The South African Chemical Sector is Experiencing Robust Growth

Business Wire, July 4, 2007

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c61648) has announced the addition of the new Frost & Sullivan report "Customer Satisfaction Analysis for Automation and Control Solutions in the South African Chemical Sector" to their offering.

This Frost & Sullivan service titled Customer Satisfaction Analysis for Automation and Control Solutions in the South African Chemical Sector provides an analysis of the A&C solution market in the South African chemical sector. The survey highlights the current consumer behaviour based on their selection criteria, the existing relationships between A&C solution providers and chemical companies and the decision-making process within chemical companies. In this research, Frost & Sullivan's expert analysts thoroughly examine the following technologies: distributed control systems (DCS), programmable logic controllers (PLC), human machine interfaces (HMI) and supervisory control and data acquisition (SCADA).

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

* Base chemicals

* Intermediate chemicals

* Chemical end-products

* Specialty end-products

Technologies

The following technologies are covered in this research:

* Distributed control systems (DCS)

* Programmable logic controllers (PLC)

* Human machine interfaces (HMI)

* Supervisory control and data acquisition (SCADA)

Areas covered:

* Purchasing Process

* Supplier Selection Criteria and Introduction to Purchasing Decision

* Purchasing Needs

* Service Provider Assessment

* Detailed Satisfaction Analysis

Market Overview

Robust Growth in the South African Chemical Sector Creates Growth Opportunities for A&C Solution Providers

A recent Frost & Sullivan study was conducted to provide an understanding of the strategic adjustments that are required by automation and control (A&C) solution providers that are active in the chemical sector in South Africa. End users surveyed included 25 chemical companies, selected because of their market share in the sector.

The South African chemical sector is experiencing robust growth. In 2005, the chemicals industry contributed approximately 5 per cent to South Africa's GDP and 25 per cent to its manufacturing output. This has led to robust demand for A&C solution products, as improving efficiency and productivity have become a necessity. "The prospect of increasing exports, the maturity of several automated plants and the increased consumption of local chemical products are the main factors driving investments in A&C solutions," notes the analyst of this research service. "Moreover, with chemical companies now focusing on exports, the need to improve efficiency and productivity are resulting in strong demand for A&C solution products."

Focus on Competitive Pricing and After-sale Support Essential

Findings revealed that 48.3 per cent of A&C solutions purchased in 2006 were for retrofit applications. This indicates that engineering managers and other process controllers use A&C solution products until they become mature, which can extend from five to ten years. It also explains the relatively low investments in A&C solution products. Only a slight majority of A&C solution products are used for new installations and this trend is likely to persist in the future.

"Respondents ranked the quality and reliability of the solution products, technology compatibility, price competitiveness and customer service as the main factors that influenced their choice of an A&C solution provider," remarks the analyst. "To register growth in this market, A&C solution providers will need to efficiently combine these key criteria." Besides, the majority of chemical companies remarked that they were unlikely to change their current A&C solution provider, owing to the additional costs involved in doing so. Moreover, end users were of the view that A&C solution providers were failing to offer good-quality customer service. Longer delivery times and the non-availability of critical spare parts are other factors that are likely to hamper the demand for A&C solution products. In this scenario, A&C solution providers that offer compatible solution products at a competitive price and provide robust after-sale support are expected to improve their market share.

For more information visit http://www.researchandmarkets.com/reports/c61648