Metals Industry Creates Challenges and Opportunities
The metals industry shows both difficulty and promise in the near term. From a geographic perspective, the Asia-Pacific region is experiencing higher production and consumption of metals, especially China and India. On a per capita basis, both of these countries are moving more in line with United States and European levels, which could double the metal demand in the long term. China has experienced significant growth in recent years, and capacity has exceeded demand, which could potentially result in the country increasing its metal exports. But if the world economy continues to improve steadily, the demand, and consequently the price for metal, will increase both domestically and abroad. The reluctance to invest in both mining and metal production in the United States could further affect both supply and demand, which will in turn have significant impact on metalworking. As a consequence, there will be increased pressure on manufacturers to try to reduce inefficiencies and cost where there is little left to squeeze out in order to remain competitive. more....