Competition is Neck-and-Neck in the Fractional Horsepower Motor Race.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Sept. 19, 1996-- Fractional horsepower (FHP) motors are so prevalent in today's society that most people take them completely for granted.

Any time you put something in your refrigerator, use the power windows in your car, or clean the sidewalk with a blower, fractional horsepower motors are at work.

According to a market research study conducted by the international market consulting firm Frost & Sullivan titled, U.S. Fractional Horsepower Motor Market, the use of FHP motors is so widespread that the market generated $7.2 billion in revenues in 1995, and is expected to swell to $8.1 billion by 2002.

Industry experts predict that demand will remain stable for the familiar consumer and industrial applications such as household appliances and power tools, while the market for emerging industries such as business equipment, telecommunications and robotics, will explode.

Manufacturers trying to survive in this relatively stable but increasingly-competitive market will need to differentiate their products from the competition. "Despite the fact that original equipment manufacturers and other motor end-users are demanding closer relationships, better delivery schedules and minimal defect levels, several external forces exist as well," said industrial analyst Karl Krug.

Foreign motor manufacturers, with better economies of scale and inexpensive large-volume production capabilities, are circling ominously around the U.S. market.

The regulations imposed on the motors themselves are becoming stricter, with legislation calling for motors built smaller and more environmentally sound, while staying competitive price-wise.

These factors have necessitated a move towards custom manufacturing for the small- and medium-sized manufacturers. Unable to compete with the large-volume, low-price products imported from Asia, they are forced to retaliate by expanding their services and extending their client relationships.

On another competitive note, alternate current (AC) motors are in danger of losing certain applications to their direct current (DC) counterparts, because end-users are seeking the energy-efficiency that DC provides. Already exclusively used by the automotive industry, DC motors threaten to push AC motors out of other key industries as well.

The intense competition within the industry to improve the motors has led to several technological alterations. Over the years, motors have become smaller, lighter and quieter. In the place of metal, plastic brackets and brush holders have been adopted. "In addition," said industrial analyst Monica Kwiecinski, "the development of rare earth metal magnets modified the performance levels of certain permanent magnet DC motors."

The most significant technological advancement, however, has been the development of the brushless permanent magnet DC motor, which relies on electronic rather than mechanical commutation. Although the brushless DC motor has prolonged the life of the product, made precise speed control possible, and reduced noise levels, it has yet to make an impact in the market price.

In addition to the AC, DC and Universal fractional horsepower markets, this study also analyzes the FHP synchronous induction, the FHP hysteresis, the FHP reluctance motor markets. It breaks the markets down by application, forecasting for: household appliances, pumps and compressors, heating, ventilation and air conditioning (HVAC) systems, automotive applications, portable tools, refrigerators, medical equipment, business equipment applications, aerospace applications, packaging machinery, food processing machinery, conveyor belts, vending machines, and home electronics.

Companies profiled in this report include: A.O. Smith Distribution Services, Advanced DC Motors Inc., AEI, Aeroflex/Comstron Laboratories Inc., American Precision Industries Inc., Ametek., Anko Products Inc., Arco Electric Products, Ashland Electric Products, Astromec Inc., Autotrol Corp., Baldor Electric Co., BEI Motion Systems Co., Belyea Inc., Berger Lahr Motion Technology Inc., Bison Electric Corp., Black & Decker, Bodine Electric Co., Bosch Automation Products, Bowman Electrical Products Corp., Braun Instrument Co., Buehler Products, Carter Motor Co., CEI Enterprises, Coleman Motor Products, Cramer Co., Crouzet Corp., Dayton, DCM Corp., Denso International America, Dooling Bros. Inc, Dumore Co., Dynetic Systems Corp., Eastern Air Devices Inc., ECM Motor Co., Electric Indicator Company Inc., Elektrim North America Corp., Emerson Electric Co., Eureka Co., Fasco Industries Inc., Ford Motor Company, France, Franklin Electric Company Inc, General Controls Electronics Inc., General Electric Company, General Signal Corp./Electric Division, Globe Motors, Hansen Manufacturing Company Inc, Hermetic Compressors, Hoover Motor Company Inc., HSI, Hurst Manufacturing Division, Hussman Refrigeration, IMC Magnetics Corp., Indiana Power Transmissions, ITT Automotive, Jones Instrument Corp., K&G Electric Motor and Pump Corp., Kaiser Motor Company, Kollmorgen Inland Motor, Leeson Electric International Inc., Leland Faraday, Lexel Corp., Lincoln Electric Motors, Litton Poly-Scientific, Mabuchi Motor America, MagneTek Motors and Generators, Makita Corporation of America, Mallory Controls, Mamco Corp., Manger Engineering Inc, Marathon Electric Manufacturing Corp., Matsushita Compressor Corporation of America, Maxon Precision Motors Inc., McLean Engineering Division, McMillan Electric Co., Merkle-Korff Industries Inc., MFM Technology Inc., Micro Mo Electronics Inc., Microgroup Inc., Milwaukee Tool + Machine Co., Minnesota Electric Technology Inc., Molon Motor and Coil Corp., Moog Inc., Morrill Motors Inc., Motor Appliance Corp.(MAC), Motor Products Owosso Corp., Motor Specialty Inc., Motor Technology Inc, MPC Products Corporation, Northland, Ohio Electric Motors, Olsen Machine and Tool Company Inc., Oriental Motor U.S.A. Corp., Pacific Scientific Co., Pittman Motors, Poulan Weed Eater, Reliance Electric Co., Reuland Electric, Robbins & Meyers, Robert Bosch, Ryobi Motor Products Corp., Sears Roebuck and Co., Siemens Automotive Corp., Sintech, Skil Corp., Stature Electric Inc, Sunbeam- Oster Company Inc., Taylor Refrigeration Services, Triem Inc., United Technologies Automotive, Uppco Inc, Von Weisse Gear Company and W.S.M. Inc.

Frost & Sullivan is an international marketing consulting company that monitors the industrial industry for market trends, market measurements, and strategies. This ongoing research is utilized for publications such as No. 5323-17, U.S. Fractional Horsepower Motor Market and to support industry participants with customized consulting needs. Free executive summaries of all Frost & Sullivan reports are available to the press.

Report: 5323-17 Publish Date: September 1996 Price: $2495

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