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

Recent Developments

May 18, 2024 - Producer Prices Stall
  • Producer prices for spring and wire product manufacturers dipped 1.1% in March compared to a year ago after spiking 22% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Prices began rising steeply at the start of 2021 as US factories recovered from the pandemic-induced recession but have retreated as manufacturing stalled in 2023. Employment by spring and wire product makers contracted by about 1% in March year over year. Meanwhile, average wages at fabricated metal manufacturers rose 3.1% over the same period to $24.28 per hour, a new high for the industry, BLS data show.
  • President Biden has called for tripling tariffs on Chinese steel and aluminum, the American Wire Products Association noted in April. In remarks to US steel workers, Biden said that if an investigation by the Office of the US Trade Representative finds China engaging in anti-competitive practices, it will consider more than tripling the tariffs from their current average of 7.5% to 25%. The administration alleges China is overproducing goods to export to the US, driving down prices and hurting the American economy because higher-quality US products must compete with artificially low-priced alternatives. While US steel and aluminum producers support the higher tariffs, makers of steel and aluminum products that purchase these metals from China would face higher prices.
  • 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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