Steel Products
Metal Fabricators Expecting Stability and Moderate Growth in 2nd Half
Written by Sandy Williams
August 16, 2013
Metal fabricators are reporting stable business conditions according to the Fabricators & Manufacturers Association’s inaugural survey of small to mid-sized metal fabricating companies.
No significant growth or shrinkage was noted in new order activity by most respondents. Commodities and logistic prices were also seen as fairly stable. New trucking rules have some respondents expecting higher freight costs in the next quarter.
Operating capacity for small fabricators has been at 63.74 percent, well below the normal capacity of 85 percent, leaving ample room for growth.
Capital expenditures were on the horizon for manufacturers and fabricators six months ago but little expenditure in machinery and technology actually occurred in 2013. Most companies (58 percent) are delaying capital equipment purchases and 34 percent are putting plans on hold indefinitely due to lingering concerns about economic recovery.
The future outlook is positive with moderate growth or stability expected for the balance of 2013.
The FMA survey is distributed to top ranking industry executives of more than 17,000 companies providing parts and assemblies to the automotive, aerospace, medical equipment and heavy equipment industries. For the first survey, 280 metal fabricating companies responded. The majority of companies responding have less than 19 employees and the rest less than 50.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
US and Canadian rig counts inch higher
Baker Hughes reported higher oil and gas drilling activity this week in both the US and Canada.
Global steel production falls to near two-year low in September
World crude steel output declined for the fourth-consecutive month in September, slipping 3% from August to an estimated 141.8 million metric tons (mt), according to the latest figures from the World Steel Association (worldsteel).
Market sources say regional activity is dictating plate demand
Demand for plate on the spot market remains soft by comparison to years past. However, this week regional demand variations grew more pronounced.
Battery #14 at USS Clairton to restart on Oct. 23
U.S. Steel plans to restart battery #14 at the Clairton Coke Works plant on Thursday, ending its idling period. Battery #14 was hot idled following the explosion at coke oven batteries 13 and 14 on Aug. 11. The Mon Valley Works Clairton plant has completed the necessary repairs. It expects the battery to restart during […]
Findings from Clairton investigations prompt USS to revise safety protocols
U.S. Steel (USS) said it’s been strengthening its safety protocols as findings from investigations into the causes of a deadly explosion at USS Clairton Coke Works on Aug. 11 materialize. The Pittsburgh, Pa.-headquartered steel producer stated that an independent investigation conducted by the Environmental Design & Testing Corp (EDT) produced findings aligned with the company’s […]
