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ZMIXTECH: Reference Guide for practical knowledge and understanding of process fluid mixing applications and mixing equipment.
Mixing Industry Market Research Data;
Fluid Mixing is a critical unit operation in many process plants.
In North America, there are over 2 billion dollars worth of mixing equipment in operation. According to one major supplier of mixing equipment "......over 30,000 spiral bevel reducers are running in mixing operations across the USA within the past few years...".
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It is estimated that in the USA about 450 Million dollars of mixing equipment is purchased in one year. Worldwide close to 1 Billion US dollars of mixing equipment are purchased in one year.
The major Industrial users of this equipment
Mixing is a core unit process.
Currently there are three major suppliers in the USA and about 15 to 20 medium suppliers. The three major suppliers have at least 60% market share.
Mixing Equipment is categorized as Dynamic Mixers (Top entry, Side Entry, Portable/Lab and Spare parts, etc) and Static Mixers (Inline mixers, static mixers, heat exchangers and cooling reactors which use static mixers for viscous products). In the USA the breakdown is estimated to be as follows:
Note: Static Mixers does not include for Disposable Static Mixers in above figure
At ZAIN our goal is to educate you on mixing technology and let us assist you to choose your mixer supplier without necessarily having to rely solely on the top three mixing equipment suppliers in the USA.
Sales and Distribution channels used for mixing equipment. Heavy reliance on Sales Representative offices. These are indirect companies who sell mixing equipment based on commission. Typical commissions paid out to sales representatives is in the range of 10-15% of the selling price. Larger more complex projects are typically handled directly by the Equipment fabricator due to complexity of technology used. In this case sales reps can get as low as 1-3% commission. Portable/Lab mixers are also sold via catalogue houses where they can make as much as 20% for reselling the equipment. The sales representatives with good understanding of mixing technology and strong relationships with end users tend to be most successful.
USA where used: California, Illinois, Texas, New York are heavy users of mixing equipment. Interestingly you will also find the most chemical engineers also employed in these states.
PRICE MARGIN EROSION Interestingly in the USA as competition is fierce and the USA customer wants the best value at the lowest cost, we are watching the mixer suppliers margins decline and hence they are working harder to reduce costs and streamline their designs. The lower the end user pays for the equipment just means less money is being spent in marketing and R&D activities.
Variable Margins VM: Process mixing equipment companies in the USA average in the range of 30-45% margins, sell price vs. cost (where cost is the sum of labor, material. mfg overhead). In highly competitive situations they can go as low as 10-15%, or at cost, if deemed a strategic entry to a market or a particular customer. In non competitive situations the margins can be as high as 60%.
ZAIN Technologies offers the option to educate the end user on mixing technology and equipment design so that the end user has even more control on the price and value when purchasing mixing equipment.
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