Setting up Production Facilities in Low-cost Countries to Help North American Small Alternating Current Motor Manufacturers Retain Market

DUBLIN, Ireland--Research and Markets has announced the addition of Frost & Sullivan's new report: North American Small Alternating Current Motor Markets to their offering.

This research service titled North American Small Alternating Current Motors Markets provides analysis of the different kinds of small AC motors, end-user analysis, as well as geographic and competitive analysis. In this research service, expert analysts thoroughly examine the following technologies: asynchronous and synchronous small AC motors.

The North American market for small alternating current (AC) motors is being rapidly taken over by Asian, especially Chinese motors. The Asian market has embarked on an aggressive growth mission and this expansion, added to the demand from the existing motor markets all over the world, has consumed most of the obtainable raw materials. With the Asian market showing no signs of decreasing its momentum any time soon, raw materials manufacturers and suppliers have increased their prices. This has hiked the manufacturing costs of AC motors in North America, which has in turn raised the prices of motors, thus forcing customers to turn toward cheaper standardized motors from the Asian market.

Domestic manufacturers need to fight global restraints such as higher raw material costs and competition from low-cost Asian products as well as their own market dynamics if they are to increase, or even maintain, their revenue and customer bases. North American companies can differentiate their products by making them technology driven to ensure better quality than their Asian competitors and by adding value in terms of customer service policies. They can achieve this by making use of the latest techniques in the research and development of motor technology that America has to offer, says the analyst of this research. At the same time, they can improve their customer support facilities, thus overcoming tough competition from Asian motor manufacturers.

Setting up Production Facilities in Low-cost Countries to Help Manufacturers Retain Market

Most North American motor manufacturers have adopted and are likely to persist with the strategy of acquiring smaller niche companies or specific brands in order to provide a one-stop shop for customers and, thus open up newer revenue possibilities. In addition to this, companies in the North American motor manufacturing sector are also poised to streamline their manufacturing processes and move toward greater automation. This is expected to help reduce costs and offer locally developed products a level playing field with the Chinese or Asian products that are flooding the North American markets.

Domestic companies are looking at arresting the slide of market shares by stressing on production efficiency, increased reliability, as well as shorter lead and delivery times. Thus, manufacturers will have to use expensive raw materials to provide premium products even as they try to lower overall costs. Outsourcing their manufacturing activities to original equipment manufacturers (OEMs) is one way to cut costs, notes the analyst. Many North American OEMs have already shifted operations to countries such as China and India and the market is soon expected to experience the resultant price advantage.