European Report The change in sales dynamics,
characterized by a rise in electric car sales and a subsequent decline in petrol car sales, is leading to a shift in demand for investment casting parts, particularly focused on turbochargers in the automotive sector.
This
transformation unmistakably indicates a diminishing market in the upcoming years. Companies specializing in this market are compelled to embrace new strategies and explore novel investment casting niches to adapt to this evolving landscape.
2.3 Other Applications The category labeled "Other
Applications" is a diverse one, encompassing subsegments like General Engineering, Defence, Oil & Gas, Bio Medical, and Commercial parts. Remarkably, this segment experienced the least impact from the pandemic and was deemed fully recovered as of 2021.
In 2023, there has been again
a robust growth (6.4%), primarily propelled by increased demand in the Defence application and Commercial parts, particularly in sectors such as food and machinery. Additionally, as mentioned last year, logistical challenges stemming from the pandemic have further strengthened this segment, leading to a significant reshoring of parts that were previously outsourced from the far east.
3. Sales by Regions The sales evolution across
European regions exhibits a familiar landscape, characterized by a marginal redistribution of market shares in certain countries.
The United Kingdom continues to ®
exert dominance over the overall market share, particularly leading in High Added Value applications. Germany, on the other hand, commands the Automotive market segment and maintains a robust presence across all three market segments. Meanwhile, France is experiencing an uptick in its share within High Added Value applications and maintains a well-balanced presence in the other segments.
The remaining 17% corresponds to the amalgamation of various countries, including but not limited to Holland, Sweden, Finland, Belgium, Spain, Czech Republic, Slovakia, Hungary, Turkey, Poland, Serbia, Italy, Ireland, Switzerland and Portugal. Each of these nations contribute to the European Investment Casting industry, collectively forming a significant portion of the market.
4. Corollary The progress of the European
Investment Casting (IC) industry throughout 2023 has demonstrated a resilience that surpasses the
overall economic trends in Europe, notwithstanding the presence of certain challenges. The industry exhibited adaptability in promptly identifying and confronting these challenges. This adaptability was exemplified through the implementation of various measures, including the adoption of energy-saving practices, engaging in negotiations with customers to recalibrate prices, and simultaneously ensuring the resilience of the supply chain through analogous negotiations. Furthermore, there was a concerted effort to enhance internal efficiency.
From a strategic standpoint,
European IC companies engaged in a comprehensive review and refinement of their existing strategies. This involved the integration of new action lines and the strengthening of diversification where deemed necessary. In alignment with this strategic reassessment, considerations for new investments were made, leveraging the opportunities presented by initiatives such as the Next Generation EU funds. Additionally, analogous grant programs in non-EU
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