Abstract
Reduced Investment in Capital Goods Hinders Expansion of Welding Industry
Low investments in the capital goods sector - a fall out of the economic slowdown worldwide, particularly in North America - have resulted in the stagnation of the welding equipment markets across the world. Investors, though willing to infuse capital in the fabrication and construction industries, are put off by the lack of buyers/demand in these sectors. Faced with declining sales and revenue margins, many end-user industries of welding equipment, electrodes, and filters are postponing their expansion and modification plans, which is hampering market growth. However, the slow but continuous growth of some end-user markets such as that of medical devices is providing a glimmer of hope for welding equipment manufacturers.
This Frost & Sullivan study analyzes the performance of various types of welding equipment (gas, arc, resistance, electron beam, ultrasonic, and laser), electrodes, and fillers in more than 17 end-user industries that includes automotives, shipping and offshore, appliances, fabrication, and construction. The report also provides details of mergers and acquisitions, strategic recommendations, and market forecasts based on in-depth examination of the various global markets.
Pre-fabricated Structures/Bridges Likely to Boost the Demand for Various Welding Equipment and Consumables
Many end-user industries are using pre-fabricated structures that can minimize time and cost and this is likely to encourage the use of welding equipment, electrodes, and fillers in various applications. Japan is replacing concrete bridges by installing steel bridges and many countries including the United States are likely to follow suit. The analyst says, "Shortly, huge investments will be required to refurbish many aging highways and bridge networks across North America and Europe. The commitment on the part of various national governments to invest in such projects will provide an impetus to the welding equipment industry".
Market participants are relying on new/sophisticated welding methods such as remote laser welding, which offers time savings, flexibility enhancement, and different design possibilities to take advantage of these emerging opportunities. Friction stir welding (FSW), capable of welding dissimilar alloys with minimal changes in structural properties, is also finding greater acceptance in a broad spectrum of industries such as automotives, aircrafts, electrical and aerospace. Laser-assisted FSW, a patent pending system, is another promising technology with its ability to heat/weld non-conductive materials such as plastics and ceramics.
Growing Reliance on Steel Structural Engineering to Encourage Growth
The economy is showing signs of recovery and this is likely to create a positive impact on the construction industry. This, in turn, is expected to boost steel consumption, which is primarily used in construction due to its light weight, high tensile strength, and rust resistant properties. This will increase the demand for resistance and arc welding systems, two of the most suitable methods for steel welding, and will continue until the development of stronger and cheaper alloys that require a change in welding type.
Recently, the research efforts on modification of silver-hafnium electrodes lead to the development of 'SilverPlus 200A' oxygen electrodes with a three-fold increase in product life. Despite these advancements, the consumables segment is likely to witness minimal growth as the industry is moving toward sophisticated welding systems that enable strong, flawless welding without the use of electrodes and fillers. The analyst concludes, "Ultrasonic and laser welding equipment with their time-tested processes and high user acceptance will continue to enjoy significant market share, while new methods such as friction stir, remote laser, and robotic welding are likely to make their presence felt in a slow but steady manner".
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