This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Southeast Asia Emerges As An Investment Hotspot For Both Manufacturers And End Users Of Low-voltage IHP Motors, Finds Frost & Sullivan

SINGAPORE, Jan. 1, 2013 /PRNewswire/ -- Southeast Asia is a developing region; all industries are demonstrating high growth rates. Its large population, low costs of production, and investment-friendly government policies attract not only manufacturers, but also end users of various industries. This creates a fertile market for low-voltage integral horsepower (LV IHP) motors.

New analysis from Frost & Sullivan ( http://www.motors.frost.com), Analysis of the Southeast Asian Low-voltage Integral Horsepower Motors Market, finds that the market earned revenues of $432.3 million in 2012 and estimates this to reach $576.3 million in 2017 through investments from end-user industries such as oil and gas, heating, ventilation, and air conditioning (HVAC), as well as chemicals and petrochemicals.

Due to the higher production costs in China, foreign investors are tilting toward Vietnam and Indonesia. Singapore's strategic location and business-friendly environment also attract investors to start-up manufacturing units. End-user segments with the highest demand for LV IHP motors are automotive, oil & gas, power and petrochemicals.

Customers primarily look for competitive prices and motor quality when purchasing an LV IHP motor. Ultimately, they tend to pick quality over price at the time of purchase.

"End users are also attracted to energy-efficient motors; therefore, new products and technology in energy-saving systems are expected to drive the market," said Frost & Sullivan Senior Research Analyst Vandhana Venkatesan. "Due to sustainable development, long-term savings on maintenance costs is one of the main reasons for the boom in energy efficiency motors."

While the benefits of LV IHP motors are many, market saturation has intensified competition, which, in turn, has led to price wars and shrunken profit margins for manufacturers. They are also facing pricing pressures from low-cost regional and Chinese manufacturers. Due to their domestic economic instability, countries such as the Philippines and Vietnam tend to favor these products, despite their poor quality.

"Notwithstanding this competition from low-cost manufacturers, domestic participants can stay afloat by providing high-quality, reliable, energy-efficient products," noted Venkatesan. "Reduced lead time and effective aftersales support will give manufacturers an added edge over their competitors."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,904.12 -15.47 -0.09%
S&P 500 1,981.60 +9.86 0.50%
NASDAQ 4,527.5140 +19.2020 0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs