Steel Products
Metal Fabricators Expecting Stability and Moderate Growth in 2nd Half
Written by Sandy Williams
August 16, 2013
Metal fabricators are reporting stable business conditions according to the Fabricators & Manufacturers Association’s inaugural survey of small to mid-sized metal fabricating companies.
No significant growth or shrinkage was noted in new order activity by most respondents. Commodities and logistic prices were also seen as fairly stable. New trucking rules have some respondents expecting higher freight costs in the next quarter.
Operating capacity for small fabricators has been at 63.74 percent, well below the normal capacity of 85 percent, leaving ample room for growth.
Capital expenditures were on the horizon for manufacturers and fabricators six months ago but little expenditure in machinery and technology actually occurred in 2013. Most companies (58 percent) are delaying capital equipment purchases and 34 percent are putting plans on hold indefinitely due to lingering concerns about economic recovery.
The future outlook is positive with moderate growth or stability expected for the balance of 2013.
The FMA survey is distributed to top ranking industry executives of more than 17,000 companies providing parts and assemblies to the automotive, aerospace, medical equipment and heavy equipment industries. For the first survey, 280 metal fabricating companies responded. The majority of companies responding have less than 19 employees and the rest less than 50.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
Nucor keeps HRC price unchanged
Nucor paused its weekly hot-rolled (HR) coil price this week, keeping it flat for the first time since Jan. 21. This comes after a nine-week rally that saw the company increase prices by double-digits for eight of those weeks.
Nucor increases plate prices by $40/ton
Nucor aims to increase prices for steel plate by $40 per short ton (st) with the opening of its May order book. The Charlotte, N.C.-based steelmaker said the increase was effective with new orders received on Friday, March 28, in a letter to customers dated the same day. The company said the price hike applied […]
US CRC price gains ground over imports
US cold-rolled (CR) coil prices increased again this week, while offshore prices declined.
SMU Steel Demand Index momentum slows
Steel Market Update is pleased to share this Premium content with Executive members. Contact info@steelmarketupdate.com for information on how to upgrade to a Premium-level subscription. Growth in SMU’s Steel Demand Index eased in March after reaching a four-year high in late February. Despite a moderate gain, the index remains in expansion territory. The Steel Demand […]
Leibowitz: Impact of tariffs on US manufacturers
On February 10, President Trump announced a massive restructuring of tariffs on steel and aluminum. Those changes took effect on March 12, and they will impact US manufacturing. What will the impact be? Bye-bye exclusions Perhaps the most important change, which hits imports from all countries, is the loss of a product exclusion process to […]