Increasing demand from energy sectors driving five-year worldwide expansion A global welding market outlook from Frost & Sullivan tracks a 5.8% expansion in arc welding equipment and filler consumption from the 2008 economic downturn through 2010, and predicts an overall growth rate 7.4% by 2017. Lately, the most important factor in the growth — and one that’s expected to continue to prevail — is the expansion of energy markets. The study — World Arc Welding Equipment and Filler Metals Market 2011 — looks in detail at trends for arc welding equipment (SMAW or MMA, GMAW, GTAW, and SAW) as well as filler metals (flux-cored wires, solid wires, stick electrodes, and SAW fluxes and wires. ) The researchers also identify substantial demand for welding equipment and consumables from automotive/transportation, construction, infrastructure, and industrial expansion in emerging markets, and it predicts a rise in steel consumption for machinery and equipment. Foreign direct investments in the welding supply market, as well as a rise in emerging technologies like energy-saving machines and corrosion-resistant filler metals, are spuring sales of arc welding equipment and filler metals. The study sees the Asia Pacific region (including China and India) as the most significant area of growth, followed by the Europe/Middle East/Africa (EMEA) region. In particular, Eastern Europe, Russia, the Middle East, and Africa will see rising demand for welding equipment, according to the study. "Manufacturers are looking to shift base to these economies to reduce their operational and labor costs and increase productivity, " it stated. Central and Western Europe and North America are expected to see lower demand, because of the lingering effects of the economic downturn. As for competition, Frost & Sullivan predicts that the Asian markets will see more suppliers enter the region, particularly suppliers of filler metals market. “The rising base material costs are compelling manufacturers to raise the prices of their products but customers are seeking more advanced technology, quality, and services, at lower prices, ” it reported. “A large number of smaller participants from China are able to match this requirement for a wide product range at affordable prices, while the influx of participants from Korea has also helped ease the demand for arc welding equipment and filler metals. This profusion of companies is fragmenting the market and forcing manufacturers to invest in R&D to develop products that customers require, and expand their product portfolio in a bid to retain their market shares. ” Among the current field of equipment and consumables suppliers, Frost & Sullivan forecasts increased pressure to offer the latest technologies. “As customers demand a one-stop solution that will allow them to decrease their operational, man-power, as well as repair costs, manufacturers are experimenting with novel base materials to slash the total cost of production and maintenance, ” it stated. "Manufacturers are increasingly using high-performance alloys in filler metals market to avoid spatter and corrosion, which are useful advantages in the offshore segment, " noted the report. "A rising number of arc welding equipment is now portable, light weight, easy-to-use, and energy-efficient or battery operated, and this lessens the pricing pressure on customers. " It also detected a trend for manufacturers to offer training programs for distributors and customers, to help them use new products efficiently. Manufacturers are also looking to strengthen their ties with distribution networks in emerging economies, it found, and backing up their business expansion strategies with customer support. Source: weldingdesign.com
