US Pumps Demand to Reach $7.6 Billion in 2007

This represents a dramatic improvement from the 1997 to 2002 pace, primarily due to the improved outlook for most pump-using industries.

In addition, gains will be supported by continuing healthy aftermarket prospects among process manufacturers, particularly in the chemical, petroleum refining, and pulp and paper industries because of the harsh fluids handled in these markets. The introduction of new and better performing pumps will also boost growth. However, to the extent that the new pumps have longer lives, these improvements can also work to limit demand for replacement parts. In addition, value gains will be restrained by competition, primarily from imports but also among the various types of pumps.

These and other trends are presented in Pumps, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Process manufacturing industries will remain the largest market for pump products, given the wide range of applications and significant fluid handling requirements in these industries. In addition, this sector is expected to see the fastest advances of any major pumps market through 2007. Growth will benefit from increasing output in most of these markets, with particularly strong gains in chemical and pharmaceutical output and a strong turnaround in primary metals. Among the other major sectors, utilities are also expected to see above average gains in pump demand, benefiting from growth in capital expenditures by utilities providers, particularly waterworks and natural gas pipelines. The smaller resource extraction and construction sectors are expected to see more modest gains, though growth in each sector is expected to outpace their respective 1997 to 2002 performances.

Centrifugal pumps will continue to be the most commonly used type, due to their wide pressure and load handling capability, including the ability to handle liquids with a high solids content and relatively low maintenance costs. Technological innovations in corrosion- and abrasion-resistance, downsizing and versatility, combined with continued development of sealless centrifugal pumps, will drive demand. Among the major pump types, demand for positive displacement pumps will increase the fastest, benefiting from the improved outlooks for most process industries, which are important users of these pumps.

Pumps (published 12/2003, 288 pages) is available for $3,900 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff (by phone ++1 440.684.9600, fax ++1 440.646.0484 or e-mail pr@freedoniagroup.com ). Information may also be obtained through the Freedonia web site.