ilma annual meeting · market situation • global lubricant market was 39.4 mt (11.7 billion gal)...
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www.klinegroup.com
ILMA Annual Meeting
The Evolving Business Dynamics of the Lubes Industry
A presentation at:
Scottsdale, AZ18th October 2016
1
Kline Energy is about enabling decision making and helping craft successful strategies for companies active in the entire lubricants value chain
Managed flow of people, ideas and data
Individual client consultationsaddress specific business
issues and help implement solutions
MANAGEMENT CONSULTING
MARKET
RESEARCH REPORTS
Readily available multi-client reports identify
market opportunities andcreate action plans
Translating market intelligence into successful strategies
2
Contents
GLOBAL LUBRICANT DEMAND
NORTH AMERICA LUBRICANT DEMAND
UNITED STATES SUPPLY CHAIN DYNAMICS
BASE OIL SUPPLY
SYNTHETIC LUBE DEVELOPMENTS
DISTRIBUTION EVOLUTION
OTHER INFLUENCES
3
How are market dynamics influencing the supply chain?
Customers
Base Stock Producers
Additive Component Suppliers
Package Suppliers
National Oil Companies
Major Blenders
Direct
Distributors
Non-Integrated Blenders
Direct
Distributors
Finished Lubricant Value ChainValueMargin
Nature of relationship
Balance of power
Investors
Internet of things
Role of the OEM
44
How are the margins in the value chain changing?
0
5
10
15
20
25
Crude Oil VGO Gp.II N200 Base Oil LubeBlending/Packaging
Lube Marketing Distributor Margin Retail Margin
Characteristic U.S. Cost and Gross Margin Structure of 5W30 Synblendin 5-quart jugs in Mid-2016
($/Gallon)
Source: Kline
5
Contents
GLOBAL LUBRICANT DEMAND
NORTH AMERICA LUBRICANT DEMAND
UNITED STATES SUPPLY CHAIN DYNAMICS
BASE OIL SUPPLY
SYNTHETIC LUBE DEVELOPMENTS
DISTRIBUTION EVOLUTION
OTHER INFLUENCES
6
Global lube demand has been essentially flat over the past 10 years, while future growth will be nominal
33% 33% 36% 39% 43% 43% 43% 44% 44% 44%
27% 27% 26% 26% 24% 24% 24% 23% 23% 24%
25% 25% 22% 19% 18% 18% 17% 17% 17% 17%
8% 8% 8% 9% 8% 8% 8% 8% 8% 8%7% 7% 8% 7% 8% 8% 8% 8% 8% 8%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Global Lubricant Demand By Region 2006 - 2015
Asia Pacific N.America Europe S. America Africa & Middle East
CAGR - 0.1%
Market Situation
• Global lubricant market was 39.4 MT (11.7 billion gal) in 2015 and is projected to grow at slightly less than 1%/year, reaching 42.5 MT (12.7 billion gal) by 2024
Global Market
Asia-Pacific accounts for more than 40 % of the total lubricant market and is the fastest growing market mainly due to the growth of end-user
industries in key countries such as China and India
Source: Kline
7
The top 10 countries represented 65% of global lubricants demand in 2015
China7.35 MT
India2.33 MT
Global Market
U.S.7.79 MT
1Japan
1.65 MT
Brazil1.30 MT
South Korea0.95 MT
Indonesia0.89 MT
Canada0.80 MT
Germany0.93 MT
Russia1.65 MT
9
8
5
3
27
4
6
10
8
Globally, industrial oils account for 46% of the market followed by commercial (30%) and consumer (24%)
46%
30%
24%
Market Segments - 39.36 MT(2015)
Industrial
Commercial
Consumer8.1
4.3
3.5
0.9
1.1
5.3
2.3
1.7
1.5
1.0
3.8
2.7
1.4
0.9
0.9
Asia Pacific
North America
Europe
Africa & ME
South America
Global Lubricant MarketBy region, By volume (in MT) 2015
Industrial Commercial Consumer
3.0 MT
3.3 MT
6.6 MT
9.3 MT
17.2 MT
Overview
Global Market
Source: Kline
99
Automotive: Global PCMO demand is forecast to grow from 9.6 MT in 2015 to 10.5 MTby 2024, with SAE OWs and 5Ws combined reaching about 45% of the total
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
0Ws 5Ws 10Ws 15Ws 20/25Ws Other multi Monograde
The global migration to lower viscosity multigrade PCMOs will result in higher penetration of synthetics and semi-synthetics
39% 41% 45%
Global Market
Source: Kline
1010
PCMO visgrade composition varies significantly by region, with 0/5W penetration stillvery low outside the OECD
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
Asi
a-P
acif
ic
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
Euro
pe
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 20240Ws 5Ws 10Ws 15Ws
20/25Ws Other multi Monograde
No
rth
Am
eric
a
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
Sou
th A
mer
ica
Global Market
1111
Global demand for HDMO is forecast to grow from 11.8 MT in 2015 to 13.0 MT by 2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
0Ws 5Ws 10Ws 15Ws 20/25Ws Other multi Monograde
30% 28% 24%
Global Market
Source: Kline
Most encouraging for increased synthetic penetration is the shift from monograde to multigradeand, within multigrade, from heavier visgrades like 20/25Ws to lighter grades (15Ws and 10Ws)
1212
Lower visgrade and monograde HDMO demand also varies significantly by region
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
Euro
pe
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
Sou
th A
mer
ica
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
0Ws 5Ws 10Ws 15Ws
20/25Ws Other multi Monograde
Asi
a-P
acif
ic
Global Market
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2019 2024
No
rth
Am
eric
a
13
Contents
GLOBAL LUBRICANT DEMAND
NORTH AMERICA LUBRICANT DEMAND
UNITED STATES SUPPLY CHAIN DYNAMICS
BASE OIL SUPPLY
SYNTHETIC LUBE DEVELOPMENTS
DISTRIBUTION EVOLUTION
OTHER INFLUENCES
14
North American lube demand is expected to remain stable over the next 10 years
• The 2015 lubricant market was approximately 9.3 MT or $32 billion
North America
Overview
9.5 9.38.6
7.6 7.6 7.7 7.7 7.8 7.8 7.8
0.8 0.80.8
0.7 0.8 0.8 0.8 0.8 0.8 0.8
0.8 0.70.7
0.6 0.6 0.7 0.7 0.7 0.7 0.7
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Demand Pattern Historic 2006 – 2015By Country, By volume (in MT)
United States Canada Mexico
9.0
11.0 10.9
10.1
9.0 9.1 9.2 9.3 9.3 9.3
Vo
lum
e in
MT
Demand may be flat but there are interesting dynamics within that volume
Source: Kline
7.8 7.8 7.8 7.8 7.8
0.8 0.8 0.8 0.8 0.8
0.7 0.7 0.8 0.8 0.8
2016 2018 2020 2022 2024
Demand Forecast 2016 – 2024By Country, By volume (in MT)
United States Canada Mexico
9.39.3 9.3 9.4 9.4
Vo
lum
e in
MT
15
Lube segments remain stable within the overall flat N. American lube market
North America
5.4 5.3 4.9 4.4 4.2 4.2 4.2 4.3 4.3 4.3
2.7 2.72.5
2.1 2.2 2.2 2.3 2.3 2.3 2.3
3.0 2.92.7
2.4 2.6 2.7 2.7 2.7 2.7 2.7
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Demand Pattern Historic 2006 – 2015By Market segment, By volume (in MT)
Industrial Commercial Consumer
9.0
11.1 10.910.1
9.0 9.1 9.2 9.2 9.3 9.3
Vo
lum
ein
MT
46%
25%
29%
Market Segments - 9.3 MT(2015)
Industrial
Commercial
Consumer
Source: Kline
16
The U.S. industrial segment leads on volume, but engine oils lead in value
48%
24%
29%
Volume Share by Product Segment
Industrial
Commercial
Consumer
40%
22%
38%
Value Share by Product Segment
Industrial
Commercial
Consumer
United States
Product % of Total Volume % of Total Value
Engine oils 51 57
Process oils 17 15
General industrial oils* 14 12
Transmission fluids 7 7
Metalworking fluids 7 6
All other fluids 4 3
The industrial market segment consumes the largest volume of lubricants, accounting for an estimated 3.7 MT, valued at $10.9 billion
Use of lubricants by the consumer automotive segment was 1.8 MT, valued at $10.4 billion
The commercial automotive segment is third in both volume and value
*Includes hydraulic fluid, industrial gear oil, turbine and circulating oil, compressor and refrigeration fluid, heat transfer fluid, and other general industrial oils.
17
Automotive: Overall U.S. volumes of PCMO and HDMO are remaining relatively flat through 2024, but the lower viscosity grades are growing
United States
0%
20%
40%
60%
80%
100%
2015 2019 2024
0Ws 5Ws 10Ws 15Ws
20/25Ws Other multi Monograde
2.24 MT 2.17 MT 2.13 MT
PCMO
7.12 7.86 9.030%
20%
40%
60%
80%
100%
2015 2019 2024
0Ws 5Ws 10Ws15Ws 20/25Ws Other multiMonograde
1.83 MT 1.86 MT 1.88 MT
HDMO
Source: Kline
18
Contents
GLOBAL LUBRICANT DEMAND
NORTH AMERICA LUBRICANT DEMAND
UNITED STATES SUPPLY CHAIN DYNAMICS
BASE OIL SUPPLY
SYNTHETIC LUBE DEVELOPMENTS
DISTRIBUTION EVOLUTION
OTHER INFLUENCES
19
How are market dynamics influencing the supply chain?
Customers
Base Stock Producers
Additive Component Suppliers
Package Suppliers
National Oil Companies
Major Blenders
Direct
Distributors
Non-Integrated Blenders
Direct
Distributors
Finished Lubricant Value ChainValueMargin
Nature of relationship
Balance of power
Investors
Internet of things
Role of the OEM
20
ILMA manufacturers and marketers account for approximately 70% of the U.S. industrial market and 35% of the automotive market
Within automotive lubricants, seven marketers account for ≈65% of the market, while ≈50 marketers compete for the other 35%
Historical U.S. Lubricants Market Size and Share between Majors and ILMAs (Thousand Gallons)
Meanwhile, industrial lubricant applications are more fragmented, allowing more opportunities for differentiation, with nearly 100 active ILMAs
Majors
ExxonMobil Shell BP/Castrol Chevron P66 Valvoline CITGO
United States
0
200
400
600
800
1000
1200
1400
1600
2005 -Auto
2005 -Industrial
2009 -Auto
2009 -Industrial
2013 -Auto
2013 -Industrial
Majors ILMAs Source: Kline
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Contents
GLOBAL LUBRICANT DEMAND
NORTH AMERICA LUBRICANT DEMAND
UNITED STATES SUPPLY CHAIN DYNAMICS
BASE OIL SUPPLY
SYNTHETIC LUBE DEVELOPMENTS
DISTRIBUTION EVOLUTION
OTHER INFLUENCES
2222
More than 2 barrels of Group II/III base oil capacity are being added worldwide for every barrel of announced Group I capacity retirements
-60
-40
-20
0
20
40
60
80
2011 2012 2013 2014 2015 2016 2017-2020
Actual and Committed Global Nameplate Base Oil Capacity Additions and Announced Group I Shutdowns (2011-2017)
Group II/III Additions
Group I Shutdowns
‘000B/D
Some 120 KB/D of Group I capacity has been decommissioned from 2010 through 2016, but a further 100 KB/D is “At Risk” from low margins in the future
Base Oil Supply
Source: Kline
2323
Though most of the global new construction boom is now on-stream, sluggish lube demand growth forecasts suggest a slow recovery in base oil plant operating rates
Source: KlineEffective Capacity is Nominal Calendar Day Average (Nameplate Capacity x Group-weighted Stream Factor)
Base Oil Supply
70%
75%
80%
85%
90%
95%
100%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Global Base Oil Effective Capacity Utilization (Global Caputil)
1% CAGR Lube Demand Growth
No Lube Demand Growth
2% CAGR Lube Demand Growth
2424
…illustrated by an analysis of Valvoline’s quarterly financials
-1.00
-0.50
0.00
0.50
1.00
1.50
2.00
-2.00 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50
Plot of Quarterly Changes in Valvoline's Per-gallon COGS vs. Quarterly Changes in Per-gallon Gross Margin
Source: Kline
Quarterly Change in COGS
Quarterly Change in Gross Margin
With low crude prices and weak base oil margins, the downstream lubricants business will continue to enjoy above-average profitability…
Base Oil Supply
2525
Key takeaways from the base oil analysis…
Crude Oil Prices
• Crude oil prices are both unpredictable and volatile
• The current Brent forward strip for end-2020 is $60/Bbl
• DOE’s September 2016 Annual Energy Outlook projects Brent at nearly $85/Bbl in 2020….the basis differential vs. the forward strip suggests a hedging program is likely to be profitable
Base Oil Prices
• Higher crude prices mean higher base oil prices
• Continuing overcapacity will continue to depress base oil cash margins
• Low-viscosity stocks vulnerable to price weakness,
• Net result is that lube blenders are likely to have to absorb only increases in crude oil prices, as base oil margins over crude remain depressed and competition between suppliers get even tougher
Finished Lube Prices
• These are affected by changing consumption patterns and channels (the decline of fast lubes?)
• Weakness in upstream costs and margins suggests a continuing favorable COGS environment for blenders and marketers, barring a major oil catastrophe
Base Oil Supply
26
Contents
GLOBAL LUBRICANT DEMAND
NORTH AMERICA LUBRICANT DEMAND
UNITED STATES SUPPLY CHAIN DYNAMICS
BASE OIL SUPPLY
SYNTHETIC LUBE DEVELOPMENTS
DISTRIBUTION EVOLUTION
OTHER INFLUENCES
2727
OEM
technical demand
Environmental/regulatory
Operating cost optimization
Increased use of higher quality level lubricants in automotive applications
Increased use of industrial lubes with better AO, AW, and EP performance
Abundant high performance basestocks
(Group II, III, now III+)
SUPPLY PUSH
DEMAND PULL
Demand for high performance, quality lubricants is expected to accelerate in bothdeveloped and developing countries
Finished Lube Developments
2828
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Corvette Camry Accord Corvette Camry Accord
2011 2012 2013
OEM technical demand from volume/mass market OEMs is rapidly changing the factoryand service fill landscape, creating opportunities for lubricant suppliers to sell synthetics
U.S. Production (Factory fill) U.S. Sales (Service fill)
# Units
1.6 KT
2.1 KT3.7 KT
3.3 KT
Finished Lube Developments
Source: Kline
2929
However, the synthetic PCMO space is no longer the domain of the global majors
Supplier Synthetic Premium-Synthetic
Shell Pennzoil Platinum Pennzoil Ultra Platinum
ExxonMobil Mobil Super Synthetic Mobil 1 EP
BP Castrol Magnatec Castrol Edge
Calumet Royal Purple Synthetic Royal Purple HPS
Amsoil XL Extended Life Synthetic Signature Series Synthetic
Total Active Synthetic Quartz Synthetic
Fuchs Titan Super Syn Titan Super Syn Longlife
GS Caltex KIXX New, G1, Gold SL KIXX PAO, PAO 1
Liqui Moly Molygen Synthoil Energy
Valvoline SynPower -
Shell QS Ultimate Durability -
Phillips 66 Kendall GT-1 Full Synthetic -
Chevron Havoline Synthetic -
Indian Oil Servo Futura Synth -
Sinopec Sinopec SM Engine Oil -
PetroChina KunLun Tianyuan -
Ford Motorcraft Full Synthetic (s/s) -
Toyota Toyota Synthetic -
Honda Honda Synthetic -
Subaru Subaru Synthetic -
Chrysler/Fiat Mopar Synthetic -
General Motors dexos 1 (s/s) -
NAPA NAPA Synthetic -
Walmart SuperTech Synthetic -
O’Reilly Auto Parts O’Reilly Synthetic -
Advance Auto Parts Advance Synthetic -
RelaDyne DuraMAX Synthetic (s/s) -
OEM-GPO
RETAIL
“BIG 3”
DISTRIBUTOR
NOCs
Finished Lube Developments
3030Source: Kline
$/Gallon
-
10
20
30
40
50
60
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ine
Am
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Luca
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Val
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Sun
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Co
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Gu
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Sup
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Un
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U.S. Per-gallon Pricing of 55-Gallon Drums of 5W30 PCMO Lubricants (based on May, 2014 Distributor Sales Prices)
Generic "Synthetics"
PAO-BasedFull Synthetics
Group V-BasedFull Synthetics
Semi-Synthetics and Synblends
Commodity and Fighting Mineral Brands
The difference in market pricing of the retail synthetic PCMO products can be linked to the base fluids used, driven by their formulation properties and brand positioning
Finished Lube Developments
31
Contents
GLOBAL LUBRICANT DEMAND
NORTH AMERICA LUBRICANT DEMAND
UNITED STATES SUPPLY CHAIN DYNAMICS
BASE OIL SUPPLY
SYNTHETIC LUBE DEVELOPMENTS
DISTRIBUTION EVOLUTION
OTHER INFLUENCES
32
Almost 50% of U.S. blended lubricants are sold directly to the end user
U.S. Lubes Distribution
Auto Parts Stores4%
Direct 47%
Distributors45%
Mass Merchandisers4%
4 key categories: major oil companies, large specialty manufacturers, small specialty firms, and distributors
Generally process oils, industrial engine oils, and metalworking fluids tend to be marketed directly to the end user
Industrial lubricants
Lubricants sold through direct channels accounts for an estimated 30%
Distributor sales 42% Mass merchandisers 13% Auto parts stores 14%
Consumer automotive lubricants
Sales through distributors and jobbers account for an estimated 67% of total sales
Direct sales accounts for only 33% of the total sales
Commercial automotive lubricants
Distribution Evolution
3333
Distributor M&A consolidation is best illustrated by PetroChoice, Reladyne and Brenntag, which have grown to control a significant amount of lube distribution in the U.S.
~500-600 KTBranded + Private Label
FlyersPilot Thomas
Logistics
Pilot Thomas Logistics
RelaDyne
Brenntag(J.A.M.)
RelaDyneRelaDyne & PetroChoice
PetroChoice
PetroChoice
RelaDyne
GH Berlin Windward
Brenntag
(G.H. Berlin-Windward)PetroChoice
Acquired from Greenbriar Equity by Golden Gate Capital in December 2015Acquires Universal Lubricants in May 2016
Brenntag
Acquires GH Berlin-Windward and J.A.M. Distributing in November 2015Acquires lubes division of NOCO Distribution in October 2016
RelaDyne
AEA Investors LP sold to Audax PE in July 2016Acquires Parker Oil, Hollingsworth Oil, and Cardwell Distributingin 2016
Distribution Evolution
3434
• BP
• CAM2
• ExxonMobil
• JAX
• Lubriplate/Fiske Bros.
• Petro-Canada
• Phillips 66
• Safety-Kleen
• Shell
• Valvoline
• Choice Lubricants (PL)
• BioBlend
• BP
• Chevron
• ExxonMobil
• Ford/Motorcraft
• Houghton
• Idemitsu
• Petro-Canada
• Phillips 66
• Shell
• Summit Industrial
• Valvoline
• NaviGuard (PL)
• BioBlend
• Chevron
• Phillips 66
• Shell
• Summit Industrial
• Valvoline
• DuraMAX (PL)
• ALLFLEET (PL)
• RelaTECH (PL)
• Mechanic’s Pride (PL)
• ArmorTrac (PL)
• CITGO
• ExxonMobil
• Phillips 66
• Shell
• Summit Industrial
• SPX Formula (PL)
These leading distributors employ a multi-brand strategy to supply the automotive andindustrial customer base in their respective sales territories
Distribution Evolution
3535
Few U.S. distributors have partnered with the PE world or embarked on aggressive M&Aactivities, with many operating as independent regional businesses….but for how long?
Circle Lubricants
Grade A Petroleum
MetroLube
PWD Lubricants
PPC Lubricants
Lyden Oil Company
Yoder Oil Company
PrimeLube
Valvoline ExxonMobil Petro-Canada Safety-Kleen Super Clean (PL)
Phillips 66 Warren Oil Co. ALS ARG
Phillips 66 BP CAM2 Bio Blend
Valvoline Phillips 66 Total Safety Kleen ServicePro
Chevron ExxonMobil BP CAM2 Amsoil JAX Houghton Bio Blend Prime Plus (PL)
Shell BP ENI Safety-Kleen Warren Dist.
Valvoline Phillips 66 CITGO/Mystik Summit Industrial Bio Blend Clarion Lubricants
CITGO Ford/Motorcraft Gulf Oil Phillips 66 Lubriplate/Fiske Blue Star ProGuard (PL)
All follow a multi-brand strategy Some with private label Some with ILMAs in the value position
Distribution Evolution
36
Lube distributors (large and small) afford lube manufacturers supply coverage across awide swath of territory, along with many other efficiencies…
Distributor Brand
Strategy
• How do you change their mind set and move them to a branded offering?
• Have market development and customer perceptions narrowed/eliminated the advantage that branded has long enjoyed?
• How knowledgeable and enthusiastic can the sales rep be about all aspects of your product and service offerings if he/she also has to be equally competent on the other two to five brands?
Distribution Evolution
37
…but does your brand have the consumer loyalty, awareness, and equity thattranslates into sufficient pull-through for the distributor?
• Multiple warehouse points across multiple states, means lube manufacturers can be confident that its national account business will be reliably served and represented and poised for growth.
• National account business has evolved into a strong hook for both parties.
• If you are skewed more towards national accounts, you should not be surprised if your brand ranks lower on the distributor pecking order compared to your competition
Manufacturers’ National Account Strategy
Distribution Evolution
38
Contents
GLOBAL LUBRICANT DEMAND
NORTH AMERICA LUBRICANT DEMAND
UNITED STATES SUPPLY CHAIN DYNAMICS
BASE OIL SUPPLY
SYNTHETIC LUBE DEVELOPMENTS
DISTRIBUTION EVOLUTION
OTHER INFLUENCES
39
Advancements in technology will have a large impact in the industry in the future
What does digital mean for the lube industry now and going forward?
What is the impact of digital on the key consuming industries and, as a result, on the lube value chain
Who will need to be targeted to sell lubes? (buyers and influencers)
How will marketing (in its broad sense), communication and sales need to evolve?
Other Influences
How will the essence of lubrication evolve based on the future of end-use industries in
the context of “digital”?
Who will be choosing, purchasing and using the lubes, and what the decision making
process be like?
How can lube companies (1) build relationships and
influence decision makers? (2) compete effectively?
40
In Summary…
• Overall lubricant volume is growing marginally
• Lower visgrades are growing significantly more, but higher grades are diminishing
• Portfolio management is key to ensure it is resilient enough
• Margins are good for finished blenders right now
• Distributor strategy is key, but may be somewhat unpredictable based on consolidation and acquisition outside of your control
• Looking to the future, technology developments need to be considered with the OEM taking a bigger role in the industry supply chain
GLOBAL HEADQUARTERS
Kline35 Waterview Blvd.Suite 305Parsippany, NJ 07054Phone: +1-973-435-6262Fax: +1-973-435-6291
ANNIE JARQUIN
Director, Energy
t. +44 (0)7470-211-225
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.
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