GENERAL NEWS
Global sheet-metal market forecast
According to analyst Technavio , the global sheet-metal market size is estimated to grow at a CAGR of 3.84 % between 2022 and 2027 , with the market size forecast to increase by US $ 73.29 billion .
“ The growth of the market depends upon several factors including growth in the machine tools market , growth in the manufacturing sector and increasing construction activities in developing regions ,” it explained .
Market share growth by the building and construction segment will be significant during the forecast period . In the building and construction industry , sheet metal is commonly used for roofing , wall cladding and structural support . It is also utilised in the production of HVAC systems , ductwork and pipes .
“ The building and construction sector reached a value of US $ 139.44 billion in 2017 and sustained growth up to 2021 . Sheet metal holds high importance due to its durability , flexibility and strength in this industry . It can be shaped into diverse forms , resisting harsh weather , corrosion and fire . Various finishes ( such as painting , powder coating or anodizing ) enhance both appearance and protection ,” continued the analyst .
Sheet metal finds versatile use in construction — fabrication , roofing and room division for homes and commercial spaces . Countries such as China and India are investing in infrastructure , including smart cities , attracting global investment . Growing global construction , renovation and infrastructure projects foresee increased demand for sheet metal , propelling segment growth in the forecast period .
“ Based on material , the steel segment dominates the market . The APAC ( Asia- Pacific ) region is estimated to contribute 51 % to the growth of the global market during the forecast period . Rising automotive and construction industries in countries such as China , Japan and India will fuel future market growth ,” highlighted the analyst .
“ The market is propelled by manufacturing sector growth . Sheet metal finds applications in sectors such as automotive ,
aerospace , shipbuilding and semiconductors , forming vehicle and aircraft components . As manufacturing expands , so does the demand for sheet-metal parts . Particularly , the automotive industry is a major consumer , especially with the rise of electric vehicles ,” it explained .
However , it added that a key barrier to market growth is volatile raw material costs ; even a slight price shift can elevate overall costs with large-scale purchases . n
www
. technavio . com
An eye on ASEAN affairs
Managing director of the International Monetary Fund ( IMF ), Kristalina Georgieva , gave a speech at the plenary session of the 43rd ASEAN Summit ( 4-7 September 2023 ) that focused on the global outlook , ASEAN ’ s prospects and key priorities . ASEAN is The Association of Southeast Asian Nations ( formed on 8 August 1967 ). The ASEAN Summit is the highest policy-making body in ASEAN comprising the Heads of State or Government of ASEAN Member States .
“ We recognize that the world economy has shown resilience to the string of negative shocks — the pandemic , war , climate events and a cost-of-living crisis — and the recovery from these shocks continues . But it is slow and uneven . Trillions of dollars of global output have been lost compared to global prepandemic trends ,” she told the audience .
“ This economic ‘ scarring ’ is large and unevenly distributed across countries . Of the major economies , only the U . S . has fully recovered . The Eurozone is still around two per cent below trend , while China and other emerging market and developing economies are around five per cent below trend , with low-income countries hit even harder ,” she continued .
Kristalina Georgieva , MD , IMF .
“ After strong , over six per cent growth in 2021 , the recovery slowed down significantly largely due to the shock from Russia ’ s war in Ukraine . We predict this weak performance to continue , with global growth at around three per cent over the medium-term . This is the lowest growth level in decades , in an inflation environment where interest rates are expected to be higher for longer and in the context of growing fragmentation risks ,” she added .
How does the ASEAN region fit into this picture ? The IMF is projecting growth of about 4.5 per cent there this year and next year . According to Georgieva , ASEAN countries are contributing 10 per cent to global growth which is more than twice their weight in the global economy . This reflects the past reforms undertaken by policymakers .
However , as a region of highly integrated economies , ASEAN is also experiencing significant scarring from the supply chain disruptions and low external demand from global shocks . The average growth in the last three years was only half of the pre-pandemic projections , generating output losses of around eight per cent of GDP , well above the global average . ASEAN therefore needs even stronger growth to fully recover and continue on its pre-pandemic path to prosperity .
Georgieva highlighted the need for economies to work together to combat this threat and proposed two overarching priorities . “ First , invest in international cooperation . This means pushing back against the forces of fragmentation ; ASEAN can be an example and an advocate for the benefits of cooperation . Second , invest in growth-enhancing reforms . In an environment with weak medium-term growth prospects , domestic reforms are essential . This means investing in health , education and the digital infrastructure . It also means pursuing sound economic policies to build buffers against shocks and maintain economic and financial stability ; and also making further progress on climate and energy transitions , including by boosting green finance and incentivising the private sector to play its part ,” she concluded . n
www
. imf . org
6 | ismr . net | ISMR October 2023