AirUser 2008 96+4pp 24/7/08 11:31 Page 10
direction of the industry
The Government
can do more
Here, speaking exclusively to Air User, Kevin Prince, managing director of Atlas
Copco Compressors addresses the main issues that will affect the compressed
air industry into 2009 and beyond
: If the compressed air industry Q: How will this develop into 2009?
Q
is a weather vane for A: I believe we are in for a bumpy ride over the next 18
manufacturing in general how months to two years. We will see more consolidation in
do you see the current climate? the compressed air sector with the stronger players
A: I wouldn’t necessarily agree with some of buying up distributors and re-sellers, a trend that has
the opinions I have seen recently that the been increasingly prevalent over the last two to three
manufacturing industry is basically OK and years. We have also seen a number of distributors going
that it is just the financial services industry out of business and with a tightening economy and
that is really in trouble. The current climate is increasing costs we will see more of this also. The reasons
definitely stormy and you cannot divorce sectors for this are that there is now a need for distributors to
of the economy and treat them as if they are not offer added value and not just trade on price as some
Kevin Prince, related to the wider picture. The feel-good factor, or have done in the past. In the modern era a ‘people will
managing otherwise, of the economy does have a real effect and come’ attitude is doomed to failure, you have to go and
director, even the so-called ‘Cinderella’ industries of the past such make the enquiries and a large percentage of sales are
Atlas Copco as the food manufacturing and processing industries are developed from nothing. By nothing I mean, it’s not just
Compressors now being affected. We are all consumers, no matter about waiting for a breakdown, there is a much more
where we sit in the economy. consultative approach to a great deal of the business we
do which I think is key.
Indeed, I believe that manufacturing in the UK is going
through a tough time with price increases in raw
material costs, energy costs the weak pound and an Q: In what ways can equipment manufacturers
uncertain outlook for the economy in general. Interest help customers?
rates and inflation are the two key factors the Monetary A: It is now even more vital that the leading
Policy Committee would like to have better control over manufacturers continue to innovate and to improve the
right now but we have the difficult situation of the efficiency and reliability of their products. Atlas Copco
inflationary pressures plus the possibility of a recession spends around 3% of annual turnover on R&D which is
looming. significantly more than other manufacturers. We have a
belief that there is always a better way to do things.
But, I also believe that the
present economic
conditions present an
opportunity for the
compressed air industry.
Energy is a key factor and
because of the need to cut
operating costs we have a
better chance of getting
across the message of
energy efficiency which in
the past, with falling energy
prices, had fallen on deaf
ears. There is still a huge
amount of old, inefficient
equipment being used in
the market, by getting close
to customers and truly
understanding their needs
we can create opportunities.
10 AirUser
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