Tapped out: Weak domestic demand and increasing imports has revenue running low.
London, United Kingdom (PRWEB) June 24, 2013
Most people do not realise that valves play a crucial role in the modern economy. Everyday uses include taps, valves in dishwashers, air conditioners and gas ovens. The big uses for valves are in the oil, gas, chemical processing, manufacturing, energy and water industries. The UK Tap & Valve Manufacturing industry accounts for a relatively small percentage of global valve market, but has a significant role in some segments.
According to IBISWorld industry analyst Iyman Uvais, “The total UK market for taps and valves will be worth an estimated £1.2 billion in 2013-14.” Imports account for a large share of domestic demand, while exports account for a significant chunk of revenue. However, the value of imports and exports are artificially inflated by re-exports. The UK operations of tap and valve manufacturers are expected to generate revenue of £1.2 billion in 2013-14, an increase of 2.3% on the previous year, as domestic conditions improve marginally during the year. Over the five years, industry revenue is expected to decrease at a compound annual rate of 6.9%. The decrease in industry revenue over these five years is attributable to weak domestic demand and rising import penetration that was only partially offset by export growth. Domestic demand was adversely affected by weak industrial and construction sectors and weak levels of investment.
The Tap & Valve Manufacturing industry displays a low level of concentration due to the diverse range of products it manufactures. Concentration within the industry has increased in recent years, following the acquisition of smaller players by international players and industry exits. However, industry concentration varies considerably according to product line. Globally, the industry is fragmented with the four largest manufacturers of industrial valves accounting for less than 20% of the global market. The only major company in the industry is Pegler Yorkshire Group.
Industry revenue is forecast to increase over the next five years. Industry activity will be promoted by an increase in domestic demand. Meanwhile, exports are also forecast to increase over the coming period and support industry growth. “However, imports are expected to increase their share of the local market and constrain industry growth,” adds Uvais. Increased spending on water and power infrastructure in the United Kingdom and globally, and increased spending on oil and gas fields globally will be factors promoting sales of valves.
For more information on the Tap & Valve Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry includes the manufacture of sanitary taps and valves, the manufacture of heating taps and valves, and the manufacture of industrial taps and valves (including regulating valves and intake taps). A valve is a device that can be used to control the flow of liquids, gases and slurries. There are a number of different designs for valves, depending on how they are being used.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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