Abstract
Economic Recovery in the United States Likely to Expand Market
Positive economic developments, coupled with a strong rise in capital
investments, is likely to contribute to the steady recovery of the North
American welding market, especially in the laser and robot welding segments. As
business confidence among manufacturers continues to increase, consumer-driven
markets such as the automotive industry are also slated for faster growth. In
fact, the automotive industry, which is one of the most progressive industries,
is expected to encourage the uptake of some of the latest technologies.
This research from Frost & Sullivan evaluates the current and future
prospects of the North American metallic welding and consumables market in seven
main segments: arc welding equipment, welding consumables, resistance welding,
laser cutting, gas cutting, welding robots and other electric welding. It
analyses the challenges and drivers in each segment that are likely to assist
companies in formulating their future sales strategies. Additionally, it
provides market revenue forecasts and geographic and technological trends in
each segment.
Innovative Technologies Emerge as a Competent Marketing Tool
Increasing labour costs and the unavailability of skilled welders has
emphasised the need for automated equipment. Much more sophisticated and
expensive than manual equipment, they are expected to aid revenue growth over a
long term. Furthermore, manufacturers perceive the adoption of newer
technologies as an effective marketing tool that is likely to enable them to
penetrate the market and expand the customer base. Towards this end, many large
manufacturers are investing in research and development programs.
Small- and medium-sized companies that cannot afford extensive R&D are
trying to broaden their market reach by extending their service portfolio.
"Services such as installation, commissioning, maintenance, repairs and
training are increasingly becoming the responsibility of manufacturers,"
observes the analyst. "Services are much more difficult to imitate than
products, and suppliers therefore tend to consider them as being the more
reliable distinguishing factor."
High-performance, Customised Solutions Combat Price Pressure
The metallic welding and consumables market is a highly price-sensitive one,
with end users consistently demanding better technical solutions at lower
prices. In a market where most manufacturers offer products with equivalent
features, price has become a crucial differentiating factor. The increasing
consolidation of the customer base is also likely to affect pricing trends as
customers gain greater bargaining power.
"It is essential for manufacturers to have a thorough understanding of
how their customers are segmented and to develop products that are financially
viable for these specific segments," says the analyst. "Increasingly,
manufacturers are being pressurised to provide customers with the initiative to
choose a particular product over that of their competitor's." This trend is
likely to expand the market for customised solutions and products with
value-added features.
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