Abstract
US demand to reach $15.2 billion in 2013
Industrial valve demand is forecast to increase less than one percent per year
to $15.2 billion in 2013. Gains will not match those registered during the
2003 to 2008 period when rising raw material costs supported price increases,
which in turn boosted value gains. Through 2013, unit prices are expected to
decline in response to decreasing raw material costs and, in inflation
adjusted terms, valve demand will actually strengthen through 2013. The US
market for industrial valves will also be fueled by an acceleration in
construction expenditures growth, and, in particular, a strong rebound in
residential construction spending from the low levels of 2008.
Growth in industrial valve exports to lag imports
US industrial valve manufacturers face intense competition from overseas
producers. Lower-end valves are increasingly being made in developing
countries with low labor costs, and more highly engineered valves are
manufactured in Western Europe and Japan. As a result, import growth is
forecast to outpace that of exports through 2013, and the considerable US
trade deficit in valves is expected to rise, albeit at a moderating pace.
Canada and Mexico are important export markets for US valve manufacturers.
Rapidly developing countries in Asia and Latin America will also provide good
growth prospects, particularly in process manufacturing and utilities
applications.
Construction market to post fastest annual gains
Process manufacturing industries and the utilities sector are the dominant
markets for industrial valves because of their heavy fluid handling
requirements. However, demand gains in these markets will be modest, as
shipment increases in most process manufacturing industries are expected to
moderate and utilities construction spending growth will not be as strong as
during the 2003 to 2008 period. The fastest gains through 2013 will be posted
in the construction market, with industrial valve sales expanding 2.4 percent
per year. Growth in this area will be supported by acceleration in building
construction expenditures, including an expected turnaround in residential
building spending. In 2008, original equipment manufacturing applications
accounted for more than two-thirds of total industrial valve demand and are
expected to remain the dominant source of valve sales for the foreseeable
future.
Standard industrial valves to outpace automatic types
Demand for standard valves is forecast to outpace that of automatic valves,
because more buyers will opt to purchase the less expensive standard valves as
nonresidential fixed investment slows, possibly upgrading them with separately
sold actuators at a later date.
Steel, alloys to remain dominant valve material
Steel and steel alloys will remain the most commonly utilized valve
construction materials due to their durability and strong performance in high
temperature, high stress applications. Although valve performance will
continue to be improved by advances in nontraditional materials (e.g.,
plastics, titanium and other metal alloys), steel and steel alloys will still
make up nearly one-half of valve demand in 2013.
Study coverage
This new Freedonia industry study, Industrial Valves, presents historical
demand data (1998, 2003 and 2008) plus forecasts for 2013 and 2018 by product
and market. The study also considers market environment factors, assesses the
industry structure, evaluates company market shares and profiles more than 30
industry players.
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