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Green Sand Metalcasting Foundry News

Foundry Leadership Conference Insights, Guest Post by Doug Kurkul, AFS CEO

Posted by Doug Kurkul on Oct 2, 2018 12:12:04 PM

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Metalcasters around the world face many of the same challenges. That point was articulated at the recent Foundry Leadership Conference in Amelia Island, Florida, presented by the American Foundry Society.

Moderated by AFS Vice President Peter Reich, LaempeReich, a panel on the Condition of the Global Foundry Industry also included Brad Muller, Charlotte Pipe and Foundry; Atsushi Nagai, SintoKogio; Carsten Kuhlgatz, HA International; and Denny Dotson, representing the World Foundry Organization.

Leading Japanese Foundries

Top ten Japanese foundries that exhibited at NEWCAST-GIFA 2015 

In Japan, foundry output reached its peak in 2008, and today is at 80 percent of that peak level. The number of foundries has consolidated from 4,200 in 1990 to about 1,800 today. Japan’s foundries face skilled worker shortages, aggravated by slow population growth. Profit margins are at 2% or less. Other challenges include rising costs of materials and electricity, plus environmental issues. Foundries there are countering these trends through product differentiation, defect reduction and IOT systems.

European Producers of Castings 2104
BDG – German Foundry Association, Status and Challenges of (German and European) Foundries, SFSA Fall Leadership Meeting, Washington, September 14, 2015

In Germany, the main challenges are rising energy and material costs, government over-regulation, challenges in recruiting young talent, and effects of trade tariffs. The move to replace diesel vehicle engines with electric-only vehicles also poses implications for castings. German foundries are countering these trends through programs to interest highschool students in foundry careers, as well the adoption of Industry 4.0 and additive manufacturing initiatives.

2010 China Foundries Top 100

2010 China Foundries Top 100

China, the world’s largest producer of castings, is adopting a government policy aimed at reducing the number of foundries from 20,000 to 10,000. India is benefitting from a major commitment to training foundry workers, coupled with a decline in oppressive interest rates. That country’s casting exports are shipped heavily to U.S. markets. Thailand is considered Asia’s version of Detroit, and produces and consumes large quantities of auto-related castings.

Leading U.S. Industrial Metals Companies

Leading 2018 United States industrial metals companies based on revenue (in billion U.S. dollars)*

In North America, casting sales are on the rise thanks to a strong economy since the 2016 elections. For the first time since 2006 during the Bush administration, U.S. GDP is higher than the unemployment rate. Shortages of reliable labor is one of the foremost challenges for U.S. foundries, coupled with overly broad regulations, particularly at OSHA. As Dotson noted, knowledge in the metalcasting industry knows no national boundaries. Great ideas introduced in one country are quickly replicated elsewhere. Many suppliers already operate on an international basis. Dotson encourages all foundries to be aware of international trends and technical breakthroughs, as well as to engage in global metalcasting organizations where appropriate.

Doug Kurkul
CEO
American Foundry Society 


Metal Foundry News - From Modern Casting Magazine


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