The growth in demand for oil & gas valves will likely soften in light of rising interest rates, strong inflationary pressures, and fluctuations in global currencies. The emerging need for renewable energies and other non–oil & gas industries will add some pressures on production capacities. Recent merger and acquisition (M&A) activities have reduced the number of suppliers, lowering competitive intensity in the marketplace. Cost inflationary pressures from raw materials and parts will subside on improved availability because original equipment manufacturers (OEMs) divert procurement resources, taking raw materials from a variety of suppliers. Pricing momentum since 2022 has eased, marking a great opportunity for clients to acquire valves in 2023.
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