According to a recent report, 9 out of 11 separate gear manufacturing markets in the United States are poised for growth in 2017. The report, released by the American Gear Manufacturer’s Association (AGMA), projects that demand for gears will grow 6.4 percent in 2017, to $40 billion in total sales (which includes domestic consumption, exports, and imports).
This comes after three straight years of slight recession in the gear manufacturing industry, with negative growth of 5.2 percent, 8.8 percent, and 16.6 percent in 2014, 2015, and 2016, respectively.
The somewhat strong volatility here is a result of a transformative period in the gear manufacturing industry. The arrival of new technologies, including 3D printing, is forcing gear manufacturers to think about their trade in new ways. Plus, like most industries, gear manufacturing experience periods of growth and recession in an ever-fluctuating curve.
The 11 major markets tracked by the AGMA, listed in order of fastest-growing to least fastest-growing are:
- Oilfield Equipment – 17.7%
- Mining Equipment – 11.5%
- Industrial Machinery – 11.4%
- Power Equipment – 11%
- Material Handling Equipment – 10.4%
- Machine & Other Tools – 9.1%
- Shipbuilding – 6.6%
- Construction Machinery – 6.3%
- Aerospace – 5.7%
- Farm Machinery — -2.0%
- Railroad Equipment — -21.9%
As one of the oldest-running gear manufacturers in the state of Ohio, we’ve seen gear demand rise and fall for more than a century. Gears are simple machines necessary for an ever-widening range of applications, and it’s highly unlikely that we’ll ever stop relying on them in one form or another. The key for gear manufacturers is to stay abreast of the latest trends, investing in new technology, keeping pace with demand, and educating themselves to better serve the major markets that keep us thriving.
If you’re interested in a quote for your next gear manufacturing job, be sure to contact Federal Gear.