Heavy metal: Lower raw material costs have helped expand industry profit margins

The Ferrous Metal Foundry Products industry in Canada, 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 2018. Industrial capacity utilization plays a large role in sales. At the same time, foreign competition from low-cost producers in China and India has increasingly challenged domestic operators for market share. Finally, volatile input prices have made it difficult for companies to plan their budgets. As a result of falling input prices and rising import competition, industry revenue is expected to fall over the five years to 2018. Over the five years to 2023, industry revenue is forecast to decline...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
-3.4%
Forecast Growth 18-23
Profit
Employment
3,777
Businesses
105
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Despite moderate revenue growth, the industry will struggle with significant challenges
  • Increased import competition has threatened industry growth prospects
  • Ferrous castings are facing growing competition from nonferrous metal castings in certain applications
  • Industry Report - Industry Products Chapter

    Ferrous metal foundries primarily produce iron and steel castings that are used to manufacture a variety of durable goods. Foreign foundries in developing economies can take advantage of lower wage and energy costs to manufacture low-value, high-volume, standardized castings. As a result, Canadian foundries have increasingly focused on higher value-added products that require more complex metallurgy, design and casting precision. In addition, many foundries have expanded their operations beyond casting to include designing and machining parts to produce a component that is ready to be installed on customers' assembly lines.Iron foundry productsIron foundry products are estimated to generate 71.2% of industry revenue in 2018, down slightly from 2013 levels. Cas...purchase to read more.

    Additional Insights for the Ferrous Metal Foundry Products Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Ferrous Metal Foundry Products Industry are

  • Effective quality control
  • Involvement of all stakeholders
  • Having a diverse range of clients
  • IBISWorld analysts also discuss how external factors such as Value of nonresidential construction and World price of steel in the Ferrous Metal Foundry Products industry impact industry performance..

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    What's in this report

    What is the Ferrous Metal Foundry Products Industry?

    Companies in this industry pour molten iron and steel into moulds of a desired shape to make castings. Companies purchase ferrous metal inputs from iron and steel manufacturers. The industry does not include companies that cast iron and steel they manufacture themselves.

    Industry Products
  • Ductile iron foundry products
  • Grey iron products
  • Other iron foundry products
  • Carbon steel foundry products
  • Alloy steel foundry products
  • Other steel foundry products
  • Industry Activities
  • Manufacturing iron castings
  • Manufacturing steel castings
  • Manufacturing finished iron products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of nonresidential construction
  • World price of steel
  • Canadian effective exchange rate index
  • Industrial capacity utilization
  • World price of iron ore

  • Current Performance
  • Battling volatility
  • International competition
  • Challenging landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry consolidation
  • Heightened competition
  • Table: Ferrous Metal Foundry Products Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Ferrous Metal Foundry Products Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bridge & Elevated Highway Construction in Canada
  • Valve Manufacturing in Canada
  • Construction Machinery Manufacturing in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada
  • Engine & Turbine Manufacturing in Canada
  • Pump & Compressor Manufacturing in Canada
  • Car & Automobile Manufacturing in Canada
  • Truck & Bus Manufacturing in Canada
  • Train, Subway & Transit Car Manufacturing in Canada
  • Road & Highway Construction in Canada

  • Key Selling Industries
  • Ball Bearing Manufacturing in Canada
  • Electric Power Transmission in Canada
  • Iron & Steel Manufacturing in Canada
  • Metalworking Machinery Manufacturing in Canada
  • Sand & Gravel Mining in Canada

  • Products & Services
  • Ductile iron foundry products
  • Grey iron products
  • Alloy steel foundry products
  • Carbon steel foundry products
  • Other iron foundry products
  • Other steel foundry products
  • Chart: Ferrous Metal Foundry Products Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial sector
  • Transportation sector
  • Other
  • Construction sector
  • Exports
  • Chart: Major Market Segmentation for the Ferrous Metal Foundry Products Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Ferrous Metal Foundry Products

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Ferrous Metal Foundry Products Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Ferrous Metal Foundry Products Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Ferrous Metal Foundry Products Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of steel (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Captive Foundry
  • Type of foundry that operates under a larger manufacturer and produces specific castings on a mass scale to be used in the manufacturer's production process.
  • Casting
  • The process of pouring molten metal into a mould, enabling it to cool and then removing it to produce a metal shape.
  • Ductile Iron
  • Iron that has been made more flexible by the addition of magnesium.
  • Ferrous
  • Metal that contains iron.
  • Grey Iron
  • Iron with a high carbon content and relatively low tensile strength that is prone to fracture.
  • Ingot
  • Semi-processed metal shapes that usually require further shaping, such as cold and hot working, cutting or milling, to produce a useful final product.
  • Jobbing Foundry
  • Type of foundry that produces a variety of castings in small quantities for a range of customers.
  • Nonferrous
  • Metal other than iron and steel.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Ferrous Metal Foundry Products market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Ferrous Metal Foundry Products:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Ferrous Metal Foundry Products market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Ferrous Metal Foundry Products, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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