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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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.

Volatile Metal Prices

Price for raw materials such as steel, copper, titanium, zinc and aluminum can fluctuate significantly from year to year.

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

                                Coronavirus Update

                                May 14, 2022 - Reshoring Boosts Demand
                                • While total private investment in new industrial equipment and machinery, an indicator or demand for spring and wire products, fell 3% in the first quarter, after peaking in the fourth quarter of 2021, it remained at a decades-long high, according to the US Bureau of Economic Analysis. Springs and metal wires are common components in most machinery and production lines and warehouse operations often rely on conveyor systems with belts made from woven metal wire or chain. Supply chain woes resulting from the pandemic are behind the energized efforts to bring manufacturing back from overseas, a move often referred to as reshoring or onshoring, after decades of outsourcing. New commitments by manufacturers to sustainability are also playing a role, with the opportunity to reduce pollution and fossil fuel consumption in transportation across oceans emerging as a selling point.
                                • In a move that could benefit US spring and wire product manufacturers that source metal from overseas, the Biden Administration in May announced it will lift tariffs on Ukrainian steel for one year. Although Ukraine is a fairly minor supplier of steel to the US, ranking 12th among America’s foreign suppliers, the lifting of the 25% tariff on foreign steel was welcomed by US metal manufacturers and users. The Coalition of American Metal Manufacturers and Users (CAMMU), which represents more than 30,000 companies in the manufacturing sector and downstream industries, said the steel and aluminum tariffs were exacerbating supply chain issues and making it harder for domestic manufacturers to obtain raw materials to meet demand. In recent months, the White House has negotiated deals with the European Union, Britain and Japan to ease metal tariffs while still maintaining some protections called for by US steel makers, the New York Times reports.
                                • Spring and wire manufacturers have raised their prices significantly in recent months to compensate for higher raw material costs and protect profit margins. The prices that manufacturers asked for their spring and wire products jumped 23.3% in March 2022 compared to a year ago. During the same period, the cost of iron and steel jumped 36% and aluminum prices climbed 45%. Prices of raw materials and finished spring and wire products started their steep rise in early 2021, due largely to supply chain disruptions.
                                • The value of manufactured durable goods shipments in March 2022, an indicator of demand for spring and wire products, increased 1.2% and was up in 10 of the last 11 months, according to the US Census Bureau.
                                • Employment in the hardware, spring and wire products manufacturing industry increased 3.9% year over year in March 2022, but was still down 0.9% from the pre-pandemic month of March 2020.
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