Share content on LinkedIn Share content on YouTube

2025 Trends in Metal Fabrication

February 21, 2025
0
Comments

Front and center: connected workers, enabling fewer people to perform multiple tasks by providing semi-autonomous automation aids in workcenter job instructions, inline quality inspections, and systems for workflow tracking and exception reporting.

Metal formers and fabricators are adopting several business and technology strategies to continue growing their operations profitably in a rapidly evolving industry landscape. Several companies shared their strategies in a series of discussions with DelmiaWorks’ chief marketing officer Steve Bieszczat. MetalForming spoke with Bieszczat about the trends he sees based on those discussions. 

MetalForming: What dominant business trends do metal formers and fabricators face in 2025?

Bieszczat: Three trends stand out. Top of mind for many companies is moving from offshoring to onshoring. Geopolitical rivalries and an emerging wave of tariffs have caused considerable concern among metal fabricators about being overly reliant on offshore production and supply chains. Nearshoring was thought to be “Plan A” in replacing production in China. However, with the recent tariffs on steel and additional tariffs on several trading partners, including Mexico and Canada, still potentially on the table, there’s growing interest in further advancing onshore production. We see this as an increased investment in onshore tool-building capabilities, and also suspect that some acquisitions will be driven by a desire to hedge domestic capacity.

That leads us to the second trend: There should be no long-term slowdown in merger and acquisition (M&A) activity. We continue to see a consolidation of ownership across the metal-fabrication industry in deals that largely take one of two forms:

  • Strategic buyers acquire capabilities and capacity to build out their own go-to-market strategies.
  • Financial investors are investing in platform companies for manufacturing niches and then building on those platforms through the acquisition of companies with similar product lines.

Interest rates and political questions may have slowed M&A activity in 2024 and perhaps into early 2025, but long term, strategic and financial buys will continue to consolidate industry ownership.

Third, lightweighting will be a core requirement for automotive suppliers. The eco-push on vehicles is built into the marketplace. Lightweighting—offering the same performance, strength and safety in a lighter-weight option—saves fuel in gas-powered vehicles and extends the range of electrical vehicles. It is something every automaker wants and is willing to pay for. As one manufacturer noted, “If you’re working with Detroit, every ounce counts.” 

So, in 2025, particularly in the wake of steel tariffs, we expect to see automotive companies place an even higher priority on metal fabricators, suppliers and contract manufacturers to deliver parts and assemblies that contribute to the lightweighting of their vehicles.

MetalForming: What is the most notable operational trend you’re seeing among metal formers and fabricators?

Bieszczat: More metal fabricators and formers have begun to rely on automation to increase their capacity utilization. The pandemic-era spike in demand for consumer and medical products led many metal fabricators and other manufacturers to build out their production capacity. Demand has since slackened, leaving more machines to run fewer cycles and run jobs less frequently. This has led some fabricators to hold labor headcount flat and ask existing workers to perform a wider variety of tasks.

In 2025, we expect demand—and, therefore, capacity-utilization rates—to once again increase with the rise in onshoring. However, we believe metal fabricators will continue holding labor headcount relatively flat and instead rely more on robotic- and vison-system-based automation technologies, which have taken significant steps forward in ease of use and affordability.

This will push the concept of the connected worker even further into the front-line strategies of metal fabricators. Here, the objective will be enabling fewer people to perform multiple tasks by providing semi-autonomous automation aids in workcenter job instructions, inline quality inspections, and systems for workflow tracking and exception reporting. Fewer people will each oversee multiple workcenters, aided by modern technologies enabled by abundant machine intelligence and computational horsepower.

delmiaworks-MES-ERPMetalForming: Artificial intelligence (AI), especially generative AI, continues to capture considerable attention. What is the greatest impact you see?

Bieszczat: Strikingly, the interest generated by AI also has created a greater awareness of what can be done with data and traditional analytics by using more conventional tools. My favorite example is when the announcers during a recent football game said Google Analytics had proven that a particular quarterback completes 67% of his passes—that calculation easily could have been performed using Microsoft Excel. 

Of course, the analytics required for managing production, inventory, finance and other manufacturing operations are inherently more complex. So, we’re seeing significant interest among metal fabricators in using the data and analytics that they already own—in their enterprise resource planning (ERP) and manufacturing execution system (MES) software, for example—to make data-driven decisions. This trend will accelerate in 2025.

MetalForming: At the same time, is it possible that the growing use of smart machines will reduce the need for MES software?

Bieszczat: It might seem that the need for traditional MES production and process-monitoring software will be diminished by the growing adoption of smart machines, which can track uptime, downtime, cycle counts and more. However, the growing use of smart machines will only expand the value of MES software, which will become metal fabricators’ data aggregators.

On their own, smart machines are islands of information. However, when connected to MES software they become important nodes in an enterprise-wide network of production and process data. Smart machines help to solve the industry challenge of how to reliably record and access production data. And, with their native data-collection and data-transfer interfaces, these machines make it straightforward for an MES to collect, consolidate and report information throughout a metal fabricator’s organization. The internet of things (e.g., small data-collection devices), therefore, becomes the internet of machines. 

MetalForming: Is the relationship that metal fabricators have with technology changing in other ways?

Bieszczat: There’s a growing generational shift in how manufacturing executives in the metal-fabrication sector use data and interact with ERP systems that collect and deliver this information. The industry largely has switched to dashboards and similar data-visualization techniques. Dashboards make information more actionable and also make data and insights more broadly available to management and front-line workers.

In addition, we’re seeing a new generation of manufacturing executives—who have grown up in a digital world—moving beyond an ERP system’s standard reports and making the low-code/no-code ERP dashboard tools their preferred method of information delivery. We expect to see more of these digital natives going directly to the ERP system’s database, to mine, compile and present exactly the information they want to drive their decision-making. It’s one more way that metal formers and fabricators are evolving into data-driven businesses to maximize their productivity, efficiency and productivity while planning for future growth. MF

Industry-Related Terms: Core, Lines, Run
View Glossary of Metalforming Terms

 

See also: Dassault Systemes

Technologies: Management

Comments

Must be logged in to post a comment.
There are no comments posted.

Subscribe to the Newsletter

Start receiving newsletters.