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 - Starting a New Business Chapter
The barriers to entry into the industry are medium. The industry is populated by many very small scale operators that use low cost capital equipment to compete for a narrow share of the market. To gain entry to this segment of the industry is relatively low, although a new entrant must develop a solid customer base to be competitive.
In contrast, to gain entry into the more highly technical segments of the industry a new entrant would need to invest heavily into technologically advanced capital equipment to ensure they could match or exceed the capabilities of the existing players. Particularly in the market segments currently serviced by the leading manufacturers, Arrium and Valmont (Donhad)... purchase to read more