San Jose, Calif —The North American level instrument, or level sensor, market is projected to experience steady growth over the next six years, according to a new study by Frost & Sullivan. The report adds that, while the globalization of the world economies is creating great opportunities, it presents serious challenges to the smaller level sensor manufacturer.

The level instrument market grew steadily throughout the 1990s and generated revenues of $591.6 million in 1999. It is projected to reach $823.8 million in 2006. The study found that increased economic activity in North America, especially in the U.S., bolstered the manufacturing and food and beverage sectors, which in turn increased demand for level sensors.

However, the report adds that market forces also seem to be slowly squeezing out smaller participants. There also have been changes in the way end-users are buying sensors. Many are beginning to purchase level sensors in bulk, putting pressure on manufacturers to supply the necessary volume.

"Smaller manufacturing firms are finding themselves in a situation where they don't have the network, contacts, or the resources to gain the competitive edge they need to compete with large, recognized manufacturing firms," says Michael Berger, Frost & Sullivan's analyst.

Within this challenge, however, lies the potential for smaller manufacturers to gain market share, states Mr. Berger. As multinational manufacturers snap up contracts worldwide, some regional markets may be underutilized, and Mr. Berger adds, this is where smaller players can build a niche. For more information, visit www.frost.com or www.controleng.com/freeinfo.