Industry Analysis & Industry Trends
The Ferrous Metal Foundry Products industry, which sells iron and steel castings to manufacturing and construction industries, has struggled with fluctuating demand and increased import competition over the five years to 2015. Foreign competition from low-cost producers in China and India has increasingly challenged domestic operators for market share. Furthermore, volatile input prices have made it difficult for companies to forecast costs. Despite moderate revenue growth, the industry will struggle with significant challenges over the next five years. Excess supply of ferrous metals is expected to keep iron ore and steel prices low. This will benefit margins but prevent revenue from growing dramatically... purchase to read more
Industry Report - Starting a New Business Chapter
The Ferrous Metal Foundry Products industry has high barriers to entry. The construction of a new foundry is costly and the scale of investment into casting equipment and machinery is significant, deterring potential entrants who lack the necessary initial capital. Import competition limits potential entrants' ability to succeed in producing low-value, high-volume castings, while close relationships between foundries and downstream manufacturers limit the ability of new entrants to develop their own customer connections.
Foundries in this industry have generally developed strong relationships with downstream manufacturers, making it difficult for potential entrants to establish customer bases... purchase to read more