Control Valve Shipments to Rebound During 2011
This study is intended to serve as an effective planning guide for control valve, actuator, and positioner suppliers and new entrants to the business. Control valves regulate the rate of fluid flow as the position of the valve plug or disk is changed by an actuator. Control valves are used to maintain a process variable as close as possible to the desired set point.
It appears 2010 will represent the low-point for control valve shipments when we look back on the most recent global economic crisis. Although orders increased for many control valve suppliers throughout 2010, shipments were still down on the whole. As a result of the long time-frame of new projects, there is often a lag of 6 to 12 months between a control valve supplier receiving an order and actually shipping the valve. As a result of this lag, many control valve suppliers could not fully recognize revenues associated with their new orders received during 2010.
Based on the growth of incoming orders for new project business, ARC expects a rebound to double-digit growth for control valve shipments to many of the developing countries in 2011. ARC also expects the developed regions to return to growth aftermarket businesses come back on line.
Strategic Issues
The challenge facing control valve suppliers today is finding a way to differentiate themselves and continue offering increasing value to customers. This is especially important as the market returns to positive growth. Going forward, well-planned strategies are invaluable for control valve suppliers to strengthen and expand their market foothold. The strategies highlighted in ARC Advisory Group’s Control Valve Worldwide Outlook report should be considered to enable suppliers to remain competitive, position themselves for continued success, and moderate the effects of the most recent global economic downturn.
