February 2022 Volume 4

INDUSTRY NEWS

Forging Market Shows Positive Sales and Production Trends By Ian Stringer

Making sense of relevant market data is critical as economic and business conditions continue to evolve. Fortunately, the Forging Industry Association’s Orders & Shipments (O&S) survey program is an excellent source of curated market information. The program was designed by members, for members, to deliver the relevant market data you need to run your business. Let’s look at some of the detailed results and how they compare to broad government statistics. Inflation is not transitory. The latest consumer price index (CPI) reading indicates consumers are paying over 7% more in the last quarter of 2021 than in 2020. While the CPI makes headlines,

manufacturers may be more interested in the producer price index (PPI). The Bureau of Labor Statistics (BLS) publishes the PPI which measures the average price received by domestic producers for their output. The combined value for the Ferrous and Non-Ferrous forging series rose 11% from September – October 2021 compared to the same time a year ago. While the BLS provides a robust benchmark, the O&S survey produces a similar and more detailed view for Impression Die, Open Die, and Rolled Ring product types. The reader will notice a combined 13% increase in dollars/ton received across all three product groups. (see Figure 1) This trend started to take shape in the Spring of 2021.

Figure 1

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