VDMA valves association market analysis: Industry standstill looms after a strong 2024
The industrial valves industry performed better than expected in 2024 despite adverse conditions. Overall, nominal sales growth of 6 percent was achieved. While domestic business declined by 1%, international sales climbed by 11%. Adjusted for price effects, however, the 6% growth in turnover corresponds to stagnation at the previous year's level.
Sales growth thanks to overseas. “Sales growth in 2024 is pleasing, but it was mainly supported by strong demand in China and the USA. In Germany and Europe, business was rather sluggish due to the weak economy,” comments Dr. Laura Dorfer, Managing Director of the VDMA Valves Association, on the current situation. “Many companies are working off existing orders, but new orders - including from abroad - are declining. Against this backdrop, we are only expecting stagnation in 2025.”
“The valves industry is well positioned for key future issues such as the energy transition, hydrogen, clean water and the circular economy,” emphasizes Axel Weidner, Chairman of the German Valves Association and shareholder of Mankenberg GmbH. “As a European brand manufacturer, we stand for quality and score points in international competition. However, conditions in Germany have recently deteriorated increasingly. Important customer industries such as energy and the chemical industry are under pressure. At the same time, a flood of regulations and a shortage of skilled workers are putting a strain on our industry, which is dominated by SMEs. The new German government urgently needs to take political measures to ensure that we can continue to operate successfully in the future.”
Decline in orders clouds expectations. Shut-off and safety and monitoring valves performed best in 2024 with a nominal increase in turnover of 7%. Control valves recorded a 3% increase in sales. In all segments, foreign business performed better than domestic business. The outlook for control and safety and monitoring valves is more positive than for shut-off valves. Overall, according to VDMA figures, incoming orders were 5% down on the previous year in real terms.
Top export market China returns to growth path. In nominal terms, exports by German valve manufacturers increased again slightly in 2024 after a good previous year. In total, industrial valves worth around EUR 5.2 billion were exported abroad, an increase of 0.8% compared to 2023. Exports to China, the most important customer country, recovered significantly in 2024.
After declines in the two previous years, they climbed by 19.8% to EUR 677.6 million in 2024. Exports to the second most important trading partner, the USA, increased by 1.0%. Exports thus amounted to 542.7 million euros. Exports to France, on the other hand, fell by 6.7% at the same time. Nevertheless, the country remained the third most important sales market with a purchase volu
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