Cast aside: Weak demand conditions have led to declining enterprise and employment numbers

The Iron and Steel Casting industry has performed poorly over the past five years. Industry revenue is expected to decline at an annualised 9.6% over the five years through 2017-18, to $1.47 billion. This includes an anticipated decline of 0.9% in 2017-18. The exit of GM Holden, Toyota and Ford over the past five years has had a significant impact on industry revenue over the period. The industry’s exposure to international trade is typically limited due to the low value-to-weight ratio of industry products, which makes them costly to transport over long distances. Despite this, demand for high-quality Australian produced cast iron and steel products, and a weakening Australian dollar, have resulted in significant increases in industry exports over the period...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
-9.6%
Forecast Growth 18-23
Profit
Employment
4,007
Businesses
182
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Exposure to international trade is limited due to the low value-to-weight ratio of industry goods
  • International trade patterns have had little effect on the industry’s performance
  • Demand from the Construction division is projected to rise over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Iron and Steel Casting industry is characterised by low market share concentration. The four largest industry players are expected to account for less than 20% of revenue. Most industry operators tend to have machinery catering to a specific segment of the market, such as small or large casts or a certain production method, rather than operating a range of capital equipment with the capacity to meet the needs of all customers. While capital requirements for new entrants are high, machinery generally has a long useful life. Larger operators usually specialise in a certain market or segment and operate long production runs of similar or identical products. Smaller operators tend to produce customised products in short production runs. The...purchase to read more.

    Additional Insights for the Iron and Steel Casting Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron and Steel Casting Industry are

  • Ability to pass on cost increases
  • Having a diverse range of clients
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Demand from construction and Demand from manufacturing in the Iron and Steel Casting industry impact industry performance..

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    What's in this report

    What is the Iron and Steel Casting Industry?

    Industry firms primarily produce iron and steel products through a process called casting, which involves pouring molten ferrous metals into moulds. Industry products are then consumed as intermediate inputs by a range of user industries.

    Industry Products
  • Sand casting
  • Shell-mould casting
  • Investment casting
  • Other casting methods
  • Industry Activities
  • Cast iron product
  • Cast steel product
  • Moulded iron pipe and tube
  • Pipe fitting
  • Valve
  • Other ferrous metal castings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from construction
  • Demand from manufacturing
  • Domestic price of iron and steel
  • Trade-weighted index

  • Current Performance
  • Downstream activity
  • Profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream activity
  • Industry profitability
  • Table: Iron and Steel Casting Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Iron and Steel Casting Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Parts and Accessories Manufacturing
  • Railway Equipment Manufacturing and Repair
  • Mining and Construction Machinery Manufacturing
  • Sewerage and Drainage Services

  • Key Selling Industries
  • Electricity Distribution
  • Industrial Machinery Manufacturing
  • Iron Smelting and Steel Manufacturing
  • Machine Tool and Parts Manufacturing

  • Products & Services
  • Sand casting
  • Other casting methods
  • Shell-mould casting
  • Investment casting
  • Chart: Iron and Steel Casting Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other manufacturers and other markets
  • Mining firms
  • Construction firms
  • Automotive and transport manufacturers
  • Chart: Major Market Segmentation for the Iron and Steel Casting Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Iron and Steel Casting

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron and Steel Casting 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 Iron and Steel Casting 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 Iron and Steel Casting 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Centrifugal Machine
  • A machine that operates by rotating at high speed to disperse materials (in this industry, molten metals) away from the centre of rotation.
  • Ferrous
  • Objects (usually metals or alloys) that contain iron.
  • Investment
  • In the context of metal casting, an investment mould is a ceramic mould used to produce intricate cast products.
  • What Our Customers Say

    Why buy this report?

    The Iron and Steel Casting market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Iron and Steel Casting:
    • 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 Iron and Steel Casting 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 Iron and Steel Casting, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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