[inspic=185,left,,0]KWD-Editorial 2008-01, published in our newsletter KWD-globalpipe no.267: Rarely has a year begun with so many question marks hanging over it, be it in relation to the situation in the US housing market, sustained high oil prices, the weak dollar or the political free-for-all. And yet, companies must set their course, make or postpone investment decisions, undertake product developments and explore new markets. To do so, it is important at least to have some idea of identifiable trends. It is impossible to ignore the effects of the rapid expansion in multilayer pipe production capacity over the last 2 years. In Europe alone, capacity has increased by at least 100 million metres, In Russia by a further 30 million m and in the Rest of the World (ROW) again by at least 20 million m. This means a further increase in competition and the unfortunate situation that many countries which were formerly importers are now becoming involved in what was previously an attractive business opportunity; to say nothing of the fact that Europe is also now becoming an import target of the large number of new suppliers. A few small multilayer pipe manufacturers, but also larger companies, which have done well out of this sector up till now, are already thinking of abandoning the manufacture of multilayer pipes.
Other contributing factors are the major decline in house building in many European countries and the lack of growth prospects in other countries.
This means, in other words, that it is virtually impossible to make money out of “standard” pipes and the future “winners” are already becoming evident, namely products and systems from which there is still a sustainable profit to be made. These are, on the one hand, pipes, which can capture the disappearing market share of traditional copper and steel pipes. Above all, small bore copper pipes coated with PE. Then there are copper and C steel pipes, whose wall thicknesses have been reduced but which nevertheless meet the requirements for heating pipes. Earlier misgivings on the part of the specialist wholesale trade with respect to the need to stock 2 different systems (for plumbing and heating) have been dispelled by the explosion in material prices.
There is also about to be a resurgence in thin-wall, plastic coated, stainless steel pipes, which were launched on the market with undue haste 4 or 5 years ago and taken off again when development work appeared to be too expensive. “Genuine” plastic/stainless steel multilayer pipes of up to 110 mm should come on to the market shortly and there are also welcome developments in joining techniques. Real innovations indeed!
Press fitting (increasingly using plastic fittings) is again becoming more common as a method of joining, also creating some uneasiness. As a result, O-ring free fittings and sliding sleeves will gain further ground, as in Southern Europe will push-fit fittings which are much praised but in practice still avoided.
Multilayer pipes are increasingly taking over in the gas sector. The positive mood in this sector is, however, likely to be short-lived, particularly on the international scene, as glass-fibre reinforced PP-R pipes are rapidly gaining ground. Here, too, the number of pipe manufacturers is increasing at a considerable rate.
A noticeable revival is also being seen in trusty PE-Xa pipes and corresponding systems, which are distinguishing themselves from the common (disastrously priced) PEX and PE-RT pipe systems. As a result, intelligent, but hitherto less popular joining systems such as “Quick & Easy” could also see a new lease of life.
Here another trend is evident: the desire for “pure” systems, i.e. plastic pipe systems with plastic fittings or metal pipe systems with metal fittings, such as, for example, the CTX sliding sleeves + copper pipe recently brought on to the market by Wieland.
There are also outstanding prospects for underfloor heating, which has been very popular, particularly in combination with heat pumps using renewable energy, even though the radiator manufacturers are coming round very slowly to low temperature radiators. Here, dry lining board systems are gaining ground, with moisture becoming ever less acceptable in the construction sector (time is money).
In summary: let’s not reach for the stars (for the time being), but look down; money is as always there at our feet to be seen and picked up.
Editor-in-Chief: Winfried.Hamich@kwd-online.de
