“When it becomes more difficult to suffer than change, then you will change.” Anon.
Blackouts
What a disaster in South Africa's power provision. There seem to be two fundamental problems. We have failed to timeously invest in generating capacity, and we are unable to adequately maintain the existing generating capacity. For the former, the cabinet, Eskom's top management and strategists are culpable; for the latter, those lacking the foresight to ensure sufficient depth of skills for the management and execution of maintenance tasks.
These failures will cost the country dearly. They will dramatically reduce foreign direct investment (FDI) and result in lower exports of commodities and manufactured goods. Capital expenditure will slow and the country will not meet its economic growth targets.
The effect of adopting a rationing approach based on a multitier pricing structure will be that energy costs will form a larger percentage of input costs. In a roundabout way Eskom will achieve their requested 18% price increase and perhaps more. This will impact on factory prices and hence inflation.
The era of low-cost electricity in South Africa is coming to an abrupt end. Electricity and gas will take greater significance in personal budgets, just as in countries like Germany, where 'Die Heissung' (the heating bill) is an important factor when buying or renting accommodation.
Each of us has a part to play. We are either part of the problem or part of the solution.
Domestically we can take small actions, which cumulatively will help. We can install low energy light sources, blanket geysers, adjust thermostats and be more careful about what is left switched on.
Commercially it is time to stop leaving buildings blazing with light long after the last individual has gone home. Unoccupied rooms and passageways should be left unlit. Rooms equipped with sensors and passageway lights fitted with delay-off timers should become the norm.
In industry practical experience has shown that savings of 30% to 50% are achievable on pump, compressor and fan systems through the use of energy-efficient drive design and selection. In the European Union these are promoted through the Motor Challenge Programme, a voluntary programme launched by the European Commission in 2003, more details of which can be found in the drives and electrical section of this issue.
Buyouts
In spite of the recent slowdown in the American economy, some companies in our industry have been on a spending spree, using their record profits to make strategic acquisitions.
Parker Hannifin, whose chairman, CEO and president Don Washkewicz has stated that acquisitions remain an important part of the company's Win Strategy, is a case in point.
In the second quarter of fiscal 2008 the company made four strategic acquisitions including electrical and production umbilical cables for subsea oil and gas installations; further expansion of aerospace components and equipment capabilities; precision electro-pneumatic control systems; and temperature sensing protection equipment. In the previous quarter the company made strategic acquisitions in its sealing and fluid and gas handling businesses.
Eaton has followed suit.
In the last year it has acquired or announced plans to acquire Argo-Tech, Aphel Technologies, Saturn Electronics & Engineering, SMC Electrical Products, Pulizzi Engineering, MGE's Small Systems Business, Babco Electric Group, Arrow Hose & Tubing, The Moeller Group and Phoenixtec Power Company.
The motion control industry is still rocking!
Andrew Ashton
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