World View
Commercial Investment casting will almost certainly finish 2016 below the level of 2015. Whilst many markets are reporting similar sales levels China is indicating a further fall in the production of commercial castings. One overriding factor affecting all regions is the fall in the price of oil which has significantly reduced casting sales to the oil industry affecting those foundries supplying it.
Industry Prospects Aerospace
Airbus predicts that in 10 years China will become the largest aviation market. The response of the Chinese government is to actively develop domestic production ca- pacity to take advantage of this situation. Whilst commercial aircraft sales or-
ders have slowed in 2016 the backlog of orders for the aircraft industry and engine manufacturers remains.
As a result the
expectation of Airbus and Boeing is that high production levels should be main- tained for the foreseeable future.
IGT The long awaited improvement in the market is expected to be maintained in 2017. Again the IGT market in China is seen as being of major importance by the Chinese government with a resulting strategic focus on domestic production.
Automotive With record numbers of new vehicles sold this year market activity is at a high level. Sales are tending to focus on quality, value for money and safety. There is also an identified need for companies to adapt to a much faster pace of change than in the past. Continuing investment and innovation by the foundry industry will be essential for investment casting to maintain its strong supply position.
Medical The sector is expected to maintain a low growth trend with the benefit of a growing and aging population.
Commercial
Casting sales remain very competitive and any growth is likely to be only at a low level.
® Summary
2016 sales performance is likely to be lower than originally anticipated but still with good overall growth. Importantly market conditions appear much less variable than in the recent past with improvements seen in the aerospace, IGT and automotive sectors.
With global political and economic uncertainties prevailing business conditions for industry are unpredictable. Accordingly it is difficult to be confident in making forecasts for investment casting performance in the coming year.
January 2017 ❘ 13
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