This category covers establishments primarily engaged in manufacturing industrial valves. Establishments primarily engaged in manufacturing fluid power valves are classified in SIC 3492: Fluid Power Valves and Hose Fittings; those manufacturing plumbing fixture fittings and trim are classified in SIC 3432: Plumbing Fixture Fittings and Trim; and those manufacturing plumbing and heating valves are classified in SIC 3494: Valves and Pipe Fittings, Not Elsewhere Classified.
Industry Snapshot
A valve is a device designed to regulate the flow of a gas, liquid, slurry, or dry material through a pipeline or a chute. Valves not only regulate the flow of material but also the rate, volume, pressure, and direction of the flow. The Valve Manufacturers Association observes that valves are basic yet indispensable items in our society; they are required in "virtually all manufacturing processes and every energy production and supply system." Today's valves are made from a variety of materials and range in complexity from simple to highly sophisticated. They range in size from a fraction of an inch to more than 30 feet in diameter, and they can handle pressures ranging from a vacuum to more than 20,000 pounds per square inch, as well as temperatures ranging from cryogenic extremes to more than 1,500 degrees Fahrenheit.
In the late 1990s, according to the U.S. Bureau of the Census, 427 companies were engaged in the manufacture and distribution of industrial valves in the United States. In 2000, the industry employed a total of 52,707 individuals, of which 34,741 were production workers. Total payroll for the industry was $2.01 billion, and total payroll for production workers was $1.11 billion. In 2000 the average wage for the industrial valve industry was $15.07.
The Valve Manufacturers Association of America totaled the value of industrial valve shipments at $3.08 billion in the late 1990s. This was down from a total value of $3.11 billion in the middle of the decade.
Compared to other manufacturing industries, the industrial valves segment was both labor and capital intensive. High-tech equipment was used in researching, designing, manufacturing, and testing products. Comparative ratios of employees, production workers, wages, and hours worked per establishment were much higher than in other manufacturing industries. Cost, shipments, and investment per establishment were also higher than the manufacturing average.
The U.S. valve industry was segmented, with several large companies making a wide variety of valve products but with the majority of industry players being small and medium-sized companies focusing on a particular market niche. Throughout the late 1990s acquisitions and mergers in the industry focused on expanding product lines, increasing sales, and providing long-term viability for companies. The industry was also experiencing shrinking demand for traditional cast iron valves and fittings but growing demand for high technology products, especially automated valves. According to Wendy E. Jovan, a research analyst for the Freedonia Group, and Stanton G. Cort, a Case Western Reserve University marketing professor, the investment in technology necessary to produce these advanced valves exacerbated the capital intensive nature of the industry.
