Metal Fabrication Market - Snapshot

Metal fabrication is the process of forming metallic structures and assemblies from raw metal work pieces. This process is referred to as a value added service as it completely deforms the raw material and develops a completely new structure through the use of several procedures such as metal welding, machining, metal forming, metal cutting, and others. Metal fabrication workshops work on multiple value added services under a single roof, encompassing welding, cutting, machining, shearing, and others. Metal fabricators offer additional value to clients by providing complete services under one facility. Metal fabrication workshops are primarily contracted by original equipment manufacturers (OEMs), iron and steel manufacturers, building contractors, and value added resellers.

global metal fabrication market

Advancement in Technological Tools in Metal Fabrication is Likely to Drive the Market

Various ERP technologies and software are used in the metal fabrication industry. This makes data easily accessible and accelerates the decision-making process. Increase in usage of computer aided manufacturing technologies is helping the metal fabrication industry improve operational efficiency and enhance production. These advancements in the technologies are anticipated to drive the metal fabrication market globally.

Automation in Metal Fabrication Industry and Diversified End-use Industries Expected to Drive the Metal Fabrication Market

Advancement in robotics and automation tools boosts their application in the metal fabrication market. Currently, automation is used in the metal fabrication market to increase efficiency and lower labor costs. Increasing demand for automated manufacturing systems in the metal fabrication industry helps in making the manufacturing facilities safe as all the critical jobs such as welding and cutting are done by robots. Apart from this, automation tools such as laser saws make it easier for fabricators to manufacture precisely cut metal parts. Fabricated metals are used in various end-use industries such as automotive, oil & gas, construction, aerospace, agriculture, consumer products, medical devices, military, and defense. As end-use industries are diversified, effects of the cyclical nature of the metal fabrication industry are mitigated. These factors are anticipated to drive the metal fabrication market.

Lack of Skilled Labor and Developments in Additive Manufacturing Technologies to Hinder the Expansion of the Metal Fabrication Market

Finding skilled labor is becoming increasingly difficult as the industry is becoming technologically advanced. According to an OECD report, skill shortage is a rising problem across the globe. Countries such as Japan, India, Brazil, and the U.S. are facing severe skilled workforce shortages despite high unemployment rates. This is anticipated to hinder the expansion of the metal fabrication market in the near future. Rapid developments in additive manufacturing (3D printing) technologies are reducing the time taken to print an object. Additive manufacturing is a highly flexible manufacturing process with high scope of customization, which makes it easy for fabricators to design and manufacture complex parts easily. This type of manufacturing is not utilized on a large scale. However, additive manufacturing is anticipated to be commercialized in the near future, which is anticipated to change the dynamics of the metal fabrication market. Thus, lack of skilled labor and developments in the field of additive manufacturing are anticipated to restrain the expansion of the metal fabrication market in the near future.

Achieve Operational Excellence as Per Industry Requirements and Focus on Emerging Economies - Potential Opportunities for the Metal Fabrication Market

Demand for fabricated metals from OEMs has been fluctuating. This is in line with the demand for end-use products. Product manufacturing companies have been adopting new operational methods to minimize cost by shortening the production time and lowering inventory costs. Companies operating in the metal fabrication market are adopting new trends and business strategies to cater to the changing requirements of customers. Metal fabricator companies possess the opportunity to carry out operational management efficiently by using material requirements planning (MRP), Kanban (JIT), and optimized production technology (OPT) to cater to the changing demands of customers and remain competitive in the market. The metal fabrication market has been experiencing flat growth rate in Europe. On the other hand, the metal fabrication market is expected to expand at a rapid pace in emerging countries such as India, China, and Brazil in the near future. China and India are key countries of the metal industry. These countries provide lucrative opportunities for companies operating in the metal fabrication market.

Expansion and Mergers & Acquisitions – The key Strategies

Major players in the metal fabrication market have adopted expansion and mergers & acquisitions as their key strategies to expand their network and share their investments. In January2017, O’Neal Manufacturing Services merged four affiliates, Aerodyne Alloys, United Performance Metals, Plus Ten Stainless, and Vulcanium Metal International, to form a high-performance metal company, United Performance Metals. The acquisition helped the company achieve operational efficiency. Expending current facilities is likely to be the long term strategy of metal fabrication manufacturers. For example, In June 2016, high-precision Mitsubisihi laser cutting carbon dioxide equipment was ordered by Komaspec to cut metals having thickness of up to 16 mm. The newly added capability is anticipated to help the company meet the increase demand for metal fabrication products.

Asia Pacific Held a Major Share of More Than 40% of Global Metal Fabrication Market in 2017

In terms of region, Asia Pacific and Europe are the key regions for the metal fabrication. North America and Europe hold a prominent share in the global metal fabrication market. Asia Pacific was recorded to be a rapidly expanding region of the metal fabrication market in 2016 owing to strong research and development activities in Japan, China, South Korea, and India. Construction and automotive industries are a focus segment in Asia, owing to high presence of construction and automotive companies in China and India. Japan is a key country of the market in Asia Pacific due to high R&D expenditure in the country.

Global Metal Fabrication Market Fragmented into Small to Medium Size Players

Key players in the global Metal Fabrication market are O’Neal Manufacturing Service, BTD Manufacturing Inc., Ironform Corporation, Mayville Engineering Comp. Inc., Defiance Metal Products Inc., and others.

Metal Fabrication Market – Overview

This report analyzes and forecasts the market for metal fabrication at the global and regional level. The market has been forecast based on revenue (US$ Mn) from 2016 to 2025. The study includes drivers and restraints of the global metal fabrication market. It also covers impact of these drivers and restraints on the demand for metal fabrication during the forecast period. The report also highlights opportunities in the metal fabrication market at the global level.

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global metal fabrication market. The Porter’s Five Forces model for the metal fabrication market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein applications are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global metal fabrication market by segmenting it in terms of services and end use industry. The segments have been analyzed based on present and future trends. Regional segmentation includes the current and projected demand for metal fabrication in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers the demand for individual services and end-use industry segments in all the regions. Key players operating in the metal fabrication market include O’Neal Manufacturing Service, BTD Manufacturing Inc., Ironform Corporation, Mayville Engineering Comp. Inc., and Defiance Metal Products Inc. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.

The report provides the estimated market size of metal fabrication for 2016 and forecast for the next nine years. The global market size of metal fabrication has been provided in terms of revenue. Market numbers have been estimated based on services and end-use industries of metal fabrication. Market size and forecast for each major service and end-use industry have been provided in terms of the global and regional market.

In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players operating in various end-use industries, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, and internet sources and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Global Metal Fabrication Market, by Services

  • Construction
  • Automotive
  • Manufacturing
  • Energy & Power
  • Electronics
  • Others

Global Metal Fabrication Market, by End-use Industry

  • Welding
  • Machining
  • Metal Forming
  • Metal Shearing
  • Metal Cutting
  • Metal Folding
  • Metal Rolling
  • Metal Stamping
  • Metal Punching

Global Metal Fabrication Market, by Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Metal fabrication Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Key Takeaways

  • An extensive analysis of the metal fabrication market trends and shares from 2016 to 2025 to identify the market opportunities and analyze industry development
  • A list of key developments in the metal fabrication market made by key players
  • A list of key factors responsible for building the upcoming opportunistic roadmap for the metal fabrication market at a global, regional, and country level
  • Comprehensive analysis with respect to investments and price trends that impact the outlook of the global metal fabrication market between 2016 and 2025
  • The report provides insights into market opportunities for various stakeholders in the value chain and a detailed competition landscape for key players dominating the industry to understand competition level
  • Porters’ Five Forces highlight the potency of buyers and suppliers and enable stakeholders to make profit-oriented business decisions. They analyze the strengths and weaknesses to gain strategic position in the market.
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