Metal Valve Manufacture Industry Profile

The US metal valve manufacturing industry consists of about 1,100 companies with combined annual revenue of about $25 billion. Major companies include units of integrated process control companies such as Parker Hannifin, Curtiss-Wright, and Flowserve, as well as valve manufacturers such as Crane, Watts Water, and Mueller Water Products. The industry is concentrated: the largest 50 companies generate about 65 percent of revenue.

COMPETITIVE LANDSCAPE

Demand depends primarily on the level of manufacturing and construction activity. Construction activity in the chemical, petroleum, utilities, water treatment, and housing industries is especially important. Large companies have advantages in efficiency of operations and economies of scale. Offshore subsidiaries are frequently used for low-cost manufacturing. Smaller producers compete by focusing on specialized product offerings and superior customer service. The industry is capital-intensive: average annual revenue per employee is nearly $350,000.

Metal valves compete with other materials, primarily plastics, in the residential market and with high-strength composites, fluorocarbons, and elastomers for high-end uses.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories are industrial valve applications used primarily in water works and municipal water systems (about 40 percent of US shipments); fluid power valves used in compressed or pressurized applications (30 percent); and plumbing-related valves and fixtures (15 percent). Valves control the flow of liquids, gases, slurries, or dry materials through a pipe or similar passageway, and may also control the rate of flow, volume, pressure, and direction. Some of the most common types of ...