Metso Automation maintains high industry standards
BY MORRIS R. BESCHLOSS
PVF and economic analyst
 |
Kevin Mahan |
In my 50 years of active service in the pipe, valve and fitting industry, I have seen many famous names come and go. But few have equaled — and none have excelled — the prestige, cachet and respect engendered in the name Jamesbury. Founded by brothers Howard and Julian Freeman in 1954 in Worcester, Mass., Jamesbury accomplished the dual success of creating an identity not only for a new name, but a generic identity for bronze and steel ball valves that had previously not been well-known and certainly not as a replacement for gate, globe and check valves.
In accomplishing this double-duty masterfully, the Freemans left neither quality, specification work or first-class distribution unturned. This led to a profitable sale of the company to Combustion Engineering in 1983. In 1988, Finnish pulp and paper giant, Rauma Repola, acquired Jamesbury and merged it into its Neles Controls division. This group was completed by Rauma-Repola’s previous acquisition of Hammel-Dahl.
Subsequently, the merger of Rauma with Valmet to form Metso and today’s Metso Automation division, which offers a complete controls package to its vaunted distribution network.
However, through the various metamorphoses that Jamesbury has undergone, the acceptance of that brand name has become more prestigious than ever. The parent company, Metso Automation, has displayed wisdom in keeping its invaluable brand name Jamesbury alive, within its broader offering. To bring The Wholesaler’s readers up-to-date with Metso Automation and Jamesbury’s latest developments, we’re privileged to interview Kevin Mahan, senior vice president of Metso Automation.
Beschloss: It’s a well-known fact that Jamesbury and quarter-turn leadership have become synonymous. Could you give us the main reason for your continued success?
Mahan: Keeping a focus on what has made Jamesbury valuable and relevant to our customers, industry best-selling technology, automation capabilities, and well-trained and motivated channel partners. Investing in the technology that provides longer, trouble-free service allows for a lower cost of ownership over the life of the product and helps maintain a loyal customer base and support for the brand. Quality products are important, but to meet the changing needs of global industrial customers, they must be offered through world-class distribution that can provide local service and support and are trained to properly select the best solution for a given application.
Beschloss: Having gone through the transition of Neles-Jamesbury into its present component of Metso Automation, has the current alignment been helpful in strengthening the company’s distribution, specifications and market penetration?
Mahan: The Jamesbury brand has benefited by being a part of the overall Metso Automation product portfolio. Having a more complete automation offering allows Metso Automation and our channel partners to solve more of our customers’ issues and engage at a higher level. The critical mass a larger operation provides also has made it easier to invest in areas that are strategically important for longer-term growth. We are also better able to meet the needs of large global customers on a local level with the worldwide Metso Automation sales and service network in place.
Beschloss: Please bring us up to date on Metso Automation’s sealing and automation technology. Is this a cutting-edge approach that will broaden Jamesbury’s appeal?
Mahan: The Jamesbury brand was built on reliability and performance. Advances in sealing technology material and geometry have allowed Jamesbury to offer pressure and temperature capabilities formerly only achievable with special materials. These special materials limited the chemical resistance, lowered the cycle life and increased the valve price and torque significantly.
Jamesbury Xtreme seat material significantly increases the performance of standard valves and allows for longer cycle life. The ability to stock valves with one seat material for a number of applications also reduces our customers inventory levels and increases safety through fewer misapplications.
Jamesbury is known for quality valve technology, but is also one of the leading actuator suppliers in North America. Metso Automation supplied well over 60,000 actuators to our North American customers in 2006 and has developed the next generation of actuation that combines actuator, switch, pneumatics and networking technology in one complete package. The customer benefits from lower installation costs and the ability to communicate directly with the valve in service. Communication directly to the valve enables customers access to both performance and diagnostic data that can be used to improve plant performance and cut maintenance costs.
Beschloss: What is the playback from your distributors regarding the technological evolution of Metso generally, and Jamesbury specifically?
Mahan: Our channel partners appreciate the investment that Metso and Jamesbury make in understanding the challenges facing our customers and introducing new products and technology to help them better manage their processes.
Having the best technology available is one of the ways our distribution partners deliver value to our shared customers. Jamesbury service and technology are the two most-mentioned positive comments we receive back and are key to our ability to maintain a loyal and professional channel.
Beschloss: With Jamesbury continuing to maintain its leadership in all categories of ball valves, has your strength and the potential weakening of competition provided you with greater opportunities?
Mahan: I am not sure how much the competition has weakened, as it seems there are new players on the scene every year, but we have been fortunate to grow our ball and butterfly valve business.
The overall economic situation has improved in recent years and we have worked hard to improve our market share in key industry sectors. The expansion of our automation offering coupled with the improved performance of the products has enabled us to penetrate additional applications and differentiate ourselves from competitors.
Beschloss: Since I understand that Metso Automation’s U.S.-based business is managed as a single unit, has this fact strengthened your identity as a U.S. company?
Mahan: Being close to the other Metso divisions here in North America has helped us to bring the total Metso value proposition to the customer. This did speed up the process of introducing the Metso brand here in North America.
I think the longer-term benefit to the market and to Metso lies in the stronger customer interfaces, better understanding of requirements and improved product development this closer cooperation provides.
Beschloss: With the PVF sector on a roll this year, has Metso Automation stayed ahead of the industry growth percentage?
Mahan: Yes. The overall industry did experience positive growth. Metso Automation was able to grow above that rate by participating in some of the faster-growing energy and alternative fuel segments while maintaining service levels to our key account customers.
Beschloss: Since Metso Automation and Jamesbury specifically are active in such sub-sectors as oil, natural gas, pulp and paper, chemical, etc., are you bullish about the PVF sector’s current dynamics through 2007?
Mahan: Yes, we remain optimistic about the markets for 2007. North America is a somewhat mature market and will not grow as fast as some other emerging areas of the world, but there is plenty of investment planned and most of the core industries are making money and will need PVF products for new projects and much needed maintenance of existing facilities.
Beschloss: As an active member of VMA, are you upbeat about the Valve Manufacturers Association’s future and its relevance to the future of the valve industry?
Mahan: I am excited about what the next years will bring to our industry. I think the VMA is in a great position to support the industry here in North America.
There are fewer and fewer valve and actuation experts out there. As more retire, there is a real need for general valve and actuation training programs to support the needs of our VMA member companies and our customers. The VMA can provide general non-manufacturer specific courses that will help train future employee and customers.
The VMA is focused on improving communications between our industry and key players in Washington to promote the common goals of the membership. The focus will, in time, lead to regulations supporting safer work environments, controls to protect intellectual property and innovation and overall encourage additional investment in the industry.
Beschloss: Is Metso Automation looking for more acquisitions, as well as a continuation of its organic growth?
Mahan: Metso Automation strategy is focused on growing both organically and through complementary acquisitions where possible. Building on our portfolio of products and services is vital to our core strategy of strengthening our relationships with customers and expanding our ability to deliver value to their operations.
Morris R. Beschloss, a 50-year veteran of the pipe, valve and fitting industry, is PVF and economic analyst for The Wholesaler.