US Market Participants Must Find a Way around the Growth-Stifling Commoditization of Pneumatic Components

DUBLIN, Ireland--Research and Markets (http://www.researchandmarkets.com/reports/c59831) has announced the addition of Frost & Sullivan's new report: North American Pneumatic Air Prep and Accessories Market to their offering.

This Frost & Sullivan research titled North American Pneumatic Air Prep and Accessories Market provides an overview of the revenue forecasts for the pneumatic air prep and accessories market across North America along with a comprehensive analysis of the various drivers, industry challenges and trends prevailing in the market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: pneumatic filters, regulators, lubricators, and accessories.

Value-added Activities Play an Important Role in Sustaining Market Revenues

The accessories market is dependent on the integration capabilities of manufacturers. In many cases, manufacturers have to incorporate sensors and multiple valves into single units, as well as actuators with valves and hoses for original equipment manufacturers (OEMs). "The standard practice of coupling filters, regulators, and lubricators (FRLs) into a single unit has recently changed due to the omission of a lubricator in many 'piggy-backed' units," notes the analyst of this research service. "The ability to meet stringent specifications of certain OEMs is critical especially to manufacturers of medical and analytical instruments."

Although many manufacturers require more specialized components, the advantage in the medical industry is that after initial design, the product specifications for that particular OEM remains unchanged until the next product design. This is due to the time and resources required to get a piece of medical equipment approved after which, no changes in design are allowed without going through the approval process all over again.

Market Participants Must Find a Way around the Growth-stifling Commoditization of Pneumatic Components

Although market participants are almost averse to the idea of using the word 'commodity', most will admit that some pieces of the FRL market have, indeed, been partly commoditized. Units such as quarter inch mini-regulators are commonly mentioned when the issue of commoditization is discussed. "Some of the aspects triggering commoditization include low technology innovation, few niche opportunities based strictly on product, and low overall growth in the market across most industry applications," cites the analyst. "Another issue lessening brand loyalty is the increasing willingness of customers to consider price as a major issue, especially since units from various suppliers do not have extensive technical differentiation."

Companies are considering pricing their units lower to stay cost-competitive. However, as raw material and production costs increase, the financial burden on the enterprise is also set to increase. Hence, some manufacturers of pneumatic air prep and accessories are opting for global outsourcing to control their manufacturing costs to realize greater revenues and profit margins.

For more information visit http://www.researchandmarkets.com/reports/c59831.