It looks like SPX Corporation made the right choice by purchasing APV

Implications: There are several major players in the field of heat exchangers: Alfa Laval, Global Engineering Alliance (GEA), Hisaka, SWEP. Most comprehensive range of heat exchangers is offered by Alfa Laval, GEA, and APV. Hisaka offers more industrial type of heat exchangers, while SWEP specializes in the brazed ones for most of the HVAC applications. Market in China, India and Middle East demand increase of heat exchanger relevant equipment for food and HVAC application at a rate of 12-20% per year. There is an issue of violating of intellectual property rights by some Chinese OEMs, but this is not a severe threat for the whole industry.

Analysis: With growing demand of heat tranfer/heat exchange equipment from Asia and Middle East, a threat of copying of some types of heat exchangers by Chinese manufacturers exists. Apparently, copying a product is only a part of the deal, one needs to know where and how to market it, and how to design it to begin with. So there is an  issue of violating of intellectual property rights , but it is not a severe threat to the major OEMs.

Apparently, growith of emerging economies demands more food  and, thus, more food production plants. Economic growth also demands more commercial and residential HVAC.

While it is not clear whehter slowdown in residential sector of US economy will affect commercial construction sector, commercial sales of HVAC and related heat exchange compoents were up in average by 12-17% and, in some cases, covered the losses of residential HVAC and heat exchangers production of particular OEMS of residential and commercial HVAC. Commercial HVAC is important and growing and that is why companies like GEA strehgthened its precence by acuiring US companies and setting up production of heat exchangers in the US vs. importing it from Europe. Another good example will be acuisition of APV by SPX corporation. Actually, the recent report shows that  this acquisition starts enhancing technologies portfolio offered by SPX.

With emerging economies growing at a rate of 12-20% a year, the market could be quite profitable for most of the participants. Food manufacturing and especially HVAC are two growing industries worldwide depsite of slowdown in the residential sector of the US.