Metal Stamping & Forging
This industry manufactures forged, stamped and roll-formed metal products. A variety of manufacturing sectors use forged and stamped metal in the production of aerospace systems, defense equipment, agricultural machinery and other machinery. Therefore, The industry's revenue depends in part on the level of activity across these key markets. Revenue also depends on the price of steel and other metals purchased by operators, as rising metal prices increase the costs incurred by operators.
Although manufacturing activity plummeted in the aftermath of the recession, it has recovered steadily since 2010. Over the next five years, the industry's growth and profit margins will continue to be driven by a combination of downstream demand and metal prices. Manufacturing activity is expected to keep growing, propelling demand for stamped and forged metal products. Meanwhile the price of steel as well as other metals, such as nickel, is forecast to surge back, to the good fortune of this industry.
Metal Pipe & Tube Manufacturing
This industry's performance is tightly correlated with the highly volatile world price of steel. As steel prices plummeted during the recession and subsequently skyrocketed, so too have the development of industry operators. In 2009, oil and gas drilling, manufacturing and construction industries cut demand for industry products dramatically, causing revenue to fall. Fortunately, in 2010 and 2011, demand recovered and steel prices surged, returning revenue to growth.
In the five years through 2019, demand for the industry's products is expected to increase as rising oil and gas prices cause downstream buyers to boost production, increasing the need for industry products. Additionally, sustained growth in automotive component manufacturing will increase demand for metal pipes and tubes. However, increasing competition from substitutes and imports and climbing input prices may cause profit margins to decline further.