In Colombia, there has been recent growth within the oil and gas, chemical and petrochemical, electric power generation, mining and mineral sectors. This has lead to an increased demand for pumps, valves and compressors. In 2009, the total market was estimated at USD $ 449 million, of which 67% are imports. The United States has been able to maintain a significant share of this market with an annual average of 46 percent from 2007-2009. The remainder of the equipment is imported from countries such as: Argentina, China, Brazil, Italy, Germany and Canada.
Despite the high level of imports, there are approximately 20 local manufacturers, employing more than 2,800 employees. In 2009, local production was estimated at USD $ 159 million. From that, USD $13.9 million was exported to neighboring countries.
The implementation of the U.S. Colombia-Trade Promotion Agreement CTPA will have a positive effect on the industry as costs and tariffs related to U.S. products will decline and make these products even more competitive. Imports from the U.S. of pumps, valves and compressors will have zero import duties upon implementation of the FTA.
Colombia is an excellent market for pumps, valves and compressors for applications in the oil and gas, chemical and petrochemical industries, electric power generation, mining and mineral sector, food industries, public utilities, and industrial sectors, (especially the textile and plastics industries). The ongoing expansion of natural gas pipelines has resulted in a growing demand for gas pumps. As a result of changes made in the structure of the oil and mining industries during President Uribe’s administration, foreign companies and the Colombian government have increased exploration activities in the oil, mining and mineral sectors. The projects developed from these eefforts will lead to an expanded market for pumps, valves and compressors in the mid-term. U.S.-made pumps, valves and compressors have had a strong market share for the last three years, averaging 46 percent. American manufacturers of pumps, valves and compressors, especially those listed under the best prospects section, have a marked advantage in the Colombian market and are encouraged to contact CS Bogotá for more information on opportunities.
The end-user market for pumps, valves and compressors varies according to the application of the individual product line. This includes oil and gas, chemical and petrochemical industries, mining and mineral sector, food industries, public utilities, and general industrial sectors. Industry contacts describe the pumps, valves and compressors sector in Colombia as well Pumps, Valves and Compressors (PVC) Page 2 of 9 stocked with a large number of brand names. The market is particular about its requirements and places a very high emphasis on quality and price. Price, in particular, is a key factor in Colombia.