Industry Analysis & Industry Trends
Nonferrous metal foundries depend primarily on demand from motor vehicle and aircraft manufacturers, which collectively account for more than half of industry revenue. During the five years to 2014, the global economic downturn slashed demand for automobiles and air travel, resulting in the restructuring of major automakers, decreased car and aircraft production and a sharp drop in industry revenue. However, industry revenue is expected to continue recovering as consumers increase spending on cars and air travel. Over the five years to 2019, consumers will continue to spend on cars and air travel, and globalization will lead to industry consolidation, creating larger foundries that are better positioned to serve customers... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Nonferrous Metal Foundry Products Manufacturing industry are high, reducing industry attractiveness and leading to a decline in operator numbers even in growth years. The scale of investment — building bigger or more efficient manufacturing facilities — can discourage potential industry entrants from challenging incumbents because such large facilities require a tremendous amount of capital. There are high costs associated with the construction and development of a new foundry, which is a significant deterrent to entry as many newer, smaller companies lack the large amount of necessary capital.
Existing players have close-knit relationships with customers, making it difficult for a new foundry to sell its products... purchase to read more