16 October, 2019
RALEIGH, North Carolina, October 16, 2019 - The global market for metal stampings and fabrication is growing at a CAGR of 4-5 percent and is expected to reach a value of $286.20 billion by 2022, according to Beroe Inc., a procurement intelligence firm. Globally, the end-user demand for metal fabrications is primarily from the construction, building/piping, architecture and automotive industries that are driving the growth of the market.
Europe is currently the largest market for metal stampings and fabrication, accounting for a market share of 50 percent with a value of $121.92 billion, growing at a CAGR of 1.6 percent. Asia holds a market share of 33 percent with a current value of $82.53 billion, growing at a CAGR of 4.2 percent. North America accounts for a 10 percent market share, worth $24.65 billion growing at a CAGR of 2.7 percent.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Major end-user industries include construction, automotive, heavy machinery, and energy, however, the applications in construction, building/piping, and architecture are expected to drive the market growth. The lack of substitutes makes the market stable, in terms of demand consistency. Lack of skilled labor is a major challenge for the market as metal fabrication is a labour-intensive process. With increasing labor rates and a lack of availability of skilled labor, suppliers are expected to work with stiffer margins.
Based on end-user demand share, Construction, Building/Piping, and Architecture account for 46 percent of the total demands for metal stampings and fabrication, followed by Automotive and Transportation for 22 percent, Machinery and Heavy Industries for 11 percent, and Energy and Power for 11 percent. New technology advancements in the field are advanced pulsed GMAW, ultra-shot pulsed laser, cutting speed increase in abrasive water jets, and anti-foulant coatings.
The research methodology adopted for the report included:
Metal stampings and fabrication cost components are raw materials for 45-47 percent of costs, labor for 31-34 percent, electricity for 5-9 percent, overheads for 6-8 percent, and margins for 7-8 percent. Production of metal fabrication in high-cost countries, like the US, Germany, involves a relatively higher share of labor and raw material in the cost structure whereas in low-cost countries like China or India energy costs and the overhead costs are comparatively higher.
The report also includes:
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