Harbor Results Inc. (HRI), a leading authority on the manufacturing industry, has released the results of Harbor IQ's in-depth study of the current state of the
auto injection mould supplier. Analysis shows that North American
automotive molds suppliers' mold spending will grow at an annual rate of 13.4% from 2022 to 2025, and spending in 2025 will reach US$8.3 billion, a significant increase from US$5.7 billion in 2022.
Several key factors are driving the growth in tooling spending. First, even though demand for cars in North America fell from 15.8 million to 13.7 million, most automakers saw record profits per vehicle sold.
This strong performance has funded investment in technology and new vehicles. From 2023 to 2029, the number of automobile nameplates in North America will increase by 18%, from 210 to 249. In addition, the proportion of pure electric vehicle nameplates will increase from 20% in 2023 to 46% in 2029.
Five-axis CNC milling machine and monitor cut tire mold parts through solid ball-nose milling cutters. Image source: Getty Images
New nameplates produce new models, which require more molds. Detroit's three major automakers (i.e. Ford, General Motors, Fiat Chrysler) plan to purchase molds for all new full-size pickup trucks and SUVs from 2024 to 2026. Harbor IQ research shows that the discrete number of molds will grow at a compound annual growth rate of 14% from 2022 to 2025, driving more demand for molds.
"Despite economic uncertainty and supply chain challenges, we see a bright future for the automotive mold industry," said HRI President and CEO Laurie Harbour. "But it's important to note that tooling spend per pure electric vehicle is higher than that of traditional internal combustion engines. Vehicles are about 30% lower, so while we see both mold spending and mold purchase volume rising over the next few years, the average spend per mold is declining. So for mold companies, focus on improving efficiency and throughput It`s very important."
HRI predicts that automakers will continue to face difficult strategic decisions about where to put their money and what vehicles to launch.
"While our forecast is positive, there are a number of risk factors that could negatively impact tooling spending, including a prolonged economic downturn, increased supply chain issues, or lower automotive demand. Businesses need to continually monitor industry and customer conditions," Harbor said. .
In HRI's most recent Manufacturing Pulse Study, conducted in August, 45% of mold shops said they were optimistic or very optimistic about the future and forecast capacity utilization of 83% by the end of the year. The industry's top concerns remain finding talent and suppressing rising operating costs. But forecasts suggest that neither will improve significantly in the short term.
"As the
injection mould market grows, it is important for shops to position themselves for the future. Leadership needs to take steps today to increase flexibility, drive resiliency and focus on improving efficiency," Harbor added.
China is the world's largest mold consumer. China's mold consumption value reaches 310 billion yuan, supporting China's 35 trillion product manufacturing.
Automotive molds are still the field with the widest traction and the fastest development of the industry. More than 95% of parts in automobiles rely on molds for batch processing and manufacturing. At present, more than 95% of domestic mold companies are involved in automotive molds. Some leading companies have gradually formed a mature industrial chain of key automotive parts. Their product technology has reached domestic and international advanced levels, driving the transformation of automotive-related industries to high-quality development.
