Shipments for the U.S. industrial valve industry will grow 3% in 2013, increasing to nearly $4.3 billion, according to figures released by the Valve Manufacturers Association (VMA) as part of its annual market forecast. The increase marks the fourth consecutive year of growth following the recession, and exceeds the industry’s previous 10-year peak in 2008.
“As VMA starts its 75th year, I’m optimistic about the outlook for our industry. We have rebounded from the downturn, which is a good sign for us and the overall economy. If the end users of our products are ordering from us, then they too are producing,” explains VMA President William Sandler. “I’m also proud of VMA’s important role in strengthening an industry that is the backbone for so many others and that stands out for its level of excellence.”
The membership is optimistic too, according to a recent VMA monthly economic survey, which showed that 85% of the membership expects 2013 to be better or equal to 2012. This follows on a year that turned out better than predicted, as 2012 figures surpassed initial projections reaching $4.15 billion, which represents 22% growth over the last decade.
Overall, the VMA forecast reveals only slight changes for most of the 15 end-user industries. Power generation is predicted to have the largest increase in shipments from 2012, rising 1.0 percentage points. Four other industries are expected to record smaller increases of 0.2 or 0.1 percentage points. On the downside, the water and wastewater industry is forecast to decline by 0.6 percentage points, with seven other industries showing smaller declines. In terms of market share, the chemical industry is the largest consumer with 17.2% of the shipments, followed by water and wastewater at 16.2%.
Out of 11 categories of valves tracked, the most popular product last year was automated valves, accounting for nearly $1.3 billion in shipments; ball valves were the next most frequently shipped item, accounting for $760.5 million in shipments. The report also revealed that 21% of shipments are exports, a growing trend as the industry adapts to the opportunities presented by globalization.
VMA companies are an important part of the nation’s economic engine, supplying approximately 35% of worldwide valve demand. Like other engineering and manufacturing industries, the valve industry supports high quality jobs. VMA members alone employ more than 20,000 people directly and thousands more indirectly.
As a multi-billion industry, the valve and actuator business greatly contributes to the success of other key industries that rely on its products to keep their products working. Products manufactured by members are used in numerous industries, including: chemical processing; petroleum refining; oil and gas exploration, distribution and transmission; power generation; nuclear power; water/wastewater; commercial construction; and pulp and paper.