Spring and Wire Product Manufacturers

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 950 spring and wire product manufacturers in the US are divided into two segments: primary spring and wire producers and manufacturers that purchase primary spring and wire and process it into a wide variety of finished products ranging from chain link fence and automotive suspension springs to staples and watch coils.

Shift from Mechanical to Digital Products

The conversion of machinery and consumer goods from mechanical operation to digital has significantly impacted demand for some types of springs and wires.

Industry size & Structure

A typical spring and wire manufacturer operates out of a single location, employs 40-41 workers, and generates about $10-11 million annually.

    • The spring and wire product manufacturing industry consists of about 950 companies which employ about 38,400 workers and generate about $10 billion annually.
    • Most companies are small, independent operators - about 86% have a single location.
    • The spring manufacturing segment of the industry is somewhat concentrated in that the 20 largest firms account for 63% of industry revenue. The wire manufacturing segment is fragmented with the 20 largest firms representing 37% of industry revenue.
    • Large companies include Lee Spring (NY), Sterling Spring (IL), Elyra Spring & Stamping (OH), Marlin Steel (MD), Madsen Wire Products (IN).
    • While spring and wire product manufacturing takes place in nearly every state, the Midwest “rustbelt” has a high concentration with Illinois, Michigan, Indiana, Ohio, and Pennsylvania accounting for 35% of firms and 31% of revenue.
                                Industry Forecast
                                Spring and Wire Product Manufacturers Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Nov 14, 2022 - Tariffs on Hot-Rolled Steel Remain in Place
                                • The US International Trade Commission (USITC) in October decided to maintain the existing countervailing duty order on imports of hot-rolled steel from South Korea and the antidumping duty orders on imports of hot-rolled steel from Australia, Japan, Netherlands, Russia, South Korea, Turkey, and the United Kingdom. Those decisions were based on a five-year sunset review of the tariffs and found that US steel manufacturers would be hurt if the tariffs were removed. While good news for US steel makers, keeping the tariffs is bad news for metal customers, including spring and wire manufacturers. In a bit of good news for metal consumers, the USITC agreed to remove the existing antidumping duty and countervailing duty orders on imports of hot-rolled steel from Brazil, according to The Fabricator.
                                • Buoyed by a backlog of car buyers willing to pay record-high prices for new vehicles, automakers are optimistic about sustained demand for their products despite current macroeconomic headwinds, The Wall Street Journal reported in October 2022. US automakers and parts suppliers reported strong Q3 2022 results with some even raising profit forecasts. If the industry’s rosy outlook is realized, sustained demand for automotive suspensions and other auto parts made from springs, wires and cables will follow. Moreover, automakers are investing billions of dollars to ramp up electric vehicle production, which will drive demand for EV-related parts.
                                • The strong value of the US dollar relative to the euro, Japanese yen, British pound, and other currencies is giving foreign producers a price advantage in the US market while making US exports more expensive, The Wall Street Journal reported in October 2022. The unfavorable exchange rates threaten to derail the rebound in US manufacturing, especially for companies with large overseas sales. Industry analysts cited by WSJ said unfavorable exchange rates will likely crimp industrial manufacturers’ revenue and expressed concern that US manufacturers will become less willing to invest in their domestic operations if their profits get squeezed by a stronger dollar. But exchange rates cut both ways: The currency shift is helping some US companies that import foreign-made components for use in their factories.
                                • The Occupational Safety and Health Administration (OSHA) is considering lowering permissible levels of lead in the blood of employees in various industry sectors that could potentially affect more than 1,000 firms. Businesses in the fabricated metal product manufacturing sector (NAICS 332000), which includes spring and wire product manufacturers, would be impacted if OSHA takes action, according to The Fabricator. According to OSHA, some companies in the sector likely have employees with blood lead levels (BLLs) greater than 5 micrograms per deciliter. The agency, which issued advance notice of the proposed rulemaking in June, has agreed to extend the comment deadline two months to October 28 due to controversy. Many states already have lowered lead exposure thresholds, putting pressure on OSHA to re-examine its 45-year-old standard.
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