INDUSTRY NEWS
Metalforming machine-tool market trends
According to an August 2022 report by analyst , Technavio , the metalforming machine-tool market share is expected to increase by US $ 4.89 billion from 2021 to 2026 , and the market ’ s growth momentum will accelerate at a CAGR of 5.77 %.
“ Based on our research output , there has been a neutral impact on the market growth during and post the COVID-19 era . Largescale industrial automation worldwide is notably driving metalforming machine-tool market growth , although factors such as fluctuating raw material prices may impede market growth ,” commented the analyst .
One of the key factors driving growth in the market is large-scale industrial automation worldwide . The globalisation of the overall industrial manufacturing sector has led to an anticipated rise in the quality and efficiency of manufacturing processes which in turn , have led to a rise in the adoption of automated machine tools in the manufacturing sector .
“ Investments in global process automation applications continue to rise , with specific emphasis on technology , software , services , hardware and the communication protocol used for automation . Incorporation of automation technology is cost-intensive , and manufacturers achieve cost-effectiveness when high volumes of components or parts are manufactured using this technology . The incorporation of automation technology is therefore expected to drive the global metalforming machine-tool market .
“ Governments in many countries are taking initiatives to spur the growth of the global machine-tool market . State and nation-owned laboratories are set up to help SMEs in adopting numerical control technology . Manufacturing units of machine tools and consumer companies can benefit from the Export Promotion Capital Goods ( EPCG ) scheme ( applicable to export-oriented manufacturers ),” added the analyst .
Fluctuating raw material prices will be a major challenge for the market during the forecast period . Materials such as steel and iron ; aluminium ; titanium ; copper ; brass and other alloys form an indispensable part in the manufacturing of machine tools and their accessories .
“ Raw materials account for 48 % of the overall manufacturing cost of machine tools , while labour costs account for a share of about 27 %. The costs of these materials also fluctuate because of scarcity and inflationary pressures . This leads to uncertain profitability for vendors which , in turn , restricts market growth . Fluctuations in raw material prices result in unstable cash inflow for manufacturers ,” cautioned Technavio .
Digital investments are key
Supply chain ( image : Shutterstock . com )
Global technology intelligence firm , ABI Research , has evaluated the impact that politics ; regulation ; the economy ; supply chain ; Environmental Social and Governance ( ESG ) and technology are having on manufacturers of fast-moving consumer goods ( FMCG ); pharmaceuticals ; producers of steel , chemicals , pulp and paper ; as well as the mining and oil & gas sectors .
“ Our assessment found that the FMCG sector is under pressure from all sides ,” said Michael Larner , Industrial & Manufacturing Research Director , ABI Research . “ Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine . Supply shocks are raising input costs , and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably .
“ We all hoped that with the rollout of COVID vaccines , the world would return to ‘ normal ’,” Larner continued . “ However , events have taken a different turn , with the effects felt far and wide . Political decisions and regulations have the most impact on these firms ’ operations . After all , governments can lock down cities and restrict transportation . At the same time , production can stop due to product recalls .”
Each industry is at very different stages of its digital maturity . Large mining firms , such as Rio Tinto , are automating many processes , and oil & gas firms , including Saudi Aramco , are utilising data analytics to monitor operations and their immediate surroundings . Steel , pharma and pulp and paper producers have more work to do to connect their operations digitally and utilise some of the latest technologies .
Meanwhile , according to the analyst , FMCG firms are working towards aligning IT and OT teams . Manufacturers can no longer postpone investments in digital technologies , it said .
“ Technology is part of the solution to alleviate the pressures . For example , data analytics can help firms understand the potential impacts of supply-chain issues and optimise production to retain price points . Also , software can help firms engage in the circular economy and incorporate recycled materials in their products , as seen in the paper and steel industries . Digital technologies are part of the solution ,” Larner concluded .
These findings are from ABI Research ’ s Digital Transformation in Process Manufacturing and Extractive Industries report . n