A STEADY STREAM OF DATA IS COMING YOUR WAY

Transcription

1 A STEADY STREAM OF DATA IS COMING YOUR WAY market barometer René Descartes Q Focus this Quarter: ISA 2008, Mass Flow Controllers A Worldflow publication The Market Barometer is the component of Worldflow that focuses on the flowmeter industry. Every quarter, the Market Barometer shines its spotlight on this industry, looking for important events to discuss or highlight. Flow Research, Inc. We find the events, report them, and place them in the context of the flowmeter industry. The Market Barometer explains and interprets the importance of new technologies, new products, mergers, and acquisitions. We give you the information and ideas you need to generate forecasts, make budget decisions, and implement winning strategies. 1 Market Barometer Q3 2008

2 Worldflow Monitoring Service The Worldflow Monitoring Service is a package of resources designed to serve the information needs of flowmeter and instrumentation manufacturers, distributors, and end-users. Each component offers timely data, meaningful news, and insightful commentary on the markets it covers. Each complements and updates the studies that Flow Research regularly conducts in the same markets, and keeps readers informed of events and trends in their industry. Worldflow, which was initiated in 2002, has four components: Market Barometer (MB) (40 60 pages) This quarterly publication focuses on the flowmeter industry. MB reports on important technology introductions, mergers and acquisitions, and application trends. State of the Industry highlights recent industry events and their meaning. And, in every issue, we review each flowmeter technology and interpret changes, giving you the information and ideas you need to implement winning product strategies and to make more informed decisions. Your subscription includes Flash Reports, a PDF file of each issue, and two printed and bound hardcopy volumes. Energy Monitor (EM) (40 70 pages) This quarterly publication focuses on the oil & gas, refining & petrochemical, and power and renewable industries in relation to flow and temperature measurement, and other instrumentation. Each issue surveys the energy scene to discover significant new events, trends, and opportunities. Every issue is packed with what you need to know. Your subscription includes Flash Reports, a PDF file of each issue, and two printed and bound hardcopy volumes. Flash Reports (2 6 pages each) Just as the Worldflow Monitoring Service informs during the interval between studies, Flash Reports activate as soon as important news breaks. Flash Reports include both the key facts and a What it Means section. Subjects of recent Flash Reports include Emerson s sale of Brooks Instrument, the API s formulation of standards for vortex flowmeters, and GE Sensing s acquisition of Rheonik. Living Database (LD) (24/7 access) This web-based tool is an instant library of information for anyone who wants to know everything from how to select a flowmeter to what flowmeters are available worldwide and from whom. A centralized database with subscriber access via user name and password, LD is the way to conveniently locate information from past reports and articles, and to keep current on new product applications. Better data = better decisions. Market Barometer Q

3 Market Barometer Q Publisher and editor: Jesse Yoder, PhD Associate editor: Belinda Burum Associate editor: Norman Weeks Table of Contents State of the Industry Report: Q Positive growth and developments continue in flowmeter markets despite recession jitters 7 New-technology flowmeters experience growth in a variety of applications... 7 Some traditional technology flowmeters lose ground to new-tech flowmeters... 9 Market Research: Focus on Mass Flow Controllers New study finds solid growth MFC market totaling $604M Figure: Projected Revenue Growth for Mass Flow Controllers through Continued need for Mass Flow Controllers in the semiconductor industry Drive for alternative energy fueling MFC use in industrial markets Figure: Shipments of Mass Flow Controllers Worldwide by Control Function in End-users opt for the automation provided by MFCs Emerging and growing markets drive demand for MFCs MFC suppliers worldwide Table: Types of Mass Flow Controllers by Supplier Special Report: ISA Expo ISA EXPO 2008 attracts 11,000 attendees and 500 exhibitors In the News...19 Emerson opens new technology center in Nanjing, China Tokimec restores name to Tokyo Keiki Inc IDEX acquires IETG Market Barometer Q (Continued on page 4)

4 Table of Contents, continued Endress+Hauser opens Gulf Coast calibration center PTY Adaptive Instruments joins SCADAgroup Elster American Meter accredited by Measurement Canada Company Korner: Elster Group Elster dominates natural gas flow measurement and leads in water flow measurement History Products Table: Elster-Instromet Flowmeters Summary Table: Elster AMCO Flowmeters Products & Technologies: New-Technology Flowmeters...26 Coriolis KROHNE launches corrosion-resistant mass flowmeter Magnetic Honsberg offers cost-efficient magnetic-inductive flowmeters Ultrasonic...28 Kit for checking energy meters in HVAC applications Flare gas flowmeters for Qatar EESIFLO Watercut meter for water in crude oil and hydrocarbons Vortex...30 UFM introduces expanded line for automated processing Plastic flow transmitters for corrosive fluids Thermal/MFC 31 Yamatake launches model for high-speed control of hydrogen and helium at low flowrates Brooks releases local operator interface for 4800 Series Bronkhorst designs a new series of digital mass flowmeters as the intelligent alternative to variable area meters Traditional Technology Flowmeters...33 DP Flow/Primary Elements/Pressure Market Barometer Q

5 Table of Contents, continued New ABB orifice flowmeter can cut installation costs by 50% McCrometer announces new V-Cone Steam Flowmeter New ultra-compact pressure transmitters IPS unveils new instrument safety solutions at ISA EXPO SIL 2 transmitter certification CEC dual seal transmitter certification Positive Displacement (PD) Six types of PD meters and how they measure flow Turbine Design of the spinning rotor distinguishes turbine meters Hoffer upgrades popular indicator Open Channel/Variable Area New Swagelok VAFs offer custom calibration Data Delivery Services for hands-off sewer flow monitoring Copyright 2008 All data and information in this report is proprietary and copyrighted by Flow Research, Inc. However, clients may reproduce this material internally for members of their own organization. Disclaimer While every effort has been made to insure that this report is accurate and complete, Flow Research accepts no liability for consequences of any actions that are based on the findings in this publication. Flow Research, Inc. 27 Water Street, Wakefield, MA (781) or (800) (781) (fax) 5 Market Barometer Q3 2008

6 Market Barometer is part of the Worldflow Monitoring Service. Other publications in this service include the Energy Monitor and Flash Reports. The Living Database provides more in-depth information and analysis about the instrumentation business. Here is the Worldflow publication schedule for the next several months: Q Market Barometer November 2008 (current issue) Energy Monitor November 2008 Q Market Barometer December 2008 Energy Monitor January 2009 Q Market Barometer February 2009 Energy Monitor March 2009 Market Barometer Q

7 State of the Industry Report: Third Quarter, 2008 Positive growth and developments continue in flowmeter markets despite recession jitters By Jesse Yoder, PhD It is hard to read almost any newspaper today without seeing one or more stories about the global economic slowdown the world is currently experiencing. How will this financial crisis affect the instrumentation markets? It s too early to tell. However, if we look at the period from 2001 to 2003, which included a period of recession, instrumentation sales were down because many scheduled plant construction and renovation projects were put on hold. This situation began changing in Q and Q1 2004, and we have had a largely uninterrupted period of growth for the instrumentation markets since then. On the positive side, the drive to find new sources of energy, and to get more mileage out of existing supplies, will continue. Growth may be slower in China and India than previously projected, but these countries will continue to expand their energy requirements. Even if energy demand slows down, as it has in the United States, there will still be a strong demand for energy worldwide, especially in the developing countries. However, chances that the United States is in a recession increased recently, as the Bureau of Economic Analysis (BEA) announced on October 30, 2008, that the US gross domestic product (GDP) declined by 0.3 percent in the third quarter. This comes on the heels of an increase of 2.8 percent in the second quarter. A recession is defined as two consecutive quarters of negative growth. Using the same criterion, Germany has already fallen into a recession. Figures released in mid- November show that Germany s GDP contracted by 0.5 percent in the third quarter (July September 2008). This follows a second quarter decline of 0.4 percent. As we ve said, is too early to tell exactly what effect the current downturn will have on the instrumentation market, If there is a severe and protracted recession, we may need to revise our longterm market projections for 2012, but we expect the basic developments and trends outlined below to continue for both new-technology and traditional technology flowmeters. New-technology flowmeters experience growth in a variety of applications The Coriolis flowmeter market is experiencing growth in both liquid and gas applications. This market has benefited from industry approvals from both the American Gas Association (AGA) and the American Petroleum Institute (API). Coriolis flowmeters are the most accurate flowmeter made, and as a result they are well-suited for custody transfer applications in both liquid and gas. One important trend in this market is that more suppliers have begun offering Coriolis flowmeters for line sizes above six inches. The worldwide Coriolis flowmeter market is projected to increase from $662.0 million in 2007 to $950.0 million in Much of this growth will be driven by custody transfer applications. (Continued on page 8) 7 Market Barometer Q3 2008

8 State of the Industry Report: Third Quarter, 2008 (Continued from page 7) This issue of the Market Barometer reports on a new Coriolis flowmeter from KROHNE that is designed for the chemical industry. The Q issue reported on the release of a 2-wire Coriolis flowmeter from Micro Motion. There is a great deal of activity among Coriolis flowmeter suppliers who are releasing new products and upgrades to existing Coriolis meters. The magnetic flowmeter market is the second largest of any flowmeter market in terms of worldwide revenues. The only market that is larger is the DP flowmeter market, when primary elements are included. Magnetic flowmeters are widely used in the water & wastewater industry. Suppliers are continuing to introduce magnetic flowmeters for niche applications, especially in the chemical, food & beverage, and pharmaceutical industries. Some of these niche products have new types of liners for sanitary applications. The worldwide magnetic flowmeter market is projected to increase from $874 million in 2007 to $1.1 billion in With over 50 suppliers worldwide, the magnetic flowmeter market continues to expand. The ultrasonic flowmeter market for custody transfer of natural gas is the fastest growing niche within the entire flowmeter market. Ultrasonic flowmeters are displacing DP and turbine flowmeters for custody transfer of natural gas. Like Coriolis flowmeters, ultrasonic flowmeters have benefited from approvals by the AGA and the API. Ultrasonic market for custody transfer of natural gas is the fastest growing niche within the entire flowmeter market. (Photo by Flow Research) Market Barometer Q Suppliers are continuing to introduce mag meters for niche applications. (Photo by Flow Research) While this market has experienced some consolidation in recent years, a number of new suppliers have also entered this market. The ultrasonic flowmeter market remains the fastest growing of any flowmeter type on a worldwide basis. The worldwide ultrasonic flowmeter market is projected to increase from $440.0 million in 2007 to $703.4 million in Growth areas for ultrasonic flowmeters include custody transfer of natural gas, and flare gas measurement. This issue of the Market Barometer reports on a large order received by GE Sensing for ultrasonic flowmeters for flare gas applications. Ultrasonic flowmeters are displacing differential pressure (DP) and (Continued on page 9)

9 State of the Industry Report: Third Quarter, 2008 (Continued from page 8) turbine meters for custody transfer of natural gas. One of the most important developments for the vortex flowmeter market was the January 2007 approval by the API of a draft standard for the use of vortex flowmeters for custody transfer of liquid, steam, and gas applications. Vortex flowmeters are among the most versatile type of flowmeter, in that they can easily handle liquid, steam, and gas applications. Multivariable vortex flowmeters provide mass flow measurement for steam and gas flows. The worldwide vortex flowmeter market is projected to increase from $202.0 million in 2007 to $273.0 million in This Market Barometer issue reports on an expanded vortex flowmeter line from Universal Flow Monitors (UFM). UFM is expanding its line of steel CoolPoint vortex flowmeters by offering four new larger sizes. The Q2 issue of the Market Barometer reported on a new vortex flowmeter from Siemens called the Sitrans FX300. The thermal flowmeter market includes industrial flowmeters used almost exclusively for gas applications, and mass flow controllers. Most mass flow controllers use a thermal principle to make their mass flow measurements, but they also incorporate a valve for flow control. While the majority of mass flow controllers are used in the semiconductor industry, some of the suppliers to this industry are also releasing mass flow controllers for use in industrial environments. This industrial market will benefit from the drive for alternative energy, especially for power and fuel cell applications. See page 11 of this issue for more discussion of the mass flow controller market. Some traditional technology flowmeters lose ground to new-tech flowmeters Differential pressure (DP) flowmeters excel at measuring clean liquids, steams, and gases when pressure drop is not a major issue, the application requires low to medium accuracy, and price is a consideration. DP flowmeters cause varying amounts of pressure drop, depending on the type of primary element used. Orifice plates cause substantial loss of line pressure, while averaging pitot tubes cause less. DP flowmeters are considerably less expensive to buy than most Coriolis and ultrasonic meters. The DP flowmeter market has benefited from improvements in pressure transmitters in the past several years. Suppliers have released pressure transmitters with greater stability and higher accuracy. More suppliers have also entered the multivariable pressure transmitter market. A significant amount of new development activity is also occurring for primary elements. The worldwide primary elements market is projected to increase from $373.4 million in 2007 to $490.9 million in This issue of the Market Barometer reports on a new orifice flowmeter by ABB called the OriMaster. The OriMaster comes with an ABB DP transmitter, integrated with an orifice plate to form an integrated flowmeter. ABB is following a trend in the industry to sell DP transmitters, integrated with a primary element. This issue also reports on a new V- Cone steam flowmeter from McCrometer. Positive displacement (PD) meters are highly accurate meters used that are widely used for custody transfer applications. They are widely used for custody transfer of commercial and indus- (Continued on page 10) 9 Market Barometer Q3 2008

10 State of the Industry Report: Third Quarter, 2008 (Continued from page 9) trial water. They are also used for custody transfer of hydrocarbon liquids to and from delivery trucks. PD meters have the advantage that they have been approved by a number of regulatory bodies for this purpose, and they have not yet been displaced by other applications. However, they are losing market share to Coriolis meters for liquid/petroleum custody transfer applications. The worldwide positive displacement flowmeter market is projected to decline from $460.0 million in 2007 to $424.3 million in PD meters excel at measuring low flows, and also at measuring highly viscous flows. Because PD meters capture the flow in a container of known quantity, speed of flow doesn t matter to a PD meter. They also do well with liquids that would give other meters headaches, like honey. PD flowmeters have a large installed base, and this should help them maintain their market share over the next several years, despite the fact that they are projected to undergo a slight decline between 2007 and Like PD meters, turbine flowmeters are used for custody transfer of commercial and industrial water and other liquids. They are also used for custody transfer of hydrocarbon-based liquids. Although turbine meters are widely used for custody transfer of natural gas, they are losing market share to ultrasonic flowmeters for this application. The worldwide turbine flowmeter market is projected to decline from $460.0 million in 2007 to $347.9 million in 2012, Turbine meter suppliers are manufacturing meters with more durable ball bearings to prolong meter life and to reduce problems that may arise from bearing wear. Ceramic is one material used for this purpose. Both turbine and PD meter suppliers are also beginning to incorporate communication protocols such as HART into their meters. PD meters are losing market share to Coriolis meters for liquid custody transfer applications, but their large installed base should help them maintain market share. (Photo courtesy of Smith Meter/FMC Technologies) Market Barometer Q

11 Market Research: Focus on Mass Flow Controllers New study finds solid growth in MFC market totaling $604M By Jesse Yoder, Flow Research A new Flow Research study finds solid revenue growth in the mass flow controllers market. The new study, The World Market for Mass Flow Controllers, finds that the worldwide mass flow controller market totaled $604 million in 2007, with a projected compound annual growth rate (CAGR) of 5.3% through By 2012, the worldwide market for mass flow controllers is projected to reach $780.8 million. The semiconductor market accounts for more than 60 percent of the mass flow controllers shipped in The continuing hunger for computers and other semiconductor products in China, India, and other emerging Asian markets will continue to ramp up the demand for mass flow controllers, even if these economies are affected by a global slowdown, Flow Research predicts. In industrial markets, the drive for alternative energy sources, particularly fuel cells, is boosting the use of mass flow controllers. In addition, industrial users are opting for the automation provided by mass flow controllers in gas flow and other cases where they currently have manual or non-electronic systems. North America accounts for 37.3 percent of the total, while Europe accounts for 16.1 percent. The fastest growth will occur in the Rest of World (ROW) and Asia without Japan regions. Projected Revenue Growth for Mass Flow Controllers through Mass Flow Controller revenues are expected to grow to $780.8M by 2012 (Continued on page 12) 11 Market Barometer Q3 2008

12 Market Research: Focus on Mass Flow Controllers (Continued from page 11) Flow Research believes we are the only company ever to have sized the industrial and laboratory research markets for mass flow controllers. Continued need for Mass Flow Controllers in the semiconductor industry MFCs are widely used in the semiconductor market to measure the flow of gases used in the chip-making process. While 2007 was a strong year for the semiconductor industry, according to SEMI, the organization that tracks the semiconductor industry, 2008 got off to a slower start. In particular, worldwide semiconductor manufacturing equipment billings, at $10.56 billion in the first quarter of 2008, were down two percent from the same quarter in In addition, worldwide semiconductor equipment bookings in Q1 2008, at $8.08 billion, were down 23 percent from the first quarter of SEMI projected an 11 percent growth in semiconductor materials in It is likely that the mass flow controller market for the semiconductor industry will trend closely with capital spending in the industry. The semiconductor market is a cyclical market, often cycling between 12 and 18 months. Even if the market remains in a downturn into 2009, the chances are very high that it will pick up and come back strongly when it rebounds. Flow Research projects a CAGR of 5.5 percent through 2012 for MFCs in the semiconductor industry. Drive for alternative energy fueling MFC use in industrial markets The industrial segment is forecast to show slightly slower growth than the semiconductor segment. The industrial segment depends on a wide variety of industries and applications, which are growing at different rates. Some of these, such as automotive and aerospace, are going through difficult times, due to rising energy costs. Others, such as fuel cells and power, are thriving, due to the search for alternative energy sources. The need to find alternative energy sources will drive additional research and development in the foreseeable future. Shipments of Mass Flow Controllers Worldwide by Control Function in 2007 (Percent of $604.0 million) 12.1% With Control Meter Only 87.9% (Continued on page 13) Market Barometer Q

13 Market Research: Focus on Mass Flow Controllers (Continued from page 12) The industrial and lab/research markets are made up of a wide variety of industrial segments. Strong segments in the industrial segment include fuel cells, fiber optics, biotechnology/ pharmaceutical, and gas analyzers. Mass flow controllers will benefit from these industrial segments, as they are used to measure and control gas flows in these segments. Flow Research forecasts that through 2012 MFCs will grow with a CAGR of 4.5 percent in the lab/research segment and 4.9 percent in the industrial segment. End-users opt for the automation provided by MFCs In some cases, gas flow is measured and controlled using a combination of a variable area flowmeter and a needle valve. While some variable area flowmeters have been developed with an output signal, the majority of these flowmeters still need to be read manually. In many cases, the needle valve is adjusted manually. The trend today is toward the automation provided by mass flow controllers, as opposed to the lower accuracy of variable area flowmeters. End-users are looking for the higher accuracy of mass flow controllers, and they are also looking to automate their gas measurement and control systems when this is possible. Mass flow controllers will benefit from this trend towards automation. Emerging and growing markets drive demand for MFCs The economies of China, India, and other emerging markets in Asia and elsewhere are continuing to grow at a rapid pace. Even if these economies are affected by a global slowdown, their continued population growth will result in demand growth in a variety of industrial segments, including energy consumption, food/beverage, automotive, power, and other. China and India will also be a source for continued demand for computers and semiconductor products. All these forces will work towards increased use of mass flow controllers over the forecast period. MFC suppliers worldwide The table on the following page shows mass flow controller suppliers worldwide, along with the types of MFCs they manufacture.. 13 Market Barometer Q3 2008

14 Market Research: Focus on Mass Flow Controllers Types of Mass Flow Controllers by Supplier Company Semi Ind Lab/Res Thermal DP MFC MFM Aalborg Aera/AEI Alicat Scientific Bronkhorst Brooks Instrument Burkert Celerity Hitachi Horiba/STEC KOFLOC/Kojima McMillan MKS M+W Instruments Pneucleus Porter Instrument Semco Engineering Sensirion Sierra Instruments Teledyne Hastings Tokyo Keiso Yamatake Key Semi = Semiconductor Ind = Industrial Laboratory Res = Lab/Research Thermal = Thermal DP = Differential Market Barometer Q3 Pressure MFC 2008 = Mass Flow 14 Controller MFM = Mass Flowmeter

15 Special Report: ISA Expo 2008 ISA EXPO 2008 attracts 11,000 attendees and 500 exhibitors Houston, Texas (November 4, 2008) ISA EXPO 2008, held October 14-16, 2008 at the Reliant Center in Houston, Texas, attracted 11,000 attendees and showcased 500 exhibitors. The 70 conference program sessions, 17 training courses, dozens of special events, and more than 100 presentations on the exhibit floor were focused around six technology exchanges, with dozens of industry experts on hand to lead discussions, present papers, and answer questions about the hottest topics in each area. ISA EXPO technology exchanges covered security, process automation, safety, environmental and quality control, enterprise integration, and wireless and networking. Ralph Sargent from GE Sensing (Photo by Flow Research) Attendees flock to ISA EXPO to learn about several different topics based on their career stages and project interests. I m most interested in control processing and asset management, said Peter Normand, an attendee from Arcelormittal, Port-Cartier, Quebec, Canada. Arcelormittal is a mining company, and we have a lot of assets and process control. Many users are very interested in wireless technology. My main interest at ISA EXPO is wireless technology, commented Paula Lucchini of Chevron, based in Richmond, California. I m doing a few projects centered on wireless technology with Emerson, Honeywell, and Yokogawa, plus anyone else I might meet at ISA EXPO. Another user, traveling all the way from Nigeria, agreed with Lucchini s interest area. Remote wireless systems are of interest to us, said Adedotun Adeyemi of Esso Exploration & Production in Lagos State, Nigeria. We re system integrators, and we re looking into the area of wireless solutions. It s important to me to keep up with industry trends and new innovations, and there s no better place than ISA EXPO to do that. Specifically, I came to look at sensor technology and analytics, said attendee William Tim Shaw, Swantech, Fort Lauderdale, Florida. Exhibitors also raved about ISA EXPO We had a great ISA EXPO experience. The ICONICS 3D theater was packed with attendees eager to see the first 3D HMI/SCADA solution. We also had the opportunity to talk with several key decision makers at the ICONICS café (Continued on page 16) 15 Market Barometer Q3 2008

16 Special Report: ISA Expo 2008 (Continued from page 15) 64 during EXPO, said Tim Donaldson, ICONICS Director of Marketing. ISA EXPO is a well-managed event with great facilities and a great market, said Jim Adams, Account Manager with Palmer Wahl. The leads we ve gotten have been extremely high in quality, and we ve already booked space for next year. FIBOX Enclosures has been an exhibitor with ISA EXPO for over 11 years, and we ll continue to exhibit, said Diane Souffie of FIBOX. In fact, we ve already purchased our space for 2009! The exchange concept allows attendees to participate in comprehensive presentations of automation solutions, ideas, and information in the areas that relate most to their unique needs. The keynote addresses held each day of the Matt Migliore from Flow Control holds Flow Research s Q Market Barometer (Photo by Flow Research) conference spanned all technology areas and were extremely popular. Tuesday s keynote, which attracted a standing room-only crowd, featured Smart Dust inventor Dr. Kris Pister, Professor of Electrical Engineering and Computer Sciences at UC Berkeley. Dr. Pister, whose keynote was titled From Smart Dust to Smart Plants The Evolution of Wireless Sensor Networking, is the Co-Director of the Berkeley Sensor & Actuator Center, and Co-founder and CTO of Dust Networks. Keith Peterson and colleague from Horiba/ STEC (Photo by Flow Research) Wednesday s keynote address was given by cold fusion expert Dr. David J. Nagel of George Washington University and drew a large crowd. Dr. Nagel s presentation, entitled Instrumentation for Low Energy Nuclear Reactions, inspired much discussion and dialogue surrounding the importance of cold fusion technology and application. Thursday morning, Houstonian Dr. John Lienhard of the University of Houston presented Feedback Control: How We Learned to Think Negatively in 300 BC. Dr. Lienhard s radio show, The Engines of Our Ingenuity, airs five days a week on NPR on more than 45 stations across the country. Dr. Lienhard uses the record of (Continued on page 17) Market Barometer Q

17 Special Report: ISA Expo 2008 (Continued from page 16) history to reveal the way art, technology, and ideas have shaped us, and to show how our culture is formed by human creativity. ISA EXPO 2008 was held in conjunction with Yokogawa hosted a reception for their customers (Photo by Flow Research) Automation Career Week, a celebration of the automation profession for all ages. Automation Career Week included special events for current professionals, the International Student Games for college students around the world, YAPFEST on October 15 for automation professionals and students under 30, and iau2m8.08, a unique event for middle and high school students. More than 400 students learned about automation careers through a tour of exhibits and the ISA EXPO show floor, and a dynamic keynote speaker, John Hanks from National Instruments, who discussed automation careers and possibilities. Hanks is the Vice President of Industrial and Embedded Products at National Instruments, and leads NI s future software and hardware product strategy and marketing. National Instruments team of more than 2000 engineers create products to help scientists and engineers around the world invent new products and processes, from mind-controlled wheelchairs to new windmill monitoring and control systems. Wireless was a hot topic (Photo by Flow Research) Several interactive demonstrations and events for attendees were also highlighted at ISA EXPO WINA held a wireless walking tour entitled "No Wires, No Hype" to educate attendees about the wide range of wireless products and concepts displayed at the event. The exhibit also featured the ISA EXPO Bus Station, a collaborative endeavor to deliver the latest information on industrial bus and field communications. Presentations and product offerings for various networking and communication protocols were discussed by exhibiting companies in the Bus Station, including Autrol, America Inc., Detcon, Inc., FDT Group AISBL, HART Com- (Continued on page 18) 17 Market Barometer Q3 2008

18 Special Report: ISA Expo 2008 (Continued from page 17) munication Foundation, HMS Industrial Networks Inc., Invensys/Foxboro, ISA103, ISA104, Kepware Technologies, Modbus-IDA, ProComSol Ltd., Profichip GmbH, TURCK, Inc., Westlock Controls Corp., and Yokogawa Corporation of America. Additional special events included a fundraising effort for the American Red Cross Hurricane Relief Fund. The ISA Hurricane Relief Silent Auction, held on Tuesday during the Industry Networking Reception, raised $2,500. A $1,000 donation on-site from Otis Instruments added to the total, along with donations collected at the entrances to the exhibit hall. ISA matched all donations from its own budget. The grand total raised, $8,200.00, was presented to the American Red Cross in a press confer- ence after Thursday s key- note address. Hurricane Ike, which struck the Gulf Coast just weeks prior to ISA EXPO, caused exten- sive damage for many regu- lar ISA EXPO attendees and exhibitors, as well as hotels and restaurants throughout the area. The hurricanes were a huge Aerial view of Houston (Photo by Flow Research) hurdle for our customers, Members, and exhibitors in the weeks leading up to ISA EXPO, said ISA Director of Convention Services Dale Lee. The dedicated efforts and teamwork from our exhibitors, the city of Houston, and the industry professionals who support ISA EXPO made ISA EXPO 2008 possible despite the devastation caused by the storms. As part of several celebratory events recognizing the 40th anniversary of the PLC, Schneider hosted a panel session on 16 October that discussed Trails and Trends in Programmable Controls. PLC inventor Dick Morley, along with leading industry experts, discussed advances in digital technology along with quantity/quality upgrade pressures in discrete parts manufacturing contributed to a meteoric growth of the PLC industry. The panel explored PLC relationships and synergies with other automation technologies such as motor drives & motion control, CNC, robotics, automatic ID, and wireless. ISA EXPO attracts attendees from more than 70 countries, including Australia, Canada, China, Denmark, France, Germany, Hungary, India, Italy, Japan, Mexico, Singapore, South Africa, South Korea, Switzerland, Taiwan, and the United Kingdom. ISA EXPO 2009 is scheduled for October 6-8, Market Barometer Q

19 State In the of News the Industry Report: First Quarter, 06 Emerson opens new technology center in Nanjing, China Nanjing, China (November 17, 2008) Emerson today announced the opening of its new Asia Flow Technology Center in Nanjing, China, significantly strengthening the company's presence in Asia Pacific and enhancing Emerson Process Management's commitment to provide innovative, effective process automation solutions for customers in the region. The Asia Flow Technology Center expands production capacity and services for Emerson Process Management's leading flow metering and measurement technologies that serve the oil and gas, refining, petrochemicals, marine, life sciences, food and beverage, metals and mining, and pulp and paper industries. The 12,500-square-meter facility will manufacture world-leading measurement technologies, including Micro Motion Coriolis flow and density meters, Rosemount vortex and magnetic flowmeters, and Daniel ultrasonic and differential pressure flowmeters. Located in Nanjing's Jiangning Science Park, the center joins other recently opened Asian Process Management facilities including Chiba (Tokyo) Japan; Wuqing, Tianjin China; Rayong Province, Thailand; Bao'an, Shenzhen Province, China; and Singapore. Also, an Emerson Solutions Center is scheduled to open in Mizushima Industrial Park in Japan later this month. We are strongly committed to China and to serving our customers in Asia from Asia, said Steve Sonnenberg, Emerson Process Management president and business leader. The Asia Flow Technology Center substantially enhances our ability to offer technologies that deliver value and unparalleled plant performance for our customers. Sonnenberg officially "opened" the new facility during a ceremonial event with more than Asia Flow Technology Center in Nanjing 100 guests and local dignitaries, and officials from Jiangsu province and Nanjing government. Emerson executives included Chairman, CEO and President David Farr; Chief Operating Officer Ed Monser; President of Emerson Process Management Asia Sabee Mitra; and other global leaders of Emerson businesses. Nanjing is a great city and its continued infrastructure development and underlying growth rate make it ideally suited for expanding our global network of manufacturing and support facilities in Asia Pacific, said Farr. The world-class manufacturing facility features one of the highest accuracy flow calibration laboratories in the region to deliver the most accurate flow technologies available. Calibration facilities can accommodate measurement devices from a tenth of an inch (2mm) to 40 inches (1000mm) in size. In addition, the new Flow Technology Center will offer quality testing capabilities including X-ray, dye penetrant, positive metal identification, hydrostatic testing, pneumatic testing, electronics diagnostic testing, and electronics calibration. The facility also includes a hands-on training and interactive demonstration center to support regional customers. Emerson has been doing business in China since Market Barometer Q3 2008

20 In the News Tokimec restores name to Tokyo Keiki Inc. Tokimec has announced the change of its corporate name to Tokyo Keiki Inc., effective October 1, In line with this announcement President Kenichi Waki provided some comments and background regarding this decision to restore the company name: Our company was founded in 1896 as the first "keiki" or instrumentation manufacturer. At that time, the term for "instruments" did not exist in the Japanese vocabulary and the founder of our company, Yoshihira Wada, first coined the term keiki, which for a long period was a proper noun directly associated with our company. Over time however, the word evolved into a common, generic term for instruments. Since its founding, there have been several changes in our company's name - to Tokyo Keiki Seisakusho in 1917, to Tokyo Keiki Seizosho in 1948, to Tokyo Keiki Co. Ltd. in 1970, and to Tokimec Inc. in The Tokyo Keiki name, however has remained well-known, both inside and outside of our country, and as a brand image, it accurately represents our business and management philosophy. The kanji character transliteration of Tokyo Keiki is also easy to remember, especially for those in the fast-growing regions in Asia, and imparts a sense of familiarity, we believe. We also feel that the 'Tokyo ' portion of the name would be naturally associated with the 'Made in Japan' label and its impression of quality, and would help boost the image we would like to project in our efforts to develop new markets, not only in Japan, but in Asia, Europe and North America. The current business climate is indeed a challenging one with the slump in domestic demand as well as weakening foreign demand prompted by slowdowns in the U.S. and other overseas economies, and skyrocketing costs in iron ore, crude oil and other material resources factors which have heightened the risks and pressures on corporate earnings. Under these circumstance, we intend to seize the occasion of our restoration of the Tokyo Keiko name as a rallying point for all members of our Group and, as one, shall work toward harnessing our strengths in engendering our distinctive brand of value added and endeavor to establish a cycle of growth based on an enduring competitive edge as well as transform our corporate structure into one which can better withstand the changes in the external environment. Note: In 1963, Tokimec became the first company to introduce ultrasonic flowmeters to commercial markets. IDEX acquires IETG Kenichi Waki President, Tokyo Keiki Northbrook, IL (October 16, 2008) IDEX Corporation has acquired IETG, a leading provider of flow monitoring and underground utility surveillance services for the water and wastewater markets. IETG products and services enable water companies to effectively manage their water distribution and sewerage networks, while its surveillance service spe- (Continued on page 21) Market Barometer Q

21 In the News (Continued from page 20) cializes in underground asset detection and mapping for utilities and other private companies. Headquartered in Leeds, United Kingdom, IETG has annual revenues of approximately 15 million GBP ($26 million USD). IETG will operate as part of the company s ADS Environmental Services business within IDEX s Fluid and Metering Technologies segment. With a cash consideration of approximately 20 million GBP ($35 million USD), IETG is expected to be accretive to IDEX s earnings in Commenting on the acquisition, IDEX segment President Kevin Hostetler stated, We are extremely pleased with IETG s decision to become part of IDEX. IETG is the leader in flow monitoring products and services supporting the growing water and wastewater markets in the UK market. The expansion of our ADS Environmental Services business enables the continued enhancement of our market-based water platform within the Fluid and Metering Technologies segment. With the additions of ipek and IETG, we now have a significant revenue base serving the water and wastewater treatment end markets. IETG s Managing Director, Stuart Learmonth stated, We are excited to become part of IDEX and its Fluid and Metering Technologies segment. IDEX is a recognized leader in applied engineered solutions, with significant brand recognition in the water and wastewater markets. We will now have a global footprint, as well as the support for a broader technology platform, which will enable us to expand into new markets as well as enhance the support we offer existing customers in the efforts to comply with the ever increasing regulations which drive their business. Endress+Hauser opens Gulf Coast calibration center Houston, Texas (October 1, 2008) The Endress+Hauser Group opened a new Calibration and Service Center in LaPorte, Texas near Houston, on October 23. The new center will focus on meeting the special needs of Gulf Coast customers with access to the following services: E+H Calibration and Service Center Calibration for flow, temperature and pressure on most manufacturer's instruments. Flow instruments including line sizes up to 4" (3,300 lbs/min, 400 gal/min) for most technologies, with planned accreditation in accordance with ISO Quick turnaround facilities, with available pick-up/delivery service Greater Field Service flexibility Extensive instrumentation maintenance training in a state-of-the-art facilities, including a digital communication laboratory The new Golf Coast center offers calibration for after sales testing and adjustment of instrumentation, to ensure that it is within specification. This service can be offered either "onsite" or alternatively the instrument can be returned to Endress+Hauser Market Barometer Q3 2008

22 In the News PTY Adaptive Instruments joins SCADAgroup Hudson, MA (April 16, 2008) Adaptive Instruments, the market leader for design and manufacture of tether-free Wireless Smart Process Instrumentation systems, has been acquired by SCADAgroup PTY of Newcastle, New South Wales, Australia. SCADAgroup is the largest privately held SCADA products and services company in the world. The acquisition catapults Adaptive Instruments and the Accutech brand into new international markets and puts the resources of SCADAgroup firmly behind Adaptive s aggressive growth plans. The wide range of Accutech tether-free wireless instrumentation products developed by Adaptive Instruments has secured an impressive installed base in key industries including oil and gas, pipelines, chemical, water, pulp and paper, pharmaceutical, food and beverage, and energy utilities. In addition to acquisition, SCADAgroup also invests heavily in organic growth by funding development and delivery of highly differentiated, superior products and services. Elster American Meter accredited by Measurement Canada Cleveland, OH (September 18, 2008) Elster Gas North America announces that its business unit Elster American Meter located in Nebraska City, NE has received Measurement Canada Accreditation. Elster American Meter has become an authorized qualified organization to inspect and certify instruments on Measurement Canada s behalf. Elster American Meter has documented, established and maintained a quality management system that meets the accreditation standard, S-A-01. Photo: Alan Johnston, President of Measurement Canada presenting award to Denny Bintner, Director of Engineering for Elster American Meter We are delighted with the Measurement Canada Accreditation, said Dr. Kevin Warner, Vice President of Sales and Marketing. It recognized the contributions spanning the entire Elster American Meter organization; Operations, Research and Development, Customer Service, Quality, and Sales and Marketing. It also illustrates Elster s vision to deliver unsurpassed solutions to our customers through creative and innovative processes. For us, this accreditation is a symbol of honor from one of North America s largest and most respected certifying bodies, and we will view it as incentive to farther our leadership efforts in gas measurement and control. Elster American Meter, one of the only United States based Measurement Canada accredited organizations, has acquired the necessary measuring and test equipment, inspection certificates, test and non-compliance reports, rejection tags, inspection markings, verification indicators and seals. Elster American Meter has begun certifying device types from small to large diaphragm meters with Inspection types; 100% verification, 100% reverification with acceptance sampling S-S-series. Market Barometer Q

23 Company Korner: Elster Group Elster dominates natural gas flow measurement and leads in water flow measurement Elster manufactures equipment for gas, electric and water services to both residential and industrial users across the world. Their flowmeter product portfolio includes diaphragm, low and medium pressure turbine, positive displacement rotary piston, and ultrasonic. Elster Group s business is focused on the utility industry, including gas, electricity, and water. Elster Electricity develops and manufactures electricity metering products, systems, and services that are used worldwide. Elster Electricity s metering products and services include single phase and polyphase meters, meter options, accessories, and meter software tools. Elster Integrated Solutions brings advanced metering infrastructure solutions and smart metering technology to utilities through AMR (Automated Meter Reading) and AMI (Advanced Meter Infrastructure) technologies. On the water side of the business, the Elster AMCO Water division is very well positioned as a leader in water metering markets. The firm manufactures water meters for residential as well as bulk commercial applications, and produces metering systems used by utilities and others responsible for large water flow conditions. History While the Elster Group came into being in Elster-Instromet GmbH Steinern Strasse Mainz-Kastel Germany (fax) , the firm can trace its roots back to 1836 with the founding of American Meter Company (AMCO) in New York. Not long afterward, Elster Meters was founded in Berlin, Germany in 1848 Elster Group at a glance: Revenue: Privately owned (FY2006) Corp HQ: Mainz-Kaste, Germany Founded: 1836 Employees: 7,500 Major Subsidiaries: Elster Electricity Elster American Meter Elster Kromschroeder Elster AMCO Water Elster-Instromet In 1985, Ruhrgas acquired Elster and continued to acquire a larger portfolio of metering companies, including Instromet in In 2005, CVC Capital Partners acquired Ruhrgas Industries and renamed the company the Elster Group. The Elster Group is still made up of several firms including the American Meter Company group of companies, Kromschroeder and other various gas, water, and electric metering companies. In order to focus on the needs of its customers, the Elster Group created Elster-Instromet Northwest Freeway Suite 650 Houston, TX [1] [1] (fax) two business unit divisions: North America, and Rest of World. Today, Elster Gas North America serves the US, Canada, and Mexico while Elster Gas ROW (Continued on page 24) 23 Market Barometer Q3 2008

24 Company Korner: Elster Group (Continued from page 23) serves Europe, Asia, and South America. Elster now believes it is better able to focus its research and development on the requirements of specific geographies. The Elster-Instromet portion of Elster Gas North America is based in Houston, Texas, and a part of the Elster American Meter group of companies and Elster-Instromet part of Elster Gas ROW is based in Essen, Belgium. Products Elster-Instromet is well-represented in the gas flow marketplace. Their portfolio of ultrasonic flowmeters has been standardized on transit time technology. And today, Elster-Instromet is the leading supplier of multipath ultrasonic flowmeters for custody transfer measurement of natural gas. The Q.Sonic Series is Instromet s flowmeter line for custody transfer applications. The patented single and dual reflection path technology used in the series continues to be a popular option in the marketplace. Available in sizes ranging from 4-64, this line features a turndown ratio as high as 150:1 and can be used on a bi-directional basis. Accuracy is claimed to be ±0.5% with flow calibration. Elster-Instromet Flowmeters Elster AMCO Water plant in Ocala, Florida The CheckSonic Series comes equipped as either a single or dual path flowmeter, and can be installed as either a spool piece or a hot tap device. Diaphragm-based flowmeter technology has been a standard offering of Elster-Instromet for many years. Diaphragm meters are positive displacement meters where the flow channels are dengineered to maximize optimum flow conditions and create a minimum of pressure loss. These meters are appropriate for natural gas and technical gas measurement at pressure up to 0.5 bar, and within a temperature range of -20 C to +50 C. The firm also produces a range of mechanical metering devices that includes rotary and turbine technologies. Accessory devices include data loggers, registers, flow computers, and data communication devices. The company s (Continued on page 25) Flowmeter Type Ultrasonic Quantometer Rotary (gas) Diaphragm Turbine Series/Model Series Q.Sonic, Series CheckSonic Series Q, Series Q75, Series QA /QAe Series RVG-ST, Series RVG G16 to G400, Series IRM-1, Series IRM-3, RPM Rotary Meters Series BK, High Pressure-DM Series TRZ, Series SM-RI Market Barometer Q

25 Company Korner: Elster Group (Continued from page 24) CHEKKER and Absolute-Encoder product lines are used in meter reading and billing applications. Summary We see no reason why Elster-Instromet, and the Elster Group in general, should not continue in their leadership roles. Elster-Instromet has production facilities in the following countries: Belgium, Denmark, Netherlands, France, Germany, Spain, Italy, United Kingdom, Turkey, Poland, Russia, Slovakia, China, England, Canada, Mexico, Argentina, and the United States. These facilities are strategically located in or near major end-user communities where custody transfer and commercial billing demand is high. As a privately held firm, the Elster Group is freed from some of the regulatory requirements which a more regulated utility supplier might otherwise encounter. We see their maneuverability as an advantage in a fast-moving environment market where being able to exploit emerging markets or large-scale projects quickly can be very useful. Look for this firm to continue to dominate natural gas flow measurement, and to be a leader in water flow measurement as well. Elster AMCO Flowmeters Flowmeter Type Positive displacement (oscillating piston) Multijet Turbine Precision Stainless Steel Turbine PVDF Turbine Rotary Single Jet Inferential Electromagnetic Series/Model Series C700 (residential water meter); Models Elster4, -8, -15, -20, -25, -40, -50 (oil meters) Series M700 (residential) T3000/T4000/TS4000 (commercial water); Series C3000 (commercial water); Series H4000 (commercial water); Series R1000 (commercial, agricultural Series F4000 (fire service meter) Models S050, -075, -100, -150, -200 (chemicals) Model P100 (chemicals) Series S2000 (single jet) Models S130, -M150, -M190, -H4300, - H4400 (hot water meters) Series AquaMaster (commercial water); Series MagMaster (commercial water); Series evoq4 (commercial water) 25 Market Barometer Q3 2008

26 Products and Technologies New-Technology: Coriolis KROHNE launches corrosion-resistant mass flowmeter Wellingborough (October 14, 2008) KROHNE has launched a new Tantalum version of its OPTIMASS 7300 Coriolis mass flowmeter to handle the highly aggressive and corrosive fluids found in the chemical industry. The past decade has seen Coriolis flowmeter technology become the accepted standard in many chemical industries. However, one area where the technology was challenged was the measurement of highly aggressive and corrosive fluids. This was due to the commercial availability of a suitable measuring tube material to handle these chemicals. Generally, the wall thickness of Coriolis measuring tubes are significantly less than the associated process piping, which will tolerate a higher rate of corrosion before failing. This is an area where wetted material selection for a Coriolis meter is critical. Tantalum has been used by some Coriolis manufacturers in the past, but the twin bent tube designs made these expensive. This was due to the flange, flow splitter as well as the measuring tubes all being made from Tantalum. It was not until the advent of the single straight tube design, that the material looked more attractive, due to the design now only needing the measuring tube and the raised face of the process flange to be made from Tantalum. This brought major cost advantages over the equivalent bent tube designs, but was not easy to achieve as Tantalum does not have the same tensile strength as Titanium which is traditionally employed. KROHNE, the world leader in straight tube technology, has applied its years of experience and been granted several patents, for perfecting the technology of containing the stress created in a straight tube due to thermal expansion and are now in a position to make this innovative technology available to highly aggressive and corrosive chemicals. The Tantalum used by KROHNE is an alloy called Tantalum Ta10W, which is made up of 10% Tungsten and 90% Tantalum. KROHNE have found that it is the ideal material for use in its OPTIMASS 7300 mass flowmeter as Tungsten provides the additional tensile strength required to handle the stresses associated with straight tube technology. This is another innovation from our research and development team, who have employed over 15 years of experience in single straight tube design to harness this technology," said Frank Grunert, global product manager for mass flow. "If you have measurement problems with a glass lined process pipe or glass lined vessels, then the OPTIMASS with Tantalum is the solution as Tantalum has similar chemical resistance to glass. With the addition of Tantalum, KROHNE can now offer a wide range of wetted materials for most chemicals. This now includes Hastelloy C22, Duplex SS 318, Titanium as well as SS316L. Optimass 7300 Tantalum Market Barometer Q