INDUSTRY NEWS
Rise in metalforming business activity
Optimism from metalforming manufacturers in the USA and Canada about business activity continues to rise , according to the February 2024 Precision Metalforming Association ( PMA ) ‘ Business Conditions Report ’. Prepared monthly , PMA ’ s report provides an economic indicator for the next three months of manufacturing , sampling 121 metalforming companies in the United States and Canada .
PMA is the full-service trade association representing the US $ 137-billion metalforming industry of North America . Over 900 member companies also include suppliers of equipment , materials and services to the industry .
PMA ’ s February 2024 report shows , for the third straight month , an increase in those manufacturers responding to the survey that expect an increase in business activity ( 23 % compared to 20 % in January 2024 ). Also , 61 % forecast no change in activity
( compared to 60 % in January 2024 ) and just 16 % anticipate a decrease in activity ( dropping from 20 % in January 2024 ).
Metalformers also forecast an improvement in incoming orders , with 40 % of survey respondents expecting an increase in orders during the next three months March-May ( up from 34 % in January ), 48 % predicting no change in orders ( compared to 45 % in January ) and just 12 % anticipating a decrease in orders ( declining from 21 % in January ). Current average daily shipping levels spiked in February , with 31 % reporting an increase in shipping levels ( compared to 16 % in January ), 39 % reporting no change ( compared to 44 % in January ) and 30 % reporting a decrease in levels ( down from 40 % in January ).
“ The February PMA Business Conditions report continues to show growing confidence by our members that economic activity will continue to improve over the [ following ] three months ,” said PMA President , David Klotz . “ This optimism was given a boost by the U . S . House of Representatives ’ passage of the Tax Relief for American Families and Workers Act in January , which would reinstate several important tax provisions for manufacturers , including R & D expensing and bonus depreciation .”
Seven per cent of metalforming companies reported an increase in lead times in February ( the same percentage reported in January ). Six per cent of companies had a portion of their workforce on short-time or layoff in February ( unchanged from January ), while READ 44 % of companies are currently expanding their workforce ( increasing REPORT from 37 % in January ). n
www . pma . org
Growth projected for global metal stamping
The global metal stamping market size is set to grow by US $ 40.18 billion from 2023 to 2028 , with 4.11 % year-on-year ( yoy ) growth expected in 2024 , according to the latest research by analyst Technavio .
According to Technavio ’ s market research report entitled ‘ Global Metal Stamping Market 2024- 2028 ’, the demand for metalstamped products from the APAC ( Asia Pacific ) region is growing as a result of rapidly industrialising countries such as India , Japan , China and South Korea .
“ The lucrative market for metal stamping products in the APAC region will be created by the emergence of positive government initiatives such as ‘ Made in China 2025 ’, ‘ South Korean Manufacturing 3.0 ’ and ‘ Taiwan Productivity 4.0 ’. However , the fluctuation in metal prices is significantly challenge restricting market growth ,” said the analyst .
Market share growth by the automotive segment is expected to be significant during the forecast period .
“ The stamping metal market is primarily driven by the automotive industry , which places stamped metal parts into almost every vehicle system ranging from fuel delivery systems to airbag components of vehicles . Consequently , demand for motor stamped parts in the automotive industry is expected to be fuelled by factors such as increasing expenditure on new production facilities in developing markets and growing investments by large car producers which are mainly in China , Japan or India ,” said the analyst .
“ The metal stamping market continues to thrive , especially in sectors such as consumer electronics , automotive , aerospace and industrial machinery . With the demand for metal frames for mobile phones and chassis for various electronic devices rising steadily , manufacturers are embracing advanced stamping techniques to meet specifications . Additionally , as the automotive industry transitions towards EV sales , China ’ s influence grows , spurred by electric car subsidies . This evolution demands efficient supply chains and innovative solutions ,” it added .
The metal stamping market is undergoing significant transformation driven by a range of factors . Weight reduction and fuel efficiency imperatives , underscored by Corporate Average Fuel Economy ( CAFE ) regulations , are compelling manufacturers to innovate . Market concentration and merger and acquisition ( M & A ) activities are reshaping the landscape , prompting players to consider plant expansion and machinery upgrades . End-user concentration in sectors such as automotive & transportation ; aerospace ; industrial machinery ; agriculture and telecommunications underscores the market ’ s diverse nature .
“ With burgeoning opportunities in the construction industry , particularly in the Asia-Pacific region , the industry is poised for robust growth amidst evolving global demands ,” added the analyst . The industry continues to thrive with techniques such as blanking , embossing and coining . The advent of technologies such as servo press systems ensure better control of metalforming operations . n
www
. technavio . com
14 | ismr . net | ISMR April 2024