The Colombian metalworking and fabrication industry has highly contributed to the development and consolidation of other sectors of the economy, which include construction, automotive, appliance, and machinery that require inputs of steel and iron. Geographically, the country is in a key location to the development and innovation of the productive projects in the metalworking and fabrication industry. Colombia has the best prospects for growth in the consumption of rolled steel products, with consumption increasing by 49% over the last four years. Colombia acts as a huge opportunity with a regional presence of the 70 million metric ton market, which can be reached with zero tariffs. There are incentives, such as free trade zones and a stimulus plan for productivity and employment, along with incentives for job creation, which reduce production costs for companies present in Colombia and serve the domestic market and exports from Colombia.
Key Market Trends
Manufacturing is the Key Driver to the Metal Fabrication Equipment Industry in Colombia
The manufacturing industry is one of the topmost productive activities in the Colombian economy. It derives immense strength from the trade agreements that attract a lot of investments in the form of capital. Furthermore, its strategic location makes it the center for production and distribution, as well as an export hub. This sector's growth is also due to competitive costs, an attractive domestic market, skilled labor, and high quality in production processes. Conditions that ensure world-class products are characterized by innovation and adaptability to the demands from the international market. However, the manufacturing industry in Colombia has other significant advantages that make the sector more competitive, like the tariff preferences on several products in various markets through the trade agreements signed by Colombia. Furthermore, the sector follows the stricter implementation of GMP (Good Manufacturing Practices) in the stages of the production process, the high level of quality and innovation in products, with certifications recognized worldwide, and production flexibility to adapt to the demands of the international market.
Metal Forming Equipment Grow Faster due to Automotive Sales Growth
The metal forming market is growing due to the increasing vehicle production, along with the stringent emission norms and fuel economy regulations that are driving the demand for lightweight materials in the automotive industry. Additionally, new metal forming techniques, such as hot forming and hydroforming, are making metal-formed components better and stronger. Thus, there is a rising demand for equipment used in the metal forming processes. Other driving factors for this market include growing vehicle production and the increasing trend of making the vehicle lightweight.
Competitive Landscape
The Colombian metal fabrication equipment market is fragmented and highly competitive, as the manufacturers are increasingly aiming to embrace digital technology trends to automate the fabricating processes. Hence, continuous and rigorous innovation is driving companies to improve their profit margins and sales turnover across the world.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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