Despite rising costs for raw materials, energy, and labor; rising pricing pressures from downstream customers and foreign metal-casting competitors; and shrinking domestic markets over the past few years, some industry observers suggest brighter prospects for the U.S. cast metal parts business. For example, the American Foundry Society (AFS) anticipates that purchases of metal-cast parts will rise significantly with expanded U.S. industrial production over the next few years. "We're seeing year-after-year production gains in the foundry industry," says a spokesman for AFS, who is forecasting 25-year highs for U.S. production by the end of this decade. AFS projects domestic shipments growing by 11% over the next 4 or 5 years to 15.3 million net tons. Purchasing of cast-metal parts is expected to increase the most for aluminum (by more than 18% over the next 5 years), steel (15.5%) and ductile iron (14%). Less significant increases are anticipated for cast parts from copper alloys and gray iron castings shipments, which reached an all-time low in 2003, for which the AFS foresees longer-term annual declines. Upshot: What buyers can expect is an attempt by domestic metal foundry establishments to seek out new end-use markets.

stundza@reedbusiness.com