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
Recent Developments
Mar 18, 2024 - Producer Prices Normalized in 2023
- Employment by spring and wire product manufacturers fell 1.1% in December compared to a year ago after growing by 3.4% in the previous annual comparison, according to the US Bureau of Labor Statistics. Average wages at fabricated metal manufacturers – which includes makers of spring and wire products – continued their steady climb last year to reach a new high of $25.82 per hour in December, a 3.7% year-over-year change, per the BLS. Wages rose amid declining producer prices in 2023. 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.
- 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.
- 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.
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