Industry Analysis & Industry Trends
The forging of iron and steel is a method used for processing metal by the application of thermal and mechanical pressure, to reach the desired shape. Forging generally produces stronger steel components than metal casting, and the finished product is suitable for high-stress applications. Traditionally, forged products have been important inputs into motor vehicle manufacturing and the production of other machinery, but these markets are steadily drying up as local manufacturers lose their competitive edge against imports.
Demand for forged products from the mining, construction and transport sectors has been insufficient to offset the loss of sales to the Manufacturing division as these customers import finished manufactured products... purchase to read more
Industry Report - Industry Investment Chapter
The Iron and Steel Forging industry has a low level of capital intensity. For every dollar spent on capital, the industry allocates an estimated $12.31 on payments to labour. Labour input is integral for managing the manufacturing process, for designing the dies, and for tooling of the machinery. The labour input tends to be higher for production processes, such as hammer forging and small run open die forging. The equipment used by the industry usually comes with a hefty price tag, but has a very long effective life, generally exceeding 15 years and hence depreciates at a slow rate. Capital intensity generally varies across operators.
The industry’s low capital intensity principally reflects the predominantly small scale nature of industry operations... purchase to read more