May 2024 Volume 6

INDUSTRY NEWS

Demand for High Performance Forgings Soars By Ian Stringer

Figure 1: Forging shipments by metal classification | Source: FIA O & S Survey

In the first quarter of 2024, the forging industry experienced consis tent growth, building on the momentum generated from healthy bookings volume from the fourth quarter of 2023. Notably, March shipments increased by nearly 10% compared to February, driven by the fulfillment of large orders placed earlier in the year. This upward trend was observed across all product groups, including impression die, rolled ring, and open die, which all began to recover between November and December 2023. While the recovery in 2024 was consistent across these three types of products, there was significant variation amongst the metal cate gories. Demand for high-temperature nickel-based alloy products skyrocketed, showing a more than 40% increase compared to the 2023 quarterly average. There was also a noticeable rise in demand for non-ferrous forged products, which saw a 20% increase in value relative to their 2023 average. Specifically, there was an increased demand for forged parts made from exotic materials within the impression die and open die categories. Whereas rolled ring product growth was relatively muted in comparison. Moreover, demand for ferrous forged products declined by 18% during the same period. The surge in demand for high-performance forgings began abruptly at the end of last year and are continuing to put in high levels throughout the first quarter of 2024. Other O&S Survey results support these observations, indicating a significant increase in demand for high-performance forged parts.

This trend aligns with similar increases in industries that would have a propensity for consuming these parts. For instance, impression die and open die products intended for the aerospace and defense, power generation, and industrial markets saw increases ranging from 15% to as much as 50% when comparing March 2024 with March 2023. High-performance forgings for the Aerospace and Defense market and power generation equipment have been particularly strong. The surge in demand is likely related to the announcement of major defense contracts in 2023 and 2024, which included hundreds of billions of dollars for dozens of defense programs including fighter aircraft, cargo helicopters, missile systems, and submarines. These contracts have significantly driven the demand for high-performance forged products essential for manufacturing or modifying these defense platforms. Ian Stringer VP – Data Strategy AMT-The Association for Manufacturing Technology Phone: 703-827-5209 Email: IStringer@amtonline.org

FIA MAGAZINE | MAY 2024 64