ARC Predicts Control Valve Market Recovery in 2011

According to ARC Advisory Group, the issues control valve suppliers face in 2009 are very different from those they faced in 2008. In 2008, suppliers struggled to meet customer demand due to the extremely robust growth occurring in developing markets, stretching their manufacturing capacities and pushing order backlogs to new highs.

In stark contrast, in 2009, control valve suppliers face precipitous drops in control valve orders and declining backlogs. The worldwide market for control valves will decline over the next two years but is expected to rebound in 2011 according to the ARC Advisory Group study.

The dynamics of the global control valve market have changed dramatically as a result of the current global recession. “Over the previous four years, all of the control valve suppliers benefitted from rapid growth in the market. The more aggressive companies, pursuing new business, grew even faster. With the onset of the global recession, however, control valve suppliers once again find themselves competing over a dwindling pool of opportunities.

As a result, the ability to go out and acquire new business remains crucial, but holding on to the existing installed base of customers is now more important than ever for control valve suppliers,” according to Senior Analyst David Clayton, the principal author of ARC’s “Control Valve Worldwide Market Outlook.”