infringement they represent.
But what if those items were pipes, fittings,
valves, actuators or circuit breakers and they
had infiltrated your project supply chain used
to build your plant?
Counterfeiting is a problem with global reach,
and unrelenting vigilance, prevention and
retribution are the best tools to fight it.
Counterfeit and fraudulent goods cost
US businesses more than USD200b a
year according to the Federal Bureau
of Investigations. Within the electrical
components sector alone, the industry
estimates losses at up to USD10b annually.
But in addition to economic impact, counterfeit
and suspect parts and components also pose a
significant risk to health and safety. Consider
that the US Federal Aviation Administration
once estimated that 2%of the 26 million parts
installed on aircraft annually a total of 520,000
parts may be ‘substandard,’ a category that
includes counterfeit and fraudulent parts. Or
consider this statement from a recent report
by the Electric Power Research Institute: “In
the US commercial nuclear industry, several
CFSIs [counterfeit, fraudulent and substandard
items] have been detected prior to being
placed in active industry, and several others
have been detected only after installation.”
Or this from the Department of Defense
(Dod): the DoD reported last year that it had
documented incidents of counterfeits in its
supply chain ranging from GPS oscillators to
rotor retaining nuts used to hold the rotor to
the mast of certain helicopters – and in many
Hot Topic
cases, failure of these parts could result in
failure of a mission and/or loss of life. While
the motive for producing CSFI is almost
always profit, sabotage is also a concern.
It’s a serious concern for the power industry
when upgrading systems to include digital
components and the type of electronics that
are susceptible.
Self assessment is vital
The countries most impacted by CFSI are those
currently involved in large scale construction.
Typical cases are devices that are high volume,
low cost commodities such as circuit breakers.
If these are not correctly built, they can
cause a fire or electrical failure, and those are
the types of impacts developing countries
are witnessing. A core piece of advice is to
be cautious when dealing with sources not
authorized by the original manufacturer (such
as brokers) or when sourcing from regions
known to be sources of counterfeits. A good
place to start is a self-assessment to identify
if your project is exposed to counterfeiting,
to build awareness of the issues and examine
anti-counterfeiting measures that may or may
not be in place. Having a formal process to
avoid and detect counterfeits should include:
As new plants are designed and built around
the world, CFSI will be a significant concern.
The sheer number of suppliers and new
suppliers, demand that EPC/M firms take
special care to ensure counterfeit items don’t
make their way into new plants it’s all about
vigilance and prevention.
What to do with fakes? If you should ever
identify a counterfeit item, knowing what to
do with it is also important. You must establish
a process for handling a suspect item. Staff
must know how to quarantine suspect items,
to assess if it has had any impact on your
project or organization, know who to notify
(supplier, OEM, authorities) and when.
It’s essential to know how to dispose of the
item to ensure it isn’t salvaged and sold again.
How much investigating should you do - is it
sufficient to just remove the item from your
inventory or should you investigate further?
These are all important issues that need to
be addressed by your organization. While
there have been recent successful legal cases
against counterfeiters, these represent a tiny
majority of cases, but every victory helps.
China is still the most notable country
for counterfeiting, with 66% of seizures
made in 2010 originating from there. Court
cases certainly raise awareness in industry,
exposing the problem and hopefully acting
as a deterrent to counterfeiters. They also
serve as an incentive for authorities in
those jurisdictions to enhance their anticounterfeiting efforts. It’s a good thing that
we’re seeing some legal successes.
• Staff training and awareness
• Identifying at-risk items
• Making suppliers aware of expectations
• Imposing contractual requirements on
suppliers
• Defining specific consequences if suppliers
provide counterfeit items
• Addressing CSFI prevention during the
sourcing process
• Choosing suppliers you know
• Buying direct or from an authorized
distributor
• Implementing stringent measures when
buying from a new supplier
31
Image sourced from: ktcloset.blogspot.com
Procurement Contacts
London
Calgary
Shanghai
Houston
UAE Abu Dhabi
Brisbane
Rob Simmonds
Janis Wilson, PMP
Ron Porter, FCILTA
Henry Hermanas, PhD Graeme Ormiston
John Ritchie
Peter Gilzean
Tom Liao
Brian Shoemaker
Manager of Procurement,
Global Manager,
Global Manager,
Global Director,
Global Manager,
China Sourcing Hub
North America
Procurement &
Contracts Systems
Logistics
Contract Management
Materials Management
MENAI/SSA
Based in Shanghai
Based in Houston
Based in Houston
Based in London
Based in Abu Dhabi
Australia/Asia Pacific/
China
Based in Calgary
Based in Houston
32
Europe
Based in London
Based in Brisbane

Supply Market Insight

Transcription

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