Cummins Pow er Generation EGSAs Convention Jaime Teixeira de - - PowerPoint PPT Presentation
Cummins Pow er Generation EGSAs Convention Jaime Teixeira de Queiroz General Manager Cummins Pow er Generation Americas Atlanta - September 2008 Introduction and Some History Last participation at the EGSAs Spring 2002 Convention
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Last participation at the EGSA’s Spring 2002 Convention Latin America’s business Opportunities Thank you for this one more opportunity Cummins Power Generation’s vision about: The current market historic levels The market drivers The forecast for the second half of 2008 The forecast for 2009 and future Importance of our Dealers Challenges
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Some numbers that will help us understanding the market dynamics Global Power Generation Sales (According to the Energy Industry Administration)
49% Centralized Power 16% Distributed Generation 8% Mobile Power 27% Stand By Power 20% Natural Gas 80% Diesel
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In NA, the growth pattern started in 2003 mainly driven by
The September 11th effect driving more security/back up systems in NA Homeland Security Act Black out in NA on August 14th, 2003 and the NA system’s reliability. Other Natural Disasters in the Caribbean and US Military action in Iraq/Afghanistan
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Outside NA Low Rates of Electrification and Grid reliability and instability Emerging Economies and their weak electrical infrastructure
In conclusion the need for back up power will continue its stronger demand
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Distributed Generation key drivers
Mobile Power
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Standby Power
Datacenter market
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Bursting
Healthcare data recording Banking data plus security Retail (Supply Chain Management) Transportation (All GPS and Radio) Regulatory
Disaster Recovery – Wholesale move to In House model Number of installed servers to grow 50% from 2007 to 2010
Video – You Tube now 20% of all Internet traffic Internet Hosting – Mega Sites Internet Hosting growing at 13% to 20 CAGR. VOIP Online games
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Low Range Products – Below 500kW North America seeing some weakness – Residential Market effect Rest of the World remains stronger in most regions High Range Segment – Above 500kW We continue seeing higher demand for products in 2008 Driven by segments like Datacenter, Industry, HealthCare and Water Treatment markets in all regions including the Americas. Also existing energy crisis in Argentina and Chile Potential new crisis in Brazil, Centro America and China will continue driving higher demand of products
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The Global demand for Power Generation should continue stronger in most of the regions for the next few years. The Low Range should remain weak in US. The recover should come in 2010 The most recent natural disaster events around the globe and the increasing concerns about potential black outs should continue driving additional business in all sizes and fuels. The Telecom wireless industry will also continue its stronger growth path driving additional back up system for cell towers stations The Larger genset product will continue its higher than normal demand. Mainly driven by the same drivers we see today
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The Mission Critical application requires faster and reliable responses
Distributors are an extension of the factories today.
Customers want to reduce their costs > Focus on their core competencies
The name of the game is thrust, competency, reliability, and supporting excellence
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Managing the Unexpected Managing demand versus capacity in various location Escalating costs, commodity, fuels, logistics Code compliance driving faster and more sophisticated solutions
Seismic requirements Safety Cleaner solutions > Emissions, gaseous, noise
Technology responses
Energy efficiency and conservation Emissions, after treatment Renewable energy Hybrid solutions
Usage of alternate fuels, renewable energy
Biofuels production Blending of fuels
Speed for recruiting for talents and experts in all regions