Have you set your fabrication shop’s goals for 2015? Don’t fret if you haven’t. Whether you’re determined to attract new clients or out-produce competitors, it helps to know the industry expectations for the year.
That’s why Fabricators & Manufacturers Association International (FMA) published a metal fabrication industry forecast for 2015. Here are the highlights that we found interesting:
- On the power of falling gas prices and higher employment rates, auto-industry manufacturers will enjoy a strong year. They’ll sell 13.8 million new cars and trucks, according to D. Power and Associates.
- For the fourth year in a row, industry operating levels will grow. Whether you run a one-person shop or are part of an organization of 1,000, FMA predicts you can achieve higher output:
- The metal fabrication industry will see mild capital spending growth, FMA predicts. In 2015, look for an increase of 3.5% over 2014.
- You’ve heard it again and again: your shop has to retain accounts. But your success in 2015 depends on it. More than half of shops earned 80% of revenue from fewer than 8 clients in 2014, according to an FMA survey. Losing a key client can put an end to dreams of growth.
- Your revenue from clients in the mining industry could shrink. Simply put, the industry is producing much more than it’s selling. “Australian mining giant BHP Billiton Ltd. announced record output from July through September, a whopping 12.8 million metric tons, just at a time when the world doesn’t need all of it,” the forecast says.
Be Prepared
The article also highlights the unpredictable nature of the metal fabrication industry. More than ever, customers aren’t hesitating to make unexpected requests. To prepare for these ever-changing requirements, FMA says shops must buy more equipment to increase capacity and capabilities. This way, you’ll be ready to meet any challenge.
>>Need help reaching your metal fabrication goals for 2015? Contact Westway Machinery. We’ll help you find the right machine for your shop.
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