Industry Analysis & Industry Trends
Pressure from downstream markets, such as construction and industrial manufacturing, has negatively affected this industry in recent years. Therefore, as these markets recover, demand for valves is set to improve. Rising competition from low-cost imports will threaten the industry over the next five years. But on the bright side, the industry is increasing its exports to oil-producing nations, which will grow revenue... purchase to read more
Industry Report - Industry Investment Chapter
The Valve Manufacturing industry requires a high level of capital investment. The cost of new plants and equipment is significant, and product innovation necessitates regular investment in new technology. On the other hand, a minimum amount of skilled labor is needed to manufacture metal products. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld estimates that for every dollar spent on labor in the industry, $0.37 will be spent on capital. Manufacturers convert steel into low-value items through the use of high-volume mechanized production line facilities. The industry's production processes rely on large-scale investment in capital equipment rather than labor... purchase to read more