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 900 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.
Metal Tariffs Affect Prices
US spring and wire product manufacturers that source metal materials from foreign suppliers may see increases in costs due to tariffs placed by the federal government.
Industry size & Structure
A typical spring and wire manufacturer operates out of a single location, employs 70 workers, and generates about $11 million annually.
- The spring and wire product manufacturing industry consists of about 900 companies which employ about 65,000 workers and generate about $9.9 billion annually.
- Most companies are small, independent operators - about 85% 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), Elyria Spring & Stamping (OH), and Madsen Steel 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
Recent Developments
Jul 18, 2024 - Wages Climb to New High
- Producer prices for spring and wire product manufacturers dipped by 0.9% in May compared to a year ago after jumping 18.7% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices have been flat for more than a year following a steep runup that began in 2021 and peaked in December 2022. Employment by the industry was unchanged in May year over year, while average wages at fabricated metal manufacturers, which include spring and wire makers, rose 4.4% in June YoY to a new high of $26.20 per hour, BLS data shows.
- The Fabricator reported in July that manufacturers of metal products that source foreign-made steel routed through Mexico are facing higher supply costs due to new tariffs imposed by the Biden administration in July. To stop China from avoiding import taxes by routing steel and aluminum through Mexico, the US has imposed a 25% tariff on Mexican steel that is melted or poured outside North America before being turned into a finished product. Previously, that steel would have entered the country duty-free. Aluminum imports from Mexico also face a tariff of 10% if they contain metal smelted or cast in China, Belarus, Iran, or Russia, said the White House’s National Economic Council director. While US steelmakers have welcomed the higher tariffs, companies that rely on imported steel to manufacture their products generally oppose the tax hike.
- More than two-thirds of manufacturers have a positive economic outlook for 2024, but opinions are mixed about whether there will be a recession, according to the Q4 2023 Manufacturers Outlook Survey of member companies by the National Association of Manufacturers (NAM). 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% said they feel uncertain. 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.
- Manufacturing output per hour in the United States has grown just 0.2% a year since 2009, well below the economy as a whole and peer economies in Europe and Asia (excluding Japan), The Wall Street Journal reports citing data from the US Labor Department and OECD. The US trails far behind Taiwan (up 4%), and the UK, Germany, South Korea, France, and Italy. Moreover, in key industries, the US is losing ground. Productivity in US motor vehicle manufacturing plummeted 32% from 2012 through 2022, although some of the loss was due to disruptions caused by the COVID-19 pandemic. In aircraft manufacturing, Boeing lags Europe’s Airbus. And while the US still leads in semiconductor design, it is ceding production capacity to Asia, notably Taiwan, according to WSJ. Factors behind the nation’s lagging productivity include far fewer robots than in other countries and high turnover among others.
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