Latin American DCS market growing despite economic woes, ARC Advisory Group says
Dedham, MA – Developing economies like Latin America continue to offer good growth for many suppliers in the process industries. The distributed control systems (DCS) marketplace in Latin America is an example. “The DCS market in Latin America will grow at the average annual rate of close to 10% through 2012, reaching a total size of almost $1.5 billion,” said ARC research director Larry O’Brien, principal author of ARC Advisory Group’s Distributed Control Systems Outlook for Latin America .
The report revealed that most of the growth is driven by infrastructural industries, such as power generation and heavy process industries like oil and gas, refining, petrochemical, and mining.
Automation suppliers with the largest direct presence in the area are most successful. While relationships with representatives can help penetrate markets where suppliers don’t have a presence and systems integrators can help provide project services, it is important to have local people fill critical roles in sales and project support, as well as ongoing maintenance and operational services. It can be a challenge for suppliers to build local presence and local talent may be hard to find. Many suppliers have begun acquiring companies, including rep firms, to boost their presence there. ABB, for example, recently acquired CMS Tecnologia in Chile.
Some suppliers have developed large training centers where aspiring engineers and technicians will have access to knowledge of their systems and solutions. One major automation supplier, in order to get a contract with a remotely located mining company, had to help build a local training and education center.
End users, as well as engineering and procurement firms (EPCs), are looking to automation suppliers for automation project execution capabilities; Latin America is no exception. Many factors contribute to growth in project and engineering services for automation suppliers, and suppliers are starting to fill the role of main automation contractor (MAC), overseeing all aspects of the project and providing a single point of responsibility from design to startup.
Customerally in the preparation of proposals that portray a realistic, honest view of project costs.
The pressure faced by users and EPCs means that projects must be completed as quickly as possible. Qualified automation suppliers provide that single point of responsibility for project management, coordinating activities among multiple automation suppliers and subcontractors and freeing both end user and EPC to focus on what they do best.
ARC Advisory Group