MCAA publishes 2016 Market Forecast
Published by Rosalie Starling,
Editor - Hydrocarbon Engineering
Hydrocarbon Engineering,
The Measurement, Control & Automation Association (MCAA) has published its Annual Market Forecast for 2016. The report focuses on the process instrumentation and automation (PI&A) markets in both the United States and Canada. 12 industry segments and product categories are examined in-depth, with a forecast timeline extending to the year 2020.
The PI&A market in the United States did experience growth in 2015, however that growth was minimal. At US$11.6 billion, the increase was 0.3% above the 2014 level of US$11.1 billion.
Lack of growth was attributed to a decline in oil prices, as well as a downturn in mining and mineral spending due to falling commodity prices. Another factor is surplus capacity in the metals, cement, and pulp and paper sectors that is suppressing demand for those products. A strong dollar and weaker economies in China, Russia, and Brazil have also reduced US domestic demand for PI&A products and services.
Five industries within the US are expected to experience above average growth for the period 2015 - 2020: electric utilities, pharmaceuticals, chemicals, refining, and food and beverage. These industries will account for US$7.8 billion in 2015, expanding to US$9.4 billion in 2020.
In Canada, process industries will grow slightly slower than in the United States. Mining and oil production comprise nearly 20% of the Canadian economy. The drop in oil and gas and mining and minerals spending resulted in a 4 percentage point drop in the PI&A growth rate for 2015.
Canadian process industries are positioned for growth over the forecast period. Metals, cement, water/wastewater and chemicals are all expected to profit from increased government spending on infrastructure.
MCAA exists to help the management teams of process and factory automation product and solution providers run and grow successful businesses by offering timely, unique and highly specialised resources acquired from shared management benchmarks where proprietary company information is secure.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/30062016/mcaa-publishes-2016-market-forecast-3614/
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