The Surging Demand for Valve Rebuild Services: A Look at Industry Capacity Challenges

Valves are a critical part of industrial equipment for controlling the flow of fluids and chemicals. In tank cars, properly functioning valves play a vital role in railway safety. Valve rebuild services (sometimes called valve reconditioning or valve refurbishment) prevent deterioration that undermines a valve's functionality with the replacement of working parts. By replacing parts that are subject to wear over time (including O-rings, seals, gaskets, balls, and valve seats), technicians can make valves work like new, substantially prolonging their lifespan. As the demand for tank cars grows and consumers worldwide gain interest in sustainable business practices, the importance of valve rebuild services is growing. Here, we'll explore the reasons behind the growing demand for industrial valve rebuild services, current challenges, and the value of McKenzie's valve solution. 

Importance of Valve Maintenance

Pressure tank cars transport liquids and compressed gasses under pressure (like oil and gas, chemicals, and food ingredients). Valves in tank cars control the flow of fluids and work to alleviate pressure in the tank's interior, preventing leaks or ruptures. Valve maintenance ensures valves are working properly at all times, reducing the risk of costly downtime and serious safety hazards during travel.

Because of their role in railway safety, tank car valves are subject to regulations imposed by the Association of American Railroads (AAR), the Department of Transportation (DOT), and the American Society of Mechanical Engineers (ASME). These regulations require valves to be inspected regularly and updated to the current required specifications. Routine maintenance, including a visual inspection, cleaning, and repair or replacement must be completed at specified intervals. 

Increased Demand for Tank Cars

Changes to the North American energy landscape over the past decade and a half have substantially increased the amount of energy products traveling by rail. In 2009, just over 10,000 tank cars were used in crude oil transport. By 2013, that number increased to nearly 500,000. The rapid increase in oil production, fueled by the Bakken oil boom in North Dakota, necessitated the transport of millions of barrels of crude oil from extraction sites not connected by pipelines. Railways provide the safest and most reliable transport for oil, ethanol, and other chemical products.

Long-Term Impact on Valve Usage and Resulting Maintenance Needs

Escalating demand for oil and chemical transport increased the frequency of tank car use and travel, requiring the continual use of valves for pressure reduction and fluid control. This leads to faster wear and tear on valves that could undermine performance and create risks. As a result, valve maintenance and rebuilds are needed more frequently.

Importance of Maintaining High-Performance Valves

Tank cars are designed to protect industry workers and the public from hazardous material spills. Inlet/outlet valves and pressure relief valves are a vital part of this design.  Routine valve maintenance ensures safe transport of dangerous materials by preventing leaks and pressure-related tank ruptures. Routine maintenance also improves operational and cost efficiency by eliminating costly shutdowns and regulatory non-compliance fines. 

Maintenance Requirements

Routine maintenance for tank car valves follows regulatory standards to promote railway safety. Maintenance requirements include:

• Regular inspections: Visual and functional inspections allow you to identify wear and potential issues before damage occurs. 
• Periodic cleaning and reconditioning: Proper cleaning removes buildup and restores functionality to working parts.
• Replacement of worn-out parts: Valve reconditioning and rebuild replaces worn-out parts, ensuring valves operate like new. 

Current Industry Challenges

Valves are required for safe transport of hazardous materials. Unfortunately, supply doesn't always meet demand. A range of industry challenges means new valves aren't always available and rebuilds can be delayed.

Capacity Constraints

Tank car demand has increased substantially in the last decade. During the pandemic lockdown, consumer spending increased, putting pressure on the shipping industry and manufacturers. The tank car industry hasn't been immune to the global supply crunch, experiencing skilled worker shortages and supply chain disruptions. 

• Limited availability of skilled technicians: Currently, 622,000 roles in the manufacturing industry are unfilled. This shortage of skilled technicians means valve supply can't keep up with demand. It can also lead to increased wait times for rebuild services, forcing companies to require longer turnaround times for each job. 
• Delays due to supply chain disruptions: International shipping delays and disruptions are fairly common and mean difficulty sourcing the necessary parts. When parts aren't readily available, new valve production and valve rebuilds can be delayed. 

Increased Demand for Rebuild Services

Even as supply issues plague the tank car industry, related industries are experiencing a growth in demand. Chemical, oil and gas, and transportation industries rely heavily on valve performance. This increased demand further stretches an already over-taxed market, leading to organizational schedule disruptions. 

For example, in 2022, a survey of U.S. chemical manufacturers revealed that 97% of companies modified operations because of supply chain issues or transportation disruptions and delays. About half have decreased production due to the inability to ship products and 35% have had customers cancel orders due to concerns that orders wouldn't arrive on time. 43% added tank cars to their fleet, adding to the over-burdened market. 

McKenzie Valve's Solution

McKenzie Rebuild & Reconditioning Services are designed to help companies minimize downtime and maintain compliance by addressing the varied nuances of current industry challenges. Comprehensive rebuild services and a unique program to minimize downtime provide industry professionals with faster turnaround times and higher efficiency. 

Comprehensive Rebuild Services

 McKenzie Valve & Machining is dedicated to quality and performance, delivering valve rebuilds that consistently meet industry standards. Valve rebuild services apply a thorough and systematic approach with the following steps.

• Inspection: Certified technicians carefully examine each valve for overall condition. Inspection includes detailed visual inspection and functional examination to uncover damages or defects.
• Disassembly: The valve is taken apart and further inspected for further internal problems. 
• Cleaning: The technician thoroughly cleans the internal parts, removing the buildup of dirt, debris, and other substances. Cleaning offers increased transparency to reveal any remaining defects and improves operational effectiveness. 
• Reconditioning or Replacement: A thorough inspection or cleaning determines whether valves can be repaired or must be replaced. In many cases, specific parts can be replaced during valve refurbishment, making the part work like new. Valve restoration can be used to restore a valve to meet current standards and lengthen the valve lifespan. 
• Testing: After the rebuild, valves are reassembled and tested to ensure optimal performance. Tests ensure valves meet all industry regulations and performance expectations. Valves that fail testing may be put through the process again or replaced.
• Reinstallation: Valves are meticulously reinstalled to ensure quality replacement that confidently puts tank cars back on the tracks.

Key Benefits of Working with McKenzie

With over 25 years of experience and expertise in handling valves from any manufacturer, working with McKenzie for valve refurbishment provides many key benefits. Our technicians recondition valves from all major brands. Such versatility and broad experience lead to rapid turnaround times that minimize organizational downtime, reducing operational impact and the associated high costs. 

Exchange Program

Limited availability of valve parts can extend timeline requirements for valve rebuild services. The McKenzie Valve & Machining exchange program allows clients to swap defective or worn-out valves with reconditioned ones from our extensive inventory. This solution provides customers with immediate access to a certified, fully refurbished valve that is ready for use. This allows customers to continue uninterrupted operations despite supply chain disruptions and limited supply. 

Addressing Capacity Challenges

McKenzie Valve & Machining works continuously to address tank car industry concerns to ensure safe railway operations. Our strategic initiatives work toward company goals to broaden our range of services to meet customer requirements.  

• Expanding technician training programs: Specialized training programs help address skilled laborer shortages by increasing the number of skilled professionals capable of providing certified valve rebuild services. 
• Investing in advanced rebuilding technologies: With a commitment to meeting industry demand, McKenzie Valve & Machining leverages industry expertise and state-of-the-art facilities to provide advanced valve rebuilding services. 
• Forming partnerships for reliable parts supply: McKenzie Valve forms partnerships with suppliers and industry professionals to ensure consistent availability of parts. 

Successful Implementations

Companies that partner with McKenzie Valve & Machining saw successful implementations, increasing efficiency and cost-effectiveness. 

• Reduced turnaround times by 20% enable faster service delivery.
• Increased rebuild capacity by 30% allows our team to meet higher demand efficiently. 

Avoid Industry Challenges with Valve Solutions from McKenzie Valve & Machining

Explosive growth in tank car demand leads to an increased need for valves and increases operational stress. These growing demands coincide with industry shortages to increase the need for valve rebuild services. McKenzie Valve and Machining responded to this need by obtaining valve rebuild certification in 2022. Our unique approach to valve rebuild and replacement seeks to address multiple industry concerns with quality rebuilds and an exchange program that allows clients to swap defective or worn-out valves for immediate replacement. Visit our valve rebuild service page to learn more about how we can help you improve operational efficiency in your organization. 

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