Metal Stampings And Fabrication Market Trends
Category Intelligence on Metal Stampings And Fabrication covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global Market Outlook on Metal Stampings 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
Global Metal Fabrication Drivers and Constraints
- 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
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.