Post on 29-Mar-2015
Market Overview 1
INVESTMENT CASTINGMARKET OVERVIEW
NORTH AMERICA
Scott HansonPresident
Auburn Investment Casting
Market Overview 2
Investment Casting Trends
North American Investment Casting Industry
“Across the Board” increase in activity
Foundries & Suppliers are busy
Raw Material Cost/Availability
Energy Cost
Offshore Sourcing
Market Overview 3
Investment Casting Trends - cont’d
Segment summary
Aerospace – commercial – record level of new orders military – D.O.D. in transition
IGT – Significant spare part demandNew Build Growth forecasted for Asia, Mid-East & Africa
Automotive - activity in complex applications& Turbocharger Systems
General Industry – growing with overall economy
Market Overview 4
Market Segments
Aerospace
Jet Engine Blades & Vanes (Airfoils) Integral Wheels & Nozzles Hardware and Structures
Airframe Hardware and Structures
Missile & Rocket Components Other Military Ordnance
Market Overview 5
Market Segments
Industrial Gas Turbines
Blades & Vanes (Airfoils) Hardware and Structures Turbine and Combustor Components
Market Overview 6
Market Segments
Automotive
Valves Turbocharger Components Complex Powertrain Parts Chassis Applications - Passenger Car and Motorcycle
Market Overview 7
Market Segments
General Industry
Medical Implants, Instruments & Testing Equipment Industrial Valves / Pumps Petrochemical Food Processing Off-Road Equipment Firearms Construction Equipment Hand & Power Tools Recreational & Sporting
Market Overview 8
North American IC Industry
United States, Canada & Mexico
Approx. 46% of worldwide investment casting production
130 companies
170 foundries (not including dental, art or jewelry)
30,000+ direct workers
All market segments
All ‘castable’ alloys
All size capability
Market Overview 9
North American Investment Casting2005 Sales ($ Million - USD)
Aerospace 1,600
IGT 800
Automotive 250
General Industry 550
TOTAL: $3,200 Aerospace50%
IGT25%
Auto8%
General Industry
17%
Market Overview 10
North American Investment Casting Market by Alloy Type
Aluminum & Copper: 7%
Titanium: 9%
Steel: 33%
Superalloy: 51%
2005 Casting Dollars$3.200M
Steel
Titanium
Aluminum & Copper
Superalloy
Market Overview 11
2005
North America 3,200
Europe 1,700
Asia 2,000
Other 100
TOTAL: 7,000
Worldwide Investment Casting ($ Million - USD)
Market Overview 12
New Aircraft Builds> 50 Passenger
Aerospace - Commercial
Large Transports
World traffic up 6%
Load factors & New
Orders at Record Level
2005-2009 build
forecast avg. 970 / year
Asian Market Growing
Rapidly
New Programs
A380 / 747-8
A350 / 787
China Regional
0
300
600
900
1200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009ROM Associates: 2- 06
Market Overview 13
Aerospace – Commercial cont’d
Concerns / Issues:
Airline losses continue
High Fuel Prices
Several US Airlines in Chapter 11
Airlines adopting the ‘Low Cost Business Model’
Market Overview 14
Aerospace – Commercial cont’d
Business Jets
New orders up significantly
Delivery of new aircraft 30% higher
Corporate ownership/leasing & Fractional Shares
Increased demand for used aircraft
Airframe & Engine Manufacturers very busy
Private Jets
New Market starting to develop
Low cost replacement for some General Aviation models
Market Overview 15
Aerospace - Military
Increase proposed for D.O.D Budget
Demand for engine spare parts for Fighter, Helicopter & Transport aircraft
Some Advanced Aircraft Programs being pushed out
Future Combat Systems- Smart Munitions - Lightweight Armament- Battle Field & Ship Board
Applications
Market Overview 16
Industrial Gas Turbines
High Spare Parts Demand
Increase in Aero derivatives
Growing ‘After Market’ Business
Large Frame Growth in Asia, Mid-East & Africa
Limiting/Competing factors Infrastructure for NG Price / Availability of NG
Future Technology: Wind Power Coal Gasification
0
300
600
2001 2002 2003 2004 2005 2006
New Land-basedTurbine Builds – 50MW +
2-06 Consensus Industry Forecast
Market Overview 17
Automotive
New Investment Casting Applications
Design Activity in Commercial Trucks, Passenger Cars & High Performance Vehicles
Driven by new emission standards and fuel efficiency
Turbocharger Demand straining capacity
Titanium Alloy components growing
Market Overview 18
General Industry
Dispersed among many casting suppliers
Wide range of size & alloys
Applications across all industries
Many Niche opportunities
High volume applications susceptible to offshore sourcing
Overall, should continue to increase with growth in economy
Market Overview 19
Aerospace 1,725 8%
IGT 850 6%
Automotive 265 6%
General Industry 570 3.5%
TOTAL: 3,410 +6.5%
% Change
North American Investment Casting2006 Estimated Sales ($ Million - USD)
Market Overview 20
Opportunities for Consideration
- Machined Parts- Finished / Ready to Assemble - Low Volume & Custom Parts- Military Munitions & Support Equipment- Military Spares- ‘After Market’ for Aerospace & IGT- Medical Instruments & Testing Equipment- Conversions from other processes- Combining Multiple Parts into Integral Casting- Higher Value Alloys- Larger Castings- International Customers- Die Casting Prototyping
Market Overview 21
ICI + 6.5
GDP + 3.5
Ind. Production + 3.8
DeWolf - Commercial + 4%
SFSA +10%
BICTA + 8%
% Change
2006 Forecast Comparison
Market Overview 22
Summary
Overall North American IC growth will continue
All Market Sectors will benefit
Off-Shore Sourcing effect on N. American foundries?
Some concern with Raw Materials & Energy
Opportunities for New Casting Applications
Need to focus on market Niches & Supplying Value Added Features / Services
Market Overview 23
Acknowledgement
The Investment Casting Institute wishes to acknowledge the
following companies for their contribution to this report.
- Alcoa Howmet
- Blayson Olefines, LTD.
- Doncasters Inc.- ESCO Turbine Group
- Hitchiner Mfg. Co.- ROM Associates