Tom Konrad (AltEnergyStocks) submits:
One of the lesser-known provisions of the 2007 Energy Independence and Security Act [EISA] will be to require efficiency standards for the majority of industrial electric motors. This will be a boon for motor manufacturers when EISA comes into effect in December 2010: efficient motors require higher quality materials and manufacturing, and so can be sold for higher margins.
A major beneficiary of this transition will be Baldor Electric (NYSE:BEZ). Baldor is the market leader for industrial electric motors in the United States. Almost two-thirds of Baldor’s sales are electric motors (the balance comes from power transmissions, drives, and generators,) and Baldor claims to have more motor types that are in compliance with the EISA standards than any other company in the world.
