U.S. Precision Turned Product Market Declines Notably

IndexBox has just published a new report "U.S. Precision Turned Products Market. Analysis And Forecast to 2025". Here is a summary of the report's key findings.

Precision Turned Product Market Declined Notably over the Last Year

The precision turned products comprise turned metal parts to exact specifications for applications used as intermediate inputs in the production of a wide range of durable goods such as vehicles, aerospace, industry machinery, medical equipment, etc.

As precision turned product manufacturing produces parts with a high degree of individualization on customer specifications, there is no comparable data on international trade. Most likely, this production is concentrated in the U.S. on sites closely located to consumers. Therefore, the market size was estimated based on the value of shipments within the industry.

According to IndexBox estimates, the precision turned products market value stood at $X in 2016, fluctuating considerably over the period under review. A significant drop in 2009 was followed by robust growth over the next four years, until the market levelled off with a slight decrease through to 2015, which then continued with even more pronounced decline in 2016.

Downstream industries have experienced a rebound from their recessionary slumps, supporting the recovery of the demand for precision turned products over the past five years. At the same time, the long-term downtrend in steel prices determines the decline in the market revenue of precision turned products in recent years.

Market Value Is Expected to Reach $X by 2025

As for the major downstream industries, the general outlook is positive, with some uncertainties, however. The U.S. car markets are to benefit from increased demand for car trips due to low gasoline prices, strong employment and income growth. However, the car sales are likely to slowdown from current peak in the next two to three years, due to the current peak of old car replacement with the new ones is likely to come over, flooding the market with cheaper used cars. The prospect for commercial airplane business is bright as favourable passenger traffic trends and airline profitability forecasts continue to drive healthy global demand for new airplanes.

Overall, industrial manufacturing in the U.S. is continuing to experience a recovery, but non-high-tech manufacturing is not likely to recover until the end of 2017 (X% below the pre-recession level), as oil and gas machinery, agricultural, mining and drilling equipment, metalworking machinery, and engines and turbines will languish and drag down the total machinery category. HVAC and industrial machinery will fall only at a modest pace this year. With the exception of mining and drilling, agricultural, and construction, the other machinery categories will start recovering in 2017.

The performance of the market is forecast to expand with an anticipated CAGR of +X% for the nine-year period from 2017 to 2025, which is projected to lead the market value to $X by the end of 2025.

Precision Turned Products Production Continued to Decline

U.S. precision turned products manufacturing experienced a mixed trend pattern over the last eight years, finally amounting to $X in 2016. After plummeting by X% in 2009, the production of precision turned products recovered over the next four years; however, after four years of stabilization, the total output declined markedly in 2015-2016. Nevertheless, in 2016, the value of production was $X (or X%) more against its pre-crisis level of 2008.

Non-automotive Precision Turned Products Dominates in Terms of Total Production

Precision turned products (non-automotive) had the largest share of U.S. precision turned products manufacturing (X%). The share of production of automotive precision turned products was X% in 2016.

However, among types of precision turned products, automotive precision turned products was the fastest growing in terms, grew by +X% per year, over the period under review. At the same time, precision turned products (non-automotive) remained relatively stable from 2008 to 2016. In addition, the share of automotive precision turned products increased (+X percentage points), while the share of precision turned products (non-automotive) (-X percentage points) decreased over the period under review.

About X% of U.S. Generic Fastener Product Consumption Was Imported

Approx. an half of generic fastener product consumption in the U.S. in 2016 was supplied from abroad. Moreover, the share of imports in consumption increased from X% in 2007 to X% in 2016, which indicates that the U.S. remains an attractive market for foreign fastener suppliers.

Approx. X% of the U.S. Generic Fastener Product Exports Was Sent to Canada

The U.S. exported $X of generic fastener product in 2016. In physical terms, exports amounted to X tons in 2016, growing by an average rate of +X% per year, over the last nine years. In 2016, exports continued to increase gradually, while imports decreased perceptibly.

In 2016, the main destinations of U.S. generic fastener product exports were Canada (X%), Mexico (X%), Brazil (X%), China (X%), the UK, Germany and France (X%, each). From 2007 to 2016, the fastest growing countries of the destination were Brazil (+X%) and China (X%).

The share exported to Mexico (+X percentage points) and Brazil (+X percentage points) increased, while the share sent to Canada illustrated negative dynamics (-X percentage points). The shares of the other countries remained relatively stable throughout the analyzed period.

Taiwan and China Were the Major Suppliers of Generic Fastener Product into the U.S.

The value of total U.S. generic fastener product imports totalled $X in 2016, which was X% less than the year before. In physical terms, imports reduced over the last year, finally amounting to X tons in 2016. In 2008, imports in physical terms decreased almost twofold. Afterwards, it experienced a steady upward trend over the next seven years, thereby rebounding from its recessionary slump; however, it slipped back slightly in 2016.

Intense competition from low-cost imports, particularly from Taiwan, Chinese and China, constrained industry performance during this period. Taiwan, Chinese (X%, based on tons) and China (X%) were the main suppliers of n 2016, into the U.S. in 2016, followed by Japan (X%), Germany (X%), Canada (X%), Korea (X%) and India (X%). India (+X% per year) was the fastest growing supplier from 2007 to 2016. China strengthened its position in terms of the U.S. imports by +X percentage points from 2007 to 2016. By contrast, Japan (-X percentage points) and Canada (-X percentage points) saw their shares reduced.

Do you want to know more about the U.S. precision turned product market? Get the latest trends and insight from our report. It includes a wide range of statistics on

• precision turned product market share
• precision turned product prices
• precision turned product production
• precision turned product industry
• precision turned product sales
• precision turned product imports
• precision turned product exports
• precision turned product market forecast
• precision turned product price forecast
• precision turned product producers

Source: IndexBox Market Intelligence Platform