New market opportunities emerge for electric motors in Russia and Ukraine

Revenues in the Russian electric-motors market will rise to $1.5 billion by 2012, while the Ukrainian electric-motors market will expand to $287.8 million over the same period, say analysts at Frost & Sullivan in London.

While old and outdated equipment is undermining the competitiveness of the Russian and Ukrainian manufacturing sectors, at the same time it is creating opportunity for replacement sales, Frost & Sullivan experts say in the report entitled “Emerging Opportunities in the Russian and Ukrainian Electric Motors Markets.”

Russian and Ukrainian suppliers of electric motors may be forced to consider extending their product portfolios, as a route to supporting market share while better responding to customer needs.

“A substantial number of Russian and Ukrainian manufacturing companies are currently working with equipment that, in Western Europe or North America, would be considered obsolete,” observes Frost & Sullivan Research Manager Richard Tamworth. “As a result, most suppliers of electric motors to the Russian and Ukrainian markets expect the replacement cycle to intensify in the next few years, as many companies face the problem of not being able to operate if they do not buy new manufacturing systems or at the very least, new motors to drive their old ones.”

Despite the optimism of suppliers and broader industry recognition that relatively obsolete equipment is hampering their competitiveness in the global markets, only a few Russian and Ukrainian manufacturers-those connected to the oil trade, for example-actually possess the resources to invest in the modernization of their production facilities.

Many companies lack the capital to update their facilities, as their sales are low, their production capacities are often severely underused, and their margins poor.

“Although production companies realize they are using outdated equipment, many of them do not have the budget required to renew their production facilities. This lack of investment may prove to be one of the biggest setbacks for the Russian and Ukrainian motors markets, and perhaps their economies in general,” Tamworth notes. “Despite the gradual, if inconsistent improvement in the economic situation in these countries, many manufacturers are still obliged to repair existing equipment and motors and plan to buy new ones only when necessary.”

The inability or unwillingness of manufacturers to invest in new equipment has a number of more strategic ramifications. The overall quality or technology requirements of the Russian and Ukrainian markets are, typically, relatively low. Inevitably, companies with limited financial resources tend to focus on the basic configuration of electric motors.

“As a generic marketing strategy, Russian and Ukrainian electric-motor suppliers should therefore consider offering comprehensive product portfolios where a customer has several component options, mixing ultra-low-cost basics, with more advanced, perhaps imported options,” advises Tamworth. “This will allow them to better accommodate widely varying customer needs and secure significant competitive advantage.”

For more information, or to buy a report, contact Frost & Sullivan online at www.motors.frost.com.


Easily post a comment below using your Linkedin, Twitter, Google or Facebook account.


The Innovation That Matters™ Quiz

Innovation is one of the key drivers in the Defense industry. View this short video of Leon Woo, VP of Engineering at Mercury Systems, on the role of innovation. Then, answer 3 simple questions correctly to be entered into a drawing to win an Eddie Bauer fleece jacket!

CONGRATULATIONS TO OUR TWO MOST RECENT WINNERS. "Nick from SPARWAR" and "Bridget from AOC."


Military & Aerospace Photos

Related Products

RR2P Removable Canister RAID System

Transportable data storage for mobile field use aboard planes, ships and ground transport. 2U, du...

API DC Link Power Film Capacitors

High reliability DC link capacitors for power inverter applications which require superior life e...

XPort9200 Conduction- or Air-Cooled 12-Channel High-Speed CAN Bus XMC or PMC

The XPort9200 is a conduction- or air-cooled 12-channel CAN bus XMC or PMC module. Each high-spee...

Related Companies

Winchester Systems Inc

At its founding in 1981, Winchester Systems introduced its first 5 MB disk system for Intel development system users....

API Technologies Corp

Who We Are API Technologies is a dominant technology provider of RF/microwave, microelectronics, and security technol...

Extreme Engineering Solutions Inc (X-ES)

 Extreme Engineering Solutions, Inc. (X-ES) is a leader in the design, manufacture, and support of standard and ...
Wire News provided by   

Most Popular Articles

Webcasts

Meeting the Gen3 backplane challenge with OpenVPX and COTS

Gen3 serial interconnects such as 40G Ethernet, QDR/FDR10 Infiniband, PCIe Gen3 offer significant performance benefits for OpenVPX Systems.  This webcast will outline OpenVPX Signal Integrity challenges...
Sponsored by:

Digital signal processing for signals intelligence and electronic warfare

Military & Aerospace Electronics presents an expert Webcast on the design considerations for blending general-purposes processors (GPUs), general-purpose graphics processors (GPGPUs), field-programmable ...
Sponsored by:

Advantages of Intel Architecture Products and Wind River Solutions in Military & Aerospace Applications

This webinar explains the individual advantages of the Intel Architecture hardware, available for long-life supply, and the WRS software portfolio.  There are extraordinary advantages of combining such ...
Sponsored by:

social activity

All Access Sponsors


Mil & Aero Magazine

February 2014
Volume 25, Issue 2
file

Download Our Apps



iPhone

iPad

Android

Follow Us On...



Newsletters

Military & Aerospace Electronics

Weekly newsletter covering technical content, breaking news and product information
SUBSCRIBE

Defense Executive

Monthly newsletter covering business news and strategic insights for executive managers
SUBSCRIBE

Embedded Computing Report

Monthly newsletter covering news on embedded computing in aerospace, defense and industrial-rugged applications
SUBSCRIBE

Unmanned Vehicles

Monthly newsletter covering news updates for designers of unmanned vehicles
SUBSCRIBE