Stats Fact of the Week: Week of May 20, 2019
In today’s fast-paced business environment, technological advances shorten life cycles of products, business models change, and new competitors appear from outside the industry. Reliable methods of identifying emerging markets for new business opportunities are necessary for a business to survive. Customer segmentation, purchasing decisions, direct and indirect competitors, technological environment, etc. are all important to take into consideration, but analyzing growth trends over time for your product base is a great place to start. Growth trends by product base are outlined in depth in the NFPA’s Customer Market Survey (CMS) results.
Every year, NFPA collects total U.S. hydraulic and pneumatic sales figures from manufacturer members, as well as the percentage breakdown of those sales figures by customer market. The aggregated results create a weighted industry data source by customer market for both hydraulics and pneumatics. This helps participants properly measure industry sales by customer market and explore the growth of industry sales over time to identify emerging markets.
For example, the three charts below display U.S. hydraulic sales by customer market over a three-year time period.
After examining the three charts, “Automotive (including light truck)” highlighted in yellow jumps out as a very strong possibility of an emerging market worth investigating because of progressive growth in hydraulic sales every year. Whether or not a company should actually investigate a specific opportunity further depends on whether its products can have applications in the target market, but using weighted industry data by customer market makes identifying other possible emerging markets to research a quick and easy process.
NFPA’s continued effort to create a more complete information source about fluid power customer markets is the driving force behind the Customer Market Survey (CMS). This survey’s results are a critical piece of industry intelligence that expands your understanding of the role each customer segment plays in the fluid power marketplace.
Important Reminder – You must participate in the CMS to receive the results.
Questions? Contact Eric Armstrong at firstname.lastname@example.org or (414) 778-3372.