Industry Analysis & Industry Trends
After a period of heavy beatings, the Iron and Steel Forging industry is expected to emerge with a stronger and brighter outlook. Over the five years through 2013-14, industry revenue is estimated to decline at a compound annual rate of 2.3% to reach $857.4 million. Despite this, profit margins have been relatively healthy, which is mainly attributed to the ability of operators to pass on price rises to their clients. Despite the ups and downs in input prices during the past five years, many operators have been able to keep their margins positive.
As a producer of primarily intermediate products, the industry is at the mercy of the performance of its downstream buyers. A... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry to the industry are high. A large investment in capital equipment is required to be successful in the industry. Most equipment is expensive and used in large operations. Therefore, market entrants may find it difficult to reach their break-even points, especially if they start with a limited portfolio of clients.
Other barriers to entry include certification and licensing costs. Operators may find that they need different certifications to produce different products. Upon entering the industry, operators also need to employ highly skilled labour to operate machinery, meaning that labour costs are high during the initial stage of operations.
The industry is also characterised by economies of scope... purchase to read more