Commercial Forecasts suggest increased casting sales of 3 to 4% this year. This should result in an overall sales value of US$3.7 Billion. Market conditions appear relatively stable at present and casting sales to the oil industry are marginally higher.
Industry Prospects
Aerospace Overall this sector is being driven by growth in new carriers and low-cost airlines
in developing and emerging
markets, as well as expansion in established airlines. In particular the industry sees strong growth in China's aviation sector over the long term. China’s demand for parts can be attributed to a number of factors including increasing capacity utilization rate, the aging and expansion of China’s aircraft fleet, and the domestic production and assembly of aircraft. Boeing predicts that China will need 5,110 new single-aisle airplanes by 2035.
IGT The order downturn seen in western markets in the 4th quarter of 2017 raises questions about the performance of IGT in 2018 making prospects appear less favorable.
Automotive
In terms of manufacturing the current focus is on automotive interiors rather than engine, as a result vehicle electronics could account for up to 20 percent of a car’s value in the next two years. This suggests that fewer new casting developments are likely in the short term. However Turbowheel sales continue to increase and are a major factor in the growth of automotive castings.
Medical The sector is expected to maintain a steady growth trend due to the demand for prosthetics for growing and aging populations.
Commercial
Casting sales remain very competitive, moderate growth is suggested in 2018.
® Summary
2017 should see a very creditable growth of almost 5% - this outperforms IMF predictions of 3.4% global GDP growth in both advanced economies and emerging markets in 2017.
Furthermore the IMF suggests further
GDP growth of 3.6% in 2018 which supports the sentiment prevailing in the investment casting community suggesting another positive performance from the industry in the coming year.
January 2018 ❘ 11
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