Metal Valve Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 950 metal valve manufacturers in the US produce devices that control, regulate, or isolate the flow of fluids and gases. Major valve categories include automated; ball; gate, global, and check; industrial butterfly; plug; and pressure relief. Large firms typically manufacture complementary products, such as pipes, fittings, instrumentation, control systems, and pumps. Customer industries include chemical; water and wastewater; petroleum production and refining; power generation; oil and gas transmission; pulp and paper; commercial construction; and food and beverage.

Dependence on the Health of Customer Industries

Demand for metal valves is heavily dependent on the health of end-use markets, such as the petroleum, chemical, and water/wastewater industries.

Foreign Production and Competition

Many large firms have operations and business in foreign countries, exposing them to changes in trade policy, fluctuations in currency rates, and uncertainty due to political instability.

Industry size & Structure

The average metal valve manufacturer employs between 55 and 110 workers and generates between $18 million and $53 million annually.

    • The metal valve manufacturing industry consists of about 950 firms that employ 90,000 workers and generate over $30 billion annually.
    • The industry is highly concentrated; the top 50 companies account for between 80% and 99% of revenue, depending on the category.
    • Large US firms include divisions of Emerson (Fisher), Parker Hannafin, and Crane, Mueller Water Products, and Watts Water Technologies. The industry also includes large multi-national conglomerates headquartered in foreign countries.
    • The North American valve manufacturing industry supplies about 35% of worldwide valve demand, according to the Valve Manufacturers Association (VMA).
                                  Industry Forecast
                                  Metal Valve Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 3, 2022 - EPA Proposes Revising Fugitive Emissions Rule
                                  • The US Environmental Protection Agency (EPA) in October proposed reconsidering a 2008 rule requiring only certain types of industrial source categories to include fugitive emissions when determining whether a change is a major modification. The agency’s proposed action would require facility owners/operators of all existing industrial facilities considered “major sources” to include “fugitive” emissions of air pollutants when determining whether a physical or operational change at their facility is a “major modification,” which would need a major new source review (NSR) permit before starting construction. The permit would include required emission control measures to ensure that changes at the facility would not degrade air quality. “Fugitive emissions” are emissions that could not reasonably pass through a stack, chimney, vent, or similar opening. Approximately 60% of fugitive emissions come from valves.
                                  • In a move expected to increase domestic petroleum production and refining, the OPEC+ energy cartel in October 2022 agreed to its first large production cut in more than two years. The cut of two million barrels a day represents about 2% of global oil production. OPEC+, led by Saudi Arabia and Russia, said it was acting amid signs of a downturn in the world economy that might cause demand for oil to weaken and prices to fall. The price of Brent crude, the international benchmark, which had eased during the summer, rose more than 1.5% after the meeting, extending the recent gains and bringing prices back to levels last seen in mid-September, The New York Times reported. The average price of gasoline in the United States has begun to rise again, tracking the price of oil.
                                  • In response to Russia’s ongoing aggression against Ukraine, the Department of Commerce in September 2022 announced the expansion of existing sanctions against Russia and Belarus by imposing new export controls. The department added lower-level items potentially useful for Russia’s chemical and biological weapons production, including all types of pumps, valves, and a variety of other fluid handling equipment with nearly immediate effect, the Value Manufacturers Association of America (VMA) reported in September. The export ban appears to include EAR99 pumps and valves and prohibits the export of EAR99 pumps and valves to Russia and Belarus.
                                  • Unlike previous recessions that ended with a net loss of factory jobs, the unique circumstances of the pandemic-induced recession and recovery have resulted in a net gain in factory jobs – although not in the sectors or regions typically associated with manufacturing, The New York Times reports. American manufacturers eliminated roughly 1.36 million jobs from February to April of 2020, as the pandemic shut down much of the US economy. As of August 2022, however, manufacturers had added back about 1.43 million jobs, a net gain of 67,000 workers above pre pandemic levels, according to data cited by NYTs. The current resurgence in factory employment is being driven by recovery in industries including pharmaceuticals, craft breweries and ice-cream makers, NYTs reports. Moreover, the newly-created jobs are more apt to be located in the Mountain West and the Southeastern US than in traditional industrial strongholds of the Great Lakes region.
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