Category Archives: alternative power

Vertiv Ranks Most Critical Industries

Vertiv Ranks Most Critical Industries in the World
Utilities, mass transit, telecom rank high, cloud and colocation fifth and rising

Utilities, including electricity, gas, nuclear power and water treatment, are the most critical industries in the world according to a new ranking from Vertiv, formerly Emerson Network Power. Vertiv convened a panel of global critical infrastructure experts to systematically quantify and rank the criticality of multiple industries based on 15 criteria. Mass transit—specifically rail and air transportation—ranked second on the list, followed by telecommunications, upstream oil and gas activity and cloud and colocation. The full list is available in a new report, Ranking the World’s Most Critical Industries, released today and available at www.VertivCo.com/MostCritical.

The panel set criteria encompassing the range of potential impacts from the loss of availability of critical systems and weighted them based on the severity of the impact. These criteria then were used to create a criticality rubric that the panel used to score the industries, which then were ranked by their average scores.

“If there is a common theme at the top of this list, it is the interconnectedness of these industries,” said Jack Pouchet, vice president, market development, Vertiv. “These sectors are important to the foundation of today’s society, and downtime in any of these areas can reverberate across industries and around the globe. This will only continue as our world becomes more mobile and more connected and as the Internet of Things expands.”

Clean power and water are fundamental needs in a developed society and underpin most other industries and services, making utilities a clear choice as the most critical industry. Mass transit ranked second, with panellists citing not just the safety of travellers, but the massive impact delays and disruptions can have across multiple businesses, markets and the world. The No. 3 ranking for telecommunications reflects the importance of communications and connectivity in personal and business activities and emergency situations.

Financial services topped the list of industries ranking highest in terms of financial impact of unplanned downtime. E-commerce was second, followed by cloud and colocation. Cloud and colocation also ranked fifth overall in the list of most critical industries due to the increased dependence on those platforms across multiple businesses. The panel also identified cloud and colocation as one of several rapidly emerging industries that are becoming increasingly critical.

“Cloud and colocation are becoming more and more critical as an increasing number of devices and businesses rely on these platforms to perform,” said panellist Emiliano Cevenini, vice president of power sales and business development for Vertiv in Europe, Middle East and Africa. “We’re expecting this trend to continue for the foreseeable future as the IoT networks that serve industries and smart cities are opting to use the cloud as the go-to platform to underlie their technology.”

The full list of critical industries as well as the analysis of specific categories, emerging industries and the ranking methodology are available in the report, Ranking the World’s Most Critical Industries. To see how other industries rank, use the Criticality Calculator. For more information on technologies and solutions to ensure network availability and additional content from Vertiv, visit http://www.VertivCo.com/MostCritical.

Who Should We Believe?

There are a huge number of contradictory predictions out there right now concerning the stock market, the price of oil, the world economy, the internet of things, and just about everything else you can imagine. If you look hard enough, you could probably find conflicting predictions on whether Little Johnny will jump over the fence to chase the cow.

Since the control automation industry is so closely linked with oil production, let’s take a look at oil price predictions. Chris DeHaemer, the founder of Crisis & Opportunity and Managing Director of Wealth Daily posted on April 7 that he expects oil to hit $87 by Christmas.  He bases this prediction on past history, which shows that when the market for a specific industry’s stock crashes at the beginning of the year, it typically rebounds and prospers for the remainder of the year.  He cites the dot.com crash of 2003 and the banking industry crash of 2009 as examples.

Is he correct? Maybe in the short term. Brent Crude has shown a fairly steady increase from its January low of $28.55 to today’s price of $44.73, and the outlook for additional increase is favorable based on Saudi Arabia and Russia agreeing to freeze production, but it is still down over $70 a barrel from its 2014 high.  Will the increase continue in the long term? There are other factors to be considered.

Some analysts are touting that petroleum/crude oil is being replaced by lithium (aka metal oil) and that the demand for oil will begin to decrease in the near future as more and more companies move toward electric power using lithium ion batteries, which Tesla has supposedly now figured out a way to enhance and produce cheaply.  For example, on April 12, Laurence Knight, a business reporter for BBC News Magazine wrote that, “Lithium, a key ingredient in lightweight batteries, is already powering the modern world, and could be key to getting the world to reduce its reliance on fossil fuels.”

We are already seeing improvement in both the price and range of electric cars.  For example, the 2017 Chevrolet Bolt EV is priced at around $30k and has a range of over 200 miles.  Tesla announced on April 9 that it has already accepted 350,000 orders for its Model 3, a sleek vehicle priced at $35k, which also has a range of over 200 miles, and which won’t even be released for another two years. Because burning fossil fuels is detrimental to the ecosystem, and there is a push on several fronts to reduce their use, the production of a vehicle with extended range and an affordable price could well be attractive to a growing number of consumers, which would drive oil demand down considerably.

Who’s right?  I think I’d rather bet on whether or not little Johnny will jump the fence.