The metal fabrication industry may not change as rapidly as others, but never the less, change it is a comin’. And those of us in manufacturing have to be ready to handle whatever the future throws at us. This week, we’re focusing on metal fabrication trends that we believe will affect the market both in the near future and over the next decade.
The global metal fabrication market was valued at $16.35 billion in 2015 and is expected to grow at a rate of 3.0%, reaching $21.38 billion by 2024. The “market” in this case covers all different forms of fabrication, including metal cutting, machining, welding, punching and forming. This is a solid if not stellar growth rate, and is about what we would have expected before starting our research. However, there are those businesses that are experiencing growth that is far outside of the average. Companies that fabricate aluminum, for instance, are seeing greater demand due to rising consumption, as are those that fabricate parts for the (quickly reshoring) automotive industry, commercial construction and the aerospace sector. Essentially, there are still a number of incredible opportunities for growth; it’s simply a matter of staying nimble enough to adapt to what the market wants at any given time.
Reshoring is an interesting metal fabrication trend in the current market. We mentioned it briefly above, but it’s worth further exploration. Over the last decade, but in particular the last five years, many American companies have started to bring their foreign operations back home. Of course, it’s not patriotism driving this change; in reality, it’s being driven by increases in foreign wages in countries such as China and India, combined with market volatility and the rising costs of overseas freight transportation by both air and water. For fabricators willing to adopt new technologies such as automation and IoT — along with other aspects of Industry 4.0 — reshoring can mean a major boost to revenue as manufacturing jobs make their way back to the U.S. However, those who refuse to invest in the systems required to stay relevant are likely to quickly go the way of the dinosaur.
What other factors are set to influence the metal fabrication industry? Come back next week and find out!
EVS Metal is an American precision metal fabricator headquartered in Riverdale, NJ. We utilize the latest technology to cut, bend, weld and finish stand-alone items as well as parts for integration or assembly into more complex products. Our four ISO 9001:2015-certified locations comprise over 250,000 square feet of vertically-integrated manufacturing space and feature the most modern equipment available, from welding robots and laser cutting solutions to automated powder coating lines. We serve a diverse customer base across North America, providing a range of services from ITAR-compliant, quick-turn prototypes to high-volume production runs. Request a personalized metal fabrication quote online, or call (973) 839-4432 to speak with a specialist today.