Accounting for the entire world’s population, 2006 consumption of metal castings reached 97 lbs. per person, according the State of the Industry report issued by the North American Die Casting Association (NADCA), Wheeling, Ill., but domestic die casting shipments decreased slightly.

The report cites the “dynamics of global competition” as contributing to the decrease and forecasts further declines in 2007 before production increases in 2008.

"Our industry closely mirrors the general economy, and economists agree the U.S. economy and manufacturing growth will slow in 2007," said Daniel L. Twarog, NADCA's president. “Washington's goal seems to be keeping unemployment levels down and the consumer price index steady. With the change in party, we anticipate more government spending to achieve the goal instead of private sector incentives."

Twarog said in a press release that the challenge is to improve productivity without significant business investment. The situation is compounded by the fact the diecasting industry faces a potentially severe shortage of qualified production and engineering workers in the coming years.

The report also offers rapidly rising health care costs, an inability to completely pass on higher energy and raw material costs and off-shoring of business and technology to low-cost countries as contributors to the decrease.

Although aluminum and zinc die casting shipments decreased in 2006, magnesium die castings grew due to an increase in the amount being used on automobiles. A 3% gain is forecast for magnesium in 2007 with another 4% gain in 2008. A 1.2% decrease in aluminum shipments is forecast for 2007 before a 1.5% increase will be seen in 2008, with similar results for zinc. The general 10-year trend of zinc shipments will continue to move downward due to zinc prices and the weight penalties for designing with zinc.

One positive trend, according to the NADCA report, is the stabilization and then gradual decrease in metal prices over the next three years. Once speculators/investors start to drop their level of influence over the market price, the model will switch back to supply and demand.

"Surviving companies will have adapted new technology that provides unique solutions to their customers,” Twarog said. “Other winners in the global marketplace will be the metalcasting industry suppliers who sell equipment and materials worldwide."