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Recent Deals Reinforce Importance of Automation Services

Recent Deals Reinforce Importance of Automation Services

Emerson Process Management acquires The Automation Group, a Houston automation services supplier, while Honeywell Process Solutions lands a BP services contract.

For those not convinced of the importance of services for the business growth of process automation systems suppliers, two announcements this week provide additional evidence. 

Automation supplier Honeywell Process Solutions, Phoenix, announced on Jan. 8 a six-year agreement with BP Exploration to provide main automation contractor services at new and existing facilities. According to the release, Honeywell will help BP Exploration & Production “accelerate production schedules and improve efficiency in these facilities by integrating all levels of plant operations and automating critical processes.” 

Meanwhile, Emerson Process Management, the Austin, Texas-based automation supplier, announced on the same day that it has acquired The Automation Group (TAG), of Houston. TAG becomes part of Emerson Process Management, “expanding Emerson’s capabilities for providing technical and management services for the design, engineering and implementation of process automation systems for the refinery, petrochemical, oil and gas production and other industries.” TAG provides process automation/control system engineering, instrument and electrical design, project management services. 

ARC Advisory Group Inc., Dedham, Mass., identifies automation services as the fastest growing segment of the automation business. According to ARC’s recently published study, “Automation Supplier Provided Services,” the total services market served by automation suppliers approached $14 billion in 2006, and will grow at an average annual rate of more than 12 percent through 2011.

ARC Advisory Group Inc.

Emerson Process Management

Honeywell Process Solutions

The Automation Group


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