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 960 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 depends heavily 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 businesses 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 44 and 152 workers and generates about $31.9 million annually.

    • The metal valve manufacturing industry consists of about 960 firms that employ 88,200 workers and generate about $30.6 billion annually.
    • The industry is concentrated; the top 50 companies account for about 66% of revenue.
    • 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

                                  Feb 5, 2024 - Valve Prices Rose in 2023
                                  • Producer prices for metal valve manufacturers increased 7.8% in December compared to a year ago after climbing 11.8% and 8.5% in 2022 and 2021, respectively, according to the US Bureau of Labor Statistics. The rise in producer prices extended an upward trend that began as the US manufacturing sector rebounded from pandemic-induced supply chain disruptions. Employment by the industry grew 1.5% in 2023 through November, closing in on pre-pandemic levels, BLS data show. Sales for the US metal valve manufacturers industry are forecast to grow at a 0.27% compounded annual rate from 2023 to 2027, slower than the growth of the overall economy, according to the Interindustry Economic Research Fund.
                                  • Nearshoring is on the rise as global companies adopt a more regional approach to manufacturing and selling, according to a new survey from Accenture. The survey of 1,230 senior executives across 14 countries and 11 industries found that 85% of companies plan to manufacture and sell most of their products in the same region in 2026. In the US, 91% of companies intend to accomplish this, up from 52% today. Regional sourcing and production are important because they make companies less vulnerable to disruption. Mexico, with its easy access to the US market, is the primary beneficiary with manufacturing there soaring. Global consulting firm AlixPartners notes the nearshoring trend has accelerated in recent years due to the passage of new regulations and legislation in the US, including the CHIPS Act, Infrastructure Investment and Jobs Act, Inflation Reduction Act, and the Build America, Buy America Act among other factors.
                                  • Exxon Mobil’s megadeal for fracking operator Pioneer Natural Resources (PNR) is a big bet on the future of the US oil and gas industry – a major customer industry of metal valve manufacturers – The Wall Street Journal reported in October. Exxon Mobil’s $60 billion bid for PNR, if successful, will cement its status as the dominant player in the US fracking industry and is expected to set off a period of consolidation in the industry as rivals, including Chevron and ConocoPhillips, look for acquisition targets among US shale producers. Exxon’s bid for PNR is the largest oil-and-gas deal in two decades and a signal that the world’s largest oil and gas company expects demand for fossil fuels to linger for decades, despite the shift to clean energy.
                                  • The use of polyvinyl chloride (PVC) plastic pipes in drinking water systems may pose a health risk to humans, warns a new report from the environmental group Beyond Plastics. The report – The Perils of PVC Plastic Pipes – urges public officials against using PVC in community drinking water pipes and criticizes the Environmental Protection Agency for not issuing guidance on which pipe materials should be used for municipal drinking water projects. Low-cost PVC has become a popular option for replacing old drinking water pipes and, in particular, the lead pipes and service lines that carry their own public health risks. The Biden administration in 2021 allocated $15 billion through the EPA's Drinking Water State Revolving Fund for states and municipalities to replace lead service lines. The data on the safety of PVC plastic piping raises serious concerns about replacing metal pipes with PVC plastic pipes, per the report.
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