Frost & Sullivan acknowledges Hammond Power Solutions
Based on its recent analysis of the dry type transformer market, Frost & Sullivan recognized Hammond Power Solutions, Inc. with the 2009 North American Frost & Sullivan Growth Strategy Leadership of the Year Award. Hammond Power Solutions has weathered intense competition from other global conglomerates over the years by combining resources and capabilities and executing winning growth strategies. The company has adopted a focused approach to designing, engineering, and customizing various dry type transformers and thereby, cementing its market position.
By accounting for 20 percent of total market share, Hammond Power Solutions is an undisputed leader of the dry type transformer market. It has established design and product capabilities for a wide variety of products and leveraged these into a very broad customer base that includes industrial, commercial, and original equipment manufacturer (OEM) clients.
The company undertakes an average of 3,000 custom design projects every year and has completed more than 250,000 designs to date. Moreover, nine distribution centers spread across Canada and the United States enable the company to provide quick turnaround time in the North American region by shipping standard stock products to 90 percent of its customers within 48 hours of placing the order.
The company has focused on wider geographic markets (South America, Africa, and Asia Pacific), product markets (energy efficiency transformers), and channel markets (electrical distribution channels) as a ‘natural hedge’ strategy, which has helped it tide over the current economic uncertainties.
“Hammond Power Solutions has been growing consistently in the United States through the electrical distributor channel, while simultaneously maintaining its leadership position in the Canadian market”, says Frost & Sullivan Research Analyst Dinkar Krishnan. “Its strategic introduction of energy-efficient transformer in 2007 ensured it pole position in the market. These energy efficient transformers were designed to take advantage of energy-related incentives such as the U.S Emergency Economic Stabilization Act of 2008, which added 16 energy tax incentive programs for utilities and businesses.”
“As clean and green energy requirements become more stringent in the years to come, Hammond Power Solutions’ range of transformers such as drive isolation transformers, line reactors, and energy efficient transformers are expected to find preference among its customers,” notes Krishnan. “Additionally, Hammond Power Solutions’ ability to design custom transformers rapidly gives the company a clear competitive advantage.”
Even in the mature dry type transformers market, Hammond Power Solutions had an impressive compound annual growth rate of more than 20.6 percent between 2003 and 2008, which was significantly higher than the market average of 5.0 percent during the same period. Both its backlog levels and bookings in 2008 increased by more than 30.0 percent over 2007, and Hammond Power Solutions is expected to take this excellent form into 2009 as well.
Each year, Frost & Sullivan presents this award to the company that has demonstrated an exceptional long-term growth strategy within its industry.
Frost & Sullivan’s Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.
November 11, 2009 By Newswire
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