In response to a changing marketplace, many industrial distributors are transitioning from a product-centric business model to a more expansive services-oriented approach. If that description fits your company, you might consider adding condition-monitoring services to your current offering.

Broadly defined, condition monitoring refers to the gathering of data, including vibration, temperature and other parameters, related to critical plant machinery—and the analysis of that data to detect anomalies and identify potential machine problems.

Although some industrial facilities monitor machines continuously, most plants employ some form of periodic or "walk-around" monitoring using hand-held vibration accelerometers, data-loggers and other devices. This is the market sector that offers potential for distributors.

Consider these questions to help determine if condition-monitoring products and services could give your business an earnings boost.

1. Is there sufficient demand in your target market? Distributors should first assess existing demand in their territories. Do plants in your area mainly employ continuous monitoring? Are they satisfied with their current arrangements? Conducting a customer survey can help you determine your customers' monitoring needs.

Condition monitoring can range from the routine collection of machine data to more complex data interpretation and analysis. A customer survey can also help you decide which service level to offer.

The optimum ratio of high-cost to low-cost services varies depending on the distributor. However, the "sweet spot" is usually a blend of services that focuses on basic data collection, but also includes some higher-level analysis and interpretation.

2. Can you deliver services at a competitive price? After determining that a sufficient market exists, develop a thorough understanding of your competitive advantages. Keep in mind that your ability to cost effectively deliver condition-monitoring products and services could tip the scales in your favor.

Another matter is whether to develop capabilities from scratch or as an add-on to existing services. Often, existing resources and capabilities can provide a solid foundation for condition monitoring.

3. Will your business partners support the condition-monitoring initiative? Technical and training support from your business partners and suppliers can lower your company's business risks.

Some manufacturers offer condition-monitoring training programs. For example, SKF USA, Inc. recently developed a Certified Maintenance Partner program, which trains and certifies distributor personnel in the safe operation and proper use of hand-held vibration equipment.

When evaluating a business partner for condition-monitoring support, be sure to determine if that company provides expert-level machine data analysis on a quick turnaround basis. This might include analysis beyond a distributor's competence range.

Your customers will value your ability to facilitate fast response to even their most demanding condition-monitoring needs. Capabilities of this type can place you a step ahead of your competitors.