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    US Precision Steel Fabrication Market Forecast to Reach $ 2.2 Billion by 2027
    (I-BusinessNews.Com, April 10, 2022 ) US Precision Steel Fabrication Market is forecast to reach US$ 2.2 billion by 2027, after growing at a CAGR of 6.3% during 2022-2027. With the growing demand of carbon steel, alloy steel, and stainless steel in automotive and construction sector, the US precision steel fabrication market is witnessing an increase in market growth. Increasing usage of CNC plasma cutting machines and plasma punch capabilities in the steel fabrication processes to create both simple and sophisticated components is estimated to drive the market growth. Moreover, rising growth of latest trends such as laser technology, due to its fabrication speed and capacity to generate more intricate cuts has raised its demand in the US Precision Steel Fabrication Market. Additionally, such process helps in saving time and money in the downstream with better quality and lower costs.



    Impact of COVID-19



    In the US, the assembly plant closures added intense pressure on an increasingly distressed global supply base of the automotive sector in the year 2020. The exogenous shock of the coronavirus pandemic exacerbated an existing downshift in global demand. Steel prices in the United States have been variable as demand has declined. Steel output has already been reduced in the automotive sector, which is the largest end-user. As demand fell, US Steel chose to shut down its blast furnaces and reduce production. Steelmakers ArcelorMittal and Gerdau also announced plans to scale back operations in North America, citing a drop in steel demand as a result of coronavirus-related closures, mainly in the automotive industry. Thus, due to such factors the US precision steel fabrication market got declined in the year 2020.



    US Precision Steel Fabrication Market – Type



    Stainless Steel segment held the largest share with 40% in the US precision steel fabrication market in 2021. When compared to other materials, stainless steel has superior mechanical properties at room temperature. Due of the amount of chromium present during fabrication, stainless steel fabrication differs from carbon steel manufacturing. In particular, the properties of stainless steel such as ductility, elasticity, and hardness, enable it to be used in difficult metal forming modes. Moreover, stainless steel has been the best fire resistance of all metallic materials when used in structural applications, having a critical temperature above 800°C. Stainless steel is also considered as the “green material” and is recyclable for infinite times. Thus, due to the above mentioned factors the driving demand for stainless steel is estimated to raise the US precision steel fabrication market growth.



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    US Precision Steel Fabrication Market – Application



    Shock absorbers sector held the largest share in the US precision steel fabrication market in 2021 and is anticipated to grow at a CAGR of 6.2% during the forecast period 2022-2027. Shock absorbers are usually produced by steel since it has higher elasticity, good stamping properties, high productivity, and high fatigue resistance. Shock absorbers are an important component of a vehicle’s suspension. The purpose of a shock absorber is to absorb or dampen the compression and rebound of the springs and suspension. They are in charge of reducing unwanted and excessive spring motion. Generally, shock absorbers keep the tires in constant contact with the road. Currently, rising production of shock absorbers in US will drive the growth of the steel fabrication industry. For instance, in May 2021, Dayton Parts, LLC headquartered in US announced the launch of its CARGOMAXX HD premium shock absorbers, designed for superior ride control and cargo protection in Class 7 and 8 commercial vehicle applications. Thus, with such product launches the demand for shock absorbers will increase which would further drive the growth of the market in the forecast period.



    US Precision Steel Fabrication Market – End-Use Industry



    Automotive sector held the largest share with 34% in the US Precision Steel Fabrication in 2021 and is anticipated to grow at a CAGR of 7.3% during the forecast period 2022-2027. Steel is highly durable, corrosion resistant, and tensile, due to which it is increasingly being used in the automotive sector. This industry employs a wide range of fabrication technologies, from heavy vehicles to volume or niche car manufacturing to motorcycles using shearing processes. Materials too vary from metals to composites. The increasing production of automobiles is expected to drive market growth in the steel fabrication market. According to the International Organization of Motor Vehicle Manufacturers, in 2020, America’s production of 15.7 million units represented a 20% share of global production. Also, according to the Bureau of Transportation Statistics, US Motor vehicle production increased from 11,179 units in 2017 to 11,279 units in 2018.



    US Precision Steel Fabrication Market Drivers



    Rising Construction Industry Will Drive the Market Growth



    The process of transforming steel components into the required shape is known as steel fabrication. Steel is the most commonly used material in the construction sector for a variety of uses including pipes, building, and other applications. It is relatively lighter than other building materials such as wood, concrete, and other materials. Also, the strength of steel is higher than its density which makes it an excellent choice for construction. If maintained properly, well-constructed buildings with structural steel have a minimum shelf life of roughly 20-30 years. Additionally, an increase in building & construction activities such as high-rise buildings, bridges, and parking garages in USA, is anticipated to drive the steel fabrication market’s growth in the forecast period. For instance, The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly developed new residential construction statistics for May 2021, The seasonally adjusted annual rate of privately owned housing units authorized by building permits in May was 1,681,000, which is 34.9% (2.4%) higher than the May 2020 rate of 1,246,000.



    Growing Demand for Battery Electric Vehicles



    The rise in fuel prices, incentives rolled out by the federal and state governments, and renewed emphasis by ecommerce companies to electrify their last-mile delivery fleets are expected to drive demand for electric vehicles in USA over the projected period. With the rising demand and production for battery electric vehicles the demand for steel would increase. Thus, which would further drive the growth of the US precision steel fabrication market in the forecast period. According to International Energy Agency (IEA) Organization, in 2020, 295 000 new electric cars were registered, with BEVs accounting for roughly 78 percent of the total. Furthermore, the electric passenger car stock increased from 0.9 million in 2019 to 1.1 million in 2020 in USA.



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    US Precision Steel Fabrication Market Challenges



    Adoption of composite or other materials in automotive sector



    Recently, as automotive manufacturers have shifted their focus on lightweight vehicles, the use of aluminium has increased, potentially reducing the weight of the vehicle body. It has been demonstrated that replacing steel with aluminium can save up to 50% of the weight of the body. Magnesium is another light metal that is becoming more popular in automotive design. The need for increased fuel efficiency, weight reduction, environmental regulations and policies, as well as customer demand, has shifted the vision for automakers to focus on developing new materials, redesigning existing ones, and selecting materials wisely. Thus, the rising demand for alternative materials is anticipated to create challenges for the steel fabrication market growth in the forecast period.



    US Precision Steel Fabrication Industry Outlook



    Technology launches, acquisitions and R&D activities are key strategies adopted by players in the US Precision Steel Fabrication market. Major players in the US Precision Steel Fabrication Market are



    Selco Manufacturing Corp.



    Copelands, Inc.



    American Grinding & Machine Co.



    Morrison Industries



    Genzink Steel



    Chicago Metal Fabricators



    HMR fabrication unlimited Inc.



    Rothe Welding Inc.



    J.C MacElroy Company, Inc.



    Allstate Tower and others.



    Recent Developments



    In December 2021, Precision Metal Fab and Precision Tool & Die, a provider of metal cutting and forming services, has been acquired by CGI Automated Manufacturing. For a variety of end-market applications, PMF specialises in CNC laser cutting, stamping, metal die forming, welding, and assembly.



    In March 2021, Morrison Industries, a large-scale steel fabrication producer and leading manufacturer of specialized shipping racks for the automotive industry, announced the launch of SteelStack, a producer of sheet metal storage for metal fabricators.



    In February 2021, Mantle launched TrueShape™ technology, a proprietary AM process to make high-precision metal parts. The company has developed what it believes is the most precise and efficient metal AM technology for the tooling market, having previously secured an unannounced $13 million investment from Foundation Capital, Hypertherm Ventures, Future Shape, 11.2 capital, Plug and Play Ventures, and Corazon Capital.



    Key Takeaways



    In USA, the steel market is expected to grow significantly during the forecast period due to factors such as rising preference for pre-engineered buildings and components, rising demand from the manufacturing sector, and government initiatives for infrastructure development.



    Steel fabrication market trends will be fueled by the need for custom steel and specialized end products such as pipelines and electric power turbine components from various energy sectors.



    Increase in steel prices with the rise in the price of primary raw material used to manufacture steel, can create hurdles for the precision steel fabrication market in the USA.



    Adoption of alternative components such as magnesium metal instead of steel is anticipated to hamper the growth of the US precision steel fabrication market.



    Relevant Reports:



    A. Steel Fabrication Market

    https://www.industryarc.com/Report/18235/steel-fabrication-market-research-report-analysis.html



    B. Steel Market

    https://www.industryarc.com/Report/18764/steel-market



    For more Chemicals and Materials related reports, please click here



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    IndustryARC

    Venkat Reddy

    (+1) 970-236-3677

    venkat@industryarc.com

    Source: EmailWire.Com

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