As factory output dips again for the second time in three months one has to wonder if we are in a global shift in the manufacturing world. For decades the number one market for purchasing goods has forced the movement of production to cheap labour markets such as China and India. This shift, largely driven by companies such as Walmart, is now catching up to the rollforming machinery manufacturing business.
Roll forming machine manufacturing in the USA.
The USA industrial machinery sector has long prided themselves as global leaders in innovation and leading edge technology. The rollforming sector has particularly seen themselves as leading the pack with new machine designs and functionality. Tooling design and automation went hand-in-hand with goods manufacturing in the USA. In the hay day the Detroit automotive market was building more cars than anywhere else in the world. This hotbed of production, innovation, demand and investment flowed through to the machine manufacturers in the region.
As the demand increased for newer, better and cheaper cars greater pressures was applied to the Tier 1 supplier network. Parts suppliers were tasked with producing at an even faster rate than before. This flurry of demand pushed machine builders to design new automation methods to meet these ever increasing demands.
Somewhere along the line the auto manufacturers, along with many other industries in the USA, pushed manufacturing offshore. This movement to low cost Countries, at the time , allowed companies to realize even greater profits while changing very little. Heavy machines, like punch presses, boring mills, and forming mills were all sent offshore to help production.
What’s the future of rollformer manufacturing in the USA?
This shift in production focus and ease of shipping internationally has given countries like China some clear advantages over the USA market. My point of view is this.
- China has become the manufacturing capital of the world
- China owns much of the USA debt
- China tends to support local equipment manufacturing through subsides
- China rollforming machine builders have the same insight as global leaders
So where does this leave companies like Samco Machinery and The Bradbury Group?
As American machine builders ship more product internationally, and specifically to China, and used rollformers become available worldwide and alliances are built in China soon the expertise will equalize. This will then place tremendous pressure on roll forming companies in North America to lower prices or worse diversify in to new markets that dilute their resources and capabilities.
For more information or to get a rollformer quote contact us today.
Over 25 years experience in the industrial sector with a broad knowledge of industrial equipment and the installation and application of machinery used in today's automation processes.
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