Despite declining domestic sales, the German industrial valves sector recorded a positive first half of 2024, driven by a strong increase in foreign business. According to a recent analysis by the German Mechanical and Plant Engineering Association (VDMA), manufacturers of industrial valves achieved an overall sales growth of 5 percent. While domestic business shrank by 5 percent, sales abroad increased by 13 percent compared to the same period last year.
Robust Export Growth Supports Industry
The robust growth abroad was able to offset weaknesses in the domestic market. According to Dr. Laura Dorfer, Managing Director of the VDMA Valves Industry Group, markets in Asia and North America proved to be pillars of support for German manufacturers. They were able to consolidate or even expand their market shares there. Successful presentations at international leading trade fairs such as IFAT and ACHEMA also contributed to the positive response.
In total, the industry exported industrial valves worth about 2.6 billion euros in the first half of 2024, corresponding to a slight nominal increase of 0.6 percent year-on-year. Shut-off valves led the field with a growth of 7 percent, followed by safety and monitoring valves with 5 percent, and control valves with 2 percent. China, the largest export market, saw a significant recovery after a decline in previous years, with exports rising by 13.9 percent in the first half of the year. While the USA remained stable as the second most important trading partner, exports to France, the third largest market, declined by 9.3 percent.
Domestic Weakness and Global Uncertainties Weigh on Outlook
Despite international successes, the industry continues to face challenges domestically. The German economy shows no signs of momentum. Key customer industries such as the chemical sector have not yet shifted back to growth, and companies are struggling with skilled labor shortages and bureaucracy. Therefore, the outlook for the second half of 2024 remains cautious. Dr. Dorfer still expects a sales growth of 4 percent for the full year.
"Currently, different risk factors are playing a role in the global markets, which also slightly cloud the outlook. We are expecting a challenging second half of the year. For the full year 2024, we are currently calculating with a revenue increase of 4 percent," said Dorfer. The VDMA sees its role in supporting companies with market development and is committed to providing positive impulses by participating in the VALVE WORLD EXPO in Düsseldorf.
