
The key business drivers of the industrial gas industry that affect profitable growth
The Industrial Gas Industry is the leading sustainable business development sector that reduces Total Costs of the Industrial Gas Supply Chain, decreases the Carbon Footprint and increases Safety and Health of Human Beings

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The Industrial Gas Industry is the leading sustainable business development sector that reduces Total Costs of the Industrial Gas Supply Chain, decreases the Carbon Footprint and increases Safety, Health of Human Beings

From its beginnings in the 1920s right through the remainder of the 20th Century, the helium industry was a very stable business. Despite sustained growth in demand that at times exceeded 10 percent per year, new production plants could be added as required based on plentiful natural reserves of helium found in the heartlands of the United States.
In the early 2000s, however, prices began to rise sharply, increasing by around 50% between 2000 and 2005. Then, in 2006 and through most of 2007, the industry experienced a serious shortage of supply causing enforced rationing of many end users, and triggering further price rises. By 2008, market prices in the U.S. were almost three times what they were just eight years previously.

An example of the forecast model is given in the attached spreadsheet for the UK. It shows forecasts through to 2020 but this is based on macroeconomic data which decreases in accuracy after 2015. The data contained in the spreadsheet was correct at the end of 2010. It should be noted that all data refers only to the gas sales of the industrial gas companies to end-users and excludes equipment, wholesaling and non-gas revenues, such as power generation.
In previous models, the growth in each industry sectors’ revenues was compared with the growth in industrial gas revenues on the same dollar basis. These models sought to identify changes in the intensity of industrial gas use that could then be projected into the future against predictions of sector revenue growth.

Esprit Associates is one of the leading consultancies on industrial gas, market research and business development.
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A survey of industrial gas experts about the challenges and key actions for maintaing profitable growth in 2012

Industrial users of hydrogen have two basic choices, they can either produce the hydrogen themselves, the “make” option, or buy it from a third party supplier, the “buy” option.

Support from Esprit in Selecting and Getting the Best from Your Helium Supplier.
Esprit offers support to Purchasing Managers, Production Managers, and other key decision makers for whom helium is a critical raw material in their production process or service offering.

This new, Multi-Client model offered by Esprit is more sophisticated than many previous models and takes into account changes in power and natural gas pricing by region, captive capacity by sector and announced investments and closures by the industry in addition to changes in macroeconomics.

Support from Esprit in Selecting and Getting the Best from Your Helium Supplier.

A survey of industrial gas experts about the challenges and key actions for maintaing profitable growth in 2012

Industrial users of hydrogen have two basic choices, they can either produce the hydrogen themselves, the “make” option, or buy it from a third party supplier, the “buy” option.
In the last twenty years the majority of users in developed countries have moved to the “buy” option, and even in developing countries, there is a move towards the “buy” option for new demands, if that option exists.
Hydrogen is used generally for its power as a reducing agent which can remove oxygen or other undesirable molecules from atmospheres or ingredients or, as in the case of oils and fats, to saturate unsaturated hydrocarbons.

Esprit offers support to Purchasing Managers, Production Managers, and other key decision makers for whom helium is a critical raw material in their production process or service offering.
If you are such a person and are concerned whether you are getting the best deal from your current helium supplier, or whether another helium supplier could provide a lower overall cost of ownership, Esprit can help.
Key Issues in Helium Supply

This new, Multi-Client model offered by Esprit is more sophisticated than many previous models and takes into account changes in power and natural gas pricing by region, captive capacity by sector and announced investments and closures by the industry in addition to changes in macroeconomics.
The result should be forecasts that reflect both the underlying growth and the headline revenues and take the strategies of the industrial gas companies into account.
The macro-economic sourcing data will be provided by an identified source, probably Global Insights Inc and the basis of the data will be clearly identified in the output.
The model will to cover all of the countries/sub regions (92) listed in Appendix 1. Esprit divides the world output into the following regions:
The market analysis will need to be undertaken in local currencies but the outputs are provided in US Dollars and Euros at defined exchange rates. Care should obviously be taken when looking at underlying growth rates in a market other than in the local currency.
We refer to different Tier structures for describing various gas companies:
We will analyse on a best efforts basis the following end-use industries for the industrial gases business, but may change these to reflect more appropriate matches with industrial gas use.