Chapter 6 - End-user markets

Abstract

This chapter focuses on the main end-user markets for industrial valves, highlighting trends and developments in the market. There are no major changes predicted for the end-user industries during the forecast period from 2002 to 2004 with the water and wastewater, chemical, oil and gas, power generation, and pulp and paper industries accounting for around 85% of valve shipments. The water supply and wastewater treatment industry continues to provide a growing market for industrial valves. Apart from the needs of increased water supply to cater to a growing population, particularly in developing countries, concern over water quality and stricter regulation of environmental resources is driving the market for water and wastewater treatment equipment in many countries around the world. The United States is the largest water and wastewater utilities market in the world, with the industry being driven and regulated by the Clean Water Act of 1972 and the Safe Drinking Water Act, which was re-authorized in 1996. Meanwhile weak demand, increasing feedstock costs in 2002, the Iraq war and its aftermath, and a further rise in feedstock costs in 2003 have reduced profit margins at chemical companies and led to reductions and/or delays in capital spending, which has impacted valve manufacturers and suppliers.