If a comparison is made between the valve industry and others in regards to capital and labor intensity; it may probably be discovered that industrial valve manufacturing was the highest. The cost of the research and design involved, the sophistication of the equipment required and finally, the testing processes of the products, make for an extremely high commitment by knife gate valve manufacturers.
Within the industry today, there are several large organizations manufacturing a wide and varied range of industrial valves that are intended for use within a number of general industry applications. The major part of the valve manufacturing industry includes small to medium sized companies whose work focuses on particular specialized niche market.
During the late 1990’s, a number of valve manufacturers recognized opportunities for expansion into related and associated fields. It was perceived that as valves are constructed from various metals, including iron and steel, it would make for good business practice to invest in their own foundries. This would provide their own facilities for manufacturing the castings from which the valves originate. In addition, it would also help in making the overall manufacturing process more reliable and cost effective. It was also during this time that integrated supply programs started becoming a reality within the industry. It was found that this style of operation allowed for closer and reciprocal relationships to develop between knife gate valve manufacturers, their distributors and the end user. It provided for increased accuracy in the forecasting of usage within the valve industry.
Among with the challenges presented to the manufacturers there has been a demand for them to produce a variety of technically advanced automated valves. They are required to be activated by various mechanisms that include electric, solenoid, pneumatic, hydraulic and digital sources. Their application in respect of the valves, will involve remote or hazardous environments, for example oil pipelines in extreme climatic conditions or in nuclear power plants. Specialty products and applications such as these, while providing incentive challenges for improved developments for knife gate valve manufacturers, also necessitate large investments in research, design and materials, with the expansion into more advanced production methods.
Similar to within other industries, knife gate valve manufacturers have experienced acquisitions and mergers within their own industrial environment. They are generally made with the intention of expanding product lines, increase sales and for the provision of long term viability. Over recent years, the demand for traditional cast iron valves and fittings has reduced in favor of high technology products, with the emphasis on automated valves. The high sophisticated market level of this industry dictates that the manufacturers respond with the necessary technology, to meet user demands. The production costs of these advanced valves will again, re-enforce the capital intensity of their industry.
