ITC: US foundry industry faces volatile marketplace
The US International Trade Commission (ITC) reports that the US foundry industry faces a highly competitive and changing marketplace. Among some of the ITCs findings: Between 1999 and 2003, the number of foundries reporting operating losses increased from 19% to 29%. In particular, gray iron foundries face the most adverse financial and competitive environments. The US market faces a distinct price disadvantage to developing countries such as China, Brazil, and India. The countries have lower production costs, which stem mainly from lower foundry wages. Brazil, China, and India share a distinct advantage over domestic foundries due to lower energy costs and less strict worker health and safety rules, and environmental laws. Raw materials costs are generally the same throughout the industry in all countries. The ITC reports that in order to stay competitive, the US producers have responded by focusing and expanding customer service, shortening their lead times, and focusing on more complex cast products.