Valve Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) February 27, 2015 -- Valves are essential components in a vast range of manufacturing and industrial processes and, therefore, industry performance tends to follow in line with overall economic conditions. In particular, industry sales are driven by demand from oil and gas extraction and distribution, heavy manufacturing and waterworks (wastewater treatment). “During the past five years, strong performance in these key markets has driven up demand for valves, thereby boosting industry performance,” according to IBISWorld Industry Analyst Ibrahim Yucel. Accordingly, industry revenue is anticipated to grow at an annualized 3.4% to $2.1 billion during the five years to 2015, although subdued demand from the energy sector since the oil price plunge in late 2014 will slow revenue growth to an estimated 1.0% in 2015.
Despite intense competition for low-cost imports, domestic valve manufacturers have developed a niche in the market for specialized valves, including highly customized valves that perform well in corrosive environments or high temperatures. Furthermore, Canada's unconventional oil sector has grown considerably during the past five years, boosting demand for specialized valves with applications in gas drilling and extraction, refining and transmission. Consequently, industry profitability has risen significantly over the past five years as operators have focused on specialized valves, which are typically sold at higher margins than standardized valves.
Lastly, national investments in infrastructure improvement have also bolstered demand for valves. For example, the government, at both the federal and provincial levels, has already invested over $1.5 billion in water infrastructure upgrades in just the past three years, including a new $782.7 million wastewater treatment plant in British Columbia in 2012. “These investments have boosted demand for flow control vales from the waterworks market segment, thereby driving up industry sales significantly in 2012 and 2013,” says Yucel.
During the five years to 2020, Valve Manufacturing industry revenue is forecast to grow. While imports are expected to comprise a larger share of domestic demand, which will cut into growth for the industry, domestic manufacturers with significant research and development resources will continue to focus on designing advanced valves for use in highly specialized and demanding situations. Furthermore, Canada's continued investment in water infrastructure projects will boost demand for valves and other flow control products sold by operators.
For more information, visit IBISWorld’s Valve Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures a variety of industrial and fluid power valves, hose fittings and related trimmings. Additional products include metal and plastic plumbing fixtures, such as faucets, flush valves and showerheads.
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 and Canadian 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 http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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