August 2026 Volume 8

OPERATIONS & MANAGEMENT

Capacity Utilization Increasing for Production Wipfli looks at capacity utilization based on a 24-hour, 5-day shift structure to understand total potential capacity that could be filled by a manufacturer. Beginning in Q3 of 2024, forgers reported capacity utilization of 51% compared to all other production shops (including molders, stampers and die casters) at 59%. Forger utilization was greater than utilization of other production shops for most of 2025 and continuing to increase in the first quarter of 2026 at 59%. Production shops are keeping on pace with forgers, and continued to increase from Q1 at 60% to a 62% utilization rate in Q2. Time to Focus on the Data

About Wipfli Wipfli, a top 25 U.S.-based advisory and accounting firm, regularly conducts market research within the manufacturing industry to examine key trends, benchmarks, and forecast indicators. The company has collected and analyzed millions of data points from thousands of manufacturing companies across multiple processes, including tool builders, plastics processors, metalformers, forgers, die casters, screw manufacturers, and contract machinists. As a leader manufacturing benchmarking resource, Wipfli has more than 9 years of trended manufacturing operations and business data. The company conducts its Manufacturing Capacity studies during the first, second, and third quarters of each year, which allows analysts to trend data year over year and identify insights helpful to the industry.

There has been and will continue to be a lot of uncertainty in the marketplace, which is something that both Wipfli and FIA discuss with forgers. OEMs continue to market test, and policies are continuing to change, meaning that there are a lot of outside factors affecting business. By the time revenue expectations have fallen short at the end of the year, it is too late to make changes. In order to ensure achievement of 2026 forecasts, forgers need to look at 2025 and what changes can be made internally to ensure success. Understanding your balance sheet, utilization, and where operational improvements can be made will help drive those success factors. Reliable data is essential for making sound business decisions. That includes your company’s own performance data, broader forging market trends and insights into the primary industries you serve. Use resources such as the Capacity survey and orders and shipments data, engage FIA leadership for market intelligence and training or collaboration opportunities, and be proactive in asking more from customers. The Wipfli team has extensive manufacturing experience and works directly with manufacturers on sales processes such as forecasting, costing, quoting and market penetration. We have also analyzed tariff changes and refund processes to help manufacturers forecast more effectively and mitigate import-related challenges. To learn more about our capabilities, please reach out. The FIA Q3 Capacity Study is now live, and can be taken at this link.

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For information on advertising contact Angela Gibian at angela@forging.org

FIA MAGAZINE | AUGUST 2026 47