September 3, 2019
Dear sirs or madams,
Enclosed you will find the current press release of the VDMA Valves Association on "Industrial Valves".
We would be pleased about a publication and a corresponding notification or a specimen copy.
Industrial valves: Confidence despite difficult waters
• Weak start to the year 2019
• China and USA remain the most important sales markets
• Slight increase in sales expected for 2019
Frankfurt, September 3, 2019 - The global economic downturn is also noticeable in the industrial valves sector in the first half of 2019. After two very successful years, German manufacturers of industrial valves had to content themselves with a meagre increase in sales of 1 percent. While domestic sales even declined by 2 percent, foreign sales increased by 3 percent. The euro zone in particular contributed to the positive result with an increase of 4 percent. Outside the euro zone, the increase in sales was only 2 percent.
Shut-off, control and safety valves with different signs
In contrast to the previous year, the individual product groups developed very differently in the first half of the year. While control valves grew by 8 percent, business with shut-off valves stagnated and sales of safety and monitoring valves even shrank by 7 percent.
"In view of the emerging global downturn, the weak growth in the first half of the year is hardly surprising. Especially since major sales markets, such as the chemical industry, have recently significantly revised their forecasts downwards," comments Wolfgang Burchard, Managing Director of the VDMA German Valve Manufacturers Association, on the current situation. "Nevertheless, the sector is still holding up well compared to other branches of mechanical engineering and a 7 percent increase in orders in the first half of the year gives reason to hope that business will pick up in the second half of the year.
China and USA remain key target markets
In the first six months of 2019, German industrial valve manufacturers delivered goods worth 2.2 billion euros abroad. This corresponds to an increase of 3.3 percent compared to the previous year. The foreign business benefited above all from the still surprisingly robust demand from China, the strong economy in the USA and the good demand from some European countries.
China has traditionally been the most important customer for German industrial valves. However, the USA has been able to continuously expand its position as the second most important customer country in recent years. This development is also a result of the resurgence of the American chemical industry in the wake of the shale gas boom.
Exports to China rose by 5.0 percent to 260 million euros in the first half of 2019. After years of high growth rates, the world's largest chemical producer is confronted for the first time with a slowdown in demand. Exports to the United States increased more strongly. German exports to the USA increased by 9.5 percent to 216 million euros. France was also the destination for significantly more valves than in the previous year (+9.7 percent). With a purchase volume of 121.6 million euros, the country maintained its position as the third most important sales market.
Forecast 2019: plus 2 percent
In Germany and Europe, indications of an economic downturn are currently becoming more concentrated. The outcome of the trade disputes between the USA and China is likely to be decisive for further development in the important Chinese market. If the conflict escalates, the economy in China and in the region's closely interwoven economies will continue to grow at a slower pace until further notice. At the same time, the threat of hard Brexit and the government crisis in Italy are dampening prospects in Europe. Manufacturers expect growth impulses in the coming months, particularly in the food industry, oil & gas, pharmaceuticals and cryogenic technology sectors. "The significant improvement in the order situation in recent months following the weak phase at the turn of the year suggests that the industry economy will brighten slightly in the coming months. Against this backdrop, we continue to expect a moderate sales increase of 2 percent," summarizes Wolfgang Burchard.
Kind regards, Inga Kelkenberg
Письмо ВДМА в журнал ТПА 3 сентября 2019 г.