NEWS RELEASE SEPTEMBER 2012
Valve Industry Expecting Greater Growth Than Predicted by McIlvaine
The McIlvaine Company is projecting an annual growth rate of 4.2 percent for the industrial valve industry over the next three years. This is about one percent lower than forecasts generated by the valve companies and their analysts. This is the conclusion just posted in the McIlvaine Industrial Valves: World Markets.
The McIlvaine Company is forecasting growth for the industrial valve industry of 4.2 percent this year and similar growth in succeeding years.
|
Year |
Revenues $ Billions |
Growth % |
|
2012 |
51.3 |
4.2 |
|
2013 |
53.4 |
4.1 |
|
2014 |
55.7 |
4.3 |
This contrasts to the forecasts published by the publicly held valve companies and the analysts who follow these companies. Here are forecasts for five companies among the largest twenty:
Valve Rankings and Corporate Sales ($ Millions)
|
Ranking |
Company |
2011 Valve Sales |
Corporate Sales |
|||||
|
2012 |
2012 % Increase |
2013 |
2013 % Increase |
2014 |
2014 % Increase |
|||
|
1 |
Tyco International |
2,160 |
18,015 |
3.80% |
18,942 |
5.15% |
19,852 |
4.80% |
|
3 |
Kitz |
931 |
1,383 |
2.29% |
1,431 |
3.47% |
1,530 |
6.92% |
|
9 |
Rotork |
610 |
800 |
13.80% |
861 |
7.63% |
924 |
7.32% |
|
10 |
KSB |
596 |
2,558 |
8.67% |
2,670 |
4.38% |
2,795 |
4.68% |
|
17 |
Weir Group |
373 |
4,102 |
14.42% |
4,320 |
5.31% |
4,455 |
3.13% |
Tyco is the largest valve company (merging with Pentair). Valve sales in 2011 were $2.16 billion. Corporate sales are predicted to rise 3.8 percent in 2012. Kitz valve sales according to McIlvaine analysis were $931 million in 2011 making them the third largest industrial valve supplier. Corporate sales in 2012 are projected by the company and its analysts to reach $1.38 billion for an increase of 2.2 percent. 2014 revenues of $1.5 billion are projected. This would be an increase of close to 7 percent over the projected 2013 forecast.
The differences between the McIlvaine forecast and the aggregation of the forecasts of the individual companies are less than they seem. McIlvaine forecasts are in constant 2010 dollars. Many of the corporate forecasts are in actual dollars including inflation. The growth of the publicly held companies often includes acquisitions. So the acquiring companies on the whole will grow faster than the industry.
The company forecasts are for all products and not just valves, so this is another variable.
For more information on Industrial Valves: World Markets http://www.mcilvainecompany.com/brochures/water.html#n028
