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A cost study comparing imported liquid pumps against locally manufactured pumps

M.Ing. (Engineering Management) / The purpose of this dissertation was to compare the local manufacturing of liquid pumps in South Africa against the importation of pumps manufactured on the international markets as well as also investigate the capacity limitations of the local pump manufacturers; the technologies available on overseas markets (in terms of electric, solar and wind-powered liquid pumps) and comparing the technologies to those available in South Africa. Five of the leading pump manufacturers were researched in this dissertation namely: KSB; Grundfos; Howden Pumps; Sulzer Pumps Africa and Warman Pumps. South African pump manufacturers are importing most of their pumps from international markets with the primary reason being to meet demands. By comparison, South African pump manufacturers are finding it difficult to produce pumps with equivalent or lower costs than the pumps which are produced on the international markets. Pump manufacturers on international markets offer greater cost savings for South African pump manufacturers which ultimately results in financial savings and a higher yield in profits. Many international pump manufacturers use advanced technology which makes the production costs of pump components as much as twenty percent (20%) less as compared to the South African pump industry. The importation of pumps is a method used to increase the local supply of pumps as the cost of the pump, including import costs, are not as costly as actually manufacturing the pumps in South Africa. While South African pump manufacturers manufacture pumps of relatively high energy consumption and monetary costs; they also produce standard conventional pumps which are required to supply the local demand. Local pump manufacturers were approached to find out exactly how they cope with these stringent requirements by the South African markets, yet still achieve the profits in the industry to remain afloat. Various pump forms were researched specifically relating to the pumps used on the South African markets with regards to their production costs, advantages and disadvantages (wind and solar pump technologies). Standard conventional pumps are preferred on local markets by as much as fifteen percent (15%) with newer technologies (solar and wind powered pumps) being preferred on the international markets. South Africa continues to demand standard conventional pumps (electric-driven pump) although demands for newer technology is on the increase. The international market’s production lines are mature and well established which results in a lower cost of production which leads to these pumps being of more demand as compared to newer pumps which are currently the preference. Local pump manufacturers can satisfy the demand and benefit from the lower importation cost of standard conventional pumps. The preliminary results suggest that the importing of pumps from international markets aid local manufacturers in keeping up with the demand and accquiring sufficient profits. Modern technologies such as solar and wind power is a growing maket in South Africa and is becoming increasingly common. The research approach used in this study involved targeting five of the local pump manufacturers in South Africa. Each manufacturer was asked a series of questions relating to the research questions in order to draw up conclusions regarding the problem statement and hypothesis. Findings from the conducted surveys were compared to the literature which is currently published. Findings show that local pump manufacturers are dependent on imports in order to satisfy the demand for standard conventional pumps rather than manufacturing their own and the use of newer technologies are increasing in the local pump industry.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:11223
Date29 May 2014
CreatorsParbhoo, Meeshal
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeThesis
RightsUniversity of Johannesburg

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