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INVESTMENT CASTING MARKET OVERVIEW NORTH AMERICA

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Presentation on theme: "INVESTMENT CASTING MARKET OVERVIEW NORTH AMERICA"— Presentation transcript:

1 INVESTMENT CASTING MARKET OVERVIEW NORTH AMERICA
Scott Hanson President Auburn Investment Casting

2 Investment Casting Trends
North American Investment Casting Industry “Across the Board” increase in activity Foundries & Suppliers are busy Raw Material Cost/Availability Energy Cost Offshore Sourcing __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2

3 Investment Casting Trends - cont’d
Segment summary Aerospace – commercial – record level of new orders military – D.O.D. in transition IGT – Significant spare part demand New Build Growth forecasted for Asia, Mid-East & Africa Automotive - activity in complex applications & Turbocharger Systems General Industry – growing with overall economy __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2

4 Market Segments Aerospace Jet Engine Blades & Vanes (Airfoils)
Integral Wheels & Nozzles Hardware and Structures Airframe Missile & Rocket Components Other Military Ordnance __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3

5 Market Segments Industrial Gas Turbines Blades & Vanes (Airfoils)
Hardware and Structures Turbine and Combustor Components __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3

6 Market Segments Automotive Valves Turbocharger Components
Complex Powertrain Parts Chassis Applications - Passenger Car and Motorcycle __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3

7 Market Segments General Industry
Medical Implants, Instruments & Testing Equipment Industrial Valves / Pumps Petrochemical Food Processing Off-Road Equipment Firearms Construction Equipment Hand & Power Tools Recreational & Sporting __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3

8 North American IC Industry
United States, Canada & Mexico Approx. 46% of worldwide investment casting production 130 companies 170 foundries (not including dental, art or jewelry) 30,000+ direct workers All market segments All ‘castable’ alloys All size capability __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3

9 North American Investment Casting 2005 Sales ($ Million - USD)
Aerospace 1,600 IGT Automotive General Industry TOTAL: $3,200

10 North American Investment Casting Market by Alloy Type
Aluminum & Copper: % Titanium: % Steel: % Superalloy: % 2005 Casting Dollars $3.200M

11 Worldwide Investment Casting ($ Million - USD)
2005 North America ,200 Europe ,700 Asia ,000 Other TOTAL: ,000

12 Aerospace - Commercial
Large Transports World traffic up 6% Load factors & New Orders at Record Level build forecast avg. 970 / year Asian Market Growing Rapidly New Programs A380 / 747-8 A350 / 787 China Regional New Aircraft Builds > 50 Passenger __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ROM Associates: 2- 06 7

13 Aerospace – Commercial cont’d
Concerns / Issues: Airline losses continue High Fuel Prices Several US Airlines in Chapter 11 Airlines adopting the ‘Low Cost Business Model’ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 7

14 Aerospace – Commercial cont’d
Business Jets New orders up significantly Delivery of new aircraft 30% higher Corporate ownership/leasing & Fractional Shares Increased demand for used aircraft Airframe & Engine Manufacturers very busy Private Jets New Market starting to develop Low cost replacement for some General Aviation models __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 7

15 Aerospace - Military Increase proposed for D.O.D Budget
Demand for engine spare parts for Fighter, Helicopter & Transport aircraft Some Advanced Aircraft Programs being pushed out Future Combat Systems - Smart Munitions - Lightweight Armament - Battle Field & Ship Board Applications

16 Industrial Gas Turbines
High Spare Parts Demand Increase in Aero derivatives Growing ‘After Market’ Business Large Frame Growth in Asia, Mid-East & Africa Limiting/Competing factors Infrastructure for NG Price / Availability of NG Future Technology: Wind Power Coal Gasification New Land-based Turbine Builds – 50MW + __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2-06 Consensus Industry Forecast 8

17 Automotive New Investment Casting Applications
Design Activity in Commercial Trucks, Passenger Cars & High Performance Vehicles Driven by new emission standards and fuel efficiency Turbocharger Demand straining capacity Titanium Alloy components growing

18 General Industry Dispersed among many casting suppliers
Wide range of size & alloys Applications across all industries Many Niche opportunities High volume applications susceptible to offshore sourcing Overall, should continue to increase with growth in economy

19 North American Investment Casting 2006 Estimated Sales ($ Million - USD)
% Change Aerospace , % IGT % Automotive % General Industry % TOTAL: , %

20 Opportunities for Consideration
- Machined Parts - Finished / Ready to Assemble - Low Volume & Custom Parts - Military Munitions & Support Equipment - Military Spares - ‘After Market’ for Aerospace & IGT - Medical Instruments & Testing Equipment - Conversions from other processes - Combining Multiple Parts into Integral Casting - Higher Value Alloys - Larger Castings - International Customers - Die Casting Prototyping

21 Ind. Production + 3.8 DeWolf - Commercial + 4%
2006 Forecast Comparison % Change ICI GDP Ind. Production DeWolf - Commercial % SFSA % BICTA %

22 Summary Overall North American IC growth will continue
All Market Sectors will benefit Off-Shore Sourcing effect on N. American foundries? Some concern with Raw Materials & Energy Opportunities for New Casting Applications Need to focus on market Niches & Supplying Value Added Features / Services __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 12

23 Acknowledgement The Investment Casting Institute wishes to acknowledge the following companies for their contribution to this report. - Alcoa Howmet - Blayson Olefines, LTD. - Doncasters Inc. ESCO Turbine Group - Hitchiner Mfg. Co. ROM Associates


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