Industry Analysis & Industry Trends
Industry revenue is expected to decline at a compound annual rate of 6.1% over the five years through 2016-17. Revenue is influenced by demand trends, as well as changes in steel prices. Steel prices are expected to have declined overall during the past five years, despite registering significant year-on-year fluctuations. This instilled a high degree of revenue volatility. Industrial production activity is projected to have remained stagnant, negatively influencing demand for steel castings, as they are widely used in engineered products. However, residential and non-residential building construction activity rebounded and had a favourable influence on demand... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry are moderate in the industry, as is evidenced by the large number of small companies. Nevertheless, barriers to entry are relatively high for casting operations involving higher levels of technology (such as complex internal passages, thin walls and complex metallurgy). Often, only specialist foundries have the technical capability to supply niche castings.
The major barriers to entering the industry involve the costs of purchasing foundry equipment, recruiting trained employees, securing reliable and cost-effective supplies and building up a viable customer base. Steel casters employ staff with engineering and trade skills. Sometimes, customers outsource engineering design services to firms in this industry.
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