First Research US Industry Profile

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Fabricated Metal Product Manufacturing
SIC Codes: 34
NAICS Codes: 332
Last Quarterly Update: 9/23/2019
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 headquartered in the US), as well as Schaeffler AG (Germany), and Toyo Seikan (Japan). Because of the special manufacturing processes involved for individual parts, most companies make a limited range of products.
Price recovery for oil and other key commodities contributed to stronger economic growth in 2017 and 2018. However, rising global trade tensions and higher interest rates could pose risks for continued robust economic growth, according to the IMF. Slower economic growth or a drop in corporate capital expenditures could reduce demand for transportation equipment and machinery, which are leading end-use markets for many types of fabricated metal products. Top producers of fabricated metal products include the US, China, Japan, Germany, Italy, and Canada.
The US fabricated metal product manufacturing industry includes about 51,000 companies with about $338 billion in combined annual revenue. Coverage of key components of the fabricated metal product manufacturing industry can be found in the following industry profiles: Architectural & Structural Metals Manufacturing; Gun & Ammunition Manufacturing; Handtool, Cutlery & Flatware Manufacturing; Hardware & Fastener Manufacturing; Machine Shops; Metal Coating, Engraving & Heat Treating; and Metal Valve & Pipe Fitting Manufacturing.
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.
The US fabricated metal product manufacturing industry as a whole is fragmented: the largest 50 companies account for about 20% of revenue. But concentration can be high in product segments such as boilers, cutlery and handtools, metal cans, and springs.
Competitive Advantages:
Mergers & Acquisitions -- Middle-market companies may seek to move toward the market-leader end of the industry spectrum through M&As. Acquisitions can increase market share, but for margins to improve, combined purchasing power and cost savings must be realized quickly.
Niche Focus -- Companies that specialize in niche products tend to enjoy higher-than-average margins. Middle-market companies may decide to shrink their product focus to grow margins. But to be successful, companies need to dominate their chosen niche.
Regional Expansion -- Smaller companies can expand their niche expertise by duplicating their business model in new regional markets. Custom work and small product runs allow niche companies to more easily pivot as market conditions change.
Products, Operations & Technology
Major segments of the fabricated metal products industry include architectural and structural products; forging and stamping; machining; cutlery, tools, ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

05/13/2019
02/11/2019
11/05/2018
08/06/2018
05/14/2018
02/12/2018
11/06/2017
08/07/2017
05/08/2017
02/06/2017
10/31/2016
08/01/2016
05/02/2016
02/01/2016
10/26/2015
08/03/2015
05/11/2015
02/09/2015
11/10/2014
08/18/2014
05/26/2014
03/10/2014
12/02/2013
09/09/2013
06/17/2013
03/25/2013
12/17/2012
10/01/2012
07/16/2012
04/23/2012
01/23/2012
10/10/2011
07/11/2011
03/21/2011
12/13/2010
09/20/2010
06/07/2010
03/15/2010