The Measurement, Control & Automation Industry

Measurement, Control and Automation (MC&A) products and services are essential to the proper operation and profitability of the primary materials and energy producing industries. Specific benefits include improved plant throughput and productivity, enhanced worker safety, increased energy efficiency, higher process yields and waste product minimization, improved product consistency and uniformity. MC&A products and services play a key role in elevating worldwide living standards by increasing the availability and reducing the cost of basic materials and energy while insuring adherence to sound environmental practices.

The Value of Process Control in the US—The economic impact of process control, from a producer's perspective, is tiny—probably not more than 0.1% of GDP (gross domestic product). The US GDP is about $12 Trillion. Broadly-defined, US process control producer output is about $12 to 15 Billion (0.1% of GDP). The producer output does not capture the value of services from end-users, engineering contractors, systems integrators, consultants and others for specifying, designing, installing, commissioning and maintaining these producer products. The value of these services is estimated at 200-300% of the producer output bringing the aggregate process control cost to 0.3-0.4% of GDP.

Non-durables manufacturing and energy production represent about 20% of GDP and are the principal users of process control. Improved efficiencies in these industries with automatic process control are certainly 15-20% and probably much more. Process control, moreover also impacts durables manufacturing, mining and extractive industries and others which are not considered in this analysis. Conservatively, therefore, the positive economic impact of process control is 3-4% of GDP for a cost of 0.3-0.4% of GDP. That's $10 in benefits for every $1 expended.

Around the Globe—The MC&A industry is a worldwide business producing products and services valued at over $62 billion in 2010. The significant downturn in the worldwide economy in 2009 reduced the worldwide market value substantially in that year, but the market recovered reasonably well in 2010. In good economic times, the MC&A market has a steady worldwide growth of 8 to 10% annually. These products and services are used for process control and factory automation in the oil & gas, refining, chemical, pharmaceutical, food & beverage, pulp & paper, water & wastewater, utility power, mining/minerals/metals, semiconductor and textile industries.

Measurement, Control and Automation Markets—The U.S. is the largest producer of MC&A products and services as well as the largest single national market.

Measurement, Control and Automation Products and Services—MC&A was traditionally a product focused business but, since the emergence of microcomputer based distributed controls, this industry has experienced the growth of a vibrant services sector.

Measurement, Control and Automation Products

MC&A products generally fit into the following categories

• Analytical Instruments
• Field Measurement (pressure, temperature, flow, level and other)
• Recording and Display Systems
• Control, Data Acquisition and Communications systems and software
• Safety Instrumented Systems including Flame & Gas and Emergency Shutdown
• Final Control Elements including Valves, Pumps and Motors
• Testing and Maintenance instruments
• Spare parts and supplies

Measurement Control and Automation Services

MC&A products, and directly related services, represent about 85% of the aggregate MC&A revenues.

Measurement, Control and Automation Producers

An estimated 250-300 firms worldwide produce MC&A products. Most of these firms also provide MC&A services. Over 1,000 firms worldwide provide MC&A services.

Traditionally, top 12 largest MC&A producers account for somewhat more than 70% of the worldwide revenues. The balance of the MC&A product firms and the dedicated MC&A service firms captured 25-30% of the worldwide MC&A revenues.

The six largest firms in 2008 (with process control revenues of over $3 Billion) were: ABB, Siemens, Emerson, Honeywell, Schneider and Rockwell Automation.  Others in the top 12 include Omron, Yokogawa, Danaher, Mitsubishi, GE and Invensys.

The Measurement, Control & Automation Association (MCAA)

MCAA is the principal trade association serving North American MC&A producers. The Association's 100 plus member firms account for more than half of the U.S. MC&A product and services revenues with seven of the "Top Ten" producers represented in membership.  It is the North American trade association representing providers of process control, measurement instrumentation and factory automation systems and software.  The Association was formed in the 1940s and has been known historically as Recorder-Controller, Inc. as well as The Process Measurement & Control Section of SAMA.  In 1994, the organization disassociated from SAMA (the Scientific Apparatus Makers Association) and established itself as an independent not-for-profit trade association.  Its programs provide tools to both manufacturers and distributors in the areas of market trends (including bookings reports), operating benchmarks, customer satisfaction (including benchmarks against industry peers and competitors), compensation and benefits, sales training and executive education and networking. More about each of these programs can be found in this website.

Courtesy: Global Automation Research LLC, Minneapolis, MN (952-920-3472)