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


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


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


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