State of the Industry

The die casting industry primarily depends on the state of the overall economy.  The economic trends and activities of the country are reflected in the direction and strength that the die casting industry takes.  Macro-economically, the Unites States has not rebounded out of the last recession with the pace that would be expected. At the beginning of 2011, it was expected that many of our previous economic woes were behind us as orders for manufactured products increased.  The pace of the economy slowed and has lost steam in a positive direction.

The stalled economy continues to take its toll on manufacturing in the United States.  The number of die casting operations in the Unites States have dropped by 50% since 1960.  NADCA estimates that the number of facilities will continue to fall.  However, the rate will be slower over the next ten years because of current capacity shortages and the growth predicted in the need for automotive die castings.

Despite the drop in number of facilities, there has been a steady growth in the pounds of die castings shipped in the United States.  Technology and productivity have been key features in the remaining die casting operations.

Two market estimates and forecasts were made.  First, the Die casting company CEO’s see 2012 as a growth year.  In the October, 2011 barometer, all participants forecast the level of business in 2012 as good as 2011 or better, with  increases up to 25%.  The composite calculation for aluminum and zinc estimated 9-10% gains in 2011 and 5-7% growth forecast for 2012.  The ‘rolled up’ end market forecasts see growth in 2012 also.  The forecast percentage is within one of the die casting CEO’s.

• State of the Industry 2012
• Technology Questions on End Market Report