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3 Main Challenges Metal Stamping Executives Are Facing Right Now

Posted by IndustrySelect on Monday, July 29, 2019

100028_metal stamping

2 MIN. READ

Those interested in selling to the metal stamping industry should be aware of the factors that are influencing purchase decisions at the moment. IndustrySelect collects comprehensive data on the U.S. manufacturing sector and today, we're taking a closer look at new developments in the metal stamping  industry and the various challenges faced by their top decision-makers. 

First, we'll provide a brief overview of what metal stamping is. 

What is Metal Stamping?

Metal stamping is a process by which sheet metal is stamped or pressed into various forms. That includes pressing, bending, flanging, coining, embossing, deep drawing, punching and other techniques.

Metal stamping is common in the automotive industry, but it also is used in the marine, medical, aerospace technology and construction industries, among others.

According to data collected by IndustrySelect, current average sales in the industry are $25.47 billion. There are 1,551 metal stamping companies in the U.S. currently, providing 72,896 jobs

To give you an even deeper understanding of the industry, next we'll take you through some of the major challenges executives in the business face.

Tariff Uncertainty

At the moment, tariffs are one of the most significant challenges, largely because of the uncertainty associated with them.

The tariffs specifically apply to steel, which is among the most common sheet metals used in metal stamping. As such, executives who previously used international suppliers face decreased access to steel and dramatic hikes in cost.

Even those who buy their steel in the United States face rising prices because of the higher demands on those suppliers. There's also the risk that the higher costs will reduce supplies if domestic steel manufacturers are unable to keep up with demand.

In addition to the uncertainty in terms of purchasing materials, the executives who rely on international distribution expect decreased profits because of the tariffs.

Given that 41% of metal-stamping companies rely on international distribution, a significant segment of the industry faces the challenge.

Those executives must then find ways to overcome the reduced profits associated with tariffs, whether that means cutting costs in other ways or finding domestic distribution options.

Defects in High-Volume Metal Stamping

Executives face additional challenges in the form of potential defects in high-volume metal stamping. High-volume runs are more cost-effective, but they impede the ability to inspect every piece, making it challenging to spot defects.

Various solutions are available, but there still is not a consensus about which provides the best results, and the extent to which any of those solutions are worth the investment.

Supply Chain Optimization

As with any other industry, metal-stamping executives must also face the challenge of optimizing their supply chain. That becomes particularly challenging given the issues with tariffs.

There can be a significant difference in production costs and delays between a well-optimized supply chain and a poorly optimized one.

The optimization must not sacrifice things such as quality and timeliness for a lower price. As such, executives are always looking for ways to streamline their supply chains, whether that includes the use of new technology or innovative logistics strategies.

Discovering New Customers in the Metal Stamping Industry

Are you looking to contact decision makers in the metal stamping industry? IndustrySelect collects detailed data on 400,000 U.S. manufacturers, and provides access to as many as 30 data points that assist with identification and pre-qualification of the best leads.

Those profiles also include email addresses along with names and titles for even the hard-to-reach executive decision-makers. Click here to learn more about how IndustrySelect's data can help you reach the right people. 

 

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