Despite a weakening economy in Germany, the industrial valves sector is still moving in positive waters. In the first half of 2023, the companies succeeded in generating a nominal increase in turnover of 8 percent despite the difficult situation in some sales industries such as the chemical industry. Domestic business climbed by 12 percent. Foreign turnover increased by 4 percent. Adjusted for prices, however, the 8 percent growth in turnover corresponds to a decline of 2 percent.
“As was already the case last year, sales growth in the first half of 2023 is largely due to inflation. In view of the still rather weak economy in Germany and Europe, the industry is finding it increasingly difficult to stay on course”, says Dr Laura Dorfer, Managing Director of the VDMA Valves Association, assessing the current situation. “We are optimistic about the future because the valve industry is basically well positioned and also offers the right solutions for future issues such as climate protection. However, bureaucratic obstacles and the lack of skilled workers are currently causing problems for our members, so that the potential cannot be fully exploited.”
High demand for safety and monitoring valves
Supply bottlenecks and inflation are expected to ease further in the course of the year. However, many customer industries are unsettled due to the weak economy and are reluctant to tackle major investments. “Against this background, we expect growth to weaken in the second half of the year and calculate only a nominal increase in turnover of 5 percent for 2023 as a whole”, predicts the trade association's managing director.
All product groups achieved an increase in turnover in the first half of the year. But here, too, the development, which at first glance seems pleasing, was driven by inflation. Safety and monitoring valves were again the best performers, with a nominal increase in sales of 14 percent at home and abroad. Shut-off valves recorded a sales increase of 9 percent and control valves a plus of 2 percent. For shut-off and control valves, the domestic business performed better than the foreign business. According to VDMA figures, although incoming orders in all three sectors are up on the same period last year, there are signs of a slowdown in growth in the second half of the year.
Strong export figures
In the first half of 2023, German valve manufacturers were again successful abroad. Industrial valves worth around 2.6 billion euros were exported abroad. This corresponds to a nominal increase of 9.5 percent compared to the same period last year. In real terms, the increase is only 0.7 percent.
Exports to China, the most important customer country, which had fallen by 6.8 percent last year, increased by 5.7 percent to 296.8 million euros in the first half of 2023. The export business with the second most important trading partner, the USA, continued the success of the previous year and climbed again by a strong 20.9 percent. Exports thus amounted to 274.2 million euros.
Exports to France increased by 16.3 percent at the same time. The country continued to hold third place among the most important sales markets with a volume of 169.6 million euros. With a remarkable increase in exports of 32.1 percent to 95.0 million euros, the Czech Republic was again the 10th most important customer.
