May 2026 Volume 8

OPERATIONS & MANAGEMENT

Capacity Utilization Flat for Forgers 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. Since then, forgers have increased their utilization to 59% in Q1 of 2026, just one percentage point lower than production shops in the same quarter. Forgers Expect Revenue Gains in 2026 Forgers expect revenue to increase from 2025 to 2026. 57% expect an increase of 5% or more, which lends itself to the optimism that forgers have for 2026. Commercial aerospace has the highest expected revenue increase for forgers at 9.4%. Additionally, healthcare costs are less of a concern for forgers (3% increase year over year compared to 8% of all manufacturers), and 33% of forgers are hiring for growth. Time to Focus on the Forecast There has been and will continue to be a lot of uncertainty in the marketplace, from market testing to policy changes, new items outside of your control are coming rapidly. Manufacturers fall into a cycle of optimism without taking the steps to turn optimism from a sentiment into a business reality. By the time revenue expectations have fallen

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 Pulse studies during the first, second, and third quarters of each year, which allows analysts trend data year over year and identify insights helpful to the industry.

short at the end of the year, it is too late to make changes. Forgers need to look at how 2025 ended and make changes to ensure achievement of 2026 forecasts. Operational improvements, a focus on sales efforts both with existing clients and new opportunities and utilizing market intelligence are all factors that can help forgers reach their 2026 goals. Data is key when it comes to making business decisions, including your own company’s data, forging market performance as a whole and the primary industries your business serves. Utilize surveys like the Pulse and orders and shipments, talk with FIA leadership about market intelligence and opportunities for training and collaboration, do not shy away from asking for more from customers. The Wipfli team has extensive experience in the manufacturing industry and works directly with many manufacturers on their sales processes, including forecasting, costing, quoting and market penetration. We have studied the tariff changes and refund processes to be able to aid in both forecasting and mitigating import challenges. If you would like to learn more about our capabilities, please reach out.

FIA MAGAZINE | MAY 2026 55