According to the VDMA annual report, sales trends on the foreign markets for industrial valves were mixed: while sales outside the eurozone fell by 4%, the industry was able to increase its sales on the European markets by 3%. Overall, international business closed 2016 with a decline of 2%. Turnover in the domestic German market was also weak. Here, sales fell by 1% compared to the previous year.

In terms of product groups, sales of shut-off valves (-4%) and control valves (-2%) declined. By contrast, sales of safety and monitoring valves increased by 1%.

Orders for 2016 are at the same level as the previous year: orders from abroad developed positively with an increase of 1%. Orders from non-euro countries were up 2% on the previous year. On the domestic market, however, the industry fell 2% short of the previous year's result.

The considerable slump in exports to China was offset by pleasing results for exports to other European countries. The Czech Republic, Austria and the Netherlands in particular recorded significant growth.

© VDMA

Growth comes from Europe

In 2016, German industrial fittings manufacturers achieved an export volume of EUR 3.6 billion, an increase of 2.8% compared to the previous year. On the list of the top 10 sales countries (see chart), France came in third place with EUR 191.5 million and an increase of 5.1%. This was due to the improved investment climate and the growing chemical industry. China and the USA took first and second place. Exports to the most important customer country for German industrial valves fell again by 11.1% to EUR 402.5 million, which the VDMA attributed to China's chemical industry. It is struggling with weak demand, inefficient production structures and a reluctance to invest. Things look better for the USA: Deliveries there recorded weak growth of 0.2% compared to the previous year. Business with Russia has slumped since spring 2014. The consequences of the sanctions in connection with the Ukraine conflict were and are clearly noticeable for the German industrial fittings industry. In 2016, sales fell by a further 17% to EUR 109.5 million.

Forecast for 2017

According to the VDMA, moderate global economic growth can be expected in 2017, which should also benefit German manufacturers of industrial valves. However, a high degree of forecasting uncertainty remains, as the range of upside and downside risks is large. Against this backdrop, the German Valves Association expects sales in 2017 to remain at the previous year's level with the prospect of slight growth in the sector.