This is a part of the 2014 Distribution Trends Report. The annual report was researched and written by MDM editors based on interviews with dozens of wholesaler-distributors, as well as industry experts and manufacturers. MDM also conducted a survey of its readers to uncover the trends outlined in this report.
2014 Distribution Trends Report
Industrial PVF distribution sector growth continues to be driven by the ongoing shale oil and gas industry and the infrastructure put in place to support that. New pipelines are being built to support new and increasing supplies of oil and gas from the shale plays. Only three countries produce more oil that the U.S.: China, Russia and Saudi Arabia. And the U.S. is poised to surpass China soon, according to Toby Mack, president and CEO of the Energy Equipment and Infrastructure Alliance. As such, even more new infrastructure will be required to support the growth in this area.
Legislation around improving infrastructure is accelerating replacement of aging pipelines. According the MRC Global’s 2013 annual report, about 63 percent of existing U.S. pipelines fall into the category of needing to be repaired. These initiatives “have results in growth in one of our highest margin product lines,” the report says.
Energy efficiency initiatives involving PVF offer opportunity to distributors. Using the right pipes, valves and fittings can play a big role in reducing energy costs in buildings, according to distributors in this sector.
A focus on safety and energy security is increasing demand for more effective and efficient flow control capabilities.