Industry Forecast by Ron Williams & Richard Hirst, The Blayson Group Ltd. S


ales for the global investment casting industry in 2016 are estimated to be US$13.45 Billion. This represents an increase of almost 4% compared to the previous year and maintains the upward trend of overall sales value since 2009. The demand for castings for


commercial aircraft eased slightly in 2016 but remains at a high level.


It is


pleasing to report that the industrial gas turbine market improved during the year with a resulting beneficial effect on overall investment casting sales. The automotive industry also performed well with generally improved casting sales. Regional market shares moved slightly as a result of the strong High Added Value sales and weaker Other Markets performance. As a result the market share of North America has increased to 43%, Europe to 24%, whilst China is now at 18% giving Asia a total market share of 30%.


Looking at the balance of sales to the sectors across the regions this remains unchanged with High Added Value casting production demonstrating its importance in North America and Europe in contrast to the other regions where commercial castings predominate. Improvements in


the IGT market


combined with continued strong sales to aerospace lifted sales of castings to the High Added Value sector. Sales of commercial castings decreased slightly with foundries serving the oil industry particularly affected. Automotive casting sales improved in all major markets. The High Added Value sector increased its share to 59% of global investment casting sales pushing the Other Markets sales down to 28%.


Aerospace New commercial aircraft sales orders have slowed as airlines rein in capacity amid weak global growth, and as low oil prices prompt some carriers to fly older planes longer rather than upgrading to new fuel-efficient models. Also many airlines have already ordered new planes


12 ❘ January 2017 ®


World View World Investment Casting Market Review 2016


over the past few years with a resultant cooling of demand.


The order backlog


however is undiminished. China, backed by government


initiatives, continued to develop the first home-grown regional jet, ARJ21- 700, being awarded an airworthiness certificate and the first delivery made.


Industrial Gas Turbines


Increased demand of 5% across all markets has been a pleasing feature of 2016 after the prolonged market stagnation since 2009. As with aerospace the Chinese government is actively supporting its development.


Automotive


2016 is expected to show a casting sales increase of 2.5 to 3% across all major markets. U.S. markets having reached


record sales levels it is felt demand may be relatively flat in the next two years. In Europe the business market performed extremely well with buying decisions increasingly based on quality, value for money and safety benefiting UK and German manufacturers.


In terms of manufacturing, increasing


efficiency pressures and globalisation continue to impact on the type of parts, costs and location of production.


Medical The medical castings sector in North America is benefiting from an aging population driving the need to diagnostic equipment and prosthetics. In many markets the sector is very competitive as more foundries enter this sector.


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