Energy Prices to Spur Higher Profits in the Hydraulic Pump Markets, Reveals Frost & Sullivan

    SAN JOSE, Calif.--March 12, 2001--New turbulence in energy markets is creating a ripe opportunity for growth in the North American Hydraulic Pump Markets.
    Well-informed manufacturers will be able to profit from this new opportunity.
    Frost & Sullivan (http://frost2001.frost.com), reveals that the North American Hydraulic Pump Market generated revenues of more than $1.2 billion in 1999. Frost & Sullivan projects that number to approach $2 billion by 2007.
    "Energy prices will be a strong driver over the next one to two years," says Frost & Sullivan Industry Analyst George Turnage. "It diminishes slightly over the remainder of the forecast because the transition to more energy-efficient selections should be made early. Pump manufacturers should aggressively target this area to take advantage of its small window of opportunity."
    Turnage expects stable growth over the next several years, but identifies several areas that may provide a short-term boost. One such area is in the continuing energy crisis, which should compel end users to switch to more energy-efficient pumps in the short-term to take advantage of lower operating costs in the future. Pump manufacturers that can meet this demand quickly can move ahead of their competition.
    Companies that increase production capabilities now can insure future success and long-term growth. Currently, there is not enough production to meet demand, and those manufacturers that cannot fill end-user orders quickly will lose market share to those that can.
    "The effect of demand exceeding production capabilities is significant throughout the forecast period due to the possibility of a transition to competing technologies that can more adeptly meet demand, and the loss of goodwill from customers that are forced to wait for products," says Industry Expert Turnage. "The long lead times will diminish in importance as either the industry increases production capabilities or demand decreases."
    Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the North America hydraulic pump industry. The recipient of the Market Engineering Leadership Award is Eaton Vickers. The Product Line Strategy Award goes to Denison Hydraulics. Oilgear receives The Business Development Strategy Award. The Merger and Acquisition Strategy Award is given to Parker Hannifin.
    Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the power transmission industry for market trends, market measurements and strategies. Executive summaries and interviews are available to the press.
    Along with providing in-depth strategic market consulting analyses, Frost & Sullivan also provides custom consulting services to a variety of national and international companies.

    North America Hydraulic Pump Markets

    Report: 7552-17