---
title: "American Metal Manufacturing: Growth, Trends in 2016 and Beyond"
description: What's the state of the American metal manufacturing & metal fabrication industry? Here are some stats and projections for this year and beyond.
image: https://www.mchoneind.com/hubfs/Imported_Blog_Media/DSC_0369-2-1024x459.jpg
---

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# American Metal Manufacturing: Growth, Trends in 2016 and Beyond

- June 22, 2016
- McHone Industries, Inc.
- [Comments Off](https://www.mchoneind.com/blog/american-metal-manufacturing-trends#comments-listing)

![Fabricated metal components engineered with holes](https://www.mchoneind.com/hs-fs/hubfs/Imported_Blog_Media/DSC_0369-2-1024x459.jpg?width=660&height=296&name=DSC_0369-2-1024x459.jpg)

Although the manufacturing industry took a nosedive at the turn of the century, the outlook has been positive over the last few years.

In 2013, [fabricated metals were the third largest U.S. manufacturing industry](http://esa.gov/sites/default/files/made-in-america-fabricated-metals.pdf). 12% of all manufacturing employees in the U.S. are employed in this industry. Fabricated metal shipments totaled $345.1 billion.

In 2014, [IndustryWeek](http://www.industryweek.com/global-economy/mapi-says-manufacturing-will-outpace-us-growth) predicted a **3-4% increase in manufacturing production** (slightly higher than the GDP growth of 2.8%) and an addition of **356,000 manufacturing jobs**. Figures from [PR Newswire](http://www.prnewswire.com/news-releases/economic-growth-continues-in-2016-manufacturing-growth-expected-in-2016-revenue-to-increase-41-capital-expenditures-to-increase-10-capacity-utilization-currently-at-816-non-manufacturing-growth-projected-in-2016-revenu-300189385.html) forecast a continuation of this upward trend for 2016.

## American Metal Manufacturing Outlook

What about metal manufacturing in particular? When we talk about metal manufacturing, we're most commonly referring to **metal fabrication**. Metal fabrication covers everything from metal forming to cutting to assembly.

Some manufacturers that offer fabrication services will also provide engineering assistance, finishing services, and inventory management - so, those services may also fall under the umbrella of metal manufacturing.

### Metal Fabrication Industry

According to [TheFabricator](http://www.thefabricator.com/article/shopmanagement/2015-metal-fabrication-forecast-steady-as-she-grows-article), 2015 saw steady growth in metal fabrication. The vast majority of manufacturers anticipated a higher operating level than the previous year, and 84% reported stable or expanding new order activity.

The biggest gains for 2016 are in **bending** and **welding** fabrications. Metal bending surpassed laser cutting services for the first time in 2015 ([current projected spending is $328 million for bending and $231 million for laser cutting](http://www.thefabricator.com/article/shopmanagement/2016-capital-spending-forecast-in-metal-fabrication-the-growth-continues)).

Overall, welding is seeing the largest jump in spending - far surpassing the growth of bending. Total spend on welding is expected to reach $600 million.

### The Future of American Metal Fabrication

Most experts predict positive growth for metal manufacturing in the USA over the next 5-10 years. As [foreign wages continue to rise](http://www.inboundlogistics.com/cms/article/is-us-manufacturing-coming-back/) and [market volatility increases](http://www.iedp.com/articles/re-shoring-should-we-stay-or-should-we-go/), more and more companies will be moving their fabrications back to the U.S.

Reshoring is also expected to increase as the [risks of offshoring](https://www.mchoneind.com/lp/hidden-costs-offshoring-ebook/) continue to outweigh the minimal benefits.

Although [the steel industry is facing some instability](https://www.zacks.com/commentary/81506/steel-industry-stock-outlook---may-2016), metal fabrications continue to be in high demand.

## Overall, the outlook is positive for metal manufacturing.

Manufacturers and their clients should be able to look forward to a stable, profitable future over the next few years.

Want to know more about metal manufacturing? [Call or email us](https://www.mchoneind.com/contact-us/) for more information!

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