The 2004 Measurement Controls and Automation Association Executive Forum Tells the Story of an Industry in Transition

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). With founding roots in the 1940's, the Measurement Controls and Automation Association (MCAA) headquartered in Williamsburg, Virginia is dedicated to the daily operational success of the industrial process controls and automation industry. The 114 members of MCAA are predominately manufacturers of process controls and automation, but also include distributors, manufacturers reps, integrators, and consultants. Industrialinfo.com spoke with Cynthia Esher, President of the MCAA at this week’s annual MCAA Executive Forum held in Oak Brook, Illinois. Ms. Esher states, “The organization exists to help companies in our industry run regular business and we do that by offering them access to information – unique information - that they couldn’t get from any other source.” This includes salary surveys, operating-ratios reports, and bookings reports collected from members and used as benchmarks against which companies can judge their own performance.

First quarter 2004, showed improvement for the industry, which has experienced two years of poor market conditions and consolidation. Ms. Esher goes on to state, "Our members participate in a 'Flash Bookings Report', which tracks total domestic bookings and total direct exports, we saw a big upswing in January, February, and March of this year. April was slightly down, but May looks to be up. More importantly, what we're seeing is that 2004 is above 2003 on the twelve-month scale. So we think that the toughest times are behind us. But by the same token, the market has changed. The domestic market is definitely smaller and we’re seeing that shift much more into export markets."

Ms. Esher goes on to say, "I think that the association, like most, is reflective of the industry that it serves and this industry is one that is in transition and so is its trade association. We will continue to provide to companies that are in our industry, information. And what we’re struggling with right now is what level of information do we need to provide and to whom do we need to provide it?"

Ms. Esher invited Ed Lewis CEO of Industrialinfo.com to speak at this year's forum bringing 21 years of industrial capital spending expertise. Presenting to the members of the MCAA on Monday, Mr. Lewis stated that due to worldwide events and market conditions industrial capital spending for 2004 and 2005 can be best described as volatile and uncertain and that for companies to remain competitive it is increasingly necessary to closely monitor changing market conditions. To accomplish this, Industrialinfo.com has developed a “confidence factor”, which enables realistic forecasting of capital spending based on the actual project construction starts. The confidence factor varies from one vertical market to another depending on economic performance, environmental compliance, resource price fluctuations (such as energy and raw material costs), and market volatility of that industry. Mr. Lewis went on to state, “In this industry things change fast. It’s necessary for companies to go beyond the forecast and actually monitor the difference or gap measurement between what is forecasted versus what actually kicked off.”

For details on the 2004 – 2005 Capital Spending Forecast for five industries; power, chemical processing, petroleum refining, pulp & paper, and food & beverage, contact Industrialinfo.com's Member Center at 1-800-762-3361.