Should you invest in the Welding Industry?

By: Sumeet_Manhas

The welding industry is looking at a bright future. Specialists expect the market to reach $27.22 billion (USD) by 2027. What is currently driving the market is the increasing investments in the tools that are needed, inside the industry. Also, the pandemic has affected the market in a way that it should force mergers to happen, which is seen as a positive driving force. Here is what you need to know, if you are looking to invest in the welding industry.

A continuous Growth expected for the next Seven Years

A study published by Fortune Business Insights states that the presence of large-scale companies which offer rental services, will bring the market to rise, overall. All product should see a growth, from the welding machine, to consumables. It should also be true in all process types (Arc, Spot, MIG/TIG, Laser and more). It will grow in many industry sectors, which should include automotive, the building and construction industry, heavy engineering as well as railway and shipbuilding.

In 2019, the total market value was estimated at $19.5 billion (USD). It should grow at a constant rate between 4 and 5 percent, for the next 7 years, bringing the value closer to $30 billion by the time 2027 ends. These numbers clearly indicate that it is a good time to start investing in this industry. However, it will be important to look at each company in the industry, separately, to distinguish those that should thrive to others that may fold, or be acquired by their competitors (which may also bring them higher value, if this happens).

The Effect of the Pandemic on the Welding Industry

Like in many other sectors, the coronavirus crisis created a lot of damage in the industry, throughout the last year. That’s mostly because the construction industry came to a halt in many countries, for periods of time, and that fabrication became stagnant, as well. It forced many different companies to shut down, due to the overall losses. The welding industry being employed by businesses in many different sectors, that strongly felt the effects of the lockdown, it ended up being devastating for many companies.

However, it also implies that the strongest have survived. This should reflect itself, in the months to come, by a wave of acquisitions of those that did not make it through the crisis or are currently at risk of failing. It is forcing companies to review their strategies for the short and mid-term, creating a more dynamic market, which is great new for the welding industry in general.

By Sumeet Manhas

© 2021 Copyright Sumeet Manhas - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.