Automobile Metal Stamping
Business for Sale Industry Economics
2003 - 2020
2020 - 2026
Domestic automakers gradually changed production schedules to concentrate on light-duty trucks and SUVs during the current century, boosting industry sales.
Low interest rates have continued to boost consumer confidence, allowing people to spend more on big-ticket goods like cars.
However, as macroeconomic conditions worsened in 2020 as a result of the outbreak of COVID-19 (coronavirus), car demand and, as a result, industry sales declined.
For the five years to 2020, market income is forecast to decline at an annualized rate of 4.6 percent to $30.8 billion, with a 16.3 percent reduction in 2020 alone as vehicle prices plunge in the wake of the pandemic.
For the five years leading up to 2020, the Automobile Metal Stamping market has been on the decline. Since automakers are the industry’s main buyers, demand for industry goods is closely related to the demand for finished automobiles.
As a result, industry sales grew at first in response to increased demand for vehicles, especially SUVs and light trucks, as unemployment rates fell.
Furthermore, large automakers such as General Motors Company (GM) and Ford Motor Company (Ford) have started to restructure activities over the last five years, assisting in the growth of the industry.
Over the five years to 2025, recovering economic conditions and improved operating efficiencies for the Automobile Metal Stamping industry’s largest buyers are anticipated to renew industry sales development.
As pent-up demand from the worst time of the COVID-19 (coronavirus) pandemic is released, rebounding new car sales and an increase in new vehicle production are projected to boost market output by 4.0 percent in 2021 alone.
Over the next five years, greater metal stamping activities, including internal automaker operations, would benefit from lower operational costs and expanded vehicle demand. Industry revenue is expected to rise at a 3.7 percent annualized rate to $36.9 billion by 2025, according to research.
Companies in this industry use a machine press or a stamping press to make metal vehicle parts like body plates, trim sets, bumpers, and other structural elements out of sheet metal.
The Automobile Metal Stamping business requires a moderate amount of capital, which is characteristic of sectors that sit atop the automotive supply chain. The average industrial business will invest $0.15 in capital equipment for every dollar spent on salaries.
Automakers are responding to the overall unpredictability of petrol costs and consumer preferences by producing smaller, more fuel-efficient automobiles. To achieve these objectives, automakers are working more closely with suppliers to decrease component system weight and increase performance.
In other circumstances, redesigns need the use of lighter, more exotic metals such as aluminum or titanium; these new materials necessitate machine modifications, resulting in greater capital expenditure.
The Automobile Metal Stamping industry has shown low to moderate revenue volatility throughout the five years leading up to 2020. Automakers’ downstream demand is strongly reliant on industry participants, resulting in revenue fluctuations that closely track vehicle output.
Vehicle manufacturing rises in tandem with consumer confidence and disposable money. Revenue volatility decreased for much of the five-year period as downstream demand steadied.
As a result, the sector has seen a rise in demand over the last five years as the economy has improved and light-duty vehicle manufacturing has expanded.
Automobile demand, on the other hand, is anticipated to plunge in 2020 as the aftermath of the coronavirus epidemic stifles macroeconomic activity. Overall, this is predicted to result in a 16.3% decrease in industry revenue, increasing volatility.