In 2011, the Oil/Gas and Mining sector will drive significant growth in Industrial Sensing Products

Back in August, we touched on what the impact of a copper shortage would have on the Power Protection Market. It is time we look at this again as copper prices are not relenting and, in fact are trending even higher and will likely do so through most if not all of 2011. This is driving 2 demand side trends. The first is copper thefts and the second is where investors will begin to actually take possession of the metal instead of only the paper futures contracts in a similar strategy that compares to investing in Gold, Platinum, and/or Silver.

OK now, all of this demand activity is causing a response in the mining community as well as other commodities like oil and gas where there is a China driven projected future shortage. In order to fill that demand, companies are starting to ramp up equipment orders. The Mining and Oil & Gas represent important markets for industrial sensors of all types but particularly intrinsically safe ones. Therefore, as we look to the market for these sensors, in 2011, we are making a preliminary estimate of a 25 - 30% growth rate for these products bringing them back to near the 2008 market peak.