Customized Products and High-Quality Service Key to Staying Competitive in Chinese...

Customized Products and High-Quality Service Key to Staying Competitive in Chinese PLC Market

BEIJING--(Business Wire)--The Chinese programmable logic controllers (PLC) market is set for
strong growth, driven by a vibrant and fast-growing economy that is
giving high priority to establishing new factories and facilities and
upgrading existing facilities. Increasing factory automation as
manufacturers constantly aim to enhance productivity and generate
higher returns on investment is another major driving force for the
PLC market.

New analysis from Frost & Sullivan
(http://www.industrialautomation.frost.com), Strategic Analysis of the
Chinese Programmable Logic Controllers Markets, finds that these
markets earned revenues of $541.4 million in 2006 and estimates this
to reach $1,043.3 million in 2013.

If you are interested in a virtual brochure, which provides
manufacturers, end users, and other industry participants with an
overview of the latest analysis of Strategic Analysis of the Chinese
Programmable Logic Controllers Markets, then send an e-mail to Amelia
Wong, Corporate Communications, at Amelia.Wong@frost.com with your
full name, company name, title, telephone number, fax number, and
e-mail address. Upon receipt of the above information, an overview
will be sent to you by e-mail.

"China is becoming a hub for manufacturing activity for many
reasons including low labor and operational costs, favorable FDI
policies, and high demand for a variety of products," notes Frost &
Sullivan Research Analyst Lawrence Li. "Many global manufacturers are
expanding their production facilities to China which expects to create
sustained opportunities for PLCs."

New growth avenues for PLCs are opening up in end-user industries
such as automotive, electronics, and semiconductor manufacturing. Both
industries are flourishing and attracting heavy investment. The
automotive industry's share of the Chinese PLC market expects to
increase from 11.5 percent in 2006 to 13.7 percent in 2013, with PLC
revenues growing from $62.3 million in 2006 to $142.9 million in 2013.

The Chinese electronic and semiconductor manufacturing market are
equally vibrant, and its share of the PLC market is set to grow from
7.9 percent in 2006 to 8.7 percent in 2013. PLC revenues projects to
increase from $42.8 million in 2006 to $90.8 million in 2013.

However, the Chinese PLC market is intensely competitive. Due to
fierce price competition, technologies are advancing at a faster rate
and product life cycles are becoming shorter. Suppliers are forced to
continuously introduce new models with better features and
functionality and superior performance just to maintain their position
in the market.

Developing customized products for specific industries that have
particular requirements in terms of system functionality and
reliability could help companies attain an edge over competitors.
This, however, requires a thorough understanding of the customer's
specific demands.

Catering to customers' high expectations in terms of pre-sale,
in-sale, and after-sale service is another major challenge for PLC
suppliers. Some of these demands include timely introduction of new
products, quick product delivery, professional installation, and
high-quality maintenance. Due to these expectations, the quality of
the service offering is becoming increasingly critical for suppliers'
value proposition.

"With system integrators (SIs) playing an important role in
helping PLC suppliers win projects, especially customized projects,
suppliers can consider providing frequent and detailed training
sessions to SIs to improve their product understanding," says Li. "By
providing SIs with the skills they need to render superior service,
suppliers will ultimately benefit by building a better relationship
with customers."

Strategic Analysis of the Chinese Programmable Logic Controllers
Markets, part of the Automation & Process Control Growth Partnership
Service, provides a detailed analysis of the markets. This includes
market revenues, forecasts, and competitive analysis for the overall
market as well as individual segments. It also includes analyses based
on distribution channels, end-user segments, geographic regions, and
technologies and offers strategic recommendations to overcome the PLC
market's biggest challenges. Interviews with the press are available.

Frost & Sullivan, the Growth Consulting Company, partners with
clients to accelerate their growth. The company's Growth Partnership
Services, Growth Consulting and Career Best Practices empower clients
to create a growth focused culture that generates, evaluates and
implements effective growth strategies. Frost & Sullivan employs over
45 years of experience in partnering with Global 1000 companies,
emerging businesses and the investment community from more than 30
offices on six continents. For more information about Frost &
Sullivan's Growth Partnerships, visit http://www.frost.com.

Strategic Analysis of the Chinese Programmable Logic Controllers
Markets

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Frost & Sullivan
Amelia Wong, +86 21 5407 5780 Ext 8634
Corporate Communications - China
M: +86 13818113130
E: Amelia_wong@frost.com
or
Sara Villarruel, 210-477-8448
Corporate Communications - North America
F: 210-348-1003
E: sara.villarruel@frost.com
or
Joanna Lewandowska, +48 22 390 41 46
Corporate Communications - Europe
E: joanna.lewandowska@frost.com
or
Donna Jeremiah, +603 6304 5832
Corporate Communications - Southeast Asia
F: +603 6201 7402
E: djeremiah@frost.com
or
Ravinder Kaur, +91 44 42044760
Corporate Communications - South Asia, Middle East
F: +91 44 24314264
E: ravinder.kaur@frost.com
or
Jose Maria Jantus, +54-11-4777-9951
Corporate Communications - Latin America
F: +54-11-4777-0071
E: jose.jantus@frost.com
or
Sharmin Jassal, +61 2 8247 8900
Corporate Communications - Australia & New Zealand
F: +61 2 9252 8066
E: sharmin.jassal@frost.com
or
Patrick Cairns, +27 21 680 3274
Corporate Communications - Africa
F: +27 21 680 3296
E: patrick.cairns@frost.com
http://www.frost.com

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