- Valves are devices for controlling the passage of gases and liquids through pipes. A normal valve is basically comprised of a body, stem, disc, seat and other small parts such as packing, guard, gland, ring and handle.
- According to industry statistics for 1994, in Japan there were 739 firms having employees more than 40,000, but the majority of which were subcontractors doing machine work. The number of firms manufacturing and distributing their own brand was around 200. These makers generally specialized in making valves of particular kinds and quality for use in special fields.
- For about five years from 1983, the valve industry was affected by a slump in demand both in Japan and overseas and production remained low, but there was at last a recovery from 1988, when domestic demand increased and orders for exports to the Asia region in particular increased. During the bubble economy production grew and business was brisk for a while. This boom was supported by significant growth in sales of general purpose valves due mainly to the prosperity of the housing construction industry, followed by strong demand for industrial valves due to increases in demand resulting from investment in industrial plant and equipment in Japan and increases in exports due to economic development in the NIEs, and actual output in terms of value reached a record JPY508.2 billion in 1991. However, the industry suffered a recession due to a slump in demand when the collapse of the bubble economy brought this four-year boom to an end, and output collapsed. Output began to pick up from 1994, but business conditions remain severe.
- Domestic production in 1996 was the second highest ever, increasing 2.5% over the previous year to JPY503.8 billion, and the industry is on the whole in good condition. However, company profits have decreased due to a fall in selling prices, and small and medium-sized companies in particular continue to face difficulties.
- Production, exports and imports since 1993 have been as follows:
|
A:DOMESTIC PRODUCTION
|
B:EXPORTS(B/A) |
C:IMPORTS(C/A)
|
| 1993 |
JPY431.7bn |
JPY177.2bn(41.1%)
|
JPY40.7bn (9.4%) |
| 1994 |
JPY405.4bn |
JPY183.4bn(40.7%) |
JPY45.9bn(10.2%) |
| 1995 |
JPY491.4bn |
JPY202.3bn(41.2%) |
JPY55.0bn(11.2%) |
| 1996 |
JPY503.8bn |
JPY217.4bn(43.1%) |
JPY71.5bn(14.2%) |
- Exports peaked in 1982 but then a fall in demand overseas due to factors such as the deteriorating finances of underdeveloped countries and obstacles to exports caused by conflict in the Middle East followed by the sharp rise in the yen from 1985 saw exports decrease yearly, and in 1986 to 1992 exports fell to just 54% of their peak. From 1987, however, demand recovered due mainly to the growth in plant construction in Asian countries, and in 1992 exports reached a new high of JPY202.3 billion (an export ratio of 41.2%).
Exports in 1996 reached a new record level of JPY217.4 billion. This was due mainly to high demand because of plant construction in other countries and attempts by companies to boost exports to compensate for poor domestic demand by corporate restructuring and cutting production costs. Exports by country were as follows:
| USA |
JPY53.2bn |
(24.5%) |
|
Singapore |
JPY 8.6bn |
(4.0%) |
South Korea
|
JPY32.2bn |
(14.8%) |
|
UK |
JPY 7.2bn |
(3.3%) |
| Taiwan |
JPY18.0bn |
(8.3%) |
|
Indonesia |
JPY 7.2bn |
(3.3%) |
| Thailand |
JPY12.0bn |
(5.5%) |
|
Malaysia |
JPY 6.5bn |
(3.0%) |
| China |
JPY10.8bn |
(5.0%) |
|
Others |
JPY53.0bn |
(24.3%) |
| Hong Kong |
JPY 8.7bn |
(4.0%) |
|
|
|
|
- Imports have until now generally been around 10% of output in terms of value, or roughly 16% of domestic demand after exports are deducted. This figure increased to approximately 18% in the four years from 1989 to 1992, and the yen appreciated rapidly. In 1993 there was a fall to 15%, but exports recovered and rose to 19% in fiscal 1995 and 25% in fiscal 1996. Imports have increased as along with the appreciation of the yen, users have imported cheap general purpose valves from Taiwan, China and South Korea when quality and performance match Japanese-made products.The value of imports in 1996 was up 30% over the previous year at JPY71.5bn. The majority of imports until the present were components and products imported due to business tie-ups with companies primarily in the United States. Recently, however, the proportion of imports from Asia has been rising as domestic makers have increasingly tended to procure and sell parts and products from NIEs and there have also been reverse imports from Japanese companies that have expanded into countries including Taiwan, Thailand, China, South Korea and the Philippines. Imports by country of origin were as follows:
| USA |
JPY29.9bn |
(41.8%) |
|
South Korea
|
JPY 2.8bn
|
(3.9%) |
| Germany |
JPY 8.1bn |
(11.3%) |
|
UK |
JPY 2.5bn |
(3.5%) |
| Taiwan |
JPY 5.9bn |
(8.3%) |
|
Thailand |
JPY 2.1bn |
(2.9%) |
| China |
JPY 4.9bn |
(6.9%) |
|
Italy |
JPY 2.0bn |
(2.8%) |
| Denmark |
JPY 3.2bn |
(4.5%) |
|
Others |
JPY 7.0bn |
(9.8%) |
| Switzerland |
JPY 3.1bn |
(4.3%) |
|
|
|
|
Products from Asia are cheap. In the case of India, for example, they are one-sixth the cost of Japanese products, but blowholes sometimes appear in castings, quality is a problem and prompt delivery is impossible when using import goods. Consequently, imports have remained low and have not as yet had a significant impact. However, imports of products and components appear likely to increase due to technological improvements in Asian countries, increases in OEM manufacturing from Japan and further loosening of regulations, and this may affect domestic production.
- As indicated above, Japanese makers of all sizes have expanded overseas although not yet to any significant extent, and the volume of production is low. However, expansion overseas will probably increase in future.
- Valves are used in a wide variety of fields, but the main uses are for plant, building utilities, water and gas works, and shipbuilding. Domestic production in 1996 totaled JPY503.8bn, of which valves for water supply and drainage comprised JPY139.1bn, automatic regulating valves JPY116.0bn, cast iron valves JPY91.0bn, stainless steel valves JPY59.7bn, bronze valves JPY47.7bn, miscellaneous valves JPY27.2bn, and cast steel valves JPY23.1bn.
- It remains common in Japan for products not passing JIS not to be used, but ISO standardization will gradually increase.
- Valves are normally distributed to engineering firms via wholesalers and specialized trading companies before they reach the home. However, imports of general purpose goods are increasingly handled by plant firms and engineering companies. Some home center stores now also sell valves for DIY use.
Note: All figures from the Machinery Statistics Annual Reports and the Customs Statistics Annual Reports.
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