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Three Things to Know About the Power Transmission Industry

Posted by IndustrySelect on Wednesday, May 13, 2020

close up of man in orange hard hat and safety glasses working on a machine

3 MIN. READ

Power transmission equipment manufacturers fulfill an essential role by providing different types of parts that create motion. These parts have a wide range of applications in areas like vehicles, industrial and agricultural machinery, and assembly lines.

While COVID-19 shutdowns are affecting many manufacturers, power transmission equipment plants are still open and continue to produce these essential parts.

The following trends are representative of the power transmission equipment sector and the challenges these manufacturers are currently facing, which can help you better communicate with and appropriately sell to this industry.

Imports and Exports

Power transmission equipment is a specialized product category with a wide range of uses. Some of these manufacturers produce ball bearings for industrial equipment or conveyor belts for the food and beverage industry, while others specialize in drivetrains for the automotive sector and agricultural vehicles.

The wide range of applications for these products means that there are many opportunities to pursue, and a significant percentage of power transmission equipment manufacturers turn to international distribution to offer products to a wider customer base.

Data collected by MNI, compiler of the industrial information that powers IndustrySelect, reveals that 41% of power transmission equipment manufacturers sell their products in the US, while 59% focus on international distribution. This percentage is higher than in other sectors, since only 29% of all manufacturers adopt international distribution as their primary strategy.

Additionally, importing raw materials is an acquisition strategy used by 25% of power transmission equipment plants. Compared to the 11% of all manufacturers that import raw materials, power transmission equipment manufacturers are more likely to rely on international suppliers and manage complex supply chains.

These trends reveal opportunities for B2B marketers in several areas, including:

• Raw material acquisition services
• Shipping and storage of raw materials
• Supply chain management products

Industry 4.0 and Digital Transformation

Power transmission equipment manufacturers have to meet specific quality and performance requirements when delivering their products. As such, it's a sector that can benefit from embracing the transition to Industry 4.0 and focusing on digital transformation.

A connected supply chain could enhance communication with clients, help manufacturers be more reactive and ensure that necessary parts are always in stock. Additionally, digital tools can open up new possibilities for design - for example, there is a reliable market for customized powertrain solutions and highly-specialized parts.

Integrating data and analytics solutions into production and supply chains could give manufacturers access to feedback from different sources. This type of solution could help manufacturers react quickly if a quality issue is detected once a customer uses a part in their production process, or if a connected machine or vehicle sends diagnostic data for a faulty part.

Using digital tools to build a more effective supply chain and production process could help power transmission equipment manufacturers absorb the cost of steel import tariffs.

If you offer products like analytics solutions, IoT devices, digital design tools or other Industry 4.0 solutions, you can can create opportunities by connecting the benefits of your products with the unique challenges that power transmission equipment manufacturers face, including managing costs, building a more effective supply chain and diversifying their product offerings.

New Products and Applications

There are some exciting opportunities to explore in terms of diversification and specialization. Manufacturers can develop new products with existing plants and meet the needs of new industries. Here are a few examples of manufacturers developing new products:

Dana Holding Corp. is developing energy-efficient powertrains for electric vehicles.
Gates Corp. has become a leader in the development of hydraulic systems that use fluids to create movement.
ABB, Inc. is a company with an extremely diverse portfolio of products that include parts for the robotics sector and solutions designed for renewable energy grids.

However, developing new products and seeking opportunities in new sectors often requires investing in research and development, building new partnerships, and engaging in market analysis and strategic planning. These are services you can promote by emphasizing the value of strategic planning, intellectual property, design and product portfolio management in the power transmission equipment manufacturing sector.

IndustrySelect offers a comprehensive database with detailed business profiles and contact information.

Let us help you get in touch with decision makers in the power transmission equipment sector to explore some of the business opportunities that exist in this sector. Learn more about our free demo.

Article Sources:

https://www.forbes.com/sites/bernardmarr/2018/09/02/what-is-industry-4-0-heres-a-super-easy-explanation-for-anyone/#7801ba1a9788
https://www.dana.com/
https://www.gates.com/us/en.html
https://new.abb.com/

Related Companies: ABB, Inc.Dana Holding Corp.Gates Corp.
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