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 (such as 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 Intensive
The forging and stamping industry is highly capital-intensive and requires significant investment in plants, property, and equipment, such as presses, hammers, conveyers 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 consists of 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 and Park Ohio Holdings. 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
Jun 21, 2024 - Pricing is Flat But High
- New orders for fabricated metal products – an indicator of future demand for forging and stamping services – fell 0.9% in March compared to a year ago but were up 7.2% versus February, according to the Census Bureau. Inventories and shipments were both essentially flat in March year over year. In April, producer prices for forging and stamping companies posted a flat year-over-year comparison, although prices remain high by historical standards, according to the latest US Bureau of Labor Statistics data. Industry employment dipped 1.7% over the same period, while average industry wages rose 2.3% to $24.03 per hour, close to their peak in December 2022, BLS data show.
- 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.
- According to newly released Census Bureau figures, US capital expenditures for robotic equipment totaled $12,960 million (not statistically different than 2021) and accounted for 1.1% of total equipment expenditures in 2022. The manufacturing sector was the largest investor, accounting for more than half (56.2%) of all robotic equipment expenditures – nearly $7.3 billion that year. Metal stamping firms rely increasingly on robots to perform complex stamping tasks with consistent accuracy, ensuring that each stamped part meets strict specifications while increasing productivity (robots work 24/7) and mitigating risk to employees.
- More than two-thirds of US manufacturers have a positive economic outlook for 2024, but opinions are mixed about whether there will be a recession, according to the National Association of Manufacturers (NAM) Q4 2023 Manufacturers Outlook Survey of member companies. Large manufacturers are the most optimistic, with 77.5% positive about their company’s outlook while medium-sized manufacturers are the least optimistic with 63% feeling positive. While fewer respondents expect a recession in 2024 than they did three months ago, nearly 41% expressed uncertainty. Just over 34% of manufacturers believed the US economy would experience a recession in 2024. The top challenge for the manufacturing sector this year will be the workforce, with the labor market cooling substantially but remaining tight. Notably, NAM reported manufacturing construction spending is at a record high of $210 billion thanks to the production of semiconductors, electric vehicles and batteries, and general reshoring.
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