versus U.S. dollar is expected to have a negative effect on the export of invest- ment castings from India. Also rising cost of raw materials is a major concern for the Indian exporters. Nevertheless, taking into account
current and expected market conditions through the end of 2010 and into 2011, it is expected that export sales will grow in the first half of 2011.
Total Sales Aerospace Automotive
Pumps & Valves The largest percentage of investment
Commercial Defense
castings produced in India is industrial valves and pump castings at about 40%. Alloys used for these castings are mainly stainless Steel 304 and 316. These mar- kets are very busy and most of the found- ries are increasing their capacity to meet future demands.
Advantages to Indian Investment casting market:
Strengths & Concerns India’s biggest strength is a very
India’s biggest advantage is a very large domestic market available for consumption of IC’s in almost every sector. Key strengths are: 1. Cost competitiveness in labor. 2. Increase in efficiency and consistency of production 3. Indian IC manufacturers are able to produce machined castings/parts which are finished & ready to assemble.
large domestic market available for con- sumption of investment castings in al- most every sector. Currently, exports are much bet-
ter compared to the beginning of 2009, but increasing value of Indian currency
Australian Investment Casting Orders Down 40% from 18 months Ago; Slow Recovery Predicted •
4. Ability to manufacture low volume & custom parts. 5. Conversion from other processes is increasing the qty of Investment Castings.
Concerns in Indian Investment Casting Market:
by Geoff Bell A.W. Bell Machinery P/L The five family-owned investment
casting operations in Australia produce general castings as their main market. Overall, these foundries are finding their current workload down by about 40% compared to a year and a half ago. For- ward orders are slow and the continual flow of products into Australia from China has continued to have an effect on orders.
This effect is two-fold. First is the
direct competition on actual castings; second is the general competition China has on the manufacturing industry as a whole, with the consequence that the lo- cal market is reducing as manufacturers go off-shore. Several major influences that threat-
ening recovery, and even encourage de- cline are:
January 2011
In terms of current condition, overall exports are much better compared to situation in the beginning of 2009 but increasing value of Indian currency Rupee versus US Dollar will have a negative effect on the export of investment castings from India. Also rising cost of raw materials is a major concern for the Indian exporters. Taking into account current and expected market conditions through the end of 2010 & into 2011, it is expected that overall export sales will grow in the first half of 2011.
Australian government free-trade policies.
• •
Imposts or tariffs on industry. Introduction of carbon taxes.
• The value of Chinese currency against a strong Australian dollar.
New Opportunities and forecast beyond 2011: It may be interesting to note that in
Indian investment casters are very busy on new opportunities prevailing due to general market increase & economic growth. There will be tremendous increase in output in investment casting sector due to the ever growing demands from automobile industry, Valves & pumps industry, Aerospace industry in both domestic as well as export sectors.
the last six months, five sand foundries in Victoria alone have shut their doors. To survive, investment casters must
continue to develop the high-integrity casting market and be able to produce a finished product. Also there is no doubt that very few companies actually look at the total cost when importing, and this is an area sales personnel must work at– sit- ting down with customers and evaluating true costs. Overall we Australian investment casters are finding:
1. Raw material prices are increasing. 2. Customers are asking for price reductions.
3. China is continuing to have a sub- stantial impact.
4. Labor costs are increasing. 5. Government red tape is increasing 6. Customers are ordering in smaller quantities.
7. Manufacturing has reduced by 11% in the past few years equating to a smaller market.
8. Casters must add value and not simply be casting suppliers. 9. Casters must educate customers to look at all costs including the indirect ones.
10. Casters must supply on time (this is possibly our biggest advantage compared to imports).
4
1 Sales are down by approximately1. 40%. 12. A second economic downturn in 2011 could have a more severe im- pact on an already frail industry.
New Opportunities and Forecast Beyond 2011
Indian investment casters are very
busy on new opportunities prevailing due to general market increase and economic growth. There will be tremendous in- crease in output in the investment casting sector due to the ever-growing demands from the automobile, valve and pump, and aerospace industries in both domestic and export sectors.
15
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28
