Dynamic Metal Fabrication Market Poised for Growth
After a few turbulent years, the metal fabrication market is rebounding and diversifying. Buoyed by increased demand and manufacturing advances, the sector is becoming more dynamic and resilient. This is leading to market growth and profitability.
Market Value to Exceed $21 Billion
Due to various factors, analysts’ predictions are rather optimistic for the future of the metal fabrication market. A recent report by Transparency Market Research (TMR) predicted the market would climb to $21.38 billion USD by 2024, up from $16.35 billion in 2015.
While 2016 was bumpy and did not produce an average compound annual growth rate (CAGR) of 3%, 2017 has seen some promising trends that make this prediction entirely reasonable.
TMR has identified key sectors of the metal fabrication market that are primarily responsible for this promising outlook. Among services, experts predict machining will grow 4.1% over the next several years. And welding and construction will maintain their strong positions in this market. Additionally, the manufacturing segment should grow at a higher rate than all other end-use segments.
One of the challenges facing growth in this market is the recent rise in popularity of 3D printing for metal additives. This recent technology has proven its value in precision fabrication as well as quality. This will undoubtedly prove challenging for future growth in the metal formulation market.
Additionally, as technology increases capacity and production volume, the role of skilled labor is changing. Automation and robotics are on the rise and require fewer hands. And those remaining roles in which workers are needed are evolving, resulting in educational and training challenges.
Positive Factors Propelling Metal Fabrication Market
Challenges aside, experts remain optimistic. Several trends are becoming more pronounced in recent years collectively propelling the metal fabrication market towards rapid growth.
- Firms offering metal fabrication services are becoming more adept at offering a myriad of services – from heavy structural fabrication to intricate assemblies. They are reducing the cost of the value chain by offering more services under one umbrella. Fabricators now offer services at every stage of the product lifecycle, including prototyping, lower-volume fabrication, and higher-volume stamping.
- Investment in related industries and key infrastructure has been rising for the past decade. This fuels metal formulation industry growth with much-needed capital, equipment, and parts.
- Demand for aluminum is up thanks primarily to the automotive and aerospace industries.
- Reshoring from Asia to North America is creating renewed demand for North American fabrication.
These trends present an opportunity for manufacturers and producers to reduce costs and maximize profitability in the metal fabrication stage. As firms become more streamlined, diversified, and enabled, those doing business with these firms can benefit from their efficiency and growth.
What are some of the metal fabrication challenges that you are experiencing or hear about? Please share with us.