E-IJPM: Vol. 44/4 - MPIF

STATE OF THE
PM INDUSTRY IN NORTH
AMERICA—2008
Mark Paullin*
CHALLENGES TO GROWTH
Despite facing a “perfect storm” of challenges in 2007, the PM
industry in North America remains the world’s largest and most innovative
market. The shrinking market share of domestic original equipment
manufacturers (OEMs) or the Detroit 3 (as they are now called),
the shift away from full-size sport utility vehicles (SUVs) and light
trucks, spiraling energy costs, and volatile commodity prices have all
hit the industry at the same time. These challenges are continuing to
confront the industry in 2008.
However, there is still some good news. The weaker dollar has made
PM parts relatively competitive in the international marketplace and in
this environment, U.S. PM manufacturers are reporting a 66% reduction
in PM parts lost to overseas companies. The weaker dollar has
also resulted in a strengthening in demand for export-driven companies
like Caterpillar and others.
METAL POWDER TRENDS
Iron powder demand in North America reached a peak of 430,000
mt (473,000 st) in 2004 and has declined steadily since that time,
falling 8% in 2005, 6% in 2006, and an additional 3% in 2007 (Figure
1). Demand for iron powder is forecasted to fall an additional 8%–10%
for 2008 due to weakened automotive production, especially SUVs and
Figure 1. North American iron powder shipments. (1 st = 0.9078 mt)
*President, MPIF, and President, Capstan, 16100 S. Figueroa Street, Gardena, California 90248, USA; mpaullin@capstan.cc
Volume 44, Issue 4, 2008
International Journal of Powder Metallurgy
ENGINEERING &
TECHNOLOGY
The powder metallurgy (PM)
industry in North America
faces many challenges, particularly
from the declining
U.S. automotive market and
volatile commodity prices.
Metal powder shipments
softened in 2007 and the
outlook for the balance of
2008 remains somewhat
negative. However, new
automotive engines and
transmissions contain an
increasing number of PM
parts. The industry, through
the Metal Powder Industries
Federation (MPIF) and the
Center for PM Technology
(CPMT) continues to invest
in programs to improve
materials’ properties and
provide designers with more
information about PM’s
capabilities.
Presented at the PM2008
World Congress in
Washington, D.C.
49