Fabricated Metal Products, NEC

SIC 3499

Industry report:

The fabricated metal products, not elsewhere classified, industry comprises establishments that manufacture miscellaneous metal goods for both commercial and residential applications. Examples of industry output include metal ladders, ironing boards, steel safes, toilet fixtures, trophies, lawnmower wheels, chairs, barricades, ammunition boxes, and automobile seat frames. For more information about miscellaneous fabricated metal products, see other entries in this industry group.

The highly fragmented miscellaneous fabricated metal products industry was valued at $14.5 billion in 2010, according to Supplier Relations U.S. LLC. Other than the numerous, small miscellaneous segments, major categories in the unclassified fabricated metal products segment were manufacturers of novelties and giftware, including trophies; metal strapping; friction material made from powdered metal; metal machine bases; and fire- or burglary-resistant products.

The background and development of the industry varies by product category. During the post-World War II U.S. economic expansion, the industry was characterized by a general surge in demand. Approaching the 1980s, industry participants were producing about $4.4 billion in goods per year and employing a workforce of 65,000 people. Moreover, healthy economic growth during most of the 1980s boosted sales and profits. A surge in housing starts, for example, boosted shipments of metal furniture parts and ladders. Likewise, bank and vault manufacturers benefited from growth in the savings and loan industry.

By 1989 industry sales had reached more than $6.9 billion, representing average annual revenue growth of 7 percent since 1983. In contrast to many other manufacturing sectors, both the number of employees and companies in the industry grew during the decade, to 80,000 and 900, respectively. However, an economic recession in the early 1990s stalled this expansion. Revenues declined about 1 percent in 1990 and remained flat throughout 1991 and 1992. For example, shipments of metal containers dropped about 6 percent in 1992, and purchases by the ailing savings and loan industry remained depressed. An upturn in housing and automobile markets in the mid-1990s renewed optimism for some segments. However, an economic downturn in the early years of the first decade of the 2000s softened expectations. Although the housing market rallied in the middle of the decade, at the end of the decade the housing market was at the lowest it had been in years, and was dealing with a global economic recession. The automobile industry also suffered significant job losses at the end of the decade, which had a negative impact on automotive suppliers and manufacturers that made their products.

According to the U.S. Census Bureau, overall shipments for the industry were valued at almost $37 billion in 2004. Additionally, for the combined fabricated metal products, not elsewhere classified, and manufacturing industries that included the categories of metal can, industrial valve, fluid power valve and hose fitting, jewelry (except costume), silverware and hollowware, jewelers' material and lapidary work, industrial pattern, and enameled iron and metal sanitary ware), a combined total of 268,384 employees worked in production (from a total of 369,606 employees), putting in more than 552 million hours to earn wages of more than $8.7 billion.

In 2004 California led the industry in terms of number of establishments, representing nearly 14 percent of related manufacturers in the United States. The state's $3.18 billion in industry shipment accounted for 8.6 percent of the overall industry total. Pennsylvania's 409 establishments made up 5.6 percent of establishments and generated $2.58 billion in total industry shipment values, or nearly 7 percent. Overall, shipment values in the industry remained relatively stagnant between 2002 and 2004, with a drop of less than 1 percent ($37.2 billion in 2002 and $36.8 billion in 2004).

Because of its specialized nature, the industry is highly fragmented. However, a few product segments stood out in the middle of the first decade of the 2000s. Hardware manufacturing accounted for 25.5 percent of shipment values, while 21 percent fell under the showcase, partition, shelving, and locker manufacturing category. The largest segment of production, with nearly 33 percent of shipments, was for all other fabricated metal products, not elsewhere classified.

The economic recession at the end of the first decade of the 2000s brought shipments for metal fabricators down, and, U.S. manufacturers overall remained fragile and skeptical. The U.S. financial crisis and high energy costs contributed to the downturn in the industry. In the meantime, those fabricators that targeted a new customer base by offering specially made products fared better than others. For example, "By offering customized products, metal fabricators are attempting to draw customers away from resellers, allowing them to capture direct sales," according to the Material Handling Industry of America (MHIA) in December 2009. One target market, hospitals, utilized an abundance of fabricated metal products such as trays, carts, and cabinetry.

According to Dun & Bradstreet, there were an estimated 3,000 establishments that manufactured miscellaneous metal goods for both commercial and residential applications in 2010. Together these firms generated $3.7 billion in annual sales and employed 42,792 people. The average number of employees per establishment was 15, and 86 percent of firms employed fewer than 25.

Although California remained the state with the most establishments in the industry, this figure had plummeted from a high of 1,023 establishments in 2004 to 366 in 2010. New York was the industry leader in terms of revenues, accounting for $852.2 million or about 23 percent of the nation's total. Other top states in terms of revenues included California ($332.5 million), Virginia ($332.4 million), and Ohio ($231. million).

According to the U.S. Department of Labor, employment for the other fabricated metal product manufacturing industries as a whole was expected to decline annually by almost 1 percent annually through 2014, although output was expected to rise. This followed an actual loss of 32,000 jobs, or 10.3 percent, from 310,000 in 1994 to 278,000 in 2004. Technological advances in automation, coupled with the continued outsourcing of manufacturing facilities to locations outside the United States heavily impacted job growth. Positions for assemblers and fabricators, which comprise more than a leading 10 percent of this industry's workforce, were projected to increase in small numbers. In addition, industry-related occupations that are typically stable or growing, such as combination machine tool operators and metal and plastic machine tool cutting operators, were forecast to experience reductions by 2014.

By 2011 the U.S. manufacturing industry in general, including the production of fabricated metal products, was beginning to feel the effects of a recovery. For example, in June 2011, 12 of the 18 manufacturing industries classified by the Material Handling Industry of America (MHIA), reported growth. Fabricated metal manufacturing was tenth in terms of overall growth, ranked fourth in terms of growth in production, and ninth in terms of new orders. According to Bradley J. Holcomb of the Institute for Supply Management in June 2011, "The PMI [product and manufacturing information] registered 55.3 percent...indicating expansion in the manufacturing sector for the 23rd consecutive month."

The September 2011 Precision Metalforming Association (PMA) Business Conditions Report also reported optimism for the industry's recovery. William E. Gaskin, PMA president, affirmed that "metalforming companies anticipate steady business conditions" through the end of 2011.

Industry leaders in the early 2010s included Flowserve Corp. of Irving, Texas, with 2010 sales of $4 billion and 15,000 employees; HNI Corp. of Muscatine, Iowa, with sales of $1.6 billion in 2010 and 8,500 workers; and JELD-WEN Inc. of Klamath Falls, Oregon, with sales of $2.5 billion and 19,000 employees. In 2011 JELD-WEN was set to receive an $860 million investment from the Canadian company Onex, which would effectively give the latter a 60 percent share in the firm.

© COPYRIGHT 2018 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. For permission to reuse this article, contact the Copyright Clearance Center.

News and information about Fabricated Metal Products, NEC

Manufacture and Supply of Magnets for the Needs of Jsc "Npo" Elektromashina " (Buying)
Mena Report; June 18, 2017; 296 words
...OKPD2 Category: 25.99.29.110 metallic permanent magnets OKVED2 Category: 25.99 Manufacture of other fabricated metal products nec Total value: 19 596 909.78 rubles. (Price without VAT) Major organization : BRANCH UBT-URALVAGONZAVOD...
Research and Markets Adds Report: Other Metal Container Manufacturing Industry in the U.S. and its International Trade [2010 Edition].
Health & Beauty Close-Up; September 10, 2010; 700+ words
...and vats); 3469 - Metal Stampings, NEC (stamped metal tool, cash, mail, and lunch boxes); 3499 - Fabricated Metal Products, NEC (metal boxes); and 3537 - Industrial Trucks, Tractors, Trailers, and Stackers (metal air cargo containers...
Research and Markets Adds Report: Other Metal Container Manufacturing Industry in the U.S. and its International Trade [2010 Edition].
Health & Beauty Close-Up; September 10, 2010; 700+ words
...report "Other Metal Container Manufacturing...Group (3324), Fabricated Metal Product Manufacturing...3429 - Hardware, NEC (vacuum and insulated...Metal Stampings, NEC (stamped metal...boxes); 3499 - Fabricated Metal Products, NEC ...
Table 5. Producer price indexes for the net output of selected industries and their products, not seasonally adjusted.(Part 2)
PPI Detailed Report; June 1, 2006; 700+ words
...industries and their products, not seasonally adjusted Industry Product Index Industry and product (1) code code...85 Primary products 332510-P 06...hardware, including fabricated metal safes and vaults...builders hardware, nec (including metal...
Table 5. Producer price indexes for the net output of selected industries and their products, not seasonally adjusted.(Part 3)
PPI Detailed Report; December 1, 2006; 700+ words
...Industry and product (1) code...332812 Primary products 332812...Secondary products 332813-S Other fabricated metal product mfg. 3329 Metal valve mfg...valves (all metals, pressures...SM Other metal valve and...Secondary products 332919-S All other ...
Table 5. Producer price indexes for the net output of selected industries and their products, not seasonally adjusted.(Part III)(Table)
PPI Detailed Report; July 1, 2007; 700+ words
...332117-SM Secondary products 332117-S Cutlery...mfg 332211 Primary products 332211-P Cutlery...332211-3 Secondary products and miscellaneous...other handtools nec 332212-6 Precision...Architectural & structural metals mfg 3323 Plate work & fabricated structural prod mfg 33231 ...
Table 5. Producer price indexes for the net output of selected industries and their products, not seasonally adjusted.(Part 3)(Statistical table)
PPI Detailed Report; June 1, 2008; 700+ words
...industries and their products, not seasonally adjusted Industry Product Industry and product (1) code code Steel...investment 331513 Primary products 331513-P Carbon steel...331513-SM Nonferrous metal foundries 33152 Aluminum...receipts 331528-SM Fabricated metal ...
Research and Markets Offers Report: Doll, Toy, and Game Manufacturing Industry in the U.S. and its Foreign Trade.(Report)
Health & Beauty Close-Up; July 21, 2009; 491 words
...childrens vehicles (except metal bicycles and tricycles...equivalent codes are: 3069 - Fabricated Rubber Products, NEC (rubber toys, except...and Bicycles (except metal tricycles); and 3999...Manufacturing Industries, NEC (embroidery kits...

Search all articles about Fabricated Metal Products, NEC