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 1,965 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 52 workers, and generates about $17 million annually.

    • The forging and stamping industry consists of about 1,965 firms that employ 91,500 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
                                      Source: Vertical IQ and Inforum

                                      Recent Developments

                                      Apr 21, 2024 - Payroll Costs Ease
                                      • Producer prices for forging and stamping companies ticked up 1.1% in March compared to a year ago, according to the latest US Bureau of Labor Statistics data. Still, producer prices have fallen 7% from their peak in May 2022 following a soaring run-up. Payroll costs have eased, with industry employment down 2.8% in January versus the year-earlier period, while average wages fell 2.4% over the same period to $23.04 per hour, per BLS wage data.
                                      • 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.
                                      • The US Department of Defense (DoD) is partnering with the Institute for Advanced Composites Manufacturing Innovation to help meet essential national defense needs in the casting and forging industry, according to an IACMI press release. The DoD’s Industrial Base Analysis and Sustainment (IBAS) Program in December announced a national workforce initiative to help address the critical workforce shortages in the casting and forging supply chain. "Castings and forgings are critical to achieving and maintaining the capabilities we need,” said Dr. Matthew Draper, Technical Director of Metallurgy and Manufacturing at the department, noting that ”the supply chain for cast and forge components for the Defense Industrial Base has shrunk by 80%. In a time when we must now produce defense materials at tonnage levels not seen since the Cold War, we must rebuild a modern, technologically adept workforce capable of delivering with far fewer personnel."
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