Despite the current difficult global political environment, the German industrial valves sector has made a good start to 2022. Domestic business increased by 4 per cent in the first half of the year. Foreign sales even increased by a strong 17 per cent. Overall, sales in the first six months were 12 per cent higher than in the same period of the previous year.
"Even though the general conditions are anything but favorable in view of the war in Ukraine and the ongoing supply and material bottlenecks, the valve industry has so far been able to decouple itself from the weakening economy," says Wolfgang Burchard, Managing Director of the VDMA Valves Association, assessing the current situation.
Part of the growth is due to the backlog of orders from last year, which is gradually being reduced. However, German valve manufacturers are often doing well even in challenging times thanks to their broad sales spectrum.
"As component suppliers, we offer a wide range of solutions for a sustainable and more digital future. The trendy topic of hydrogen, for example, has long since ceased to be uncharted territory for the valve industry. ACHEMA, the world's leading trade fair for process technology, which starts today, offers the ideal platform for a showcase of our industry's comprehensive product portfolio," emphasizes Burchard.
The VDMA Valves Association will be represented at ACHEMA on the VDMA joint stand of the Process Technology Forum in Hall 8 A 23.
ALL SEGMENTS RECORD SALES GROWTH
All product groups developed positively in the first half of the year. However, control valves and safety and monitoring valves again performed better than shut-off valves. Domestic sales of control valves grew by 6 per cent and international business by 21 per cent. In the case of safety and monitoring valves, domestic sales climbed by 5 per cent and foreign sales by 22 per cent. Shut-off valves recorded a sales increase of 2 per cent in Germany and grew by 12 per cent abroad. Currently, according to VDMA figures, incoming orders in all three sectors are up on the same period last year.
EXPORTS RISE DESPITE OBSTACLES
The export business, which last year recovered quickly from the Corona-related decline in 2020, remained on course for expansion in the first half of 2022. Industrial valves worth around 2.3 billion euros were exported in the period January to June 2022. This represents an increase of 4.9 per cent compared with the first half of 2021.
However, export business with China, the most important trading partner, declined significantly as a result of the long lockdown phases in the country. A total of 282.4 million euros worth of valves were shipped to the People's Republic. By contrast, exports to the USA, the second most important customer country, climbed by a strong 24.2 percent to 224.4 million euros. Exports to France increased by 4.4 per cent. The country continues to hold third place among the most important sales markets with a volume of 138.7 million euros.
For the first time in a long while, the United Kingdom stood out positively among the most important customer countries. Exports to the UK rose by 15.7 per cent to 100 million euros. Switzerland also saw a significant increase in shipments, up 14.3 per cent. Exports reached a level of 85.4 million euros.
GOOD PROSPECTS FOR OIL AND GAS
The still well-filled order books of the German valves industry indicate that sales will continue to increase in the coming months. However, in view of the international economic slowdown, a slowdown in growth is to be expected. While prospects in the oil and gas industry remain good worldwide, the outlook for the chemical industry has clouded over. Material bottlenecks combined with extreme cost increases are also slowing down business.
"Trend topics such as digitalization, sustainability and hydrogen are creating new sales opportunities for our member companies. Despite the current uncertain situation, we are therefore optimistic and expect sales in the German industrial valves sector to increase by 7 per cent in 2022," predicts Wolfgang Burchard.-OGN