Industrial and Fluid Power Valve Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The Industrial and Fluid Power Valve Manufacturing industry produces a variety of valves for use in a number of industrial and manufacturing industries. Because of its close relationship with these customers, the industry suffered alongside them during the recession and has experienced a degree of recovery since. The threat of cheaper imports still looms, though, and the best-positioned domestic firms are those that produce high-quality, specialized goods for specific markets. For these reasons, industry research firm IBISWorld has added a report on the Industrial and Fluid Power Valve Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Demand fell sharply during the recession as industrial production stumbled

The US recession highlighted the strong interdependence between the Industrial and Fluid Power Valve Manufacturing industry and the health of industrial production industries. According to IBISWorld industry analyst Nima Samadi, “The recession's impact became clear in late 2008 and especially in 2009, when revenue and demand suddenly fell.” Because of this period of poor performance, industry revenue is estimated to have declined at an annualized rate of 2.1% during the five years to 2012. Conditions rebounded in 2010 and 2011, and in 2012, revenue is expected to grow.

Industrial and fluid power valve manufacturers rely on several key industries to buy their products, including industrial production industries; chemical and petrochemical industries; and water and waste systems industries. “As the recession spread throughout the economy,” Samadi says, “the industrial production index plunged in 2009 with the largest single-year drop in several decades.” This was one of the largest contributors to the severe decline in revenue that domestic valve manufacturers experienced in 2009, though industrial production slowly improved thereafter. Chemical and petrochemical manufacturers also faced declining demand during the recession due to increased import competition and lower demand from downstream industries; however, conditions have improved from 2010 to the present. Despite recession-related declines, some market segments have performed well throughout the recession. Stimulus funds and demand from the maintenance and repair of existing piping allowed the water and wastewater systems segment to grow. Also, with oil prices creeping upward again in 2012, demand from petroleum customers has spiked. The Industrial and Fluid Power Valve Manufacturing industry is composed of a large number of small firms; the four largest companies, including major player Tyco International Inc., account for less than a third of total industry revenue.

Many industrial and fluid power valves have become standardized, causing pricing to become the primary basis of competition. This development favors foreign manufacturers; as a result, imported goods satisfy an increasing amount of the domestic market. Industry imports are expected to have grown at an average annual rate of 6.8% in the five years to 2012. As globalization increases, foreign imports will threaten the viability of domestic manufacturing. As downstream industries recover from the recession, demand is set to increase. During the five years to 2017, revenue is forecast to grow. Domestic manufacturing growth will also be driven by rising demand for computer-controlled and -integrated valves and greater demand for fluid power valves from the aerospace sector. For more information, visit IBISWorld’s Industrial and Fluid Power Valve Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

Firms in these industries manufacture industrial and fluid-power valves, assemblies, couplings and fittings. Primary end users of industrial valves include water works and municipal water systems. Plumbing fixtures, trim and other miscellaneous metal valves and pipe fittings (e.g. water traps, elbows, nozzles and unions) are excluded.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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