How U.S. Pumping Equipment Manufacturers are Faring in the Global Economy

2 MIN. READ

Pumping equipment manufacturers in the global market have been affected by many factors both positive and negative.

This article will take a look at some of these factors and their effects on the industry.

Positive Growth from Specific Industries

Industries such as manufacturing, oil, gas and water treatment all rely heavily on pumps and their related accessories.

The oil and gas industry, for example, uses several types of pumps to facilitate the drilling, transportation and refining of crude oil.

Wastewater left over from hydraulic fracturing has to be pumped through treatment systems while refining operations would cease if it was not for transfer, diaphragm and petrochemical pumps.

With a 36% increase in oil and gas profits over the last year, the need for pumps in this industry is not likely to slow down anytime soon.

Clean drinking water is something that many areas of the world still lack. By 2025, nearly 2.8 billion people are expected to suffer from some level of water scarcity. In an effort to get clean water to these individuals, advanced water treatment and recycling methods are being adopted by governments and NGOs.

All of the technologies in use require the use of various types of energy-efficient pumps to function. Considering the vast number of people who will need fresh water, pump sales can be expected to rise along with the adoption of treatment technologies.

High International Distribution

According to MNI, compiler and publisher of the industrial data that powers IndustryNet, the industry itself is made up of a relatively small number of companies, with a total of 1,033 companies. Total employment in the industry is currently at 42,864 people, representing a 1.38% increase in jobs over the previous year.

Across the industry, 6% of companies reported an increase in employment, compared with only 4% for the entire manufacturing sector, says MNI.

The demand for pumps has helped maintain sales despite the negative effect of tariffs. Recent data shows that the year-to-year average sales increase has stagnated at 0.37%.

Part of the reason for this is a very high international distribution rate. Despite this lack of growth, average sales for the pumping equipment industry are still in excess of $30.3 billion.

Pumping equipment manufacturers exceed the overall manufacturing industry's average for international distribution. Up to 48% of pumping equipment is distributed internationally compared with just 29% for the industry at large.

Their use of imported raw materials is also above average, coming in at 20% compared to 11% for the sector. Being so heavily involved in international trade and commerce has obviously had an effect on total sales in the midst of the current trade war with China.

Pump Company Placement

Geographically, pumping equipment firms are mostly concentrated in the South, with 418 companies - 40% of the industry total - calling this area home.

The next most populous region is the Midwest with 28%, which is nearly even with the sector average for this area of the country.

Finally, the Northeast and West are almost evenly tied with 14.4% and 17.2% respectively.

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 Article Sources:

https://oilprice.com/Energy/Crude-Oil/Oil-Gas-Industry-Leads-Forbes-Profit-Growth-List-In-2019.html

https://www.watertechonline.com/providing-clean-water-to-the-developing-world/

http://www.worldpumps.com/waste-wastewater/features/wastewater-treatment-technology-for-developing/

https://www.verderliquids.com/int/en/industries/industrial-positive-displacement-pumps/

https://www.manufacturingchemist.com/news/article_page/Peristaltic_pumps__advantages_and_applications/74693

https://www.daepumps.com/resources/types-refinery-pumps-used-oil-gas-downstream-operations/

https://www.xylem.com/en-us/industries-applications/municipal-water-wastewater/

https://www.prnewswire.com/news-releases/global-water-pumps-market-forecast-and-opportunities-2019-274001301.html