Global Views on Hardware Headlines August 6, 2008
Posted by champion in : Hardware , add a commentFastener Industry Up 5% Per Year Through 2007
Industrial fastener demand, usually dancing with the pace of industrialization and business circle of the world, is predicted to climb no less than 5% every year through 2007 to over $11 billion. Generally speaking, the demand will be spurred by robust growth in durable goods production and building spending. Accelerating global economic growth will also contribute to help speed in aftermarket fastener demand, even though improvements in fastener quality will somewhat curb maintenance/ repair /operations sales growth. Building sector, electrical and electronic equipment manufacturing will enjoy the fastest growth in end-use markets for fasteners.
Standardized industrial fasteners will continue to govern overall product demand. However the sales of application-specific fasteners jump at a prompter pace than other standardized product types while more OEMs take the place of non-specialized items with application-specific designs. In the other hand, demand for aerospace-grade fasteners is predicted to soar at better-than-expected rate through 2007, fueled by new momentum in aircraft production as global economic climate bodes well military expenditures keep climbing. Recently, innovations and improvement on fastener design focus on new generations of self-locking and self-sealing fasteners, which can be installed without the use of tools and fasteners fabricated from advanced alloys, composites and plastic materials. As more reinforced plastics are successfully developed and launched, plastic fasteners will be widely applied in a growing number of settings.
Global Valve Demands to Rise 5.5% Through 2007
Global demand for industrial valves is predicted to climb 5.5% per year through 2007 to over US$60 billion. The growth momentum is specially attributed to the blooming macroeconomic growth in the developing regions of Asia, Latin America and Eastern Europe. The markets in the US, Japan and Western Europe, although not very prominent in performing, will also show slight improvement. Rising fixed investment levels will boost most valve consuming sectors and strengthen underdeveloped infrastructures in these regions.
Die-casting Hardware Boosted from Auto Sector
Die-casting is a process to form metal shapes from molten material, in most cases, typically nonferrous metals such as aluminum, magnesium, and zinc. Die-casting processes include sand casting, precision investment (lost wax) casting, and permanent mold casting. Generally speaking, the major market for die-casting is the automotive industry. Especially smaller electric motors calling for the application of die cast aluminum housings and end covers, further promote the usage of die-castings. Additionally, for further development of the die casting industry, production scale is of prime importance for industry players. However, the prerequisite for a large production size is large investment. The automotive industry is surely a strong support. In recent years, attention has been paid to the development of large capacity die casting machines, bringing up hot chamber machines accordingly.
Variety Uses of P/M, Powder Metallurgy
The basic P/M process uses pressure and heat to form precision metal parts and shapes. Powder is squeezed at room temperature by itself in a rigid precision die into an engineered shape like a gear. After the mass of powder is squeezed into a shape and ejected from the press, it is fed slowly through a special high-temperature controlled atmosphere furnace to bond the particles together. In contrast to other metal forming techniques, P/M parts are shaped directly from powders while castings are formed from metal that must be melted, and wrought parts are shaped by deformation of hot or cold metal, or by machining. P/M parts are used in a variety of end products such as lock hardware, garden tractors, snowmobiles, automobile engines and transmissions, auto brake and steering systems, etc. New Developments include improved manufacturing processes and commercialization such as metal injection molding: (MIM), rapid solidification, P/M forging, spray forming, high temperature vacuum sintering, warm compacting and both cold and hot isostatic pressing. The use of P/M hot forged connecting rods in automobiles and a P/M camshaft for automobile engines. The use of P/M composite camshafts in auto engines and main bearing caps, and stainless steel ABS sensor rings and exhaust system flanges. New submicron and nanophase powders for cutting tools and other specialized applications.
Bearings, Small Parts Big Use
Bearings belong to a major component in a machine to reduce friction and, simultaneously maintain the expected precision and stability while machine working. By statistics, the size of global bearing market approximates US$30 billion every year. Coming in over ten thousand kinds, bearings can be found everywhere in a gear from small drivers, motor cars, conveyors, electrical machinery to big ships. Fundamentally, bearings are composed of two parts: sliding bearings and rolling bearings. The most frequent-used bearings are linear bearings, connecting bearings, ball bearings, roller bearings, trust bearings and needle bearings. The precision quality of bearings depends on hardness, wear rate, mechanic strength and stability along with concentricity, sphericalness and roughness. In these years, the users of conventional ball bearings and roller bearings have been gradually upgraded to ball guide bars, linear bearings, connecting bearings and oil-less bushings. Some higher-level bearings should resort to the help of technicians. King-size bearings for steel-making or petrochemical industry are heavily installed and traced by technical suppliers. The popularity of NC/ CNC machine tools and automated warehouse systems provides a stable-growing background for bearings industry. The up-and-coming trends follow the advantages of high precision, high speed, compact size, lightweight, maintenance-free and durability.
Article from ttnet.net
Trends Watch on 2008 Auto Parts Industry April 15, 2008
Posted by wenbi in : Auto Parts , add a commentFor recent years, carmakers have been fighting for price reductions from customers and surging gasoline price, material costs, along with shadowing global inflation. The mounting cost pressure forces them to gain components from offshore manufacturers, which has been reshaping the global landscape of auto parts sourcing. US automotive downturn is mainly triggered by diminished consumer purchasing power and the burst of the “mortgage bubble”. US sales of new cars and light trucks are predicted to drop below 16 million units in 2008. Light trucks, such as SUVs, CUVs, pickups, minivan and vans, made up 53% of the sales mix in 2007, could shrink to a 10-year low of 15.8 million units. The slowdown is spreading to other markets, particularly in Western European countries. But Eastern Europe will continue to expand at a rapid pace, with 4.3% compound annual growth by 2011. Russia will become the largest automotive sales market for new cars in Europe by 2010 as the larger European markets remain stagnant. Growths in the burgeoning markets, especially China, Brazil, and India, keep on and are still likely to lead global growth. In 2007, there were 8.7915 million vehicles sold in China, grew by 1.576 million or up by 21.84% compared to 2006 and will reach to 10 million vehicles by the end of 2008.
The auto parts industry is mainly for the original equipment manufacturer (OEM) market and the replacement parts market, or aftermarket. The global aftermarket industry approximates $300 billion while the light truck aftermarket accounts for $190 billion values. In US, the sales of light-truck performance parts and accessories have doubled over the past decade years, hit $13 billion in 2007, supporting 232 million vehicles on the road. Vehicles are becoming more and more durable across all vehicle types as those over 10 years old continue to comprise the lion¡¦s share of dollars spent, reaching more than $80 billion.
Tuning, Do-it-yourself on the Rise
There are more vehicles on the roads, more cars look similar, and, therefore, the more and more motorists tend to individualize their own cars. Gen-Y drivers are most enthusiastic to personalize their vehicles with audio-system upgrades, aftermarket exhaust systems, tires and wheels and exterior styling accessories as the top alternatives. Apart from aesthetics, safety is certainly a major concern. Here, we’re also seeing a booming DIY market. By a survey, over 53% of motorists, male and female alike, are interested in repair works and feel they are personally capable of doing light maintenance involved in installing parts such as brake shoes, pads, headlamps, batteries, wiper blades and alternators to save repair expenses. Among them, 13% motorists feel they are capable of performing medium maintenance and repair works, which is require the higher knowledge and level of expertise such as replacing fuel injectors and head gaskets.
In-vehicle Consumer Electronics
According to a survey by the Consumer Electronics Association, the sales of in-vehicle consumer electronics are expected to increase at a rate of 13% in 2008 to exceed $12.8 billion. The most popular items are remote vehicle starters, in-dash navigation systems and car alarms, required for flexibility and multi-location use. Motorists also prefer to outfit their vehicles with the latest in-vehicle information and entertainment technology like satellite radio, HD radio and DVD players to make their driving on the road safer and more enjoyable.
“Going Green” Concern
Motorists are more aware of worsening global warming and other environmentally-conscious issues. The carbon dioxide concentrations have soared record-high levels in the atmosphere after increasing at an accelerated pace in the past years. In response to this, automakers are urged to reduce carbon dioxide emissions from vehicles and fossil fuel reliance. They are developing innovative emission and idling reduction technologies to elevate fuel economy, launching plug-in hybrids and providing a broad technology portfolio of series solutions to reduce carbon dioxide emissions. Automakers claim that such a goal will be realized through the use of alternative fuel autos (AFAs). Now, there are sixty models of AFAs available and more are in development, including hybrid-electric, clean diesel, ethanol capable and others. Advanced vehicles need advanced fuels, including ultra low sulfur diesel, E85 ethanol, bio-diesel, hydrogen and electricity. However, the more bio-fuels such as ethanol and bio-diesel, are used, the more corns, more soy bean and more sugarcane are consumed not as foods, which continues to fuel the price hikes of grains and meats.
Fighting for Spiraling Gas Price
Recently, global demand for oil and gas keeps increasing at an unprecedented rate. Skyrocketing gas price over a record $4 a gallon signals a possible hike over the next few months. To combat spiraling gasoline price, more and more new-vehicle shoppers are looking for more fuel-efficient vehicles and car drivers are managing to control their monthly energy bills by employing energy-efficiency measures or resort to the state-of-the-art fuel-economy technologies. Fuel efficiency becomes dominant factor on influencing their vehicle maintenance decisions, surpassing dependability and safety. Motorists are seeking fuel efficiency through vehicle maintenance. In fact, by properly maintained, vehicles are not only more fuel efficient, but also safer and more environmentally friendly. That also enables a tremendous marketing opportunity for aftermarket service and parts businesses.
Better Fuel Economy Solutions
Most attempts to enhance fuel efficiency spotlight on ancillary technologies like refinements in the fuel injection, ignition or valve timing. Some technologies such as the gasoline-electric hybrid and “clean diesel” are being applied for better fuel economy. In 2007, new hybrid vehicle sales reached over 350,000 units in 2007, even though the fuel efficiency capabilities of hybrid vehicles seem to be somewhat overestimated. For better fuel economy, there is an improvement on engine efficiency with associated reduction in heat lost from the combustion process. Since longer idling time wastes fuel, spoils engines and produces unnecessary extra emissions into the air, here comes a new technology to generate heat so quickly as to delete these unwanted situations. For less power consumption and longer longevity, LEDs now are used with xenon headlamps, even with double light output but only a third less energy than halogen bulbs. By the uses of LEDs for full-functions forward lighting on vehicles, it is feasible to reduce fuel consumption and carbon dioxide emissions.
Crash Avoidance Technology
By a statistics in the US, total collision repair industry sales grow 5.8% to about $40 billion per year. By this, motorists are looking for the latest blind spot detection technology to avoid collision. Blind spot detection is a system that can identify vehicles or objects within a vehicle’s blind spots and provide an audible, visual warning or vibrate the vehicle’s steering wheel or seat as a lane change is doing. Lane departure warning system functions when a car is wandering out of its lane, without a turn signal being activated, and gives a warning to the driver.
The 6th International Auto Aftermarket EXPO 2007 October 31, 2007
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The U.S. Auto Parts Industry Landscape October 18, 2007
Posted by wenbi in : Auto Parts , add a commentttnet.net - [2006/12/05]
In the past year, U.S. carmakers have been sandwiched between demands for price reductions from customers and rising material and energy costs. The mounting cost pressure forces them to gain components from offshore manufacturers, which has been reshaping the global landscape of auto parts sourcing. Aftermarket parts participants, along with OE (Original Equipment) parts ones are reeling from more pressure to minimize price than to maximize quality.
Aftermarket Segment
In 2004, U.S. motor vehicle aftermarket sales rose by 5.4 % to $257 billion. The growth was braced by the medium and heavy-duty segment, which inched up 7.1% to $66.5 billion as the automotive light vehicle segment gained a modest increase of 4.8% to $190.5 billion. According to the Automotive Aftermarket Industry Association (AAIA), 39.5% U.S. households bought no less than one aftermarket accessory for their vehicles in 2004 to optimize the performance, luxury appearance or styling of a vehicle’s design. The most-frequently purchased accessories by U.S. end-users are floor mats (24.5%), license plate frames (12%), seat covers (6.7%) and vehicle alarms/security systems (5.1%). These accessories are mostly bought in auto parts stores and discount stores, accounting for 39% respectively.
U.S. aftermarket manufacturers continue to fight for the competition from low-cost country suppliers (LCC) countries while local distribution outlets tend to purchase more parts from China and other low-cost countries on account that the price renders more of an opportunity to create profit margin. According to a survey on industrial players, one out of three producers reported a profit margin decrease in 2005, while 25% reported a gain by an average of 8%. Over half reported an inventory rise of nearly 13% for 2005 and expect to raise in 2006. Besides the price-slashing and inventory issues, the aftermarket is also confronting the problem of a loss of maintenance, together with a shortage of DIYers.
Original Equipment Segment
In recent years, the market share of the Big Three vehicle producers has downsized steadily from 73% in 1996 to under 52.2% in October of 2005 as foreigners make inroads. Since 2001, the exports of U.S. made auto parts have fallen as the imports have lasted to pick up. U.S. local are challenged with calls by automakers for the cost-saving reason in parts production. In 2004, the U.S. imported $77 billion of motor vehicle parts, particularly from Canada ($22 billion), Japan ($19 billion), and Mexico ($14 billion) in country origin basis, which occupied for 72% of total imports. Engine-related components were the biggest imports, accounting for about $23 billion of the overall, generally from Canada, about 500,000 engines solely and Mexico, Japan & Germany for each of 250,000 engines), compared to $37 billion in 1995. In 2004, the chassis parts, mostly brakes and tires for about $4 billion respectively; steering, suspension, and wheels each valued about $2 billion, accounted for $15 billion as the second largest imported parts in terms of value and largest %age gains since 1990.
The labor-intensive parts such as electrical wiring were 80% imported from Mexico. In June 2005, China had surpassed Germany as the fourth largest source of auto parts imports for the U.S. China exports aftermarket parts, such as wheels and tires (both for 29% of all imports during the first half of 2005), rather than OE parts to the U.S.
The shrinking share of the domestic automotive market (from 73% down to 52.2% within 10 years) of the Big Three worsens the situation of many of the industry’s biggest names, such as Delphi Corp, the used-to-be world’s largest parts supplier and GM’s affiliated company, and Visteon Corp., the second-biggest parts supplier, plus a former Ford Motor subsidiary. The former filed for bankruptcy protection in October 2005 while the latter was forced to close its domestic plants. In addition, other major auto parts players are also loosing ground in facing the cut-throat competition from low-cost countries while they have been skittish about the persistent pressure for cost reduction from domestic carmakers. Some of them have announced plans to accelerate their restructuring by closing plants and transferring production to lower-cost regions. For example, Visteon Corp. plans to shut 12 plants and sell another six over the next three years. The company makes a push to narrow its focus to spotlight on vehicle interiors, and electronic and climate control systems. Meanwhile, Dura Automotive, a maker of driving and seat controls, schedule to wind up between five and 10 factories and relocating half of its production.
Global Views on Hardware Headlines
Posted by wenbi in : Hardware , add a commentttnet.net - [2006/08/07]
Fastener Industry Up 5% Per Year Through 2007
Industrial fastener demand, usually dancing with the pace of industrialization and business circle of the world, is predicted to climb no less than 5% every year through 2007 to over $11 billion. Generally speaking, the demand will be spurred by robust growth in durable goods production and building spending. Accelerating global economic growth will also contribute to help speed in aftermarket fastener demand, even though improvements in fastener quality will somewhat curb maintenance/ repair/operations sales growth. Building sector, electrical and electronic equipment manufacturing will enjoy the fastest growth in end-use markets for fasteners.
Standardized industrial fasteners will continue to govern overall product demand. However the sales of application-specific fasteners jump at a prompter pace than other standardized product types while more OEMs take the place of non-specialized items with application-specific designs. In the other hand, demand for aerospace-grade fasteners is predicted to soar at better-than-expected rate through 2007, fueled by new momentum in aircraft production as global economic climate bodes well military expenditures keep climbing. Recently, innovations and improvement on fastener design focus on new generations of self-locking and self-sealing fasteners, which can be installed without the use of tools and fasteners fabricated from advanced alloys, composites and plastic materials. As more reinforced plastics are successfully developed and launched, plastic fasteners will be widely applied in a growing number of settings.
Global Valve Demands to Rise 5.5% Through 2007
Global demand for industrial valves is predicted to climb 5.5% per year through 2007 to over US$60 billion. The growth momentum is specially attributed to the blooming macroeconomic growth in the developing regions of Asia, Latin America and Eastern Europe. The markets in the US, Japan and Western Europe, although not very prominent in performing, will also show slight improvement. Rising fixed investment levels will boost most valve consuming sectors and strengthen underdeveloped infrastructures in these regions.
Die-casting Hardware Boosted from Auto Sector
Die-casting is a process to form metal shapes from molten material, in most cases, typically nonferrous metals such as aluminum, magnesium, and zinc. Die-casting processes include sand casting, precision investment (lost wax) casting, and permanent mold casting. Generally speaking, the major market for die-casting is the automotive industry. Especially smaller electric motors calling for the application of die cast aluminum housings and end covers, further promote the usage of die-castings. Additionally, for further development of the die casting industry, production scale is of prime importance for industry players. However, the prerequisite for a large production size is large investment. The automotive industry is surely a strong support. In recent years, attention has been paid to the development of large capacity die casting machines, bringing up hot chamber machines accordingly.
Variety Uses of P/M, Powder Metallurgy
The basic P/M process uses pressure and heat to form precision metal parts and shapes. Powder is squeezed at room temperature by itself in a rigid precision die into an engineered shape like a gear. After the mass of powder is squeezed into a shape and ejected from the press, it is fed slowly through a special high-temperature controlled atmosphere furnace to bond the particles together. In contrast to other metal forming techniques, P/M parts are shaped directly from powders while castings are formed from metal that must be melted, and wrought parts are shaped by deformation of hot or cold metal, or by machining. P/M parts are used in a variety of end products such as lock hardware, garden tractors, snowmobiles, automobile engines and transmissions, auto brake and steering systems, etc. New Developments include improved manufacturing processes and commercialization such as metal injection molding: (MIM), rapid solidification, P/M forging, spray forming, high temperature vacuum sintering, warm compacting and both cold and hot isostatic pressing. The use of P/M hot forged connecting rods in automobiles and a P/M camshaft for automobile engines. The use of P/M composite camshafts in auto engines and main bearing caps, and stainless steel ABS sensor rings and exhaust system flanges. New submicron and nanophase powders for cutting tools and other specialized applications.
Bearings, Small Parts Big Use
Bearings belong to a major component in a machine to reduce friction and, simultaneously maintain the expected precision and stability while machine working. By statistics, the size of global bearing market approximates US$30 billion every year. Coming in over ten thousand kinds, bearings can be found everywhere in a gear from small drivers, motor cars, conveyors, electrical machinery to big ships. Fundamentally, bearings are composed of two parts: sliding bearings and rolling bearings. The most frequently-used bearings are linear bearings, connecting bearings, ball bearings, roller bearings, trust bearings and needle bearings. The precision quality of bearings depends on hardness, wear rate, mechanic strength and stability along with concentricity, sphericalness and roughness. In these years, the users of conventional ball bearings and roller bearings have been gradually upgraded to ball guide bars, linear bearings, connecting bearings and oil-less bushings. Some higher-level bearings should resort to the help of technicians. King-size bearings for steel-making or petrochemical industry are heavily installed and traced by technical suppliers. The popularity of NC/ CNC machine tools and automated warehouse systems provides a stable-growing background for bearings industry. The up-and-coming trends follow the advantages of high precision, high speed, compact size, lightweight, maintenance-free and durability.
Your Must-knows about Automotive Aftermarket
Posted by wenbi in : Auto Parts , add a commentttnet.net - [2006/01/24]
The automobile aftermarket industry has full spectrum of coverage over all products and services related to light and heavy duty vehicles after they are purchased and run on the road, including replacement parts, accessories, lubricants, appearance products, service repairs as well as the tools and equipment necessary for maintenance. The overall automobile spare parts can be categorized into the initial market where parts and components manufacturers deliver to original equipment manufacturers (OEM) and their primary or secondary suppliers (tier-one and tier-two respectively), and the aftermarket where end-users purchase parts and accessories for repairs or replacements and improvements of their car. OEM parts are supplied by approved suppliers under their own brand name, known as tier suppliers, who encompass everything from plastic injection molders to metal foundries and forge shops. Tier suppliers are facing tough challenge to produce less expensive, higher quality parts and strengthen the competition and flexibility in adapting themselves to this highly competitive and ever-changing market.
The sales developments in the OEM market for parts and components follow developments in car sales quite closely.
Spare parts are indispensable to fundamental maintenance of the car while accessories are products not necessary for repair or maintenance, but to enhance the comfort and aesthetic of the car according to car-owner’s likes. Original Equipment parts, sometimes more complicated and sophisticate, like engine or transmission parts are made subject to authorization by original factories, not available within the non-original segment. Since there are no copyrights on component designs involved, non-original parts are usually mass-produced and have to be replaced somewhat frequently, such as tires, wiper blades, braking systems, lamps, fenders, exhausts and more. They are often lower in price than original ones because there is less design or innovative skills required for OEM parts suppliers than the availability of cheap labors and easy and non-expensive access to raw materials.
Today, spare parts suppliers not only manufacture parts but also a full range of assemblies that are integrated into a complete electronic control system in a car. The advance in technology will slow the pace of parts replacement due to better quality original equipment (OE) and replacement parts and significant price competition in many segments of the market.
Aftermarkets In Global View
Strong global demands for automotive aftermarket products are benefited from steady growth of the global vehicle sales and hereafter maintenance and repair of older vehicles and prevailing uses of automotive electronics. It is predicted that world demand for automotive aftermarket products will climbe 5% per year through 2007 to $144 billion. The growth rate tends to slow down on account of lasting improvement on the quality of Original Equipment and replacement parts, together with ongoing price-slashing combats among suppliers.
In U.S. ,the automotive aftermarket industry has one of the biggest employers, nearly 3.7 million jobs, which accounts for 2.6% of the Gross Domestic Product (GDP), 11th largest contributor to the GDP as the automotive industry is the largest domestic industrial manufacturing sector. The industry reaches $247.8 billion in annual sales, added with $60 billion in annual unperformed vehicle maintenance. U.S. aftermarket continues to boost thanks to more registered vehicles, more licensed drivers, more miles traveled and an aging of the vehicle fleet. The growth for 2005 was predicted 3.5% up from 2004.
Europe Union aftermarket is expected to grow from over £á 40 billion in 2004 to £á 50 billion in 2005. In EU, the biggest market is Germany as more than 3 million vehicles sold annually, followed by France, Italy, United Kingdom, and Spain. The German automobile parts industry is also the biggest in Europe, containing over 3,000 companies, with nearly 309,000 employees.
France is second largest auto parts market in EU region since France auto parts players possess lower-wage edge than Germany has but don’t discount the quality. They are largely benefited from up-and-coming outsourcing by domestic major carmakers and keep growing in recent years, especially on OEM basis. The size of auto parts market (mostly OEM) approximates £á 45 billion while aftermarket parts account for one fifth of the total sales, nearly £á 11 billion (£á 2.5 billion for OES parts; £á 2.5 billion for non-original parts).
China is the eighth biggest motor vehicle manufacturing nation and the third largest producer in Asia. Vehicle production will climb to 3.2 million units by 2005. By 2020, domestic demand is predicted to soar to 17.1 million passenger vehicles and 2.69 million freight vehicles. Boosted by rapid new light vehicle sales and a shift towards consumer purchasers, the aftermarket for automotive and farm vehicle parts in China is forecasted to grow 11.6% per year through 2007, and reaching US$1.8 billion. Meanwhile, the demands on farm vehicle market for aftermarket parts are estimated to jump over 9% per year to US$975 million in 2007. Rapidly rising incomes in China will allow for fast expansion in motor vehicle utilization rates, which will then speed up the growth of domestic aftermarket.
