Steel Foundries, NEC

SIC 3325

Companies in this industry

Industry report:

This classification covers establishments primarily engaged in manufacturing steel castings, not elsewhere classified.

According to the U.S. Census Bureau, roughly 275 establishments operated in this category in the first decade of the 2000s. The Great Lakes region has the heaviest concentration of steel foundries, and Ohio's more than 20 establishments rank first in terms of shipments. Pennsylvania has more foundries than any other state, but its more than 30 establishments rank third in terms of shipments, while Wisconsin ranks second. In the middle of the first decade of the 2000s, steel, steel investment, and iron foundries were combined in a single category the U. S. Census Bureau called ferrous metal foundries.

The Bureau of Labor Statistics projected a bleak future for employees in this industry. Only industrial machinery mechanics, sales workers, millwrights, and industrial production managers were expected to increase as all other workforce categories were expected to decline. Steel foundry jobs that were expected to lose more than 10 percent in the early years of the first decade of the 2000s included general laborers, grinders, precision workers, blue-collar worker supervisors, mold assembly and shakeout operators, inspectors, metal pourers, truck operators, grinding machine operators, furnace machine operators, welders, assemblers, hand workers, electricians, material handlers, and janitors.

Carbon steel castings accounted for 43.6 percent of industry shipments in 2001, while high-alloy steel castings accounted for 21.8 percent, and other alloy steel castings accounted for 24.2 percent. Approximately 4 percent of the market was non-specific in 2001. Between 1997 and 1999, total industry shipments increased from $2.69 billion to $2.97 billion. When the U.S. economy weakened and steel prices soared in the early years of the twenty-first century, however, shipments began to decrease, falling to $2.68 billion in 2000 and $2.44 billion in 2001. However, by 2005 the value of shipments was up to $3.4 billion.

Despite volatile market conditions in 2007, steel foundries increased 4.1 percent, with foundries employing 20 or fewer workers reporting an increase of 5.3 percent in shipments. High raw material costs were cited as the chief concern among metalcasters in both 2006 and 2007, followed by the labor shortage in general, including a need for trained labor. Other industry challenges included the expenses of medical and workers' compensation and the high volume of imported steel castings.

According to industry statistics, an estimated 450 establishments engaged in manufacturing steel castings in 2008. Shipments were valued at $14.6 billion with industry-wide employment of 24,735 workers. Steel foundries, not elsewhere classified, accounted for 68 percent of market share, employing 13,840 workers and shipping $987.1 million. Manufacturers of alloy steel castings held 21.8 percent of market share with revenues of $761.7 million and 7,441 workers. With 6.9 percent of market share, foundries engaged in manufacturing cast steel rolling mill rolls bolstered the bulk of industry shipments of $12.9 billion. Cast steel bushings, except investment manufacturers, shipped $5.3 million in goods, while cast steel railroad car wheel manufacturers generated $1.7 million.

Industry shipments were forecast to plummet as volatile market conditions became more intense. During the first quarter of 2009, production of automobiles fell nearly 30 percent, and production of trucks and trailers dropped some 190,000 units. In addition, steel castings shipments were projected to fall to 982,000 tons, or 25 percent, compared to shipments of 1,300,000 tons in 2008.

According to the 2007 Modern Casting Census of World Casting Production, China was at the forefront of the industry, producing 4,047,505 metric tons of steel castings, followed by Russia with 1,300,000 metric tons of steel castings and the United States with 1,248,000 metric tons of steel castings.

Earlier predictions were realized as worldwide casting shipments fell 14 percent in 2009 during a global recession. According to the 2009 Modern Casting Census of World Casting Production, China maintained its position as the leading producing country of steel castings with a reported 4.8 million metric tons of steel castings. As U.S. casting shipments steadily declined between 2005 and 2009, India moved into a stronger position, exceeding U.S. casting production in 2009 with 900,000 metric tons of steel castings compared to 690,000 metric tons produced in the United States.

For 2010, the industry reported about 396 establishments manufacturing steel castings, a decrease from 450 establishments operating in this sector in 2008. Shipment values plummeted to $2.36 billion, while industry employment increased from 24,735 in 2008 to an estimated 25,200 workers in 2010. The top performing states in terms of revenues in 2010 was Ohio with $281.7 million, Missouri with $260.9 million in goods, and Washington with $229.5 million.

In 2010 steel foundries, not elsewhere classified, comprised the largest industry sector commanding 66.7 percent of market share with shipment values reaching $1.22 billion compared to $987.1 billion in 2008. Alloy steel castings manufacturers increased their market share to 23.5 percent with product shipments totaling about $1 billion. Foundries manufacturing cast steel rolling mill rolls were not able to boost industry revenues as they did in 2008, with shipment values falling to $90.1 million in 2010.

Following the economic recession in 2009, demand was returning to the foundry industry, especially from the automobile industry. Industrial Minerals reported in July 2010 that Keith McLean, CEO of HA International had acknowledged that foundries in North America had "rebounded fairly dramatically." McLean continued, saying, "Surprisingly the rebound comes from the strength of automotive casting. Carmakers are now manufacturing at the same rate as they're selling, so you don't have these huge swings in inventories." The upswing in the automobile market was expected to continue into 2011.

Industry leaders included Commercial Metals Co., Worthing Industries Inc., and Allegheny Ludlum Corp. Commercial Metals Co. reported sales of $6.3 billion in 2010, well below the $10.4 billion reported in 2008. The company's workforce fell from 15,276 employees in 2008 to 11,558 employees in 2010, reflecting the stagnant economy. Worthington Industries Inc.'s revenues were $2.6 billion in 2009, with 6,400 employees. Worthington reported $2.4 billion in revenues for 2010 with 8,400 employees. Allegheny Ludlum Corp. posted $2.5 billion in 2008 and had 3,500 employees. The company, which had 3,500 employees, was hit hard by the economic recession with revenues plummeting from $2.5 billion in 2008 to $389.8 million in 2010.

In late 2011, Commercial Metals Co. decided to finish its orders and either close or sell its Sisak mill in Croatia where they manufacture steel pipe. The company's restructuring would displace about 1,130 workers. The company also announced its plans to eliminate another 350 workers globally as the result of downsizing to remain competitive, as well as close five rebar fabricating plants. Joe Alvarado, president and CEO of Commercial Metals Co., told the Dallas Citybizlist that "market conditions have necessitated that these actions be taken at this time," in October 2011.

© 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 Steel Foundries, NEC

PART II - New Seasonal Adjustment Factors for Household Data Series.(Statistical Data Included)
Employment and Earnings; July 1, 2001; 700+ words
...Pressed and blown glass, nec 3229 41.2 40.8 39...2 Concrete products, nec 3272 43.6 44.2 41...Blast furnaces and basic steel products 331 46.2 46...43.0 Iron and steel foundries 332 44.8 45.1 43...7 Steel found- ries, nec 3325 45.5 46.7 45...
Illustrated changes in the 1999 NEC.(part 4)
EC&M Electrical Construction & Maintenance; December 1, 1998; 700+ words
...National Electrical Code (NEC) covers the most significant...major error in the 1996 NEC. Note: The requirement...1). If reinforcing steel is effectively insulated...cases where the steel foundry that rolled the bar stock...conductors. The '99 NEC broadens the rules slightly...
Chinese foundry fits Elpida's DRAM world view.
Electronic Engineering Times; February 3, 2003; 700+ words
...China's emerging CMOS foundries has centered on their...divisions of Hitachi and NEC, Chinese chip lines...capacitor DRAM product at foundry partner Semiconductor...DRAMs, SMIC will join an NEC fab in Japan, a Hitachi/Nippon Steel fab in Singapore and...described it as a pure foundry ...
The Dallas Morning News Robert Miller Column.
Knight Ridder/Tribune Business News; April 7, 1999; 700+ words
...Foundation, American Steel Foundries & Griffin Wheel Co...Capital Corp., Bethlehem Steel Corp., Brenco Inc...Frito-Lay Inc., IPSCO Steel Inc., Kimberly-Clark...Corp., MCG-Chicago NEC America, Ogilvy & Mather...
China's Shougang set to expand NEC partnership.(the joint venture, Shougang NEC Electronics Co. Ltd.)(Company Business and Marketing)
Electronic Engineering Times; June 19, 2000; 590 words
...China's largest iron and steel mills, plans to invest in new projects with partner NEC Corp. The companies expect...joint venture, Shougang NEC Electronics Co. Ltd...customized IC and ASIC design, foundry and assembly services...Shougang will cooperate with NEC and will invite a third...
China readies a second foundry, 0.25-micro Grace.(Grace Semiconductor Manufacturing)
Electronic Engineering Times; November 4, 2002; 700+ words
...s second pure-play foundry, Grace Semiconductor...have investments in the foundry. At year's end, in...touches on the gleaming steel and glass manufacturing...among Beijing-based steel giant Shougang Group...venture, called Shougang NEC Electronics Co. Ltd...
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
...Product Industry and product (1) code code Steel foundries, except investment 331513 Primary products 331513-P Carbon steel castings, except investment 331513-1 High alloy steel castings, except investment 331513-3...
New RMA data provides credit pros with updated receivables benchmarks.(Risk Management Association )
Managing Credit, Receivables & Collections; March 1, 2003; 700+ words
...Manufacturers Carpets and rugs 16 34 55 Women's outerwear NEC 5 33 60 Children's outerwear 16 37 64 Wood office store...52 Paving mixtures 23 40 68 Concrete products 34 50 70 Steel foundries 34 49 64 Fabricated structural metal 39 54 73 Metal doors...

Search all articles about Steel Foundries, NEC