A Purchasing Intention Audit of the Audience of Powder/Bulk Solids Portrait of Respondents

Prepared by third party research firm, Martin Akel & Associates, Chester, NJ Survey sent to combined audience of Powder/Bulk Solids magazine, recipients of PBS newsletters, and visitors of powderbulksolids.com 1,240 returns for a 95% confidence level Methodology Survey Methodology/Responses

Portrait of Respondents by End Market Portrait of Respondents PBS represents the key markets

Portrait of Respondents by Job Title Portrait of Respondents Engineers compose the largest job segment

Portrait of Respondents Over 90% indicated involvement in product adoption decisions Decisions/recommendations are extensive –More than half (55%) impact purchasing enterprise wide –91% make decisions affecting entire department, division, or wider Enterprise wide (multiple sites)55.2% Division or department90.8% PBS audience members influence an average of 5.3 plants; among engineering titles, 6.6 plants Portrait of Respondents Readers are highly involved in purchasing decisions

Conclusion PBS audience represents professionals who are heavily involved in technology decisions PBS readers represent key decision makers for suppliers of products, equipment, and systems Portrait of Respondents

Technology Investment Trends Technology Investment PBS attracts professionals whose firms continue to make investments in products, equipment, and systems.

Attitudes: Technological Investments “Aggressive. 15% increase in business for the next 5 years.” “My firm is actively investing in new capital projects to go after business avenues created by government regs” “Our company is taking aggressive steps in investing in production equipment” “Now is the time to invest in the future – the strong will prosper.” “If a strong business case is presented, then the investment is approved.” Technology Investment Comments from respondents about future growth plans.

Age & Technological Capabilities of Major Systems 69% of respondents describe the age and technological capabilities of their plant’s major manufacturing equipment/systems as “older” or “significantly older” 88% of firms will be taking action in the next 12 – 24 months regarding capital improvements for manufacturing equipment/ systems 40% describe those as very significant or significant improvements Technology Investment Need Exists for New Equipment

Plant Construction /Modernization Technology Investment 85% of PBS audience have current projects

Conclusion PBS attracts professionals at organizations that continue to invest in new products, equipment, and systems Their organizations recognize the importance of making necessary investments such as additional product lines, capital investments, and new plants and plant modernization Suppliers seeking to identify where potential new sales will come from will find a substantial number of buyers across the PBS audience Technology Investment

Purchasing 76% of audience is currently involved in the purchasing process. Projects range from being in early, middle or late phases.

Projected Expenditures Purchasing Average of $3,055,600 per location in 2010

Projected Expenditures 44% foresee expenditure increases for ALL dry processing-related technology and services 50% foresee expenditures to stay the same Only 8% forecast declines Net change will be +17.5% Purchasing Expenditure increases anticipated

Audience Usage by Product Category Product% Using This Category% with Purchasing Plans in 24 mos. Drying & thermal solids processors Dust collection & air pollution control equipment Feeders Instrumentation & control equipment Material handling & transportation Mechanical conveying equipment Mixers & blenders Packaging & bagging products/equipment Particle enlargers & formers Pneumatic conveying equipment Screening & separation equipment Size reduction equipment Storage equipment Valves, gates, & airlocks Weighing systems & scales Purchasing

2010 Expenditures by Product Category Product% with 2010 ExpendituresAvg. Expenditure per Subscriber Drying & thermal solids processors28.9$476,900 Dust collection & air pollution control equipment57.0$252,380 Feeders44.4$117,950 Instrumentation & control equipment74.8$309,890 Material handling & transportation58.7$243,970 Mechanical conveying equipment49.4$261,330 Mixers & blenders42.9$194,420 Packaging & bagging products/equipment44.0$308,170 Particle enlargers & formers10.7$191,780 Pneumatic conveying equipment39.9$ Screening & separation equipment34.0$143,640 Size reduction equipment23.2$216,970 Storage equipment39.9$337,000 Valves, gates, & airlocks61.9$133,160 Weighing systems & scales58.6$180,340 Purchasing

Expenditure Projections ProductProjected Average Total 2010 Expenditures Drying & thermal solids processors$2,133,000,000 Dust collection & air pollution control equipment$2,266,000,000 Feeders$784,000,000 Instrumentation & control equipment$3,728,000,000 Material handling & transportation$2,286,000,000 Mechanical conveying equipment$2,094,000,000 Mixers & blenders$1,337,000,000 Packaging & bagging products/equipment$2,133,000,000 Particle enlargers & formers$143,000,000 Pneumatic conveying equipment$2,150,000,000 Screening & separation equipment$719,000,000 Size reduction equipment$834,000,000 Storage equipment$1,928,000,000 Valves, gates, & airlocks$1,323,000,000 Weighing systems & scales$1,379,000,000 Purchasing

Conclusions Through PBS, you reach professionals who have serious purchasing intentions for 2010 and 2011 PBS’s technology-focused editorial is proven to attract those who represent primary purchasing targets for suppliers Purchasing

Use of Media How do professionals stay current? Publications are still the top choice.

Use of Media The types of media have increased

Trend in Time Spent with Media Use of Media 75% spend more time with all media than 3-4 yrs ago

Desirability of Print Magazines Reliable way to be updated 70.7% Portable67.7% Tangible62.2% Convenient 57.7% Very visual57.5% Random access45.4% Easy to save 42.9% Less time on computer35.3% Write notes, highlights 34.2% Personal and relevant18.5% Do not find print pubs desirable 4.6% Use of Media 95% of professionals studied find print publications desirable for the following reasons

Readership Trends % Respondents Readership vs. 3-4 yrs. agoLikely readership in next 3-4 yrs. Significant increases Increase Subtotal No change Decrease Significant decrease Subtotal Use of Media Readership of magazines will increase

Why do they read your ads? % Respondents Alert me to potential solutions76.7% Alert me to new suppliers60.2% Help position individual suppliers in my mind59.0% Continuing education on current technologies51.0% Information to request/access more details52.5% Alert me to changes at suppliers50.4% Ads are a quick way to stay current30.6% Keep me up-to-date on new models/upgrades18.3% Do not find ads worthwhile3% Use of Media 97% find advertising to be desirable

Conclusion All professionals continue reading publications; readership remains strong Professionals value publication advertising because it alerts them to potential solutions Despite some opinions, magazines and magazine advertising continue to be highly effective media for contacting primary customers and prospects Use of Media

How different media are used Use of Media Media via which professionals first learn about new products/services—Magazines are the top choice

Media by which professionals first learn about new products/suppliers (version 2) Average score (ranked 1 as highest) Articles & ads in magazines2.7 Search engines3.8 Websites from suppliers4.2 Trade shows4.3 Sales reps4.5 Websites from magazines4.8 Printed directories/buyer’s guides4.9 E-newsletters5.3 Direct mail from suppliers5.3 Unaffiliated websites5.5 Other digital media (blogs, videos, etc.)5.9 Use of Media

Professionals first learn about supplier websites Use of Media 58% chose either publications, their newsletters, or websites

Which suppliers are investigated? 74% are likely to investigate companies they’ve become familiar with via communications programs 46% are likely to seek more information from suppliers they’ve heard of but are not familiar with Only 33% are likely to do so with suppliers they’ve never heard of Branding of companies and products prior to use of search engine marketing is essential Use of Media Suppliers with communications programs

Multiple media helps brand adoption 75% believe multiple media make them more likely to remain aware of the supplier 76% are more likely to contact suppliers that use multiple media when beginning to evaluate that class of product Use of Media

Multiple media improves branding % Respondents that believe multimedia assists them during the brand adoption process Much more likely More likely Subtotal No difference Less likely Much less likely Subtotal Remain aware of the supplier Form lasting impressions Position their products vs. competitor Contact that supplier Use of Media

Conclusions Magazines continue to be a major medium to initiate relationships. Publications are where inititial branding takes place Different media contribute different strengths and perform different roles in the adoption process A mix of media throughout the buying process will enable suppliers to achieve marketing objectives more effectively. Use of Media

Why PBS? 72% of subscribers look into/read all or most issues

Time Spent with PBS Will Increase % Respondents Likely spend much more time1.8 More time11.8 Same amount of time78.3 Subtotal, same amount or more91.9 Less time6.8 Much less time1.2 Subtotal, less time8.0 Why PBS?

Time Spent with PBS Will Increase Why PBS? 92% will spend the same or more time reading PBS in the future

Actions taken Why PBS? 91% have taken action as a result of reading ads in PBS

Detailed actions taken Why PBS? 91% have taken action as a result of reading ads in PBS

Why PBS? Who helps professionals learn of the existence of suppliers? Choice of Media? PBS.

Why PBS? Who helps form impressions about features/ benefits of a supplier and their equipment? PBS. Choice of Media? PBS.

Why PBS? Who is best at helping professionals make contact with individual suppliers? PBS. Choice of Media? PBS.

Other Publications NOT being Read Regularly Why PBS? These PBS readers CANNOT be reached by PBE and Processing

Conclusion Processing professionals rate PBS as superior in helping stimulate solutions and locate products PBS is clear leader in helping suppliers brand their products PBS is the most likely place for professionals to learn, form impressions, position competitive suppliers, and make contact with suppliers Why PBS?

Summary In the dry particulate industry, there is substantial purchasing activity underway with the readers of Powder/Bulk Solids. They are looking for suppliers. They are using the various media channels offered by PBS to find them. A multi-channel communications program with PBS will plug you into these buyers. Summary