In 2020, 50-75 mold companies in North America will close in the next 3-5 years

- Nov 22, 2019-

Remember the story of 2018?Ford plans to stop making all passenger cars except the mustang, and auto experts think that's a great idea!Gm also excited auto experts and investors when it talked about ending production of its buick passenger car.Wall Street wants American carmakers to make more lucrative luxury suvs.Because the profit margin is very high.This trend may be good for carmakers' finances, but it will hurt the industry.Automobile mould manufacturing field includes: automobile mould and mould products, mould steel material, metallurgy products, automobile mould manufacturing equipment, hot runner and other processing system, digital mould technology, automobile mould production accessories, auxiliary equipment and so on.HarbourResults inc. said in its 2020 outlook, released Nov. 5, that 50 to 75 tooling companies in North America will close over the next three to five years.(these are not all plastic tool makers; the Harbour report looks at mould makers of plastic and metal parts.)The problem now is insufficient demand in the future.Currently, the auto industry spends an average of $8 billion to $10 billion a year on molds.Over the next three years, it will average $6.5 billion to $8 billion.Laurie Harbour, President and CEO of Harbour Results in southfield, mich., says the bleeding has begun.So far in 2019, more than 10 businesses have closed and more than 2,000 workers have been laid off.The car industry is growing, but some die makers are reluctant to go with the flow.Automakers are preparing for a dramatic shift to self-driving and electric cars.General Motors Co., Fiat Chrysler Automobiles NV and Ford Motor Co., as we used to call the big three, are facing big changes.In the short term, they are saving money by reducing the number of new car launches.They are eliminating most of the car brands whose sales have been shrinking in recent years.When the product was designed, they did not introduce a new model to replace it, but chose to invest money in the ultra-expensive new transportation project.The current problem is that companies that make plastic molds and stamping molds rely on new models to sustain their business.Harbour says the Detroit three plan to launch only 13 new models in 2020, meaning about $3.1 billion in mould spending.And about half of the new models coming out are actually revamps of existing brands.Brand rebranding involves fewer new parts and therefore less spending on new molds.Other trends have not helped, such as carmakers reducing the number of decorative packages they offer and designers replacing plastic knobs with flat screens.In addition, automakers will continue to buy molds outside North America, including from China.Automotive lightweight is the trend, injection mold prospects considerableAnd from the car mold material, mainly can be divided into metal mold, plastic mold and inorganic non-metallic mold, at present, China's mold manufacturing is still mainly metal mold.With the demand of environmental protection and energy saving, the automobile lightweight has become one of the main trends in the development of automobile design in the world.The test shows that the fuel efficiency can be improved by 6-8% for every 10% reduction in vehicle mass.However, for every 100kg reduction in vehicle mass, 100km fuel consumption can be reduced by 0.3-0.6 l.Modern industry asks to the requirement of injection molded parts not only requirement accuracy is high, still need to have immanent quality, to suit this kind of requirement, must develop use injection molded parts new technology, at present in southern coastal area is spreading to use the injection molded parts new technology that introduces from abroad step by step, had very big effect to improving injection molded parts quality.Injection molds are widely used for their lighter weight.At present, automotive interior trim in developed countries has basically realized the lightweight of plastics, and the application of plastics in automobiles is developing from interior trim to exterior trim, body and structural parts. For example, mercedes-benz Smart, lotus Elisey and Renault Espace all adopt plastic body.Overall, foreign developed countries in the field of plastic use is continuing to grow, plastic mold total vehicle mold proportion has exceeded 60%, accounting for the total body mass of 10-15%.In the future, with the pursuit of lightweight design of cars, the amount of plastic used in the field of cars will be more and more, and the amount of plastic used in cars will also become an important standard to measure the level of cars.However, in terms of the current domestic development, China's plastic mold accounted for less than 40 percent, far lower than the foreign level.However, vehicle lightweight is an inevitable trend. For example, in October 2016, the road map of energy-saving and new energy technology vehicles released by the Chinese society of automotive engineering predicted that by 2030, the vehicle mass would be 40% lighter than that of 2015.It can be seen that under the trend of China's automotive lightweight, China's automotive plastic mold has a huge space for development.There is also a set of data from the mold industry:China, the United States, Japan, Germany, South Korea, Italy for the world's major injection mold and stamping mold production countries, among them, China's mold output value for the world's most.Data from the National Bureau of Statistics shows that the total industrial output value of China's mold industry has risen from 136.731 billion yuan in 2010 to 251 billion yuan in 2017.It is estimated that by 2020, the total sales of molds in China will reach 218.8 billion yuan.The trend of total mould sales in China from 2013 to 2020According to customs statistics, in 2017, China's total export of molds was $5.49 billion, and the export destination countries or regions reached 201, including developed countries in Europe and the United States.At present, beilun, huangyan area of zhejiang, shenzhen, dongguan and other places in guangdong province have initially formed a certain automobile mold industry cluster.With the rapid development of automobile industry in recent years, mould enterprises and mould products have also increased substantially.The news reminded me of a report published in March 2009 at the beginning of the economic crisis.Jeff Mengel, then an analyst at Plante & Moran PLLC, warned that about 15 per cent of plastics processors in North America, or about 1,000 companies, would be liquidated in the next 18 months.Times do get tough.And many of the companies that listened to him and prepared themselves for changing times survived.By 2011, Mengel reported that profits and capacity utilisation had started to edge up.The processing plant learned to do more with fewer resources, creating a more efficient industry.Today, as then, there are winners and losers.Leaders need to "keep up with The Times and maximize risk response."