North American Die Casting Association's President Steve Udvardy, reviews the Trump Administration, Macro Economics and Die Casting Markets in this three part series.
Good day everyone, and welcome to the latest update of the North American Die Casting Industry State of the Industry. I'm Steve Udvardy, and pleased to have the opportunity to speak to you today. (This is part three about the Die Casting Market.)
Die Casting Market
Now, let's shift to our markets that die casting service, and then we'll take a look at shipments. The number one market served by die casting is automotive. The second largest market is housing. It behooves us to track fairly closely what's happening in the auto industry and the housing market. Sometimes the housing market as our second largest market surprises individuals, but you have to look at what we roll into the housing market. It's not just lock and window hardware and the [inaudible 00:33:13] in your bathroom, et cetera. It's also things that new home owners buy, and that's what we roll into the housing market and what makes it then our second largest market served by die casting. Appliances, lawn and garden equipment are things that people buy typically when they buy new homes.
Let's take a look at automotive. 2016 and 2017 were stellar years for light vehicle sales. Depending on who you talk to, last year, we were at about 17.2, maybe 17.5 million units, slightly higher than what we were in 2016. Towards the middle of last year, there was speculation that the same levels of sales would not be sustained in 2018. In late 2017, the forecast was for some slight softening, and the forecast from the National Auto Dealers Association showed a projection of 16.7 million units being sold in 2018, so dropping below the 17 million mark, but still 16.7, although slightly softened as compared to 2016 and 2016, still a very healthy automotive market and automotive sales.