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Three Things to Know About the U.S. Pumping Equipment Industry

Posted by IndustrySelect on Tuesday, September 17, 2019

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3 MIN. READ

The pumping equipment industry in the U.S. is in an interesting position heading into 2020.

While outlooks for the pumping equipment industry are generally positive, factors such as U.S. President Donald J. Trump's tariffs and rising gas prices have the potential to affect the industry overall negatively.

Here are three things you should know about the pumping equipment industry in the U.S. going forward:

The U.S. Pumping Industry is Thriving (Currently)

In terms of global imports of pumps and pumping equipment, the U.S. is swiftly outpacing other countries. The U.S accounted for 17% of all pumping equipment imports globally. The runner-up, China, only accounted for 7.2%.

The impetus behind the pumping equipment industry in the U.S. is the oil industry. Now more than ever, the U.S. is trying to establish itself as a significant oil resource. In fact, the U.S. has doubled its oil production in the past decade, and considerable capital is being spent to develop a global oil export infrastructure for the country.

As a result of this development, oil procurers in the U.S. need more pumps than ever to support their businesses. Due to these circumstances, the global industrial pumps market is expected to grow by a compound annual growth rate (CAGR) of over 6% from 2019-2026 and the industry is forecasted to value at over $90 billion by 2026.

The fact that 6% of U.S. pumping equipment manufacturers are reporting employment increases and 2% are reporting sales increases is only further evidence of the expansion of the U.S. pumping equipment industry.

Tariffs Stand to Impact Growth

Although the pumping equipment industry in the U.S. has been steadily growing since the 2008 recession, tariffs imposed by Trump could slow that growth.

While no tariffs have been placed directly on pumps, significant tariffs have been placed on steel and aluminum - both valuable materials in the creation and maintenance of pumps. Trump's 25% steel tariff alone has so far cost the U.S. steel industry $5.7 billion.

The effects of these losses will undoubtedly have a ripple effect, which could slow the expansion of the pump equipment industry heading into the future - particularly in the U.S.

The South and Midwest Have Become Hubs for Pumping Equipment

In the U.S., the South and the Midwest have become the undeniable hubs for pump equipment manufacturers. Together, the South and the Midwest account for 68% of all pumping equipment companies in the country.

Again, the oil industry is at the center of this statistic. Texas alone increased its oil production by more than 500 million barrels from 2017 to 2018.

The question for the pumping equipment industry going into 2020 is whether or not the growth of the U.S. oil industry can offset the adverse effects of Trump's materials tariffs. Manufacturers in the industry will be looking into new technology, such as energy-efficient low-maintenance pumps, to help ensure the growth of the sector going forward.

Expert Data On Manufacturers

If you're a sales leader or marketer looking to penetrate the pumping equipment industry, we can help. IndustrySelect provides clients with touch-point data for potential leads, including contact information and other actionable data. To learn more about how you can use IndustrySelect to generate reliable leads for your company, visit our website.

Article Sources:

https://www.businesswire.com/news/home/20160914005626/en/United-States-Pump-Pumping-Equipment-Market-Report
https://www.cnbc.com/2019/08/27/the-us-is-about-to-send-a-lot-more-oil-into-an-oversupplied-market.html
https://www.globenewswire.com/news-release/2019/05/15/1825731/0/en/Industrial-Pumps-Market-Size-Worth-US-90-Billion-by-2026.html
https://www.bloomberg.com/news/articles/2019-07-07/the-trump-tariff-twist-that-s-cost-u-s-steel-5-5-billion
https://www.forbes.com/sites/davidblackmon/2019/02/13/new-report-details-record-texas-oil-boom-in-2018/#3f5af66d7012
https://www.marketwatch.com/press-release/industrial-pumps-market-regional-trend-growth-projections-by-2019-2025-2019-05-17
https://www.prnewswire.com/news-releases/global-pumps-market-outlook-2019-revival-of-oil-and-gas-coupled-with-investment-in-chemical-and-water-and-wastewater-industry-will-drive-growth-300912792.html
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