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U.S. industrial valve demand to exceed $16 billion in 2011

Cleveland, OH -- Demand for industrial valves in the United States is forecast to rise 3.2% annually through 2011 t...


Cleveland, OH — Demand for industrial valves in the United States is forecast to rise 3.2% annually through 2011 to more than $16 billion (all figures in US$). Although this pace represents a deceleration from the 2001-2006 period, the slowing growth will be the result of moderation in growth in unit prices. In inflation adjusted terms, demand for valves will strengthen through 2011.

Valve prices rose substantially between 2001 and 2006 due to rising raw material costs for primary and fabricated metals as well as plastic resins. Raw material prices are expected to moderate through 2011, reducing price pressure for valves.

Original equipment demand comprises two-thirds of the total market, and will be supported by a positive outlook for the production of durable goods as well as non-residential fixed investment.

These and other trends are presented in Industrial Valves, a new study from The Freedonia Group Inc., a Cleveland-based industry research firm.

Because of their heavy fluid handling requirements, the process industries and utilities sectors are the dominant markets for valves. The construction market is projected to see the fastest gains through 2011, with valve demand rising 5.7% annually. Gains in this market will be supported by an increase in non-residential building construction expenditures.

The public utilities market will also see fast gains, with valve demand rising 3.6% per annually to $5.1 billion. Strong growth in utilities construction, particularly of power generation facilities, will fuel valve demand in this market.

Steel and steel alloys will remain the dominant valve construction materials, owing to their good performance in high temperature, high stress applications. Due to their durability and versatility of application, steel and steel alloys accounted for 47% of all valve shipments in 2006.

Trade will continue to play an important role in the valve industry. Through 2011, imports are expected to grow slightly faster than exports and the trade deficit will continue to rise, yet at a slower rate than during the 2001-2006 period. Imports will approach 60% of demand through 2011, while exports will represent 43% of shipments.

Both imports and exports rose rapidly between 2001 and 2006 (with imports rising faster than exports), but both are expected to level off through 2011.

Industrial Valves (published 05/2007, 257 pages) is available for $4,400 from The Freedonia Group,Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, contact Corinne Gangloff; phone 440.684.9600, e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.