Metal fabrication industry is an evergreen industry that might face some difficulty time to time but at the end, it’ll survive and keep its dominance. After the rebound from record lows during the Great Recession, total spatial spending in the metal fabrication industry is somewhat steady with a slight uplift on the edge. While specific machines like laser cutting units, fiber lasers, etc. had a great sales last few years, the overall capital spent on metal fabrication hasn’t changed that much – until recently.
Forecast of Capital Spending in 2018
The forecast was made and published by the FMA (Fabricators and Manufacturers Association) and the forecast “2018 Capital Spending Forecast” was released at Chicago’s FABTECH Tradeshow around the end of 2017.
According to that prediction, capital spending on Metal fabrication was supposed to be more than 2.7 billion US Dollars and by the way, this year started, it seems that 2018s prediction will be correct.
This estimated number for 2018 is 20% higher than 2017. According to some, the percentage may surpass even that.
Why the rise in spending?
It’s no wonder the demand for fabricated products in increasing prominently, especially when everything is getting a robust metal look. Steel Fabrication, Aluminum Fabrication, Stainless Steel Fabrication, Metal bending, Metal rolling, everything is getting much more attention than they used to get. That’s why almost every fabricator, small, medium or big, is optimistic about this year.
This optimistic sight was nurtured by their client’s interest in fabricated products for every project.
It is simple economics, the more you demand something, the more investment that sector gets. Seeing the need for fabricated metal products, it won’t be a gamble to say that the year 2018 is a year full opportunities for metal fabrication industries.
Where is the Capital going?
Almost 87% responders of a survey expressed their gut feeling that most of the spending in metal fabrication will be spent to buy new machines and equipment for laser cutting, metal bending, metal rolling etc.
Among the different fabrication processes, welding earns the top spot as it is the most spent process of all.
Projected consumable spending is up 17% and power supply for welding is up by 14%, these two are another significant area where the capital will go. But the greatest leap is in the spending for laser cutting and metal bending, nearly 40% from 2017s projection.
The least expected is the rebound in spending on CO2 based laser cutting machines, which is up to more than 22% than last year’s projection. The plasma cutting system can have a huge uptick this year with its projected 26% spending while plate roll spending is up by 28% and waterjet cutting spending is up for 23%.
Among the equipment, the hydraulic presses stand out with projected spending of more than 216 million US Dollars. This is nearly double for last few years and almost as much as the total projected spending for laser cutting machines in 2014.
Undoubtedly 2018 is the year for metal fabrication industry and the owners. The huge amount of capital indicates only one thing and that is metal fabrication has a bright future ahead.