August 2025 Volume 7

INDUSTRY NEWS

A EUROPEAN PERSPECTIVE ON THE STATE OF THE INDUSTRY An Interview with Tobias Hain, EUROFORGE By FIA Staff

A s the global forging industry grapples with economic, environmental, and geopolitical challenges, European forging companies find themselves at a pivotal moment. In a dialogue with Tobias Hain, Executive Director of EUROFORGE, we explore the latest trends shaping the European market, the industry’s response to regulatory demands, and the path forward toward innovation and global collaboration. Challenging Conditions and Hopes for Recovery

“The initial rollout of these regulations created major alarm in the industry,” Hain said. “Fortunately, revisions through the OMNIBUS process are now easing the reporting burden.” Still, the journey to decarbonization continues. “Our target is CO2-neutral forging by 2050,” he explained. “We’re investing in electrification, hydrogen integration, material and energy efficiency, and renewable energy. We’re also relying on low-carbon steel and aluminum where available.” EUROFORGE has developed the FRED CO2-calculator, a tool that allows companies to calculate the carbon footprint of a product or facility. This tool is also available to non-European companies, including those in the United States. A recent EUROFORGE study, to be presented at the International Forging Congress (IFC) 2025 in Frankfurt, explores the current emissions status of German forgers and outlines scenarios to achieve net-zero carbon emissions by 2045. “The biggest challenge is ensuring the availability of green energy and low-carbon raw materials,” Hain said. “The market must also be willing to accept the higher costs that come with sustainability.” Innovation at the Core of Competitiveness With European companies operating in a high-cost region, innovation remains a key driver of competitiveness. “We must be extremely productive and resource-efficient to compete globally,” Hain said. One of the most impactful recent innovations is the development of air-hardening ductile steel, which helps reduce CO2 emissions during production. Meanwhile, hybrid dies—combining forged and 3D-printed components—have extended tool life through optimized cooling channels. Artificial intelligence is also gaining traction. “AI is being used to improve stage planning and optimize material efficiency,” he said. “It’s helping us reduce waste and boost productivity.” While many forgers operate aging equipment, digital transformation continues through retrofitting. “Full automation and digitalization don’t happen overnight,” Hain noted. “But many companies are moving toward a ‘person-less forge shop’ by enhancing existing machinery and integrating AI.” Workforce: Attracting and Retaining Talent Like its North American counterpart, the European forging industry is facing a significant skilled labor shortage. “We’re tackling this on multiple fronts,” said Hain. “First, by improving working conditions—safety, ergonomics, and flexibility. Second, through automation. And third, by offering training to low-skilled employees.” Promoting sustainability has also become a recruitment tool. “Younger workers want to contribute to climate solutions,” he said.

The European forging sector has seen a significant decline in production volumes, down approximately 10% in 2024. “The current state of the forging industry in Europe is challenging,” Hain said. “Companies are struggling with weak markets, increased regulatory burden, and rising energy and labor costs.” Despite this downturn, Hain is cautiously optimistic. “Thanks to the innovative strength and high technological standards of European forgers, we expect the downward trend to stop before the end of the year. Recovery signs are already on the horizon for 2026,” he said. This mix of pressure and perseverance defines the European market today. As the automotive and machinery sectors— traditionally the industry’s largest markets—remain stagnant, new areas of growth have emerged. “Aerospace and defense are booming,” Hain said. “Energy, mining, and medical sectors are also showing positive development.” Transformation Through Sustainability and Digitalization At the core of the European industry’s current transformation are global shifts in mobility, energy production, and digital infrastructure. “The transformation of society and technology has created a highly dynamic environment for forging,” said Hain. “Meeting Europe’s ambitious sustainability goals is essential, not only for the environment but also for the business viability of our companies.” The European Union’s aggressive push toward sustainability has placed increased pressure on manufacturers to reduce carbon emissions and meet strict reporting standards. Regulations such as the Corporate Sustainability Reporting Directive (CSRD), EU Taxonomy, and Carbon Border Adjustment Measures (CBAM) are under revision due to industry concerns.

FIA MAGAZINE | AUGUST 2025 45