Industry Forecast This market segment is different


than a majority of the other segments served by our Members. This is because of the rate at which new innovations are being put into play. It is too early to really know whether these innovations may prove themselves to be a threat or an opportunity, but they are important enough to us to start delving into. Advanced Driver Assistance Systems


(ADAS) are changing the way people drive. Current ADAS includes Collision Warning, Lane Departure Warning, Blind Spot Information and Parking Assistance. By 2023, over 6 million Fully Autonomous Vehicles, the most advanced ADAS, will be on the road. By 2040, that number will grow to $30 million. Alternatives to internal combustion


engine powered vehicles, such as hybrid electric vehicles (HEV) and electric vehicles (EV) are currently available and growing in popularity. By 2025, it is anticipated that only 26% of all North American automotive production and 38% of all global automotive production will be HEV or EV.


General Industrial In 2018, investment casters serving the general industry enjoyed improving trends for the second year in a row. This was largely due to recovery in the oil and gas sector and its collateral effect on supporting and parallel industries. With regard to oil and gas, this sector has returned to a sustainable production level. The North American heavy


machinery sector has continued to demonstrate strong growth since its correction in 2016, with 2018 coming in at nearly 10% growth. Industrial equipment also continued to grow, but at a 4.5% growth rate in 2018. Class 8 trucks experienced a major rebound, achieving 16% overall growth in 2018. Agriculture Machinery casting sales


have shown strong recovery in 2018, with combines leading the pack at 24% grow, followed by 4WD Tractors at 13%, 2WD/100+ HP Tractors at 5%; and 2WD/<100HP tractors at 2.5%. Overall consolidated agricultural machinery castings demonstrates 10% growth in 2018.


18 ❘ January 2019 ® Also demonstrating strong recovery,


Construction Machinery achieved nearly 17% growth in 2018, and is expected to achieve an additional 8% in 2019. Investment castings serving the food and beverage industry demonstrated 1 to 2% growth. Medical equipment realized a 3% gain, as did orthopedic implants. Minor declines were experienced


as well, especially in the areas of recreational firearms, sporting equipment and all-terrain vehicles. Overall, strong market growth in


advancing subsectors were constrained by moderate growth in others, resulting in what the Investment Casting Industry is currently estimating as 2.3% overall


growth in the general industrial sector for 2018, with a similar outlook for 2019.


Summation In summary, aerospace and general industry growth was offset by significant declines in the industrial gas turbine sector. The automotive sector experienced a slight decline which had a nearly negligible impact on the consolidated industry. Overall, the 2018 estimate falls short of 2017 performance by 0.3%, coming in at $5.78 Billion. A more in-depth examination of the


North American market will be presented at the next ICI Spring Management Meeting in Puerto Rico.


North America


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