POWDERMET2017: State of the PM Industry in North America
June 20, 2017
Metal Additive Manufacturing
Metal additive manufacturing was reported to be showing great promise in North America, stated McGeehan. Industry observers draw parallels to the formative years of MIM, but metal AM has many more major international corporations, investor groups, and universities making serious dollar and R&D-time investments in the technology.
It seems that just about every metal powder company seeks to carve out a stake in the metal AM marketplace as a supplier, added McGeehan. Leading powder materials still include 316 and 17-4 PH stainless steel, cobalt-chrome, and titanium. Companies are also investigating aluminium alloys, copper, super alloys, platinum, Inconel, tungsten, molybdenum, and tool steels.
Currently there are close to 12 metal AM equipment suppliers supplying the international market and up to 75 North American metal AM parts fabricators, including job shops and in-plant manufacturing operations.
Hot Isostatic Pressing trends
HIP industry companies gained in 2016 based on a pick-up of demand from the aerospace and aircraft engine (commercial and military) markets. Nevertheless, the oil-and-gas market sectors continued in a depressed mode. Densification services for MIM and metal AM parts remain strong and will continue to grow. HIP processing of high-speed steel billets will continue growing as well. According to the 2017 MPIF Pulse Survey, the macro outlook for the HIP industry remains in a growth life-cycle.
Refractory metal trends
The tungsten market appears to have bottomed out in 2016 and there is relief in sight, although it is precariously dependent on oil-and-gas prices, which remain low. North American oil-and-gas drilling rigs have been steadily increasing at rates not seen in six years and are at April 2015 levels. Drilling rig count is up 85% today over the same period in 2016 (885 vs. 479 rigs). Mining activity is up with some metals, but not consistently up overall, and is greatly dependent on global economies such as China, whose economy is still neutral. Meanwhile, there have been increases in mining for zinc, coal, and copper, which has had a positive effect on tungsten. Both of these well-established tungsten market applications play an important factor in the PM industry.
McGeehan stated that 2017 looks to be a positive year for refractory metals, as global economies continue on their positive trend, energy demand is increasing, and OPEC agreements have reduced oil production.
Outlook
McGeehan summarised by saying that with signals from the national economy still flashing good news, the PM industry’s general outlook for 2017 should be satisfactory. This is especially true for the MIM and metal AM sectors. Traditional PM parts sales should still experience moderate growth in the automotive, consumer products, and industrial equipment markets.
The 2017 MPIF Pulse Survey points to continued sales increases. Overwhelmingly, PMPA members see gains. Matching their optimism, 83% of the responding companies will add to their workforce this year, and 66% will increase capital spending. Members of the Metal Powder Producers Association (MPPA) are equally divided about their sales forecast: 50% see increases while 50% see sales staying even. Meanwhile, 89% of the Metal Injection Molding Association (MIMA) respondents project sales increases. Members of the Isostatic Pressing Association’s (IPA) also expect gains in 2017.
PM companies are well-positioned to meet the challenges ahead with realistic expectations, careful planning, and R&D investments. Opportunities within the industry are plentiful, stated McGeehan. PM’s positive history of reinventing itself by adopting new technologies and entering new markets will certainly support continued growth in the years ahead.
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