Low-Cost Provider Strategy Boosts Demand in Direct Current and Universal Fractional Horsepower Motors Markets

Mumbai, Maharashtra, India

The price of the direct current (DC) and universal fractional horsepower motors is decreasing in the North American market due to the influx of low cost foreign products and the original equipment manufacturers (OEMs) sourcing their products from low cost manufacturing countries. As a result, survival in these markets depends largely on efficient distribution, effective customer service and retrofits. As part of practicing profitable customer service, the manufacturers focus on reducing lead times and in generating quicker responses to customer needs.

New analysis from Frost & Sullivan (www.industrialautomation.frost.com), North American Direct Current and Universal Fractional Horsepower Motors Markets, reveals that the market earned revenues of $4.91 billion in 2005 and estimates to reach $5.96 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American Direct Current and Universal Fractional Horsepower Motors Markets, then send an e-mail to Ravinder Kaur, Corporate Communications, at ravinder.kair@frost.com with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"The efficient distribution of products or the lack of thereof will remain a key differentiator for the North American direct current and universal fractional horsepower motor manufacturers," says Frost & Sullivan Research Analyst Shibu S. L. "Manufacturers are also adapting to vertical integration, low-cost provider strategy, enhanced global operations and market coverage, and are focused on core competencies among others to differentiate themselves in the price intense market."

Superior customer service combined with efficient distribution and faster delivery is the key to success. In addition, educating users on which motors are appropriate for their needs provides greater satisfaction and repeat business for manufacturers. Cost-conscious users seek the most inexpensive motors for their needs. This results in motor failure, increased downtime and possible equipment damage. Manufacturers have understood the need to educate customers about their value and offerings which has resulted in greater customer awareness, which in turn leads to greater adoption of motors and subsequent business profits.

The markets are negatively affected by the shifting of manufacturing to the developing countries, which include China and India. Also, the demand for a 'one stop shop' in automation is instigating manufactures to venture into strategies and alliances to improve their products and offerings. Apart from logistic issues this also presents problems of interfacing and compatibility. However, the total solution concept remains a challenge for smaller and larger participants in terms of providing better customer value and an increase in product range.

"A direct result of outsourcing is price pressure; with low labor and material costs foreign manufacturers will be able to sell their products at reduced price margins and the use of local resources to market their own products intensifies this pressure," explains Shibu. "Also, to create the desired 'one stop shop', major participants are seeking to enhance their products through partnerships and consolidation which creates a market with very few large participants."

As part of competing effectively in this market, improving manufacturing processes through increased streamlining and automation reduces cost and provides a greater competitive advantage to the market leaders. Also, focus on differentiation and advertising strategies is expected to enhance companies' visibility in the market and promote the sale of products.

The North American Direct Current and Universal Fractional Horsepower Motors Markets. It provides an overview of the revenue forecasts across various geographies in North America. It also includes a thorough examination of the following markets: brushed direct current fractional horsepower motors, brushless direct current fractional horsepower motors, and universal fractional horsepower motors market. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

North American Direct Current and Universal Fractional Horsepower Motors Markets
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Source: Frost & Sullivan (Business Wire India)

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