Fabricated Metal Parts Manufacturing
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Industry Overview
The US fabricated metal parts manufacturing industry consists of about 60,000 companies with about $300 billion in combined annual revenue. Major companies in specialty segments include Ball Corporation and Snap-On. Because of the special manufacturing processes involved for individual parts, most companies make a limited range of products. The industry as a whole is fragmented: the largest 50 companies account for about 20 percent of revenue. But concentration can be high in industry segments such as boiler, cutlery, metal can, and spring manufacturing.
Competitive Landscape
Demand is driven largely by the needs of other industrial companies and is therefore linked to economic growth. The profitability of individual companies depends on technical expertise and efficient manufacturing. Large companies have economies of scale in purchasing raw materials. The specialized nature and use of many products allows smaller companies to compete effectively.
Products, Operations & Technology
The industry consists of several distinct segments, including ornamental and structural metals ($60 billion); forging and stamping ($30 billion); metal valves ($30 billion); metal containers ($20 billion); hardware ($15 billion); springs and wire products ($15 billion); and fasteners ($10 billion). Many companies make products in smaller specialized segments.
Companies manufacture mainly simple metal parts used by industrial customers, such as those making autos, airplanes, machinery, appliances, and computers. Some companies make simple finished products like metal cans, tools, plumbing fixtures, and structural steel members. Most companies operate a single manufacturing facility. A typical company has about 25 employees, 20 of whom are production workers.
Basic raw materials are ferrous and nonferrous metals, like carbon, alloy and stainless steels, aluminum, titanium, brass, copper, and various alloys. Raw materials are bought in semi-finished form (slabs, billets, and blooms) or finished form (plates, coils, sheets, wire, bars, rails, beams), either directly from primary metal processors or, more often, from large metals distributors (metals service centers).
Three major metal processing operations are fabrication, preparation, and finishing. Fabrication includes processes such as punching, cutting, bending, welding, coil processing, roll forming, laser cutting, and stamping. Machining, a fabrication method, uses a wide variety of machine tools to cut or form material to precise specifications. Preparation includes cleaning and surfacing metal with chemicals. Finishing includes plating, polishing, coloring, and coating.
Many companies have highly automated production lines. Typical equipment includes presses, screw machines, rotary transfer machines, computer controlled (CNC) single- and multiple-spindle lathes, and turning and machining centers. Some companies use CAD and computer-aided manufacturing (CAM) equipment. Engineering skills are needed to design products and production processes.
