An ICD Research report in association with Modern Power Systems:
What The Global Fossil Fuel Power Industry
Is Planning In 2010-2011: Procurement,
Investment and Industry Trends Outlook
Reference Code: ICDR1060
Publication Date: FEBRUARY 2010
What The Fossil Fuel Power Industry is Planning in 2010-2011: ICDR1060 / FEBRUARY 2010
Procurement, Investment and Industry Trends Outlook
© ICD Research. This brief is a licensed product and is not to be photocopied Page (1)
Table of Contents
1 Table Of Contents
1 Table Of Contents 2
1.1 List Of Tables 5
1.2 List Of Figures 9
2 Introduction 12
2.1 What Is This Report About? 12
2.2 Methodology 12
2.3 Profile Of Survey Respondents 13
3 Executive Summary 17
3.1.1 The Fossil Fuel Power Industry Is Generally Optimistic About The Revenue Growth Of Their
Companies 17
3.1.2 The Fossil Fuel Power Industry Is Positive About Its Market Growth Outlook 17
3.1.3 Fossil Fuel Power Companies Will Be Increasing Procurement Spend Over The Next 12 Months
And Have Strict Cost Savings Targets 18
3.1.4 Industry Players Expect Increasing Competition And Pricing Pressures To Be The Key
Challenges 18
3.1.5 Suppliers Must Update Their Knowledge Of Buyer Needs In The Areas Of Price, Proximity Of
Operation And Demonstrating Reliability 19
3.1.6 Buyers Are Adopting Various Risk Mitigation Methods To Maintain Business Continuity 19
4 Industry Dynamics 20
Key findings: 20
4.1 Revenue Growth Expectations In The Fossil Fuel Power Industry 20
4.2 Future Developments In Competitive Structure In The Industry 26
4.3 Merger and Acquisition Activity Predictions 30
5 Fossil Fuel Power Market Growth Outlook 35
What The Fossil Fuel Power Industry is Planning in 2010-2011: ICDR1060 / FEBRUARY 2010
Procurement, Investment and Industry Trends Outlook
© ICD Research. This brief is a licensed product and is not to be photocopied Page (2)
Table of Contents
Key findings: 35
5.1 Regional Growth Forecasts In The Fossil Fuel Power Industry By Country 35
5.2 Market Growth Forecasts By Industry Sector 44
6 Threats And Opportunities For The Fossil Fuel Power Industry 52
Key findings: 52
6.1 Leading Business Concerns For The Period 2010-2011 53
6.2 Key Actions to Overcome Business Threats: Cost Management 59
6.3 Key Actions to Overcome Business Threats: Driving Sales 62
6.4 Key Supplier Actions to Maintain and Win Buyer Business 66
7 Fossil Fuel Power Industry Buyer Spend Activity 75
Key findings: 75
7.1 Annual Procurement Budgets 76
7.2 Procurement Cost Saving Targets in the Fossil Fuel Power Industry 82
7.3 Planned Change in Procurement Spend 88
7.4 Planned Changes in Procurement Spend by Product and Service Category 95
8 Procurement Behaviors and Strategies 106
Key findings: 106
8.1 Critical Success Factors for Supplier Selection 106
8.2 Expected Future Changes in Procurement Objectives 113
8.3 Areas of Future Value Creation in Procurement Strategy 117
8.4 Mitigating Supplier Failure and Maintaining Business Continuity 124
8.5 Planning Against Business Supply Contingencies 128
What The Fossil Fuel Power Industry is Planning in 2010-2011: ICDR1060 / FEBRUARY 2010
Procurement, Investment and Industry Trends Outlook
© ICD Research. This brief is a licensed product and is not to be photocopied Page (3)
Table of Contents
9 Appendix 131
9.1 Survey Results-Closed Questions 131
9.2 Methodology 138
9.3 Contact Us 138
9.4 About ICD Research 138
9.5 Disclaimer 139
What The Fossil Fuel Power Industry is Planning in 2010-2011: ICDR1060 / FEBRUARY 2010
Procurement, Investment and Industry Trends Outlook
© ICD Research. This brief is a licensed product and is not to be photocopied Page (4)
Table of Contents
1.1 List Of Tables
Table 1: Count Of Global Fossil Fuel Power Industry Survey Respondents By Company Type (Number Of
Respondents), 2010 Industry Survey ...................................................................................................................................... 13
Table 2: Buyer Respondents By Organization’s Total Employee Size (% Buyer Respondents), Global Fossil Fuel
Power Industry, 2010 ................................................................................................................................................................ 13
Table 3: Buyer Respondents By Organization’s Global Turnover (% Buyer Respondents), Global Fossil Fuel Power
Industry, 2010 ............................................................................................................................................................................. 14
Table 4: Buyer Respondents By Job Role (% Buyer Respondents), Global Fossil Fuel Power Industry, 2010 ............14
Table 5: Buyer Respondents By Region (% Buyer Respondents), Global Fossil Fuel Power Industry, 2010 ...............15
Table 6: Supplier Respondents By Job Role (% Supplier Respondents), Global Fossil Fuel Power Industry, 2010 ....15
Table 7: Supplier Respondents By Organization’s Global Turnover (% Supplier Respondents), Global Fossil Fuel
Power Industry, 2010 ................................................................................................................................................................ 16
Table 8: Supplier Respondents By Organization’s Total Employee Size (% Supplier Respondents), Global Fossil Fuel
Power Industry, 2010 ................................................................................................................................................................ 16
Table 9: Supplier Respondents By Region (% Supplier Respondents), Global Fossil Fuel Power Industry, 2010 .......16
Table 10: Company Revenue Growth Optimism Trend By Global Fossil Fuel Power Industry Company Type: Fossil
Fuel Power Generators, Power Distributors, Power Industry Suppliers (% All Respondents), 2009-2010 ..................23
Table 11: Company Revenue Growth Optimism Trend In The Global Fossil Fuel Power Industry By Region: North
America, Europe, Asia Pacific, Rest Of The World (% All Respondents), 2009-2010..................................................... 25
Table 12: Company Revenue Growth Optimism In The Global Fossil Fuel Power Industry By Turnover (% All
Respondents), 2010 .................................................................................................................................................................. 25
Table 13: Fossil Fuel Power Generator Industry: Market Predictions Of The Fastest And Slowest Growing Regions (%
Fossil Fuel Power Generator Respondents), 2010 ............................................................................................................... 38
Table 14: Power Distributor Industry: Market Predictions Of The Fastest And Slowest Growing Regions (% Power
Distributor Respondents), 2010 ............................................................................................................................................... 41
Table 15: Power Industry Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Regions (%
Power Industry Supplier Respondents), 2010 ....................................................................................................................... 43
Table 16: Fossil Fuel Power Generator Predictions Of The Fastest And Slowest Growing Industry Sectors (% Fossil
Fuel Power Generator Respondents), 2010 .......................................................................................................................... 46
Table 17: Power Distributor Predictions Of The Fastest And Slowest Growing Industry Sectors (% Power Distributor
Respondents), 2010 .................................................................................................................................................................. 48
Table 18: Power Industry Supplier Predictions Of The Fastest And Slowest Growing Industry Sectors (% Power
Industry Supplier Respondents), 2010 ................................................................................................................................... 50
Table 19: Fossil Fuel Power Industry Predictions Of The Fastest And Slowest Growing Industry Sectors By Region:
North America, Europe, Asia Pacific, Rest Of The World (% 'Very Strong Growth' And 'Strong Growth' Combined,
All Respondents), 2010............................................................................................................................................................. 51
Table 20: Fossil Fuel Power Generator Vs. Power Distributor Vs. Power Industry Supplier: Leading Business
Concerns For