EDITORIAL
What A Difference W
hat a difference a few years make. At the CastExpo’13 trade show in St. Louis in April, the industry was hopping.
Equipment was being sold. Casting buyers were looking for suppliers. Smiles seemed to be affixed to many of the 7,000+ faces in attendance. While this doesn’t mean everything is perfect
right now for North American metalcasters as demand has softened for the first half of 2013, the future does look bright especially when you compare it to only a few years ago. During the last
economic down- turn, it was difficult to have a conversa- tion about North American metal- casting without someone question- ing whether the industry had a future. Te prevail- ing theory was that North American metalcasting was on life support, just waiting for the lights to be turned off. Many equip- ment and technology suppliers had shifted their resources across the globe, putting North America in maintenance mode. Many casting buyers had fled to global sourcing several years earlier, and they were patting themselves on the back for seeing the writ- ing on the wall. What a difference a few years make. In the Cast in North America section of the CastExpo show floor, more than 50 metalcasters were exhibiting. At several points during the four- day show, these metalcasters were so swamped with casting buyers that you couldn’t make it through the aisleways. Tese buyers mostly came from North America, but there also were global buyers from Europe and Asia in search of open capacity and the quality and consistency offered by North American metalcasters. On the main show floor at CastExpo, new tech-
nology (molding machines, robotic cleaning cells, quality systems, software, etc.) was being introduced and metalcasters were buying. As several exhibi- tors said to me, “I keep trying to find time to walk around the show floor and listen to presentations, but I can’t leave the booth because we are too busy.”
What a difference a few years make. Te truth is that many casting buyers have
Te truth is that many casting buyers have realized sourcing globally with a
low-cost mindset isn’t always the answer.
realized sourcing globally with a low-cost mindset isn’t always the answer. Quality, supply-chain logistics and connection to your suppliers is critical, regardless of how low a price is. And, as prices have risen in these low-cost nations that have realized they don’t want to be the world’s manufacturers for everything, the reality of working with suppliers halfway across the world has become less attrac- tive. While not all buyers have returned to North America with the same gusto with which they left, they are looking for a more balanced ap- proach to global sourcing that takes advantage of regional opportunities. Te result: Many North Ameri-
can metalcasters are hearing from potential customers that left them several years ago or who have just become aware of the opportunities
in North America. While these customers aren’t ramping up immediately during this soft period in the economy, they are looking out to the second half of 2013 and to 2014 as forecasts continue to show solid demand for the next few years. Tese positives begin to account for the smiles
on the faces of many metalcasters at CastExpo. Te boom in demand in 2012 gave metalcasters the boost to reinvest during this softening in 2013 to prepare themselves for the buyers that have been rediscovering North American metalcasting. What a difference a few years make.
Alfred T. Spada, Publisher/Editor-in-Chief
If you have any comments about this editorial or any other item that appears in MODERN CASTING, email me at
aspada@afsinc.org.
May 2013 MODERN CASTING | 7
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