The industrial pump market has always experienced consistent growth across the globe, but the next decade could yield an even higher demand. As improved infrastructure development continues to be a priority for numerous countries, the need for quality industrial pumps will increase drastically as well.

Other factors expected to heighten the demand of the industrial pumps market include growth in several end-use application segments, increased opportunities in different regions throughout the globe, and the growing demand for centrifugal industrial pumps. Below, we explored these different trends in the pump industry, so you can better position your distributorship as a leader in the marketplace.

Application Growth Segments for Pump Distributors

The combination of population growth and industrial development have thrust the water and wastewater treatment sector to the forefront of the industrial pumps market. As government policies and international commitments move toward cleaner water, there is added pressure on pump distributors to deliver quality pumps in a timely manner.

Another segment expected to grow exponentially is the use of pumps within the oil and gas industries. As economies turn their focus to offshore and onshore crude oil exploration activities, there will be an increased demand for application-specific pumps.

Growing Pump Demand Across the Globe

The future growth of the industrial pumps market will come from three geographical locations―Asia Pacific, Europe, and North American―that are predicted to see significant increases in pump demand over the next decade.

The Asia Pacific market has dominated the share of revenue in the pump industry accounting for more than 47 percent of sales. This overwhelming growth can largely be attributed to water and wastewater treatment, construction, and oil and gas. Looking more specifically at this region, the demand for high quality industrial pumps have increased steadily throughout China and India over the past decade. Large investments in liquefaction plants have driven the need for industrial pumps. This growing need for reusable water provides opportunities for pump distributors to expand their reach into new territories.

Additionally, both the European and North American regions expect to grow much faster than other markets over the next decade. This high demand can be linked to new infrastructure projects to help control water flow rates and the growing penetration of petrochemical production facilities.

Demand for Centrifugal Industrial Pumps

With demand for industrial pumps sprouting up across the globe, distributors have an opportunity to focus on in-demand products. The most popular item as of late has been the centrifugal industrial pump, which accounted for more than 62 percent of global revenue. Even with its dominance in the marketplace, the demand for centrifugal pumps is expected to grow even more in the coming decade.

Countries, such as the United States and Canada, have made it a focus to invest in hydraulic fracturing for the oil and gas industry. In order to meet their lofty goals, they will need quality pumps that they can count on. There is also a growing need to upgrade the aging infrastructure in both nations that will help drive the demand of industrial pumps like the centrifugal pump.

Other pumps that are expected to experience significant growth over the next decade include:

• Positive displacement industrial pumps
• Reciprocating industrial pumps
• Rotary industrial pumps

Find the Resources You Need to Succeed in the Pump Marketplace

As the landscape of the industrial pumps market continues to shift and mold to fit the demands of consumers, it is important to have a reliable partner you can trust. Having a partner like Tribute that can help you capitalize on these trends can be the difference between coming out on top of your competition or watching them pass you by.

That’s why our TrulinX software was specifically designed with industrial pump distributors in mind, allowing you to better position your business as a leader in the marketplace. Our software features are robust and include:

• The ability to easily track and manage outsourced fabrication for projects.
• Obtaining accurate costs to maximize gross margins.
• Managing components and subassemblies for complex kits.
• And so much more!

To learn more about Tribute's industry expertise and how TrulinX software can benefit your organization, request a demo today.

Industrial Distributors: Don’t miss out on the great Section 179 tax break on your new ERP software investment. This tax break was offered by the Tax Cuts and Jobs Act that was signed into law in 2018 and will remain in effect through the end of 2020. Learn how using this deduction on the purchase or lease of your new ERP software system can help save your company money.

What is the Section 179 Tax Benefit?

Section 179 of the IRS tax code is an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. It allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. This means if you buy (or lease) a piece of qualifying equipment (think: ERP software, business management software, inventory management software, etc.), you can deduct the full purchase price from your gross income.

Section 179 Deduction Limits for 2020

Section 179 limits were increased in 2020, which allows businesses to write-off up to $1,040,000 of qualified capital expenditures, including software. In addition, the bonus depreciation is 100% and is good through 2022.

The §179 tax benefit means that you

1. Purchase your equipment and/or software now
2. Get to take full advantage of the Section 179 deduction in 2020
3. Get the Section 179 bonus cash as well.

How Section 179 Can Improve Your Bottom Line

These tax benefits should mean a substantial boost to your bottom line this year. But, to get the deduction for the 2020 tax year, you have to act now. Once the clock strikes midnight on December 31, Section 179 can't increase your 2020 profits anymore.

Why? Because the amount you deduct will exceed your cash outlay for 2020 when you combine a properly structured Equipment Lease or Equipment Finance Agreement with a full Section 179 deduction. It is a bottom-line enhancing tool (not to mention, the ROI you’ll get from the new equipment and software you're adding to your business).

Financing new software and/or equipment in the latter part of the year is especially profitable as your cash outlay will be minimal in 2020 and your cash flow optimized in 2021. To determine what your deduction would be, use this handy calculator.

Invest in a New ERP Software Before 2021

Now is the time to invest in your company’s future and take control of your distribution business, while making your company more profitable and efficient. If you are in the market for a new ERP software solution, Tribute, Inc. is here to help.

Tribute has been a provider of industrial distribution management software in the fluid power, motion control, industrial hose, fluid handling, pump, sealing, instrumentation, process control, and automation marketplace since 1980. Our flagship product, TrulinX, is proven to help streamline processes, reduce costs, save time, stay competitive, and improve customer service. With features to help manage inventory in complex fabrication projects, no other software system provides the level of sophistication that TrulinX does in tracking and managing assemblies, subassemblies, and labor and burden down to the component level.

Learn more about our expertise and how TrulinX software can benefit your organization.

When Tim Reynolds, President of Tribute, Inc., was weighing his options of his retirement and exit strategies, he had a lot to consider.  He wanted to be sure that he transitioned the company he worked so hard to build into good hands.  Tribute, Inc. is an ERP provider to fluid power & motion control, hose & accessories, fluid handling, fluid sealing, automation & robotics, pump, instrumentation & process control industry distributors.  Tim was looking to sell his company to a like-minded organization that valued the relationships with not only its employees, but also its customers.  So, he had a short list of factors that had to be met:  Is it a good fit for my employees? Is it a good fit for my customers?  Is it a good fit for me?

In a recent article by Volaris Group, Tribute’s new owners as of January 2020, Tim discusses what those factors were and how the transition has been since the January announcement.

https://explore.volarisgroup.com/volaris-group-case-studies/tribute-inc

Distributors can now quickly and easily check Parker-owned inventory data with TrulinX.

Great news for Parker Hannifin distributors who utilize WarehouseTWO and TrulinX. Effective immediately, all five divisions of Parker’s Fluid Connector Group (Parker FCG) now upload their finished goods inventory to WarehouseTWO every night. Previously, Parker distributors had to log into either one of two systems ― PH Connect or TOPS ― to perform Parker FCG factory stock checks. Now, they can quickly and easily search from within one user interface: TrulinX.

How it All Got Started

In 2012, the idea of “advanced inventory-sharing” was first put into play with the initial development of WarehouseTWO’s integration with TrulinX, involving several Tribute customers, including Connector Specialists (CSI). Once the functionality was defined, programmed into TrulinX and proven successful, CSI started thinking more broadly about how this enhanced functionality could be used to improve access to manufacturer-owned inventory data.

Making the Pitch

With TrulinX’s “inventory-sharing” enhancements in place, the idea of integrating Parker Service Center (PSC) inventory data into the WarehouseTWO application came to CSI’s mind. Alex Wheelock, President of CSI, said, “Integrating the Parker Service Centers data would give us the ability to see the entire Parker channel inventory in one screen, which creates a very powerful resource for WarehouseTWO/TrulinX users.”

Operations managers from Parker FCG then visited the CSI facility where they were pitched on the idea of uploading Parker-owned inventory data to the WarehouseTWO system. As they toured the CSI warehouse, one of the Parker visitors took notice of a large, non-standard, stainless-steel, jump-size crimp fitting in CSI’s warehouse. He immediately pointed out that they had just disrupted their production schedule the previous week to make that exact fitting when there were four of them on the shelf of one of its distributors (CSI). Wheelock said that’s when Parker FCG finally understood the value of having visibility of its distributors’ inventories. 

WarehouseTWO/TrulinX in Action

WarehouseTWO is the leading inventory-sharing tool utilized by Tribute customers and integrated with TrulinX software for optimal use. Created exclusively for manufacturers and their wholesale channel partners, WarehouseTWO has partnered with Tribute to make the process of viewing inventory available in a manufacturer’s wholesale channel as seamless as possible for our customers.

While WarehouseTWO’s Mark Tomalonis has spoken highly of the way Tribute, compared to other ERP software providers, has embraced importing data from WarehouseTWO, the feeling is completely mutual. Bill Horrigan, VP of Sales and Marketing at Tribute, said, “Our relationship with WarehouseTWO and Parker is a testament to the great results that can come out of partnering with ‘Best in Practice’ vendors and manufacturers whose primary goals are to streamline business processes for their customers.”

WarehouseTWO’s integration with TrulinX provides many benefits to distributors, including:

• Ability to fill back-orders faster, improving customer service
• Expanded audience for one’s own inventory
• Opportunity for incremental revenue for greater overall profitability
• Access to inventory representing hundreds of brands of industrial products, such as Parker Hannifin and most major manufacturers in the fluid power and fluid connectors industry

The screenshot below represents an example of this new data appearing in TrulinX. 

For more information on WarehouseTWO and successful inventory-sharing, visit the WarehouseTWO website or inquire at info@warehousetwo.com, or contact Jeff Waite, Customer Relationship Manager, at Tribute, Inc.