Metal Stampings and Fabrication Market Currently Valued at $250.80 Billion, Says Beroe Inc
Source: PR Newswire
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.
- Raw materials are traded as a commodity on exchanges, like LME, SHFE, COMEX, and suppliers are subject to price fluctuations, which are usually passed on to the customer for custom made products due to which Supplier power is medium to high.
- For lower-grade metal fabrication, given the lower cost of set up, there are likely to be several new entrants in the future. Metal fabrication where the product complexity is high, the initial set up costs and operations costs make it difficult for new entrants to establish themselves in the competitive market.
- Most of the metal fabrication suppliers for welding, brazing, cutting, coating, heat treatment, surface treatments operate on a spot market basis and are primarily service centers. For services like metal stamping or when the service is vertically integrated, engaging in long-term contracts is preferred.
- The supplier market is fragmented and suppliers are aiming for an increased market, where the cost reduction pressure is high. This calls for more aggressive automation of production processes and this may not be possible, due to the customized requirement of end products.
- As metal fabrication is a customized process, based on project-based orders standardization of the manufacturing process beyond a certain level is not feasible. The inability to automate the production process keeps the manufacturing costs high and increases pressure to reduce costs in a competitive market.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
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:
- Market Maturity
- Market Overview
- Regional Market Snapshot
- Drivers and Constraints
- Porter’s Five Force Analysis
- Supplier Profiles
- Supplier SWOT Assessment
Cost and Pricing Analysis:
- Cost Structure
- Price Drivers Analysis
Procurement Best Practices:
- Engagement Models
- Contract and Payment Terms
- Technology Advancements
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com