Metalcasters worry a lot about global competition, meaning the availability of lower-cost cast products from manufacturing centers where labor, or fuel, or other cost considerations (like profits) are not as significant as they are in North America. I have another concern.
At the CERP Forum several weeks ago, I asked a question of one of the presenters — someone who's experience and insight I trust and respect — about raw materials supplies. Basically, my premise was (and is) that there is a metallics shortage looming, or, nearly as bad, a tightening of demand created by the emergence of new foundries and diecasters, and the pace at which iron and bauxite reserves are being consolidated in fewer and fewer holding companies. For example, electric steelmakers have been trying for several years to keep up with the "shortage" of quality scrap, because of the expansion of electric melting in China.
Anyway, the presenter, who was tracking the economic inputs and results of the metalcasting industry over recent decades, brushed off my concern. "Just raise the price of castings to cover the rising cost of the raw materials," he replied, or something to that effect.
Is it really so simple? Aren't there delivery concerns? Quality issues? If there aren't lower-priced castings competing for business — then what is everybody worried about in the first place?
Steelmakers have found some resolution to these problem because consolidation in that industry has helped to coordinate and strengthen their purchasing power. Is that an option for metalcasters? I guess I'll have to keep waiting for credible answers.