Owner, Johannes Messer-Consulting GmbH
Current Situation German Aluminum Die Casting Industry In Change
The worldwide aluminum die casting industry has been in permanent growth since the 1980s. Since then, there have been new developments that shape the future of the German industry. What are the current trends and can the outcome be influenced?
The success story of the worldwide aluminum die casting industry was largely supported by the substitution of many parts of the powertrain with die cast parts. The industry has since established itself as a perceived supplier and major development partner to the automotive industry. The proportion of aluminum die cast products in the vehicle has risen steadily since that time. What are the current trends?
The achievements have seriously changed the industry since the eighties. The foundries have early come into the focus of financial and strategic investors. The originally predominantly medium-sized and local companies have often become international corporations. New market entrants have joined and new foundry regions (China, India, Mexico) have emerged. It is not yet clear where this development will lead the industry in the next few years. In the context of this unfinished development, there are currently additional challenges for the foundry industry.
After years of continuous growth, we have been seeing a decline in the global economy since the beginning of last year. Especially the automotive industry as the most important customer of the foundry industry is affected. In addition to the current political, economic and industrial challenges, such as trade conflicts, Brexit and environmental discussions, the automotive industry is also facing revolutionary technological changes (megatrends: mobility, digitization, autonomous driving, electrification).
A precise statement, where the development goes, is also difficult here. Even crucial questions, such as what is the powertrain of the future, still find no uniform and final answer. A variety of topics in this very complex environment are on the move. The outcome is still open in many cases.
In exactly this turbulent environment is the German aluminum foundry industry. The change is in full swing, the crisis or the downturn is here and the megatrends in the automotive industry present the foundries with major, epochal challenges. What makes the situation even more difficult and has influenced the development of recent years significantly, is the persistent poor earnings situation of German die casting foundries.
In the context of this multi-dimensional strain field, the German foundries are now at a forward-looking point. Only if it is possible to find the right answers will the individual companies and the entire German foundry industry have international significance in the future, which companies and the entire industry always had.