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.

Industry size & Structure
Industry Forecast
Spring and Wire Product Manufacturers Industry Growth
Source: Vertical IQ and Inforum

Recent Developments

Jan 18, 2024 - Producer Prices Fall
  • Producer prices for spring and wire product manufacturers fell in December compared to a year ago. In 2023, producer prices for the industry were relatively flat before trending downward late in the year. Spring and wire prices appear to be normalizing after two years of sharp increases in 2021 and 2022 driven by the post-pandemic recovery in manufacturing. While overall employment by the industry declined in November year over year, average wages at fabricated metal manufacturers continued to rise and hit a new high of $25.59 per hour in December.
  • The Biden administration in late December extended the tariff rate quota (TRQ) agreement on steel and aluminum with the European Union until year-end 2025, The Fabricator reports. The agreement, which was due to expire at year-end, allows EU steel and aluminum exporters to avoid the 25% and 10% tariffs on steel and aluminum imposed in 2018 as long as the exports were below certain levels. The TRQ extension is an interim solution until the US and EU can finalize a broader agreement addressing the overcapacity and decarbonization of steel. Both countries are looking to replace the current tariffs with a system basing tariffs or fees on the level of carbon emissions attached to the production of a particular import. It remains to be seen whether replacing the current TRQ agreement on imported steel and aluminum with a system based on greenhouse gas emissions would impact US buyers.
  • 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.
  • For a manufacturer to reduce its carbon footprint, it must first accurately measure it, Springs Magazine (SM) reports. In an in-depth look at the topic of measuring the carbon footprints of spring manufacturers, the magazine notes that less than 10% of companies measure their full carbon footprint. To help manufacturers understand and accurately measure their full carbon footprint, which includes that of suppliers and other inputs along the value chain, the consulting firm BCG has developed an AI-powered platform (CO2 AI) that organizations across all industries can use to quantify current emissions and find solutions to reduce them at scale, the magazine reports. Importantly, to provide end-to-end carbon management, companies must track and measure their carbon footprint across their entire supply chain, to provide the manufacturing ecosystem with the product-level data needed to act on reducing their overall carbon footprints, per BCG.
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