Forging and Stamping
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,908 forging and stamping companies in the US produce a variety of metal-based products that are typically used as parts or components in assembled items. Major revenue categories include stamped metal products, forged metal products, custom roll forming products, and powder metallurgy products. Services may include design engineering, machining, part assembly, and finishing (cleaning, welding, or deburring).
Dependence On Manufacturing Activity And The Economy
Demand for forged and stamped products is driven by manufacturing volume, which is vulnerable to changes in economic conditions.
Capital Intensity
The forging and stamping industry is highly capital-intensive and requires significant investment in plants, property, and equipment, such as presses, hammers, conveyors, and furnaces.
Industry size & Structure
The average forging or stamping manufacturer operates out of a single location, employs 47 workers, and generates about $17 million annually.
- The forging and stamping industry comprises about 1,908 firms that employ 90,500 workers and generate about $31.6 billion annually.
- The industry is somewhat concentrated at the top and fragmented at the bottom; the top 50 companies account for 47% of industry revenue.
- Metal stamping firms account for 36% of industry revenue and 60% of firms; forging firms account for 35% of revenue and 18% of firms; custom roll forming firms account for 22% of revenue and 16% of firms; powder metallurgy manufacturers account for the remainder.
- Large companies with stamping and forging operations include Mueller Industries, ParkOhio, WHEMCO, and Finkl Steel. Large firms may have international operations. Most forging plants are small or medium-sized companies.
- Some large customers, such as automobile or aircraft manufacturers, are vertically integrated and have internal forging and stamping operations.
Industry Forecast
Forging and Stamping Industry Growth
Recent Developments
Oct 21, 2024 - OSHA Proposes Indoor Heat Rule
- OSHA in August published its long-awaited Notice of Proposed Rulemaking (NPRM) for Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings. The standard would require manufacturing operations of any size to have a written plan to evaluate and control heat hazards in their workplace. Along with rising temperatures, OSHA noted that certain heat-generating processes, machinery, and equipment (e.g.furnaces) can cause hazardous heat when cooling measures aren’t in place. The Forging Industry Association (FIA) has expressed concern with the one-size-fits-all aspect of the proposed rule and the feasibility of reducing indoor work area temperature to the levels put forward by OSHA. The agency is accepting comments until the end of the year. Given the lengthy review process the rule might not take effect until late 2025 or 2026, and could be impacted by the outcome of the November election.
- According to the latest US Bureau of Labor Statistics data, producer prices for forging and stamping companies fell 1.9% in July compared to a year ago after falling 6% in the previous July-versus-July annual comparison. Producer prices for forging and stamping companies have followed a downward trend since peaking in May 2022, when increases in metals prices – driven by inflation, the pandemic, and material shortages in the latter half of 2021 and through 2022 – were quickly felt by end users. Industry employment declined by 1.2% year over year in July, while average wages at forging and stamping companies jumped 10.5% over the same period to a new high of $25.01 per hour, BLS data show.
- The post-pandemic boom in the US manufacturing sector is losing momentum, The Wall Street Journal reported in July. Falling sales and orders and swelling inventories are causing manufacturers to lay off workers and cut production. Among the US manufacturers scaling back due to slumping demand, WSJ cited farm machinery giant Deere & Co., which has laid off about 2,100 production workers since November, or 15% of its hourly workforce, as unsold farm machinery piles up on dealer lots. Higher interest rates and operating costs, as well as a strengthening US dollar and lower selling prices for commodities, are dampening activity at factories across the US. Makers of durable goods such as cars, crop-harvesting combines, and washing machines are projecting challenging business conditions for the remainder of the year, WSJ reports. Demand for forged and stamped products is driven by manufacturing volume.
- The Forging Industry Association (FIA) has urged the US Trade Representative to levy higher tariffs and close loopholes allowing Chinese and other imports to crowd out domestic forgings, according to a May press release from the trade association. Framing the issue as a matter of national defense, FIA deputy CEO Angela Gibian noted that China controls 46% of the global forging market. She emphasized the critical role of metal castings and forgings in national defense and infrastructure, noting that there are as many as 1,000 forging in aircraft, 550 on a heavy tank, and 250 in passenger vehicles or trucks, while a typical wind turbine requires 20 metric tons of forgings. “These products are a critical part of US national and economic security,” Gibian said. While the US levies a 25% tariff on imports, FIA members report that forged imports from China remain 40% to 8% cheaper.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.