The Metal Stamping Forecast for 20211 Comment
Because so many industries rely on metal stamping for their precision metal parts, metal stamping services remained in demand throughout 2020, despite the many changes and challenges the world experienced due to the COVID-19 pandemic. Efficient and cost-effective, metal stamping allows for accurate production with an automated process that reduces a company’s labor costs. You can easily increase volume of complex metal components in a variety of shapes and sizes without necessarily increasing your workforce.
The demand for custom metal stamping is poised to increase over the next several years, as industries like automotive, aerospace, industrial, and electronics are driving the need for precise metal components to match their innovation and growth.
How Did the Metal Stamping Industry Conclude 2020?
The pandemic required many manufacturers to pivot. Facing disruptions to the supply chain and changes in consumer wants and needs, companies were forced to adapt if they wanted to survive. For some, this meant finally adopting new technology that once seemed overwhelming or cost-prohibitive, and those changes will continue to serve them into the future. Metal stamping manufacturers in particular started looking to the data to guide their strategies and realizing that with automated processes and advanced technology, including remote access capabilities for their equipment, there are new considerations for the size and location of their workforce.
Despite the many surprises 2020 threw at us, the metal stamping market continued its upward trajectory. The future is bright: the demand for precision metal components is only continuing to grow, and the market may increase by $28.41 billion in the four years leading up to 2024.
What Are the Key Changes and Insights for 2021?
Metal stamping enables the production of complex lightweight components in a variety of materials, including stainless steel, galvanized steel, high strength low alloy steel, copper, aluminum, brass, and more. The automotive and aerospace industries rely heavily on these components, because they are always looking for ways to make their vehicles lighter and more fuel efficient without sacrificing safety and durability. Demand from those industries, combined with low materials costs, will drive metal stamping trends in 2021.
Despite the state of commercial air travel in 2020—for example, the Europe region was forced to reduce their flight schedule by up to 95%, and they were not alone as would-be passengers around the world canceled their travel plans—the aerospace industry has been on a steady growth trajectory over the last several years. Even though many commercial airlines have temporarily stopped ordering new aircraft, there’s still a move to replace old passenger planes and fighter jets with new aircraft that take advantage of advanced technology to offer greater fuel efficiency and sound reduction. Metal stamping for aerospace and defense alone is projected to hit $33.6 billion by 2027, a CAGR of 4.6%. In automotive, the move toward electric and hybrid vehicles is enhancing production.
In particular, signal and power distribution systems, communication devices, and flat connection systems require metal stamped clips, switches, assemblies, bushings, connectors, and fasteners. Those applications and components alone are expected to play a big role in the industry’s growth in 2021.
Why American Industrial Is the Optimal Choice
For 40 years and counting, American Industrial Company (AIC) has offered precision metal stamping services to our clients throughout North America and around the world. From the beginning, we’ve been committed to lean manufacturing, competitive prices, and rapid delivery with a long tooling life, consistency, and uniformity within each order. We have the capabilities to manage all projects, from small to large, simple to complex, and our ISO 9001:2015 certification guarantees our commitment to quality control and customer satisfaction.
It will be another busy year in the metal stamping industry for 2021, and we’re prepared to meet demand from companies that are looking for ways to innovate and improve their products with custom metal components. We look forward to serving you. Contact us or request a quote for your next project.