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Growing Opportunities in the Power Plant MRO Market in Sub-Saharan Africa - The number of refurbishment deals in the region has multiplied in recent years, most notably in Southern Africa, due to an increasing demand for electricity
Growing Opportunities in the Power Plant MRO Market in Sub-Saharan Africa

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2007/06/01 - The number of refurbishment deals in the region has multiplied in recent years, most notably in Southern Africa, due to an increasing demand for electricity.

   
 
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The market for power plant maintenance, repair, and overhaul (MRO) in sub-Saharan Africa is growing and becoming more competitive.

“The re-commissioning of previously mothballed stations and substantial investments in electricity generation capacities are expected in sub-Saharan Africa,” notes Frost & Sullivan (energy.frost.com) Research Analyst Jeannot Boussougouth. “This means that power plant service providers will have to offer a real value proposition to utilities if they are to win refurbishment deals.”

The power plant service providers active in sub-Saharan Africa are international companies with strong brand recognition. Most utilities and IPPs often associate brand with the quality of work and technical know-how, which are the two most important factors in selecting power plant service providers.

In the past, original equipment manufacturers (OEMs) were almost guaranteed to win MRO deals, but this scenario is changing as utilities and IPPs show an increasing willingness to outsource their MRO jobs. From an end-user perspective, there are three major factors that are hampering the development of a healthy MRO market:

Firstly, the prices offered by OEMs are perceived as non-competitive. This has eroded the market share of OEMs in favour of competing equipment manufacturers.

Secondly, longer lead times, which are the result of the obsolescence of power plant equipment in many utilities, are affecting the market. This makes it difficult to source key spare parts.

Lastly, end users believe that several MRO providers have not achieved a distinctive value proposition due to the weak after-sale support they provide.

“MRO service providers will be able to display superior performance in the long term only if they continuously develop and adopt new sources of temporary advantages such as competitive pricing, flexible warranty and customer-focused support,” explains Boussougouth. “However, this does not seem to be the case at present.”

With power plant management seeking the most cost-effective option and the best value proposition in terms of customer service and technical expertise, OEMs have started to rethink their approach. In addition to revamping their traditional MRO offerings, some OEMs are offering services such as assistance in financial planning. The uniqueness of how MRO suppliers organise and improve their relationships with utilities as well as IPPs will increasingly depend on pricing and customer service.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of Sub-Saharan Africa Power Plant Maintenance Repair and Overhaul (MRO) Strategies, send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com with your full name, company name, title, telephone number, email address, city, state, and country. We will send you the information through email upon receipt of the above information.

Sub-Saharan Africa Power Plant Maintenance Repair and Overhaul (MRO) Strategies is part of the Energy and Power Growth Partnership Service, which also includes research on global energy and power supplies, energy market engineering and power generation. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Growing Opportunities in the Power Plant MRO Market in Sub-Saharan Africa

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