Market Report
Acquisitions Shape the Stainless Market
An analysis of thousands of acquisitions over the last 30 years shows that the stainless steel market is built on the niche achievements of several small companies who were acquired by publicly traded companies or private equity firms . The many benefits of mergers have recently increased due to the advent of IIoT and remote O & M which allow suppliers to provide solutions and not just products .
By Robert McIlvaine , President & Founder , The McIlvaine Company
There are several motivations that can cause a stainless steel company to seek acquisitions . Purchasers as well as suppliers of stainless products in the air , water , and energy markets are making acquisitions based on four main drivers .
• Expand product range
• Add complimentary products
• Expand markets
• Reduce costs
For example , one can look at the benefit for a stainless company to acquire a company with complimentary products . Typically , stainless fabrications , forgings , and castings are widely used in valves , pumps , and process equipment . To some extent remote monitoring is needed for leak detection and other aspects of stain- less performance . Of more importance is the fact that solutions providers are a new group of customers . They are more likely to use a higher grade stainless if they can validate a lower total cost of ownership through digital intelligence .
Total Solutions Market
The total solutions market for stainless steel products in air , water , and energy can be defined in different ways . One is a pragmatic approach based on the capabilities and interests of a group of OEM stainless customers . This approach excludes most discrete and mobile applications . The reason for this exclusion is that a different group of suppliers typically pursue this high volume , but small , product market . Most residential and commercial markets are also excluded . Each of the market niches in a pragmatic approach are defined in one umbrella market report . 1
Stainless Steel Customer Acquisition Targets
The Total $ 750 billion Solutions Market Air - $ 150 billion Liquids - $ 250 billion Solutions - $ 350 billion
Fabric Filter Scrubber FGD DeNOX Thermal / Catalytic Air Filtration Hose And Fittings Fans , Blowers Compressors
Liquid Filtration Sedimentation Centrifugation Membranes Pumps Valves Ultrapure Water
IIoT - Guide IIoT- Control IIoT - Measure Cleanroom Hardware Cleanroom Consumables Cleanroom Services Treatment Chemicals
Figure 2 . Figure 1 .
14 Stainless Steel World Americas - August 2022 | www . ssw-americas . com