Fabricated Metal Product Manufacturing

Fabricated Metal Product Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry transform purchased metals into intermediate or end-use products by forging, stamping, bending, forming, welding, machining, and assembly. Major companies include Ball Corporation, Flowserve, Gibraltar Industries, Mueller Industries, Snap-on, The Timken Company, and Valmont Industries (all based in the US), as well as Schaeffler Group (Germany) and Toyo Seikan (Japan). Due to the special manufacturing processes involved for individual parts, most companies make a limited range of products.

COMPETITIVE LANDSCAPE

Globalization and customer concentration have intensified competition in the fabricated metal products industry. OEM customers increasingly seek efficiencies by buying more from fewer suppliers. Many middle-market companies are seeing their margins get squeezed as they try to compete with their larger counterparts for this reduced number of overall contracts. Profits tend to be highest for small, local niche companies, as well as for global market leaders that enjoy significant economies of scale.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major segments of the fabricated metal products industry include architectural, structural, kitchenware, hardware products as well as valves and pipes. Leading sources of revenue include machine shop job work and job order repairs for about 10%. This is followed by other metal processing, precision turned products, metal coating, and aluminum cans for about 5% each.