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Pump Industry
Overview
The Australian pump industry is
significant with interests in all markets whether population or commodity
driven. The annual market for pumping equipment is estimated to exceed
A$1,000 million annually.
There are more than 2500 people employed directly by pump manufacturers
and as many again by Agents, Distributors and other businesses supplying
product and services to the pump market. Whilst their sales represent a
large dollar value, the relatively small size of the Australian market (in
world terms) has resulted in businesses becoming very sophisticated and
efficient in their operations. This has resulted in innovation utilising
the latest technology.
There is a diverse range of products that are "Made in Australia" with
Australian made products supplying over 60 per cent of the domestic demand
for pumping equipment. Tariff duties on imports declined from 25% in 1989
to 5% in 1996. This has lead to major changes in the structure of the
Australian Industry. There has been considerable rationalisation with many
local companies being acquired by International operators.
Local manufacturers have had to become more efficient in making their
products and have sought markets offshore with considerable success. The
Australian market has also benefited from the emergence of many new
businesses representing the ever increasing range of pump product becoming
available from overseas sources.
PUMP TYPES
Many sizes and types of pumps are manufactured and supplied to Australian
markets. These products fall within three main categories:
•
Centrifugal Hydrodynamic Pumps
This is the largest group and ranges from small domestic pressure pumps
and swimming pool pumps made in plastics, to high pressure process pumps
for oil refineries and very large machines for water and wastewater
treatment. Also, vertical multi-stage pumps for ground-water pumping from
boreholes and for other applications. Slurry pumps for abrasive
solids-handling duties are supplied to the local mining industry and to
overseas miners.
• Rotary Positive Displacement Pumps
This group include a variety of designs, usually used for pumping viscous
fluids. Gear pumps and vane pumps are used for oil transportation and
power transmission and progressing cavity pumps for manufacturing
processes and for handling water and slurries.
• Reciprocating Positive Displacement Pumps
Australian manufacturers make a range of reciprocating pumps for metering
precise doses of fluids, often chemicals requiring corrosive-resistant
materials of construction.
PUMP INDUSTRY DEVELOPMENT
There are numerous companies manufacturing pumps in Australia and several
hundred who import, resell or supply product to the industry. Some of
Australia's early history in pump manufacture is represented by two
organizations who still operate, albeit with at least one change of
ownership since their early days. Both of these organizations are over a
century old and have grown out of the earliest Australian export trades of
gold and agricultural produce. The oldest, Southern Cross Machinery,
started in Queensland in 1871 making wooden windmills for pumping ground
water. Their business has grown over the decades and has lead to their
current wide range of agricultural pumps and associated equipment.
In 1875, when the gold rush in Victoria was in full swing, much of the
recovery of alluvial gold was undertaken using hydraulic sluicing methods.
Thompsons Kelly & Lewis had their beginnings with the manufacture of
centrifugal and reciprocating pumps for sluicing and mine dewatering.
These companies now operating under the Flowserve banner are still
designing and making pumps and are among the leaders in their fields.
Pump users in Australia have been very demanding and have played a
valuable part in driving the development of the local industry towards the
strong position it occupies today. As demand changes, so a healthy
industry will react quickly and this is to be seen as the publicly owned
utilities for power generation, water supply and wastewater disposal
become corporatised or privatised. Pump suppliers operate in a highly
competitive environment and have had to exhibit the flexibility to absorb
changes in their marketplace if they are to survive.
PUMP INDUSTRY RATIONALISATION
The pump industry in Australia has seen significant restructuring over the
past decade. Pump manufacturers have taken their own initiatives with a
series of takeovers which have resulted in a substantial rationalisation
of the number of suppliers. This restructuring of the Australian pump
industry was paralleled by similar amalgamations of pump manufacturers in
North America and Europe.
A beneficial result has been seen in the improved profitability of the
restructured organisations, which has attracted the interest of some
global pump companies in developing Australian joint ventures.
Whilst the number of Australian pump companies has been reduced, the total
plant capacity has remained almost unchanged. Continuing investment in
modern plant and machinery has resulted in an industry with a strong
capital base, with adequate capacity to produce in considerably greater
volume than its current output and with more efficient operations.
Australian pump manufacturers are in the forefront of local industry with
their use of high technology equipment such as flexible machining centres
and computer-aided design and manufacturing.
SUPPLY CAPABILITIES
Most pumps contain castings and the capacity of an indigenous pump
industry is dependent on the quality and reliability of its foundry
suppliers. A shakedown of the Australian foundry industry in the early
1980's preceded the restructuring of the pump manufacturers themselves. A
number of those foundries operating today have specialised in moulding
techniques and metallurgy peculiar to pump designs. Several pump
manufacturers maintain their own foundries.
The size of pumps which can be produced in Australia is not limited by
foundry capability. Some foundries can pour castings up to 30 tonnes mass.
Similarly there is no limitation in the available metallurgical
techniques. Pump castings made in exotic alloy steels including super
duplex stainless steels are readily available. A number of small pump
designs are nowadays made in plastic materials using the latest automated
injection-moulding techniques. Pump testing facilities are of a high
standard, with the largest being capable of testing machines absorbing
power in excess of 5 MW.
The average hourly rate paid for direct labour, including wage related
extras such as workers' compensation insurance and superannuation, is
lower in Australia than in most European countries and is on a par with
that in North America. The quality of design and workmanship provided by
Australian pump manufacturers is well controlled using the ISO 9000
standards as the basis for quality assurance accreditation. Given access
to sufficiently large markets, Australian productivity can equal that of
overseas competitors and our pumps are competitive in the world
marketplace.
Exchange of design technology occurs through manufacturing licences
negotiated by local companies with overseas pump manufacturers and
Australian designs are also licensed to be made in other countries. During
a century of experience, Australian hydraulic engineers have developed a
stock of "know how" which has become an exportable asset.
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Pump Industry Australia
PO Box 55, Stuarts Point
NSW 2441 Australia
Phone +61 (2) 6569 0160
Click here to email us.
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