Pederson Bros Inc - Bellingham, Washington, United States

The US metal valve and pipe fitting 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, Tyco International, 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.

The global industrial valves and pipe fittings market is valued at about $50 billion. By 2015, the world market for industrial valves is expected to reach more than $70 billion, according to Global Industry Analysts. Top countries for valve production include China, Germany, Italy, and the UK. Top manufacturers based outside the US include IMI (UK), Kitz (Japan), and KSB AG (Germany).

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 more than $300,000.

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

Leading import sources for the US ...

• State job growth rose 1.5% in February 2012 from a year ago; national job growth rose 1.6%
• State unemployment averaged 9.2% in February 2012; the national average was 8.3%
• Personal income rose 5.1% to $306.9 billion in Q4 2011 from a year ago.
• Tax revenue increased 1.6% in Q4 2011 from a year ago.
• Exports rose 33.4% to $9.8 billion in the first two months of 2012 from a year ago.
• Venture capital investment in WA fell 35.3% to $88.0 million in Q4 2011 from a year ago.