EDITORIAL
To Add or Not to Add A
re you going to add casting capacity to your facility in 2012? This is a question you might be
hearing from your customers. It might even be a question you are asking yourself. As manu- facturing recovers from the recent recession and the demand for castings continues to increase, this is a question we probably can’t avoid. Buyers are faced with fewer sourcing options, and some buyers are scrambling to secure a stable supply chain for today and, most assur- edly, tomorrow. Many of us don’t know the answer to this ques-
tion. Sure, you may be working to add incremental capacity by reducing pattern change times or improving molds per hour on a nobake loop. But our customers are looking for greater expan- sion, such as the addition of new molding lines, furnaces or labor. Tis level of capacity expansion is a complex is-
sue. Can metalcasters afford to add capacity when many were on the brink of closing 18 months ago? Can metalcasters afford not to add capacity to take advantage of the high levels of casting demand that are forecast to grow even greater over the next three years? The answer to these
questions will be based on your firm’s business philosophy and strategic plan. How you and the industry answer them will have a significant effect on our customers and future. Many casting buyers are
ties were running at 50% of production in 2009 as compared to two years earlier. In some cases, this labor has yet to fully return despite production rebounding, forcing some facilities to redefine their capacity in new terms. Facilities that once defined their
capacity according to three shifts, now might be looking at two-shift capacity, and those that were at two shifts may now be looking at one shift. Equip- ment that used to run 24 hours a day may only be running 16. The labor and technical expertise we need to help expand our capacity isn’t as readily available as we would like it to be. So what does this mean
worried right now. Tey are performing capacity studies both domestically and globally to determine if and where their specific casting weight and alloy can be produced in the volumes necessary for the forseeable future. As manufacturing ramps up, they are realizing quickly that today’s metalcast- ing industry is different than the one that existed before the recession. We all know the number of U.S. metalcast-
“Many casting buyers are worried right now. Tey are performing capacity studies both domestically and globally to determine if and where their specific casting weight and alloy can be produced.”
for the future? Te only certainty appears to be increased communication with our customers about the current state of available capac- ity. While our goal must be to meet their needs, we must also maintain the stability of our businesses by growing at a rate that can be supported. Our customers
need us, and we need our customers. Let’s keep it that way.
Alfred T. Spada, Publisher/Editor-in-Chief
Happy holidays from your friends at MODERN CASTING. May 2012 bring joy to your life.
ing facilities has decreased from 2170 in 2008 to 2010 today. Metalcasters also reduced their labor force during the recession, as many facili-
If you have any comments about this editorial or any other item that appears in MODERN CASTING, email me at
aspada@afsinc.org.
January 2012 MODERN CASTING | 7
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