U.S. Industry in 2000 Studies in Competitive Performance (1999) / Chapter Skim
Currently Skimming:
5 Powder Metallurgy Parts
5 Powder Metallurgy Parts
Pages 103-122
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 103... ...
This manufacturing can be very attractive because of its efficiency, conservative energy use, and relatively minor environmental impact. Net shapes, originating as metal powders, date back thousands of years (e.g., gold, copper, iron)
|
From page 104... ...
. Net shapes are mass produced to close tolerances over long production runs without scrap residue (machining chips, grinding residue, casting risers, etc.~.
|
From page 105... ...
113~. P/M INDUSTRY STRUCTURE AND STRATEGY The $1.8 billion North American powder metallurgy parts industry currently includes approximately 213 companies competing at venous levels in the manufacture of P/M structural parts, powder forging, beanngs, friction matenals, and metal injection molded products.
|
From page 106... ...
, and auto imports. Earlier strong demands and tight powder supply were followed during this period by falling P/M part sales and even auto industry restrictions on new P/M parts developments.
|
From page 107... ...
This suggests a "tiering" of the industry, i.e., some firms have little or no automotive sales, while other firms focus mainly on automotive applications. As the auto industry continues its supplier rationalization, many P/M part producers will have to find other markets or means of dealing with other tier one or two suppliers.
|
From page 108... ...
Though the number of parts manufacturing companies has increased from 156 in 1980 to 213 companies in 1997, an increase of 37 percent, the concentration of market share among the largest firms in the industry is increasing, as demonstrated by Table 3. The predicted industry shakeout has not occurred, but the industry may be evolving away from fragmentation.
|
From page 109... ...
Thus, the increasing concentration of market share among the largest competitors is an important industry trend (Table 3~. Given the rationalization of the automotive supply base, and the increasing sophistication required by the auto industry, we may be observing the emerging importance of size and skill requirements for P/M part producers.
|
From page 110... ...
Higher density translates directly to higher physical properties. The traditional and relatively costly method to reach higher densities, "double press/double sinter," is giving way to less costly single press warm compaction with much improved properties, notably fatigue life, the key to high stress applications in engines and transmissions.
|
From page 111... ...
Factor conditions. In addition to the traditional factors of production land, labor, capital Porter suggests that specialized resources that support the industry affect the competitive position of a nation or region's firms.
|
From page 112... ...
Production and Market Share Table 4 compares North American and world shipments of metal powder. "Iron & steel," "copper base," and to some extent "nickel" are indicative of the
|
From page 113... ...
Only modest quantities are importedlexported, either of components or the corresponding raw matenals, which if considered, would not change the market share estimate in this report. Figure 3 shows the historical trends of steel powder consumption in North Amenca.
|
From page 114... ...
_ . Price in Constant Dollars, cents/lb l l l l l l 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 FIGURE 4 North American steel powder prices: primary unalloyed P/M grade; index 1953= 100.
|
From page 115... ...
Given this void, the Powder Metallurgy Research Center conducted a fi Sh. Tons 400,000 350,000 30O,OOO 250,000 200,000 150,000 1 00,000 50,000 O ~f _ L _ _ _ ~ _ ,- ~ _ ~ C _ - 1 1 1 ~1 1 ~1 1 - 1 1 - 1 1 _ T T A< dW := 1 ~Up FIGURE 5 Steel powder shipments, all uses.
|
From page 116... ...
Family Vehicle % change Matenal1997199619941990198019781978-1997 Reg steel sheet Stnp, bar, rod1411.01409.01389.01405.01737.01913.0-26 High arid medium Strength steel296.0287.0263.0238.0175.0133.0123 Stainless steel47.546.545.034.027.526.083 Other steels36.038.542.539.554.065.9-45 hon387.0389.0408.0454.0484.0511.0-26 Plastic and plastic composites242.0245.0246.0229.0195.0180.035 Aluminum206.0196.0182.0159.0130.0112.083 Copper and brass46.545.042.048.535.037.026 P/M Parts31.029.527.024.017.015.6101 Zinc die casting14.015.516.018.520.030.9-55 Magnesium cast.6.05.55.03.01.51.1445 Fluids/lubricants198.0198.0190.0182.0178.0198.0-15 Rubber139.0139.0134.0137.0131.0146.0-5 Glass96.594.089.086.583.586.412 Other materials102,0100.094.084.095.0120.0-15 Total3248.03236.03171.03141.03363.03576.0-9 Source: American Metal Market, quoted in the International Journal of Powder Metallurgy. nancial benchmarking study at Worcester Polytechnic Institute (Healy, 1997~ This study developed average values for key financial indicators by using a cross section of parts producers.
|
From page 117... ...
POWDER METALLURGY PARTS TABLE 7 The Composite P/M Parts Firm ($1,000) 117 % change from 1986 1986 % 1991 % 1996 % 1991 1996 Net sales$8284 100$10,514 100$13,402 100 27 62 Raw materials2,013 242,239 212,882 22 11 43 Direct labor944 111,041 101,327 10 10 41 Other mfg costs3819 465~405 516~827 51 41 79 Total mfg costs6776 828,685 8311,035 82 28 63 Gross margin$1508 18$1,829 17$2,367 18 21 57 Note: Values are in constant 1986 dollars, as reported by the U.S.
|
From page 118... ...
Change +33 +24 -7 Research, Intellectual Property, and Technology Diffusion The industry trade association, Metal Powder Industries Federation (MPIF) , and the P/M professional organization, the American Powder Metallurgy Institute (APMI International)
|
From page 119... ...
The gap between firms with R&D capabilities and smaller firms with limited resources can result in a tiered industry, in which the smaller firms are unable to compete effectively for contracts with demanding OEMs. In P/M, most of the new applications and increases in market share have occurred because of innovations and technology commercialization driven by the customer, principally the automotive industry, and not due to major investments by P/M parts producers.
|
From page 120... ...
Interestingly, there is TABLE 12 Attractiveness of R&D Alliance Options for P/M Part Producers FF FUFFU General Research and Development Effects of trace impurities on properties 5 1222 Detection of green cracks 10 623 Effects on side wall lamellar sheer 8 1319 Advanced process automation capabilities 12 1114 New joining techniques 7 1516 High temperature sintering 10 1319 Improved powder delivery systems 20 911 Corrosion resistance 6 1323 Further process developments 12 1118 Improved material properties 5 1424 Computer Software Applications Cost/Investment alternative analysis 12 916 Applications database to assist designers 11 620 Automatic tool design generation 13 1512 Process plan generation 10 188 On line standards database 12 221 Expert systems to help design parts 6 821 Process models end analyses 4 1319 Process Models and Analyses Sintering simulation 3 1122 Compaction simulation 5 1418 Tool and press deflection analysis 11 1414 Part dimensional analysis 13 1210 Process cost analysis 14 119 Powder flow analysis 4 1020 Note: FF = interfirm cooperation; FU = single firm and university; FFU = multiple firm and university. Source: Kasouf et al.
|
From page 121... ...
. "The State of the P/M Industry," 1985 Annual Powder Metallurgy Conference Proceedings, Princeton, NJ: Metal Powder Industries Federation.
|
From page 122... ...
. "Review of P/M in North America," Advances in P/M and Particulate Materials: Proceedings of the 1996 PM2TEC Meeting, Princeton, NJ: Metal Powder Industries Federation, A-3 to A-13.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.