Industry Analysis & Industry Trends
Valves play a crucial role in the modern economy. They are used in taps, dishwashers, air conditioners and gas ovens as well as in the oil, gas, manufacturing, construction, energy and water industries. The United Kingdom accounts for a relatively small percentage of the global valve market, but has a significant role in some segments. International trade has a substantial influence on industry performance as exports account for a major share of revenue, while imports satisfy a large share of domestic demand. However, the value of imports and exports are artificially inflated by re-exports.
As domestic demand conditions strengthen during the year, the UK operations of tap and valve manufacturers are expected to generate revenue of £1.6 billion in 2015-16, an increase of 1.2%... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity is determined by comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs are indicative of a high level of investment in depreciable assets, such as buildings and equipment; therefore, high capital intensity. Conversely, comparatively high wage costs are indicative of high labour intensity.
The industry has a low level of capital intensity with a capital-to-labour ratio of 1:8.14 in 2015-16. This indicates that for every £1.00 spent on capital, £8.14 is spent on labour. Capital costs are low due to the relatively low use of volume production line methods. On the other hand, labour costs are reasonably high... purchase to read more