The main end market of the HPDC sector

By 3 May, 2017News

The automotive industry is the major end market in die casting industry, and its sales, trends and forecast determine the HPDC direction.

 

In the United States light vehicle sales recovered at the end of last year, ending 2016 with a volume comparable to the record obtained in 2015.

Industry experts predict that production of motor vehicles and spare parts will decline by 3 percentage points by 2017 and, to a lesser extent, will continue to declining in 2018.

Sales of cars and light trucks are expected to reach 17,8 and 17,7 million in 2017 and 2018, respectively.

Mexico is having a negative effect on the import/export balance of the United States, as imports rose 1% and exports fell 2%. The trade deficit is considerable.

In spite of these forecasts, the automotive industry shows increases in production in almost all the companies of the sector.

The housing market is the second largest end market for high pressure aluminium die casting. New homes will begin to grow at a rapid pace over the next three years. Complementary products such as household appliances will continue to grow in turn.

In this sector, profits are expected to be 16% in 2017 and 9% in 2018. This optimism is due to the fact that housing prices have practically equaled pre-recession figures and delinquency rates have recovered the 2007 levels.

The slow pace of manufacturing, China’s presence in the sector and low commodity prices will affect the metal industry.

Producers of aluminum and other metal products should avoid import threats in their areas.

 

Click here if you want to continue reading the article of the NADCA (North American Die Casting Association) about the State of the industrie.

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