Industry Analysis & Industry Trends
The Ferrous Metal Foundry Products industry has struggled with fluctuating demand and prices for iron and steel since 2010. Deteriorating prices for steel products in 2013 and iron products in 2014 contributed to drops in revenue. However, lower raw material costs, particularly for iron, have helped expand industry profit margins. Conditions for the Ferrous Metal Foundry Products industry are not expected to markedly improve over the next five years. Despite rising demand for iron and steel castings worldwide, excess supply of ferrous metals is expected to cause iron ore prices to trend downward and steel prices to only moderately rise, which will alleviate upward pressure on selling prices for industry products... purchase to read more
Industry Report - Starting a New Business Chapter
The Ferrous Metal Foundry Products industry has moderate 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 required capital. Import competition limits potential entrants' ability to succeed in producing low-value, high-volume castings, while close relationships between foundries and downstream manufacturers limits potential entrants' ability to develop customer-specific casting equipment.
Foundries in this industry have developed strong relationships with downstream manufacturers, making it difficult for potential entrants to establish a customer base... purchase to read more