Resource Guide Table of Contents

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2 Resource Guide Table of Contents Data Programs Operating Benchmarks Report (Financial Data) Compensation & Benefits Report (Human Resource Data) Monthly Bookings Report Quarterly Product & Industry Group Reports Industry Insights Industry Market Forecast Semi-Annual Business Cycle Report from ITR Economics Quarterly ITR Advisor Economic Newsletter Specialty Resources MCAA & US Learning Training Courses Customer Satisfaction Program D&B Hoovers Sales Leads Program Career Center Details Specialty Benchmark Surveys UPS Freight Shipping Discount Details This book is your guide to all of the MCAA member resources available to you and your team. We have included sample and report excerpts where possible. If you have questions about how to use or participate in these programs, please contact MCAA at (757)

3 Operating Benchmarks Program How do your operations compare to companies in the same industry of a similar size or nature? The Operating Benchmark Report can answer that question and easily be used to target aggregate averages of companies like your own. This report is a unique source of operational benchmarks for providers of process controls, measurement and analysis instrumentation, factory automation systems and software. Results provide critical information for the valuation of a business information necessary for realistic strategic business planning data used to set targets and goals for the corporate management team Published report includes: Manufacturer 5-year trend and Channel Partner 3-year trend (reported separately) 3-year growth trend for major public industry companies (based on publicly available data) Manufacturing data divided into four size categories by sales volume Numerical expression of income statement data Graphic representation of financial ratios Dollar Mean, Company Mean, Minimum, Maximum and Standard Deviation for Gross Profit, Expenses and Operating Income Participant Excel files with graphs and aggregated data points from the report. Enter your data into the Excel file to compare your company trend to industry performance. Annual publication in May No cost to participate but data contribution is required

4 Operating Report Contents Include: Measurement, Control & Automation Industry Public Companies Participating Companies General Comments Participating MCAA Manufacturer Companies by Size Categories Graphic Comparison Two Years and Five Years Income Statement Comparisons Two Years Income Statement Comparisons Five Years Income Statement Data Expressed in Dollars Income Statement Data Expressed as Percentage of Sales Net Sales (in Dollars) and Gross Profit Selling, Research & Development, General & Administrative, and Selling Expenses General & Administrative Expenses and Research & Development Expenses Research & Development (in Dollars) and Income from Operations Fixed Asset Turnover and Asset Turnover Inventory Turnover and Collection Period Current Ratio and Direct Material Purchased Direct Labor Payroll and Factory Burden Capital Expenditures (in Dollars) and Net Sales per Employee Gross Margin per Employee Additional Calculations Definitions $ Mean, Company Mean, Minimum, Maximum and Standard Deviation - Groups 1-4 MCAA Manufacturers Representatives and Distributors Report Graphic Comparison Two Years and Five Years Income Statement Comparison Two and Five Years Income Statement Data Expressed in Dollars and Percent of Sales Sales (In Dollars) and Total Commissions Commissions and Gross Margin Selling and General & Administrative and Selling Expense General & Administrative Expenses and Income from Operations Income Before Taxes and Pre-Tax Return on Assets Asset Turnover and Inventory Turnover Collection Period Accounts Receivable and Collection Period Commissions Current Ratios and Sales to End-User Per Employee Gross Margin per Employee and Allocation of Payroll Capital Expenditures $ Mean, Company Mean, Minimum, Maximum and Standard Deviation

5 Operating Benchmarks Report Sample Format and Data GROUP 1 Year 1 Year 2 Year 3 Year 4 Year 5 NET SALES $ 2,233,348 $ 2,266,015 $ 2,572,292 $ 2,896,155 $ 2,861,889 Cost of Goods Sold 1,427,640 1,413,720 1,596,749 1,798,677 1,723,316 GROSS PROFIT 805, , ,543 1,097,478 1,138,573 EXPENSES Selling Expenses 328, , , , ,353 Research and Development 101, , , , ,072 Administrative and General Expenses 136, , , , , , , , , ,137 INCOME FROM OPERATIONS $ 238,985 $ 230,679 $ 265,429 $ 352,008 $ 369,436 GROUP 1 Year 1 Year 2 Year 3 Year 4 Year 5 NET SALES -Percent Cost of Goods Sold GROSS PROFIT EXPENSES Selling Expenses Research and Development Administrative and General Expenses INCOME FROM OPERATIONS

6 SAMPLE FORMAT AND DATA 2 YEAR COMPARISON Expressed as a Percent of Sales Group 1 Group 2 Group 3 Group Inc. Ops G&A R&D Selling COGS 50 GROSS PROFIT Expressed as a Percentage of Sales GROUP 1 GROUP 2 GROUP 3 GROUP 4

7 Compensation & Benefits Report This report is the only source of industry specific compensation information available. The report provides the best comparison of salaries, benefits and incentives for the positions covered. Published report includes: Over 70 industry-defined positions in general management, field sales and service, marketing and engineering (design, manufacturing and software) Base salaries, ranges, percentiles and incentives/commissions Merit, general and total compensation increases plus a forecast for the coming year Percentiles based upon sales volume categories Geographic differences in base rates Hourly wage rates for regular and temporary workers Data reported in sales volume categories to enhance comparability Biennial Benefits Report Annual publication in August No cost to participate but data contribution is required

8 List of Participating Companies General Guidelines Used in Reporting General Compensation Information Compensation Report Contents include: Merit vs. General Increase for Exempt & Non Exempt Employees Salary Freeze and Incentive Details Overtime Turnover, Evaluation & Compensation Adjustments Job Incumbent Count Allocated by Group Hourly Wage Rates for Regular and Temporary Employees Summary of Average Annual Base Salaries for Each Job Compensation data specific job functions in the following categories: General Management Personnel Field Sales and Service Personnel Technical Marketing and Sales Support Personnel Product Design and Development Personnel Manufacturing Engineering Personnel Software Personnel Complete job list available at

9 Compensation Report Summary of All Positions - SAMPLE DATA Total Number of Participating Companies 52 Number Number Lowest Highest Past Annual Current Annual Past Annual Current Annual Job of of Actual Actual Average Average Weighted Weighted Job Title Code Companies Incumbents Base Rate Base Rate Base Rate Base Rate Average Average General Management Personnel President or Chief Executive Officer CEO $78,000 $905,900 $257,100 $239,500 $265,300 $237,700 Chief Operating Officer or General Manager COO $90,000 $464,000 $199,300 $195,900 $186,200 $187,400 Vice President/Director/Manager of Marketing MKT $75,000 $266,700 $149,000 $155,900 $154,400 $153,800 Marketing Communications Manager MCM $48,900 $173,000 $80,000 $88,500 $81,900 $97,400 Vice President/Director/Manager of Sales SAL $15,000 $250,000 $155,200 $139,800 $155,300 $140,000 Contract or Project Manager CPM 6 31 $51,000 $181,500 $123,600 $119,200 $139,200 $138,400 Customer Service Manager CSM $40,000 $143,000 $80,000 $82,400 $77,900 $82,500 Vice President/Director/Manager of Service SER 5 5 $74,600 $162,000 $107,200 $111,400 $107,200 $111,400 Vice President/Director/Manager of Administration ADM 7 7 $60,000 $176,300 $121,200 $108,100 $117,800 $108,100 IT Manager ITM $57,000 $170,000 $108,300 $113,100 $123,800 $113,300 Quality Assurance Manager QAM $55,300 $160,900 $96,400 $96,000 $105,800 $97,000 Inspection Supervisor INS 6 8 $48,700 $109,500 $77,700 $69,400 $78,200 $72,400 Document Control Manager DCM 8 9 $34,500 $106,400 $69,800 $65,900 $69,800 $66,200 Facilities Manager FAC $51,600 $113,400 $76,700 $82,400 $76,700 $82,400 Vice President/Director/Manager of Human Resources HR $55,800 $226,600 $117,400 $122,500 $131,700 $119,400 Vice President/Director/Manager of Finance CFO $51,000 $300,000 $155,400 $139,300 $158,000 $139,600 Purchasing Manager PUR $32,200 $146,000 $81,100 $82,400 $79,600 $75,900 Cost Accounting Manager CAM $68,600 $142,000 $103,500 $107,000 $103,500 $104,200 Vice President/Director/Manager of Manufacturing or Operations MFG $70,000 $262,600 $141,400 $145,900 $146,500 $144,900 Production Manager PDM $50,200 $129,000 $81,800 $82,800 $79,200 $80,600 Inventory Control Manager ICM 4 4 $50,500 $89,300 $90,500 $72,900 $90,500 $72,900 Materials Manager MM $48,000 $124,800 $79,600 $86,900 $79,600 $86,900 Test Engineer Supervisor TES 6 6 $65,600 $140,000 $88,300 $105,100 $88,300 $105,100 Metrologist Manager MGT 3 5 $71,700 $96,800 $80,900 $81,800 $83,300 $83,800 Vice President/Director/Manager of Engineering ENG $90,500 $234,000 $158,900 $151,100 $160,300 $151, Total Number of Incumbents reported 2,396 Total Number of Participating Companies 52 Average Population Size 46

10 Regional Sales Manager - SAMPLE DATA Description: Responsible for the domestic sale of company products in a major single geographic unit reporting to the National Sales/Marketing Executive and with one or more levels of Supervisory Managers reporting. Position Summary Data # of Companies 25 # of Manufacturers 20 25th Percentile $90,600 # of Incumbents 106 # of Channel Partners 5 50th Percentile $100,000 75th Percentile $129,800 Responsibility Match to Job Description Weighted Average Base Rate $114,300 Match 24 Greater 1 Average Minimum Range $75,900 Lesser 0 Average Maximum Range $127,300 Average Base Rate (Unweighted) Weighted Average Base Rate Incumbents Eligible for Incentive Average Incentive/ Commission Company Size # of Companies # of Incumbents 25th Percentile 50th Percentile 75th Percentile Average Total Compensation Under $10 Million 3 3 $100,000 $100,000 $223,800 $155,000 $155,000 1 $3,900 $158,900 $10-25 Million 7 29 $78,000 $89,200 $96,400 $92,000 $97, $16,400 $114,200 $25-50 Million 3 7 $112,000 $114,500 $115,600 $112,900 $110,500 2 $63,700 $174,200 Over $50 Million 7 47 $103,700 $130,100 $162,300 $132,700 $123, $46,700 $170,500 Channel Partners 5 20 $90,600 $92,600 $125,000 $106,000 $111, $41,200 $152,200 Total All Groups $90,600 $100,000 $129,800 $116,300 $114, $35,400 $149,700 Average Base Rate (Unweighted) Weighted Average Base Rate Incumbents Eligible for Incentive Average Incentive/ Commission Regional Sort # of Companies # of Incumbents 25th Percentile 50th Percentile 75th Percentile Average Total Compensation A 6 21 $96,700 $105,400 $124,500 $132,400 $119, $14,400 $133,900 B 3 14 $90,000 $92,000 $110,500 $98,300 $91, $52,200 $143,500 C 6 23 $96,400 $130,000 $152,700 $127,300 $123, $27,300 $150,600 D 6 21 $97,100 $100,000 $129,200 $112,800 $128, $64,400 $193,300 E 4 27 $83,600 $90,100 $94,700 $94,300 $103, $35,100 $138,200 A= AZ, CA, CO, UT,WA; B= KS, LA, MO, TX, OK; C= IL, IN, IA,OH, MI, MN, WI; D= CT, NH, NJ, NY, MA, PA, MD; E= AL, FL, GA, NC, TN,VA Other Titles for this Position Area Vice President Global OEM & Strategic Account Manager International Sales Manager Marketing/Sales Management National Sales Manager Product Consultant Other Titles for this Position Regional Sales Manager, International Sales Manager Sales Manager, EPC and Major Accounts Senior Sales Director Territory Sales Manager Vice President Sales - Regional

11 Monthly Bookings report The monthly bookings report is a trustworthy barometer of business activity. This is the only virtual instant trend index you can obtain covering providers of process controls, measurement and analysis instrumentation, factory automation systems and software. Published report includes: Aggregated total for domestic and export bookings. 13 month trend and monthly trailing average Rate-of-change data to compare current data to the same time prior year. This analysis removes seasonal variations and derives the underlying cyclical trend. Business cycle analysis which provides insight into coming months. ITR Economics management insights & opportunities for key industries Government Indices from the Conference Board, US Census Bureau, and Institute for Supply Management s Purchasing Managers Index Interactive Excel workbook for tracking individual performance against the group totals. Reports published by the 25 th of every month No cost to participate but data contribution is required

12 SAMPLE - Bookings Results NOTE: Sample data provided in order to demonstrate report format and the potential trends that this resource provides. SAMPLE DATA - Bookings Trends - $ Millions Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Bookings / % 5.3% -3.9% -5.3% 11.4% -6.3% -10.5% -1.6% 2.0% 2.7% 13.5% 3.9% 18.6% 3MMT /12-7.6% -3.9% -3.3% -1.5% 0.3% -0.6% -2.4% -6.1% -3.3% 1.0% 5.7% 6.4% 11.8% 12MMT /12-4.6% -3.6% -3.7% -4.4% -3.4% -3.0% -3.6% -4.4% -3.7% -2.6% -1.1% -0.3% 2.0% Total Bookings for January 2018 Total Bookings for February January 2018 (12-months) $60,000,000 $665,800,000 Millions Monthly Bookings Totals and Trailing Average Sample analysis would compare bookings to the most recent month and the same month one-year prior. The rate of change data points would be provided for a comparison trend. This trend can be used by participants to track their own business activity. 30 FOR CHANNEL REPORT ONLY - Sample commentary on quote volume would be included. Bookings MTA Monthly Bookings 3 MMT and 12 MMT Millions Monthly Moving Totals (MMT) data helps to illustrate seasonal (3MMT) and cyclical (12MMT) trends for the reporting group. This sample data provides a visual of what the monthly moving trends would look like MMT 12-MMT 20% Monthly Bookings Rate-of-Change Percent 10% 0% -10% The sample data in the summary table above shows the movement of the business cycles beginning with recession (red) and ending in a positive period of growth (green). This graph helps to visualize and interpret the business trends. The commentary would explain the trend and offer insight into the next 3-6 month period. 3/12 Rate-of-Change 12/12 Rate-of-Change

13 Report Sample Pages TrendsReportTM US Oil & Gas Extraction Production Index, 2012 =100, NSA Rate-of-Change 20 12/12 Forecast Range 12/12 3/ '15 '16 ' '14 12MMA Forecast 12MMA 3MMA Index '13 Data Trend Index 20 '18 '19 '20 80 '13 '21 '14 '15 '16 '17 '18 '19 '20 '21 US Oil and Gas Extraction Production in the 12 months through November was up 2.3% from one year ago. Phase B, Accelerating Growth, will persist into mid The Production 12/12 will subsequently decline through mid However, activity will expand during this time. Highlights Production was up 2.3% from one year ago Accelerating growth will persist into mid2018 Both Crude Oil Production and Natural Gas Production are expanding US Crude Oil Production is in an accelerating growth trend, up 3.1% from the year-ago level (12MMA basis). Our analysis indicates that this trend will persist during the next quarter. Meanwhile, US Natural Gas Production was down 0.7% on a year-over-year basis during the 12 months through September. However, Production is in Phase A, Recovery, and activity expanded in recent months. Plan for increasing opportunities related to both the oil and natural gas sectors in the near term. B Forecast ITR Management ObjectiveTM for MCAA Members ACCELERATING GROWTH 12/12 12MMT 2018: 4.4% $ : 1.2% $ : 1.8% $143.3 Data Link - Ask An Analyst Data Series Definition Data Methodology 2018 Total Bookings of consistent MCAA members during the 12 months through November totaled $1.356 billion, up 8.7% compared to the previous year. Domestic Bookings is accelerating in its pace of growth, up 12.5% from one year ago. Domestic Bookings during the three months through November tentatively transitioned to decelerating growth, on a year-over-year basis. This is an indication that a slowing growth trend will likely form in the first half of Export Bookings during the 12 months through November fell 7.0% compared to the previous year. Export activity remains the weaker segment for consistent MCAA members and our analysis suggests further decline lies ahead in the near term. Focus on Domestic activity as the industrial economy will expand in Consider undertaking additional capital on credit to handle increasing Oil and Gas activity through ITR Economics TM 11 All Rights Reserved

14 The Conference Board Released: Thursday, March 22, 2018 Please note: The Conference Board announced the base year of the composite indexes has been changes to 2016=100. As a result, the revised indexes in levels and month-to-month changes will not be directly comparable to those issued prior to the benchmark revision. The Conference Board Leading Economic Index (LEI)for the U.S. increased 0.6 percent in February to (2016 = 100), following a 0.8 percent increase in January, and a 0.7 percent increase in December. The Conference Board Coincident Economic Index (CEI) for the U.S. increased 0.3 percent in February to (2016 = 100), following a 0.1 percent increase in January, and a 0.2 percent increase in December. The Conference Board Lagging Economic Index (LAG) for the U.S. increased 0.4 percent in February to (2016 = 100), following a 0.1 percent increase in January and a 0.6 percent increase in December. Additional Industry Insight LEI CEI LAG US Census Bureau Released: February 2018 (report lags 2 months) Please note: Data reflects benchmarking of new orders to the 2014 & 2015 Annual Survey of Manufacturers data based on the 2012 NAICS. New orders for electromedical, measuring and control instruments in December decreased $11 million or 0.1 percent to $9.68 billion. Institute for Supply Management ISM Manufacturing Index Summaries Released: March 1, 2018 Update Purchasing Managers Index (PMI) Manufacturing expanded in February as the PMI registered 60.8 percent, an increase of 1.7 percentage points from the January reading of 59.1 percent. This indicates growth in manufacturing for the 18th consecutive month at strong levels led by continued expansion in new orders, production activity, employment and inventories, with suppliers continuing to struggle delivering to demand. The PMI at 60.8 percent is the highest level of expansion seen since May 2004, when it reached 61.4 percent, says Fiore. A r eading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 p ercent indicates that it is generally contracting. A PMI above 43.2 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the February PMI indicates growth for the 106th consecutive month in the overall economy and the 18th straight month of growth in the manufacturing sector. The past relationship between the PMI and the overall economy indicates that the average PMI for February (60.8 percent) corresponds to a 5.4 percent increase in real gross domestic product (GDP) on an annualized basis Manufacturers' New Orders Seasonally Adj. Month-to-Month % Change The Last 12 Months Month PMI Month PMI Feb Aug Jan Jul Dec Jun Nov May Oct Apr Sep Mar Average for 12 months 58.0 High 60.8 Low

15 Quarterly Product and Industry Group Reports These reliable reports provide trends not available from any other source for providers of process controls, measurement and analysis instrumentation, factory automation systems and software. Published Reports include: 8-quarter trends for 55 products in 7 major categories and 30 end-user industries Data reported is booked in the US or Canada for use in the US or Canada Linear trend line analyzes bookings and shows the rate of increase or decrease over the period Rate of Change data: 3/12 (quarterly) illustrates the seasonal changes inherent to the data series. 12/12 (annually) removes seasonal variation in order to derive the underlying cyclical trend. Business cycle analysis for each product category and individual product where data is available. Reports published 45 days after quarter close No cost to participate by data contribution is required

16 Product Report Instrument Categories Pressure Instrumentation Temperature Instrumentation Volumetric Flowmeters Mass Flowmeters Electronic Level Instrumentation Mechanical Level Instrumentation Analytical and Specialty Measurement Pneumatic /Mechanical Products Display & Control Systems and Software Electronic Display and Control (Products) Final Control Devices Other Bookings Summary All Products Manufacturing Food & beverage Textiles Lumber Paper Industrial chemicals Pharmaceuticals Petroleum products Rubber and plastics Mining Mining Oil and gas extraction Transportation and Utilities Pipelines Utilities Nuclear Industry Report Categories Stone/clay/ cement/ glass products Metal manufacturing Fabricated metal products Machinery Electrical/electronic equipment Transportation Aerospace Instruments Natural gas Water supply and irrigation Sanitary services All Others All resale orders/oem Trade, financial and services All other industries Orders where ultimate user is unknown Complete category descriptions available at

17 Quarterly Product Report Sample Page SAMPLE INSTRUMENTATION CATEGORY TOTAL 2Q15 3Q15 4Q15 1Q16 2Q16 Bookings Quarter Change -14% -3% -13% 10% -10% Units Quarter Change -13% 2% -13% 15% -12% 3/12 Rate of Change -17.0% -18.2% -33.4% -20.4% -17.1% 12/12 Rate of Change -19.4% -22.4% -22.7% 2Q15 change is based off 1Q15 historical data 3Q16 13% 14% -3.8% -19.7% 4Q16-9% -10% 0.7% -11.0% 1Q17 21% 20% 11.1% -2.7% Phase D or "Recession". Annual sales are below year-ago levels and are declining. Phase A or "Recovery". Annual sales are below year ago levels but the rate of decline is slowing. SAMPLE Instrumentation SAMPLE Instrumentation Quarter over Quarter Change Bookings Rate of Change 30% 20% 20% 10% 10% 0% 0% -10% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17-20% -10% -30% -20% -40% Bookings Quarter Change Units Quarter Change Linear (Bookings Quarter Change) 3/12 Rate of Change 12/12 Rate of Change Category Comments and Analysis: *The data represented is calculated as a quarter over quarter change relative to the total bookings as reported by participants. 2Q15 data is calculated from the previous quarter. Although 1Q15 is not reported, the datapoint is historical for all participants. * The linear trend line analyzes bookings as reported and shows the rate of increase or decrease over the 8 quarter period. * 3/12 Rate of Change illustrates the seasonal changes inherent to the data series. * 12/12 Rate of Change removes seasonal variation in order to derive the underlying cyclical trend. * Overall, the Sample Instrumentation category is in a recovery business phase as seen by the slowing rate of decline in bookings. 15

18 Industry Group Report Sample Page SAMPLE INDUSTRY SEGMENT TOTAL 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Bookings Quarter Change -31% 20% 24% -26% -8% 1% 22% 19% 3/12 Rate of Change -50.7% -24.8% 28.3% -23.6% 2.4% -13.7% -15.2% 36.4% 12/12 Rate of Change -16.7% -23.0% -7.4% -3.2% -13.8% 0.7% 2Q15 change is based off 1Q15 historical data Phase D or "Recession". Annual sales are below year-ago levels and are declining. Phase A or "Recovery". Annual sales are below year ago levels but the rate of decline is slowing. Phase B or "Accelerating Growth". Annual sales are above year-ago levels and are growing. 30% 20% 10% 0% -10% -20% -30% -40% Industry Segment Sample Quarter over Quarter Change 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% Industry Segment Sample Bookings Rate of Change 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Bookings Quarter Change Linear (Bookings Quarter Change) 3/12 Rate of Change 12/12 Rate of Change Comments: After several quarters of recession or recovery, this industry segment has entered into a period of mild growth with bookings slightly above year-ago levels.

19 Industry Marketing Forecast For MCAA members, one of the most anticipated reports of each year is the Industry Market Forecast. Global Automation Research, prepares the report exclusively for MCAA members. The forecast begins with the current base year and projects out an additional five years. It examines in-depth, 12 product categories and 12 industry segments. The report also includes a Regional Market Assessment (ReMaP ) for the US and Canada which shows the total market values among selected regions within the countries. Report Industry Segments: Oil & Gas Petroleum refining Chemicals Bio-pharmaceutical Food & Beverage Pulp & Paper Electric Utilities Municipal Water & Wastewater Primary Metals Stone, clay & glass All Other Report Product Categories: Gas Analytical Instruments Mechanical Level/Tank Gauging Liquid Analytical Instruments Temperature Instruments Pressure Instruments Control Systems Electronic Flowmeters Remote I/O Mechanical Flowmeters/Primary Elements Data Acquisition Systems Electronic Level Final Control Devices Reports published annually in April/May No cost to MCAA members

20 Report Sample Pages 3. INTRODUCTION The PI&A market in the United States was pulled down by a greater than expected further decline in Oil & Gas spending. Our forecast last year was for a 6 percent decline in market value. At the end of 2016, the Oil & Gas PI&A market had declined by slightly over 12 percent. This decline in 2016 Oil & Gas spending pulled the total market growth down to 1.3 percent year over year. The market excluding Oil & Gas, rose 2.8 percent. Oil & Gas spending is expected to be essentially flat to down 2-3 percent in 2017, then increasing through the end of the forecast period. The 5-Year CAGR is forecast to be 1.4 percent. Our forecast assumes that the WTI oil price will remain within the range of $55 to $70, based on the EIA most recent forecast. Most major U.S. offshore projects were completed in 2016 with much smaller projects currently planned. U.S. oil majors are shifting investments to onshore shale development that can be turned on or off quickly. The five-year growth forecast for the U.S. PI&A market is 3.6 percent CAGR. Five industry segments will have above average growth: Chemicals, F&B, pharmaceuticals, oil refining, and electric utilities. The remainder of the industry segments, including the once high-flying oil & gas segment, will grow at less than 2 percent CAGR over the forecast period. Product 5-Year CAGRs will range from 1.5% for Mechanical Flowmeters to 6.6% for Electronic Flowmeters. Annual MCAA PI&A Market 5-Year CAGR, Industry 5-Year CAGR Annual MCAA PI&A Market 5-Year CAGR, Products 5-Year CAGR 10

21 Report Sample Pages 4. UNITED STATES OVERVIEW The 2016 PI&A Market equaled $11.7 Billion and is forecast to grow to $14.0 Billion by 2021 a 5-year CAGR of 3.6 percent. Growth will be concentrated in five industries: Chemicals, electric utilities, oil refining, food & beverage, and pharmaceuticals. The cumulative market gain will be $2,282 Million over the forecast period. The chemicals industry market gain will be the largest at about $850 Million. The next four fast growing industries will add over $1 Billion in market gain. The market gain of the remaining slow-growing industries will equal about $340 Million. Summary Market Value 2016 $11.7 Billion 2021 $14.0 Billion 5-Year CAGR 3.6% 5-Year Market Gain $2,282 Million 11

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23 Insights from ITR Economics ITR Economics prepares multiple reports exclusively for MCAA members. The semiannual report, published in March and August, reviews the business cycles and economic trends for the industries that our members serve. The report tracks production information from ITR s database and government statistics and also includes an index created by MCAA based on consistent reporters in our monthly bookings report (going back 5-10 years) and in our Industry Group Report (for 3 years). Additional insight is provided with appropriate Leading Indicator Indices. Industries covered in the semi-annual report: Chemical Food Petroleum Pharmaceuticals Paper Semi-Annual reports published in March and August No cost to MCAA members Machinery Textiles Oil & Gas Transportation Utilities Monthly Insight Reports ITR Economics also provides monthly insight reports which look into various market segments and offer a glimpse into changes in the economic horizon. Trend graphs Rate of change graphs Market Analysis 3-year forecast for the market reported Management objectives which include action items for MCAA members to consider Published on the 25 th of every month. Sample included with monthly bookings No cost to MCAA members

24 Report Sample Pages Business Cycle Industry Phase 12MMA/T Total MCAA Bookings (36 Companies) B Rise 7.5% -1.8% 4.5% US Industrial Production Index B Mild Rise 1.1% -1.2% 3.3% US Chemical & Chemical Products Production Index B Mild Rise 1.8% -0.6% 2.7% US Food Production Index B Rise 1.7% 2.1% 0.8% US Paper & Paper Products Production Index D Mild Decline -2.3% -2.1% 1.6% US Mining Production Index B Rise 5.1% 1.4% 3.3% US Electric Power Generation, Transmission, and Distribution Production B Mild Rise 2.4% 0.1% -1.7% US Public Water & Sewer Facility Construction A Flat ITR Economics % -3.1% 6.3% March 2018

25 overview US Industrial Production Index Annual Trend (2012 = 100) '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 The macroeconomy is expanding. US Industrial Business cycle rise in Retail Sales through January Production during the 12 months through January 2018 is further good news for the economy. Retail was up 2.2% compared to one year ago. Leading Sales for 2017 came in 4.2% higher than indicators suggest that US Industrial Production will Accelerating growth will persist into mid-2018 for US reach a business cycle peak around the middle of the Total Retail Sales. However, our proprietary ITR year. The Manufacturing, Mining, and Utilities Consumer Activity Leading Indicator declined in components are all expanding. US Real Gross January The January decline was sufficient to Domestic Product and US Nondefense Capital Goods enable us to quantitatively call June the probable New Orders will also grow at accelerating rates Leading Indicator high for this business cycle. This during this time. Growing demand from abroad is Indicator s trend since June 2017 signals that the contributing to rising Production. Exports are accelerating pace of growth in Retail Sales will level expanding at an accelerating pace, up 6.2% from one off in the first quarter of 2018 given the typical eight- year ago, benefiting from a weakening US dollar. The month lead time to Retail Sales. macroeconomy will transition to the back side of the Focus on hiring and retaining employees to ensure business cycle by the second half of 2018 with that your labor supply is sufficient to handle slowing growth and eventual contraction expected in expansion throughout Direct your training However, expect the upcoming recession to be programs toward developing unskilled new hires as a mild; focus on retaining your employees to mitigate tightening labor market will make qualified hiring and training costs when the business cycle applicants increasingly rare this year. recovers post ITR Economics 23 March 2018

26 Report Sample Pages MCAA Total Bookings Index Annual Trend: Phase: B MCAA Total Bookings Index Year-over-Year: 8.6% MCAA Total Bookings Index to US Industrial Production Index USIP 12-Month Moving Average Bookings 12/12 Rates-of-Change USIP USIP Forecast -20 MCAA Bookings Index '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 MCAA Bookings Index Forecast -30 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20-30 '21 MCAA Total Bookings Index Forecast Industry Outlook The average Bookings Index during the 12 months through January 2018 was up 8.6% from one year ago. The pace of rise is accelerating. We revised the Bookings Index to incorporate additional member data. The rates-of-change trends are similar to before, but the annual trend is 1.7% higher. We revised the forecast to reflect the new underlying Index. Expect the Index annual trend to rise through 2018 before subsequently declining into early Growth will resume thereafter, persisting through at least year-end Our forecast calls for the period of accelerating growth to extend one quarter deeper into 2018 than the previous forecast called for. Longer-than-anticipated rise in several leading indicators suggests that US Industrial Production will reach a business cycle peak around mid-2018, providing upward momentum for the Bookings Index through the same time period. However, we still expect the Bookings Index to end the year in a slowing growth trend and also continue to expect a mild recession in Consumer weakness, as suggested by the current decline in the savings rate (two-year lead time to the economy), and inflationary pressures are two potential reasons undergirding our 2019 expectations. Avoid oversubscribing to the optimism of the moment and over-expanding at the peak of the business cycle given the upcoming slowing growth : 7.5% 2019: -1.8% 2020: 4.5% ITR Economics March 2018

27 Quarterly ITR Advisor Economic Newsletter This is a new program beginning in the fall of MCAA is working with ITR Economics to provide the Advisor on a quarterly basis. When published, the Advisor will include: Unbiased View of Current Events Clear, Concise Overview of Economic Activity Up-to-Date Information on the most reliable US Leading Indicators A sample page of the Advisor is included in this packet. When published, the newsletter will be available for immediate download from the member portal on No cost to MCAA members

28 The ITR Advisor VOLUME 95 AUGUST 2018 INDUSTRY SNAPSHOTS Arrow denotes 12-month moving total/average direction Steep Rise Mild Rise Steep Decline Retail Sales Wholesale Trade Auto Production Manufacturing Rotary Rig Capital Goods Nonresidential Construction Residential Construction Flat Mild Decline MACROECONOMIC OUTLOOK US Industrial Production during the 12 months through June was up 2.9% on a year-over-year basis. Each of the three main components of the industrial economy is expanding at an accelerating pace. US Mining Production is growing at the fastest rate, up 10.3% from one year ago. Meanwhile, US Electric and Gas Utilities Production was up 2.6%, and US Total Manufacturing Production was up 2.0%. Growth in the industrial economy will persist through the remainder of this year. Activity will decline mildly in A data revision by the Bureau of Economic Analysis led us to revise our US Real Gross Domestic Product (GDP) forecast. Our growth-rate projections were on target, with GDP in the second quarter of 2018 up 2.8% from the same quarter in 2017, just below the 2.9% projected. However, we revised the forecast due to the bureau s change in the data history. Activity will rise through the remainder of 2018, but the pace of growth will slow through the rest of this year. GDP will be relatively flat in Retail Sales will transition to a slowing growth trend late this year, which will contribute to hindering the pace of growth for the macroeconomy by the end of this year. Growth in the retail sector is supporting rise in GDP. US Total Retail Sales are in an accelerating growth trend, up 5.0%, rising as a result of increased consumer strength and inflation. Retail Sales will transition to a slowing growth trend late this year, which will contribute to hindering the pace of growth for the macroeconomy by the end of this year. We expect Retail Sales to expand in 2019, but not at a fastenough rate to keep overall US Industrial Production from entering a mild recession. Use the current period of growth to build up your reserves of cash to better weather the upcoming recession in MAKE YOUR MOVE INVESTOR UPDATE Build up your reserves of cash this year, before Industrial Production declines next year. This will position your company to outbid competitors for resources in 2019 to prepare for growth in ITR ECONOMICS LONG-TERM VIEW Rising corporate profits and investor confidence due to a growing economy suggest further room to run for the current bull market. However, the market s rate of rise will be slowing. Our analysis of the S&P 500 and fundamentals suggests the macroeconomy is likely to transition to a slowing growth trend by the end of this year. 2018: Slowing Growth 2019: Mild Recession 2020: Growth page ITR Economics All Rights Reserved AUGUST 2018

29 MCAA Industry Product and Industry Training MCAA offers two unique virtual training programs. The course training is done online which reduces expense and time away from the office. Combine MCAA s specialized industry training with a sales program and you have a sales force that is second to none. Program Options: Technology Training - designed to deliver in-depth practical information to support the sales process Industry Application Training - designed to deliver an overview of the major process industries and is a guide to the instrumentation and control applications in those industries Sales Training with US Learning MCAA partnered with training experts at U.S. Learning, to provide members with an incredible sales training resource. Members can now access top notch training programs at a fraction of the cost. These internet based training programs will provide the latest skills and techniques to create long-term business relationships with your customers, preserve margins, and maximize sales! Training Fees: Regularly $675 MCAA member s investment reduced to $179 per person, per program US Learning Program Topics: Sell Value Not Price! Mastering Negotiation Strategies Leading & Managing for Performance and Prosperity Managing & Coaching The Sales Team Sample of Sell Value Not Price! included. Other course outlines can be found on along with enrollment details.

30 Technology Training Curriculum This training curriculum is designed to deliver in-depth practical information to support the sales process. Mathematical theory and calibration methodologies are not emphasized. Training Modules Include: Introduction to Industrial Automation and Control Learn the basic terms and concepts of the Automation and Control Industry. Industrial Automation and Control Documentation Prepare yourself to understand your customer s technical documents and drawings. Discrete Control There is more to on/off control than you may think. Be sure you understand "normal" mode of a switc. Analog Control Understand how instruments talk to each other. Pneumatic Control You may not sell new pneumatic instruments, but your customers probably still have some in their plants so it is an important base of information for all sales personnel. Digital Control It started in the 80's and is the prevailing means of control today. Wireless Communications Wireless is not for every application but it is growing in the control and automation world. Continuous Pressure Control Possibly the most important measurement in the series. Pressure is key to Flow and Level measurements in many cases. Continuous Level Control Here is your chance to review every type of Level measurement and control from nuclear to a sight-glass. Continuous Temperature Control What's the difference between a Thermocouple and an RTD and which should you recommend? Find out here. Continuous Flow Control A huge variety of flow control devices are in the marketplace - we cover most of them here. Continuous Analytical Measurement There is a lot more than Pressure, Flow, Temperature and Level going on around you in the world. Learn how analytical measurements like ph, Conductivity, ORP, DO, and many more effect industrial processes. Final Control Elements - Every control loop must take some action to affect the process once the measuring and analyzing is done. Here you will discover how that is achieved. Basics of Feedback Control Learn the fundamental principles of how to control a process. Basics of Process Control Strategies Supervisory Control, Cascade Control, Ratio Control, Feedforward and Feedback Control and much more will be made easy to understand here. Control Systems - DCS, PLC, SCADA they are all different but have a lot in common too. Learn the characteristics of each.

31 Industry Application Training Curriculum This training curriculum is designed to deliver an overview of the major process industries and as a guide to the instrumentation and control applications in those industries. Training Modules Include: Chemical Processes and Applications Examine the Organic and Inorganic chemical industries that bring us so many of the products we use everyday. Food and Beverage Learn about the primary sectors ranging from bread to beer and the automation opportunities for each process. Metals and Mining Gold, Copper, Iron, Lead, Zinc and more are mined in the U.S. Learn about the primary processes used and the instrumentation opportunities you will find. Oil and Gas Underground or under the sea there are many instrumentation opportunities in the recovery, processing and movement of Oil and Gas. Petrochemical The Conversion of Oil and Gas into the basic products used to make many of the products we use everyday form gas for our cars to the plastic bottles we drink from offer many automation opportunities. Water and Wastewater Water and Wastewater processing are important elements that are part of every industry you serve and your personal everyday life. Learn about the processes and instrumentation sales opportunities available to you. Power Generation Power Generation instrument ion opportunities exist in every part of the country. There is a large market for both utilities and non-utilities. Learn the basic processes and the instrumentation opportunities to be successful in PowerGen. Pulp and Paper Learn the basic processes for the production of paper from wood chips to the final roll of paper. Pharmaceutical Review the basic processes used in the Pharmaceuticals Industry and the instrumentation applications that support them.

32 featuring Don Hutson Course I. Mastering the Head Game Chapter 1: Attitude Makes the Difference Chapter 2: Motivation to the Max! Chapter 3: Be a Champion of Change Chapter 4: The Evolution of Selling Chapter 5: Dealing Successfully with Rejection Chapter 6: The High Performance Selling Model Chapter 7: The Anatomy of the Sales Call Chapter 8: The Value-Based Trusted Advisor Course II. Your Blueprint for Sales Success Chapter 1: Improve your Goal Setting Skills Chapter 2: Goal-Achievement Strategies Chapter 3: Time Management for Sales Professionals Chapter 4: Communicating for Sales Effectiveness Chapter 5: The Market Share Model Chapter 6: Gaining Customer Loyalty Chapter 7: Making the Loyalty Ladder Work for You Chapter 8: Projecting an Image of Excellence Course III. Understanding Your Customer Chapter 1: Understanding Behavioral Styles, Part I Chapter 2: Understanding Behavioral Styles, Part II Chapter 3: The Skill of Adaptability Chapter 4: Identifying the Style of Others Chapter 5: Winning with Needs Analysis Chapter 6: Active Listening Skills Chapter 7: Advanced Questioning Skills Chapter 8: Sales Negotiation Skills Course IV. Securing & Growing the Business Chapter 1: The Value-Price Dynamic Chapter 2: Establishing Value Through Differentiation Chapter 3: Presenting Your Prospect s Solutions Chapter 4: Performing Miracles for your Customers Chapter 5: Addressing Prospect s Concerns Chapter 6: How to Gain Commitments Chapter 7: Relationship Strategies that Pay Chapter 8: How to Gain Valuable Referrals

33 Customer Satisfaction Survey If you don t know what your customers are thinking, how can you meet their needs now and in the future? MCAA s Customer Satisfaction Survey program is an efficient and costeffective way to gain valuable feedback from those that matter most your customers! The results you receive will help you better serve their needs and see where you stand in comparison to your industry peers. The Customer Satisfaction Survey is launched in January of each year with results available by the end of February. Final results will include your data, along with metric comparatives to other participating companies so that you can put your customer feedback into perspective. Why Participate? Survey options for both manufacturer and channel members Real time customer feedback in a matter of weeks. Survey On Demand and we will survey your customers on your schedule. Add 5 custom questions at no additional charge. Report includes two (2) report segments at no additional charge. Final results include a customized report with your individual results. You will also receive aggregated MCAA group benchmarks to use as a comparison to your own data. See where you stack up against the competition. Program satisfies ISO Certification requirements

34 SAMPLE Customer Survey Results Sample Response Rate Surveys Deployed Surveys Returned as Undeliverable Customers Surveyed Respondents Company ABC Response Rate % Have you purchased or used Company ABC' products and/or services in the past? Yes, I am a buyer Yes, I am a user Yes, I am a buyer and a user Yes, I am a reseller No Product Lines & Services Frequency Percent 6 20% 4 13% 11 37% 7 23% 2 7% 30 Please rate Company ABC on the following: Frequency Percent Quality of products/services Excellent Very Good Good Fair Poor N/A or No Opinion Value of products/services 28 Excellent Very Good Good Fair Poor N/A or No Opinion Excellent Very Good Good Fair Poor Excellent Very Good Good Fair Poor 0% 20% 40% 60% 0% 20% 40% 60% 11 39% 8 29% 8 29% 1 4% 0 0% 0 0% 11 39% 10 36% 6 21% 0 0% 0 0% 1 4%

35 SAMPLE Key Metric Summary Surveys Deployed Surveys Returned as Undeliverable Customers Surveyed Respondents Company ABC Response Rate Total Customer Satisfaction Response Rate Average Customer Satisfaction Response Rate Response Rate Satisfaction Index 12,969 1,323 11,646 1, % 12.9% 16.0% Company ABC MCAA Overall MCAA Customer Satisfaction Index (MCSI) MCAA Customer Loyalty Index (MCLI) Maximum value = 100. Higher is better. 95 Satisfaction Index MCAA Customer Satisfaction Index (MCSI) MCAA Customer Loyalty Index (MCLI) Company ABC MCAA Overall Product/Service Quality Company ABC MCAA Overall Quality of Products/Services Value of Products/Services Product Design Customer Service Customer Training Technical Support Availability of Parts Repairs Overall Total Maximum value = 100. Higher is better Product/Service Quality Quality Value Design Service Customer Support Parts Repairs Overall Training Company ABC MCAA Overall

36 Sample Metric Comparison 94 Manufacturer-Customer Customer Satisfaction Index (MCSI) MCAA Average = Red Manufacturer-Customer Loyalty Index (MCLI) MCAA Average = Red

37 Sales Leads Discounted Program MCAA members empower their sales teams with the best tools and resources. One of those resources is D&B Hoovers. This service provides sales professionals access to over 85 million companies. Best of all, through the power of group purchase, MCAA members save thousands of dollars on annual subscriptions. As a D&B Hoover s subscriber, you can quickly and efficiently search millions of records to build targeted lists of companies, people, industry segments, and much more. The MCAA annual subscription term is September August. However, you can enroll anytime through-out the period at prorated amounts. Rates for subscriptions were $750/license. Rates vary according to subscription volume. Target more strategically New search and list capability help to quickly build pipelines, while the new dynamic SmartLists tool provides automatic notification when a new company or contact matches list criteria. Informed Conversations Access deeper intelligence on companies and contacts including technology data and triggers that help you better engage and personalize your sales pitch. Enhanced Sales Productivity Customizable desktop and notification options make it easy to monitor prospect and account activity. Increase Sales and Marketing Alignment Seamlessly integrate D&B Hoovers with your CRM and Marketing Automation Platforms to ensure that the same data is shared across your team.

38 Sample Hoovers D&B Report

39 Career Center The MCAA Career Center is the premier online career resource connecting employers to the measurement, control and automation industry s most talented professionals. And now, nearly 15,000 job seekers in the industry will see your job postings as the MCAA Career Center has joined the Engineering & Science Career Network (ESCN). The Career Center offers the most targeted advertising for your measurement, control and automation industry job openings or internships, with a concentration on management level positions. Highlights: Set the skills criteria and let the resumes come to you Complete an Employer Profile Promote your company s culture, benefits and why it s a great place to work Save and manage applicants and resumes Free postings for internships Quick and easy job posting Quality candidates Online reports provide you with job activity statistics Simple pricing options Special rates for MCAA member companies Job Categories Administrative/Clerical Customer Service Engineering Field Service & Technical Support Finance/Accounting General Management Human Resources/Personnel Information Technology/Networks Manufacturing/Production/Quality Assurance Marketing/PR Sales/Business Development Skilled Labor Many Others Sign up through the MCAA website at

40 Career Center Package Samples Cost varies per package and MCAA member receive significant discounts. All postings include: Listing on more than 40 Engineering and Science partner Career Centers Nationwide resume database search. 180-Day Internship Posting Free unlimited internship postings Listing will appear on this Career Center and other Engineering and Science partner Career Centers Resume Search not included 30-Day Job Posting Listing will appear on this Career Center and other Engineering and Science partner Career Centers Resume Search included 60-Day Job Posting Listing will appear on this Career Center and other Engineering and Science partner Career Centers Resume Search included Three 30-Day Job Postings Listings will appear on this Career Center and other Engineering and Science partner Career Centers Resume Search included All jobs must be posted within one year of package purchase Five 30-Day Job Postings Listings will appear on this Career Center and other Engineering and Science partner Career Centers Resume Search included All jobs must be posted within one year of package purchase Additional packages available at

41 Specialty Benchmarks Specialty Benchmark surveys help members address specific concerns or business practices with other member companies. Whenever you have an operational or management issues for which industry peer feedback would be beneficial, we can help. Our staff will construct and distribute surveys and provide an aggregated report within days of survey launch. Survey Guidelines: 10 questions or less Yes/No or Multiple-Choice Format Preferred by Members Member provides base questions to ensure that the survey meets their informational needs Surveys deployed online Results available within 15 days of launch. Recent Specialty Benchmark Survey Topics Digital Marketing Comparison Product Differentiation & Customer Engagement Lead Generation Website Analytics Shipping Fees Design Thinking & Innovation Social Media This service is free to all MCAA members

42 Sample Specialty Benchmark Survey Results MCAA was asked to survey manufacturing members about website traffic and analytics in an effort to gain insight into current practices and determine if development of a benchmarks report would be a useful resource for members. 1. Do you track your website visits and analytics? Yes 21 responses 91% No 2 responses 9% 2. How frequently do you review web traffic analytics? Daily 1 response 5% Weekly 4 responses 19% Monthly 13 responses 62% Other 3 responses 14% Other Comments Our HQ does so weekly Quarterly 3. How long have you been tracking website traffic and other analytics? Less than 1 Year 3 responses 14% 1-2 Years 5 responses 24% More than 2 Years 13 responses 62% 4. Do you currently market with AdWords? Yes 16 responses 70% No 7 responses 30% 5. Do you actively manage your content to improve SEO? Yes 18 responses 78% No 5 responses 22% 6. Would you be willing to share your overall web traffic data on a recurring basis via an MCAA aggregated benchmark report? Yes 17 responses 74% No 6 responses 26% 7. What is your preferred frequency for sharing data? Monthly 2 responses 12% Quarterly 10 responses 59% Semi-Annually 5 responses 29%

43 UPS Freight Member Discount Program UPS Freight is pleased to partner with MCAA to offer the MCAA/UPS Freight Savings Program, a member benefit program that helps you save time and money. As an enrolled member, you ll have access to discounts starting at 70% on a wide range of less-thantruckload freight services from UPS Freight. You ll also have access to UPS Freight s advanced technology and dedicated customer service team. MCAA Members Save with UPS Freight Looking to take your business to the next level? UPS Freight is excited to offer a savings program to association members that can help your company increase efficiencies and reduce costs. Benefits Include: Exclusive savings on qualifying LTL freight shipments. Whether you re shipping across the border or down the road, members immediately save on all LTL freight shipments. Order, ship and track with ease. UPS shipping platforms allow you to keep track of your shipments easily ensuring your shipments arrive on time. UPS customer service team is ready to help. Their dedicated customer service team is happy to walk you through the entire process, including a free quote.