Chairman’s Report

An Uncertain Year, An Improving Outlook

‘Contraction, consolidation and a fair degree of uncertainty’ could perhaps succinctly summarise the last year in the British valve industry. The global picture was, understandably, remarkably similar.

The depressed oil price was once again a major factor this year. Add to this the widely unexpected Brexit outcome and latterly the volatile USA Presidential elections, and it is no surprise that uncertainty has been an almost constant theme.

It is also inevitable that in a subdued market, with a curtailment in major projects, that larger members refocussed and began to compete in the space usually the reserve of our smaller members, stiffening competition and impacting on margins.

In such circumstances, buying or merging with compatible companies also becomes an attractive proposition, and after a decade of relative stability, the industry saw another round of significant mergers and acquisitions, affecting even our biggest members.

The outcome of this for the Association, which still regularly recruits new members, was a net drop in membership levels, the first in many years. This obviously impacted upon subscriptions, exacerbated by reductions in discretionary spending on lines such as our training and advertising. At the same time members’ own costs understandably came under the microscope, putting the secretariat under additional pressure to provide still further improvements in the BVAA offer, but with reduced revenue. The proverbial ‘more, with less.’

It is far from doom and gloom however. The oil price has risen steadily, and other user-industries have remained remarkably strong. With the help and assistance of my fellow BVAA Board members, we have aimed to challenge, steer and assist the BVAA management team with new ideas for services and avenues to explore, while at the same time recognising the changing shape of the industry.

In response, Rob Bartlett and his team at the Secretariat have striven to deliver against these concepts and turn them into tangible services, with remarkable success. This is all the more impressive against a background of reduced resources and headcount at the Secretariat. The outcome of ‘more from less’ and yet still turning a modest surplus in a challenging year is commendable. BVAA remains extraordinarily strong and well prepared for whatever 2017 brings.

As ever I’d like to close with my thanks to my fellow Board members, old and new, the committee Chairs and their teams who do such sterling and unsung work, and to our Director Rob Bartlett and his hugely professional team at the Secretariat.

Published: 3rd February 2017