Metal Stamping Trends
When our managers at Degele Manufacturing look at metal stamping trends from 2020 into this year, the future looks promising. While other industries struggled during the pandemic, the metal stamping industry saw growth. There were certainly some disruptions to the way the industry did business, but it bounced back in high gear as the country reopened.
Recovering from Negative Impacts
The sum total of last year’s performance is positive, but the collective growth hides many of the challenges faced by the industry. Metal components are essential in many of the industries hit hardest, such as travel.
When these industries shut their doors, metal stamping companies lost some of their biggest and most regular customers. According to the same data driving metal stamping trends, it might be at least another year before travel and other related industries resume pre-pandemic levels.
Seizing New Opportunities
Despite losing old clients, the metal stamping industry faced new and increasing demands related to creating tools to fight the pandemic. Private companies, public hospitals and government agencies suddenly all demanded medical equipment, testing gear and personal protective equipment.
These demands strengthened America’s manufacturing industry overall. However, only the companies with the resources to pivot were able to seize the incoming opportunities.
Embracing New Technology
During the pandemic, Amazon illustrated that even the biggest and most lucrative companies can lose customers if they do not have the infrastructure in place to meet growing demands. Metal stamping trends also remind companies that they must harness the power of technology, more than ever, to keep up with increasing demands from clients. This will be especially important when medical demand begins to overlap with the return of the travel industry.
Companies are investing in workflow management software and redesigns of physical spaces to improve traffic flow and productivity. Workflow management provides operations managers with the opportunity to take full control of the production process and create processes that better facilitate speedy and cost-effective outcomes without sacrifice to the quality of the final product.
There are also some in-house metal stamping trends that companies need to track. Through inventory management, managers can track the final product and its ingredients. Different clients will have unique demands, but the general ingredients necessary are similar. Failing to have the right materials in stock can cause even the biggest and best companies to be overlooked in favor of the companies that can meet immediate needs. Inventory management can help.
More metal stamping companies are investing in data analytics software. When managers have access to better data, they have a more complete picture to help them make informed decisions. Data analytics can help managers decide what to invest in and predict and project the future performance of the business, metal stamping trends, and movements in the larger economy.
Some companies are investing in upgrading the physical machines they rely on to get the work done. This is the most difficult technological improvement of all for two reasons. Firstly, this type of machinery is expensive and so is installment. Secondly, the installment process could force operations to come to a halt and most metal stamping businesses cannot currently afford to stop business processes.
Projecting Future Performance
From 2020 to 2027, the defense and aerospace metal stamping market is expected to grow at a 4.6% CAGR. This excerpt from metal stamping trends and forecast details came before the boom in the medical market, which might see an even faster growth rate.
The growth rate in the medical market might not continue beyond the containment of the current pandemic. Even so, it is a promising substitute for the aerospace industry. When travel returns, people will be so eager to explore that the industry will likely recreate a second boom.