Sep 07, 2012
CEO of global instrumentation group sees signs of life amid gloomBack
Engineering|Africa|Endress+Hauser|Gas|Instrumentation|Resources|Water|Africa|Americas|Asia|Europe|China|Democratic Republic Of Congo|India|Korea|Nigeria|South Africa|Tanzania|United States|Zambia|Equipment|Gross Domestic Product|Mining|Oil And Gas|Oil And Gas Industries|Product|Products|Klaus Endress|Rob MacKenzie|Water|Latin America|Middle East|South Africa
© Reuse this
On a visit to South Africa last month, Endress told Engineering News that the group is targeting growth of 8% this year.
“We are pretty well on the way to reaching this target. We are currently less than 1% below that, so it is feasible and I am very positive we will reach this target,” he commented.
He highlighted that, while this year had started off slowly, business was picking up and improving.
To date this year, the company has seen growth slightly above what it had targeted in Europe. In the Americas, the group was seeing double-digit growth for the third consecutive year. In Latin America, the growth potential was good, but political instability was a challenge.
The oil and gas industries in the Middle East were also driving good growth for the group in that region.
Further, the growth prospects in Asia were mixed, with demand in India developing nicely and Korea showing strong growth.
However, while China’s gross domestic product continued to increase, growth in instrumentation and automation industry was decreasing, noted Endress.
Meanwhile, the Australian and African markets were also profitable, with the group recording double-digit growth in these regions so far this year.
Endress noted that the mining industry in Africa was providing good growth for the group.
“[Africa] is a sleeping part of the world. [Things] are not moving fast, but the potential is big and untapped,” he commented.
Endress+Hauser South Africa MD Rob MacKenzie added that the group’s South African subsidiary was seeing good growth from the mining industry in the rest of Africa, particularly in Zambia, the Democratic Republic of Congo and Tanzania, where mining was performing well.
It was also seeing strong growth in the food and water industries in both South Africa and the rest of Africa.
The group had a record year in supplying the water sector with products and services, particularly analytics services and equipment, given that people seemed to be becoming more concerned with the quality of their water, stated MacKenzie.
Further, Endress noted that the floating production, storage and offloading sector in Africa required a lot of measuring equipment. This is a growing sector, particularly in Nigeria.
He stated that the group had a good installed base for this sector, adding that the group was considering establishing a company in Africa to support the sector in future.
As the population grows, demand for resources increases, which, in turn, requires industries to work more efficiently to find and use these resources. He believes the group will play a key role in helping its clients improve their efficiency.
Therefore, he expects the group’s automation business to achieve average growth rates of 5% a year going forward.
To ensure the company continues to grow amid an uncertain economic climate, it is focused on giving the markets and its customers what they need and what they want.
The group will continue to increase its services to markets and its customers, improve the support it provides its customers, and provide the products, processes and technologies its customers want.
Endress stated that nano- and biotechnology would play an important role in all industries in future.
The investment included the acquisition of US-based SpectraSensor, which has enabled Endress+Hauser to enter the gas analysis market.
Endress noted that SpectraSensor’s tunable diode laser spectroscopy instrumentation was robust and required limited maintenance.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines
Other News This Week News
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...