ABB says that its UK variable speed drives business has exceeded its market share prediction for 2005, nearly a year early:
ABB also doubled its year-on-year growth prediction to 20% in 2005. "While the market is clearly growing overall, it is definitely not growing by 20%," says Ruddell. "We can safely conclude that we are taking market share - and a significant proportion at that. We confidently expect double digit growth in 2006."
The breakthrough, says ABB, is a result of a very progressive marketing campaign; additional investment in its sales network; the launch of new products; and the effect of rising energy costs.
Investment in sales:
ABB's engineers have been given more focussed product ranges to promote in dedicated geographical areas. "Whereas previously we had engineers selling all products to all industries, we now see that a more effective approach is for engineers to sell dedicated ranges and for some to sell to specific industries. The results speak for themselves," says Ruddell.
While investing substantially in an infrastructure that can handle the growth, ABB's success is also attributed to its dedicated focus on market sectors including HVAC, food & beverage and OEMs. This has seen the appointment of dedicated market managers for each of these activities.
Since focusing on HVAC in 2004 and food & beverage in 2005, ABB's market share has increased dramatically in both sectors at the expense of the competition.
New products:
The introduction of the ABB standard drive in late 2004 and the current introduction of the ABB general machinery drive are expected to further boost the success ABB is having with OEMs. "Both these product ranges offer serial OEMs the right product packed with functions, at the best price levels and with the service and support network of ABB," explains Ruddell.
"In drives up to 7.5 kW we currently only have about 4.5% of the UK market. The new ABB general machinery drive is attractively priced and with this product, we aim to double our market share in low power drives within two years."
The market for low power drives has been a highly competitive one for many years. ABB has traditionally concentrated on larger drives but is now challenging the more established manufacturers in this segment.
These products are also being sold through ABB's distributor network, which is being rapidly expanded throughout 2006. ABB has signed up with several large distribution organisations to ensure that it achieves multiple routes to market. "These small drives need to be available on every street corner. You need to be able to fall upon them whenever you need one. That's why our multi-channel approach is gaining so much momentum."
At the other extreme, ABB is set to give its medium voltage drives a boost in 2006 with the appointment of a dedicated product manager, tasked to significantly grow an untapped market for ABB. "In 2005 we introduced two superb new medium voltage drives, the ACS 1000i and the ACS 5000. Both are incredible products but we have waited until we had a team in place before pushing forward."
Energy costs up:
The rising cost of energy is a key driver for increasing drives sales as companies scramble to reduce energy bills. "Drives are becoming an accepted product for cutting energy costs. And the work we have been doing with our energy audit campaign over many years is now bearing fruit," claims Ruddell.
"We are proud of what we have achieved in 2005. But we are not satisfied. We believe we can do more."
The picture shows Steve Ruddell and also a range of applications for ABB variable speed drives.