Market Trends of North America Fabricated Metal Products Industry
This section covers the major market trends shaping the North America Fabricated Metal Products Market according to our research experts:
Growing Demand for Advanced Automotive and Industrial Parts
One of the main reasons for the growth of the international auto parts market is that people are using technology more and more.Auto parts are fabricated and manufactured using 3D printing technology. Furthermore, most vehicles produced today incorporate a diverse range of additively manufactured and fabricated parts into the assembly. This includes everything from engine components, gears, gearboxes, and brake components to frame construction. Motor vehicle and parts manufacturing in the United States generated a gross output of approximately USD 721 billion in 2021. Between 2018 and 2020, global automotive industry growth slowed; sales of new light vehicles fell, and motor vehicle production output did not recover from the pandemic, reaching 80 million in 2021.
Automotive and aviation are two industries that use a lot of industrial fasteners. This is because both the process of making the product and the product itself have a lot of parts. Fasteners such as nuts, bolts, screws, and washers are commonly used in these industries. As the region's demand for commercial and passenger vehicles grows, so does the demand for automotive-grade industrial fasteners. In April 2022, passenger car sales in 2021 totaled 345.35 thousand units, with light truck sales totaling 1,293.7 thousand units, up from 325.49 thousand units in 2020 and 1233.06 thousand units in 2021.
North America became a major market for making aircraft parts around the world in 2021. This is because the area has a lot of companies that make parts for planes and a well-established industry for making planes. Rising passenger traffic is expected to drive growth. Furthermore, technological progress is expected to provide significant growth opportunities. To improve safety, quality, and efficiency, aircraft manufacturers are employing ML (machine learning) and AI (artificial intelligence) approaches. Machine learning algorithms collect and analyze data to reach more accurate conclusions. These technological advancements help reduce production costs while also improving aircraft performance.
Increased Production of Steel creating Demand for Fabricated Products
After a very high rate of growth in 2021, the US metals and steel industry is expected to grow by about 5% this year. This is mostly due to the strong demand from the residential construction, aerospace, transportation, and engineering industries, which have all been strong in recent years.But since fuel prices are high and consumer prices are going up, the drop in car sales in the first half of 2022 shows less demand for expensive, metal-intensive consumer goods.Order backlogs persist in the face of supply chain constraints. While oil and gas prices have skyrocketed, strong demand allows metals and steel companies to pass on higher input costs. The industry benefits from the fact that some US manufacturers have returned to their home countries to avoid further supply chain disruptions and improve price stability.
Due to the partial reduction of Section 232, tariffs on EU imports, and the weaker EUR relative to the USD, the US metals and steel industry is facing increased competition from EU peers in its domestic market. This has limited domestic production's growth in 2022, when it is expected to increase by about 3%. Persistently high inflation remains a downside risk, as it could prompt the Federal Reserve to tighten monetary policy more aggressively. A hard economic landing would reduce consumption and investment, dampening demand for metals and steel.
