SInce September, 2017 the “Big 3” (ASCO, Russell Electric, Zenith) OEMs for Emergency Power Systems (Paralleling Switchgear) have changed hands. Schneider Electric purchased ACSO from Emerson Electric in September, 2017, Zenith became part of ABB when they purchased GE Power Distribution products in July, 2018 and Siemens acquired Russell Electric in early 2019. Did anyone that works outside of that field even notice?
It makes you wonder why in the period of less than 2 years long established USA based companies were purchased by European juggernauts? Industry speculation would be that paralleling switchgear applications can be the lead product in data centers, healthcare, WWTF and 24/7 operations that require backup power. It also brings in the follow through products in the normal side of the power distribution system (MV/LV switchboards & switchgear, protection relays, metering, drives, EPMS software, etc.) In theory integration is less complex because the customer is only dealing with one vendor and there is “only one neck to choke”. Or maybe it’s a European thing that psychologically has something to do with “prestige”?
Each of those acquisitions will create changes within the core designs of ASCO, Russell Electric and Zenith offers. Unless you believe that Siemens is going to continue buying Schneider Electric breakers for Russell Electric? ABB obsoleted the GE breakers (Intelliguard G) in January, 2020, Emax 2 low voltage breakers and AMVAC medium voltage breakers will be installed in Zenith paralleling switchgear in the near future.
The most ironic twist in all of this? All three major manufacturers had standardized on the GE Fanuc PLC platform. The GE Fanuc 90-30 was a stalwart for over a decade. The Rx3i platform is also a more than capable replacement for the 90-30.
ABB didn’t acquire GE Fanuc PLCs in the purchase, so GE sold GE Fanuc to Emerson Electric. If Emerson Electric had purchased GE Fanuc to make a big splash in the Power Delivery controls arena, they would have never sold ASCO to Schneider Electric. Emerson Electric bought GE Fanuc because of it’s process control capability and install base. Process control PLC applications have a 700% – 800% larger installed base than power distribution PLC applications.
In the near future you’ll see ASCO with a Modicon/Tele PLC, Russell Electric will have Siemens breakers and PLCs, and it’s already happening at Zenith. They will do this to increase their incremental revenue with their own products. What happens to all those “orphaned” systems that had GE Fanuc PLCs and someone else’s breakers and protective relays?
The Zenith installed base since the GE purchase in 1999 totals about 1200 installations. ASCO and Russell Electric were always #1 and #2 in sales. By my estimation there are at least 4,000 if not more installations of systems with the GE Fanuc PLCs. No single manufacturer that currently sells paralleling switchgear can claim owning the core component that is the heart of the system.
I believe ASCO and Russell Electric will be better positioned to service their customers when the changes occur. Each have a large regional presence from which they service their customer base. Let’s hope that Schneider Electric and Siemens don’t change a business model that has worked for decades.
Zenith will be at a disadvantage because in 2014 GE decided to “break up the band”. Zenith engineering is still based in Chicago, equipment manufacturing occurs in the ABB plant in Burlington, Iowa and the commissioning team is dispersed individually across the USA. On it’s best day this system of going to business is dysfunctional.
The future is bright. There should be many opportunities for small independent service providers to fill those gaps.