Fabricated Metal Parts Manufacturing

The US fabricated metal parts manufacturing industry consists of about 60,000 companies with about $300 billion in combined annual revenue. Major companies in specialty segments include Ball Corporation and Snap-On. Because of the special manufacturing processes involved for individual parts, most companies make a limited range of products. The industry as a whole is fragmented: the largest 50 companies account for about 20 percent of revenue. But concentration can be high in industry segments such as boiler, cutlery, metal can, and spring manufacturing.

COMPETITIVE LANDSCAPE

Demand is driven largely by the needs of other industrial companies and is therefore linked to economic growth. The profitability of individual companies depends on technical expertise and efficient manufacturing. Large companies have economies of scale in purchasing raw materials. The specialized nature and use of many products allows smaller companies to compete effectively.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry consists of several distinct segments, including ornamental and structural metals ($60 billion); forging and stamping ($30 billion); metal valves ($30 billion); metal containers ($20 billion); hardware ($15 billion); springs and wire products ($15 billion); and fasteners ($10 billion). Many companies make products in smaller specialized segments.

Companies manufacture mainly simple metal parts used by industrial customers, such as those making autos, airplanes, machinery, appliances, and computers. Some companies make simple finished products like metal cans, tools, plumbing fixtures, and structural steel members. Most companies operate a single manufacturing facility. A typical company has about ...