Metal Stamping And Fabrication Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Metal Stamping and Fabrication

Metal fabrication is a highly fragmented market, and developed countries, such as China, Germany, the US, UK, France, and Spain are some of the major supply bases for a demand-driven market.Automotive and construction industries are likely to remain the key market drivers during 2017-2019

The global metal fabrication market size was approximately $250.80 billion in 2019E and is expected to grow at a CAGR of 4–5 percent to $286.20 billion by 2022. The metal stamping industry analysis shows that the raw material prices constitute to nearly 46 percentof total costs & labor constitutes to 32 percent.

Market Overview: Metal Fabrications

Global Metal Fabrication Demand

• The demand is expected to increase at a CAGR of 4-5 percent in the upcoming years and reach $95.86 billion by 2021
• Metal fabrication supply is an order-driven market and is expected to show a similar increase by 2017-2019
• Supply is order based and is expected to show a minor deficit, due to the lead time difference
• Metal fabrication suppliers are fragmented; and regionally, Germany, the US, and China are the largest supply bases in Europe, North America and Asia, respectively

Metal Fabrication End-use Demand Share

• Globally, the end-use demand for metal fabrications is primarily from the construction, building/piping, and architecture clubbed together as an industry
• The major end use is also expected to grow at a CAGR of 4-5 percent at a global level from 2015 to 2018 and would continue to dominate the demand share of the metal fabrication market
• Automotive and transportation may not show any major growth and may witness a slight decline in demand share in the short term

• Automotive and transportation industries are expected to grow at a CAGR of 6 –7 percent at a global level from 2016 to 2019, thereby supporting fabrication demand during the period

Global Metal Fabrication Drivers and Constraints

Drivers

End-use Market

• Major end-use from construction and building/piping and architecture is expected to drive the market growth
• The end-use industry is expected to show a global growth rate of 4- 6 percent CAGR from 2016 to 2019 and the spend from this sector is nearly 60 percent on fabricated metals

Lack of Technological Substitutes

• Metal fabrication is a value-added process and is usually the final or finishing operation of the manufacturing process
• The lack of substitutes makes the market stable, in terms of demand consistency

Constraints

Lack of Skilled Labor

• Metal fabrication is a labor-intensive process and is the second major cost component after raw materials
• With increasing labor rates and lack of availability of skilled labor, suppliers are expected to work with stiffer margins. This is expected to reduce local and small scale supply bases

Inability to Automate Production Process 

• Metal fabrication is a customized process, based on project-based orders that constraints the standardization of the manufacturing process beyond a certain level
• This constraint keeps the manufacturing costs high and increases pressure to reduce costs in a competitive market

Cost Structure: Metal Fabrication

• Production of metal fabrication in high-cost countries, like the US, Germany, and in regions of Europe and North America, has a higher share of labor and raw material in the cost structure, when compared to low-cost countries, like China or India
• The shares of energy costs and the overhead costs are relatively higher in the LCC regions, due to the higher prices of electricity and the logistics associated with the production of fabricated metals

Metal Stamping Market Overview

• As the global metal fabrication market is fragmented and dependence on large global players is lower, and from an economic sense, it does not add value to rely on imports.
• Some of the safety critical end uses, like boilers and tankers, may require suppliers, who have higher technical competencies and the buyer power may be considerably lower in such case.
• Threat of substitutes is low, as the fabrication process is a value addition that falls in the final stages of a manufacturing process and substitution is not expected in the long term.
• Technology substitutes can possibly replace the existing processes, but may not rule out the need for fabrication as a process by itself.
• Metal fabrication where the product complexity is high, the initial set up costs and operations costs make its it difficult for new entrants to establish themselves in the competitive market.
• For lower grade metal fabrication, given the lower cost of set up, this segment is likely to see several new entrants in the future.

Why You Should Buy This Report

Information about metal stamping industry analysis, global and regional market size, maturity and overview, drivers and constraints, etc. Porter’s five force analysis of the global metal fabrication market. Supplier profile and SWOT analysis of major players like Anhui Honglu Steel Construction (Group) Co.,Ltd, Thyssenkrupp Steel Europe, WEC Group, etc. Cost structure, price driver analysis, price trend and forecast. Best engagement models and contract terms in the global metal fabrication market.