It’s the economy Stupid! Or is it? Everywhere you turn, some talking head tells you just how bad the economy is. But the smart business person knows that if you target your opportunities, you can always find the bright side of the economy. For example, snow in the city usually keeps shoppers away from the stores. Snow in the mountains brings out the ski bunnies.
Yes, the IT industry is flat — survey after survey points that out. But in niche markets, things can look pretty bright. As you may know, I am associated with InfoNetrix. (www.InfoNetrix.com), a leading technical market research firm focused on utility and energy automation markets. In 2002 I conducted the GIS and Mobile Computing Solutions Market Study on their behalf and will conduct the 2003 study as well. While I naturally tend to focus on the strategic view (I guess I’m just a big picture guy), other InfoNetrix research analysts toil at producing the firm’s quarterly tactical project activity reports. That is to say they identify the projects that utilities are planning by conducting interviews with 200–300 utilities each calendar quarter.
This effort has identified a record level of project activity — almost 300 projects valued at nearly $150 million. The important details are in InfoNetrix’ just published Q1-2003 Business Horizons™ Reports. These reports, published each calendar quarter by InfoNetrix, identify project activity in two principal automation sectors within the North American electric utility marketplace, as summarized below.
According to InfoNetrix Principal and co–founder Mike Marullo “GMCS showed the largest number of projects (183) and the most significant spending outlook (over $76 million), but TDMS also exhibited robust project plans with 106 projects valued at just under $70 million.”
For you transmission techies, get this: the TDMS report identifies utility plans to procure more than 3,700 RTUs for new systems and additions to existing installations – also a record number. Yeah, nothing like a slow economy to make your quota.
“These first two reports of 2003 identify the most opportunities and highest project spending outlook ever documented in our quarterly Business Horizons™ Reports series and represents significant growth potential in the major market sectors (i.e., TDMS and GMCS) they address,” said Ed Finamore, who leads the InfoNetrix Electric Utility practice area.
But what kind of projects are out there?
I thought you might ask. As it turns out, those InfoNetrix researchers called and interviewed managers at over 230 electric utilities during the January through March survey period. The table below summarizes the projects and project values depicted in the resulting reports.
Why the rebound?
To get that answer, we checked with another InfoNetrix principal, Mike Smith, director of tactical market research and development. He was kind enough to share his thoughts with us. “Frankly, we’re somewhat surprised at the strength of the recovery this early in the new year so it will be interesting to see if it is sustainable for the balance. However, we’re seeing many utilities come full circle, having transitioned from tightly regulated monopolies to an almost unbridled period of diversification, followed by a recent return to a more traditional utility focus “all within a few years.”
“Bear in mind that these quarterly Business Horizons™ Reports address a 3–to 30–month planning horizon for each utility we survey,” Smith continued. “This means that the projects we identified in this first quarter will be initiated between now and fall 2005. Each quarter we survey 200–300 new utilities and are able to project out a little further as the year progresses. By the end of 2003 we should have a pretty clear picture of planned TDMS and GMCS projects through mid–2006,” Smith explained.
Conclusion
Although I have known Mike Marullo and Mike Smith for a decade or so, my participation in last year’s GMCS study was my first opportunity to get an insider’s look at how they conduct their research. Believe me when I tell you that they are first rate. Marullo is a stickler for detail and accuracy — great for you; a pain for me. Smith understands this market, knows what to ask, and how to go about getting it. Unlike the “other Mike”, Smith is not constantly “adjusting” my writings. (All “sticklering” is left to Marullo!)
InfoNetrix Business Horizons™ Reports are based on surveys conducted with 1,000 electric utilities annually and are available separately or as part of an InfoNetrix Market Intelligence Program. If you sell into this market and don’t already subscribe to all of the offerings of InfoNetrix, you are missing the opportunity of a lifetime. Don’t let anyone tell you that there aren’t any opportunities out there! Projects and market insights are just a click away at www.InfoNetrix.com.
This article originally appeared in The Harlow Report-Geographic Information Systems in Vol. 26 issue 4. The Harlow Report (www.theharlowreport.com) is an web based GIS newsletter, and has been published in print and electronically since 1977. Chris Harlow is a well known GIS consultant, writer and speaker. He is the founding president of GITA (Geospatial Information Technology Association), If you would like a free trial subscription to The Harlow Report, send an email to charlow@charter.net with the subject: E&E and provide your name, address, and email in the body.
Yes, the IT industry is flat — survey after survey points that out. But in niche markets, things can look pretty bright. As you may know, I am associated with InfoNetrix. (www.InfoNetrix.com), a leading technical market research firm focused on utility and energy automation markets. In 2002 I conducted the GIS and Mobile Computing Solutions Market Study on their behalf and will conduct the 2003 study as well. While I naturally tend to focus on the strategic view (I guess I’m just a big picture guy), other InfoNetrix research analysts toil at producing the firm’s quarterly tactical project activity reports. That is to say they identify the projects that utilities are planning by conducting interviews with 200–300 utilities each calendar quarter.
This effort has identified a record level of project activity — almost 300 projects valued at nearly $150 million. The important details are in InfoNetrix’ just published Q1-2003 Business Horizons™ Reports. These reports, published each calendar quarter by InfoNetrix, identify project activity in two principal automation sectors within the North American electric utility marketplace, as summarized below.
- TDMS (Transmission & Distribution Management Solutions) includes projects for...
- SCADA (supervisory control and data acquisition)
- EMS (energy management systems)
- DMS (distribution management systems)
- DA (distribution automation)
- SSA (T&D substation automation)
- RTUs (remote terminal units) and RTU-like field devices
- Communications Systems
- Professional Consulting Services
- GMCS (GIS & Mobile Computing Solutions) includes projects for...
- GIS (geographic information systems)
- AM/FM (automated mapping/facilities management) systems
- Mobile Computing Systems
- Critical Applications, including OMS and WMS
- Professional Engineering & System Integration Services
- Conversion Services
According to InfoNetrix Principal and co–founder Mike Marullo “GMCS showed the largest number of projects (183) and the most significant spending outlook (over $76 million), but TDMS also exhibited robust project plans with 106 projects valued at just under $70 million.”
For you transmission techies, get this: the TDMS report identifies utility plans to procure more than 3,700 RTUs for new systems and additions to existing installations – also a record number. Yeah, nothing like a slow economy to make your quota.
“These first two reports of 2003 identify the most opportunities and highest project spending outlook ever documented in our quarterly Business Horizons™ Reports series and represents significant growth potential in the major market sectors (i.e., TDMS and GMCS) they address,” said Ed Finamore, who leads the InfoNetrix Electric Utility practice area.
But what kind of projects are out there?
I thought you might ask. As it turns out, those InfoNetrix researchers called and interviewed managers at over 230 electric utilities during the January through March survey period. The table below summarizes the projects and project values depicted in the resulting reports.
Why the rebound?
To get that answer, we checked with another InfoNetrix principal, Mike Smith, director of tactical market research and development. He was kind enough to share his thoughts with us. “Frankly, we’re somewhat surprised at the strength of the recovery this early in the new year so it will be interesting to see if it is sustainable for the balance. However, we’re seeing many utilities come full circle, having transitioned from tightly regulated monopolies to an almost unbridled period of diversification, followed by a recent return to a more traditional utility focus “all within a few years.”
“Bear in mind that these quarterly Business Horizons™ Reports address a 3–to 30–month planning horizon for each utility we survey,” Smith continued. “This means that the projects we identified in this first quarter will be initiated between now and fall 2005. Each quarter we survey 200–300 new utilities and are able to project out a little further as the year progresses. By the end of 2003 we should have a pretty clear picture of planned TDMS and GMCS projects through mid–2006,” Smith explained.
Conclusion
Although I have known Mike Marullo and Mike Smith for a decade or so, my participation in last year’s GMCS study was my first opportunity to get an insider’s look at how they conduct their research. Believe me when I tell you that they are first rate. Marullo is a stickler for detail and accuracy — great for you; a pain for me. Smith understands this market, knows what to ask, and how to go about getting it. Unlike the “other Mike”, Smith is not constantly “adjusting” my writings. (All “sticklering” is left to Marullo!)
InfoNetrix Business Horizons™ Reports are based on surveys conducted with 1,000 electric utilities annually and are available separately or as part of an InfoNetrix Market Intelligence Program. If you sell into this market and don’t already subscribe to all of the offerings of InfoNetrix, you are missing the opportunity of a lifetime. Don’t let anyone tell you that there aren’t any opportunities out there! Projects and market insights are just a click away at www.InfoNetrix.com.
This article originally appeared in The Harlow Report-Geographic Information Systems in Vol. 26 issue 4. The Harlow Report (www.theharlowreport.com) is an web based GIS newsletter, and has been published in print and electronically since 1977. Chris Harlow is a well known GIS consultant, writer and speaker. He is the founding president of GITA (Geospatial Information Technology Association), If you would like a free trial subscription to The Harlow Report, send an email to charlow@charter.net with the subject: E&E and provide your name, address, and email in the body.
