Industries in the Primary Metal Manufacturing subsector smelt and/or refine ferrous and nonferrous metals from ore, pig or scrap, using electrometallurgical and other process metallurgical techniques. Establishments in this subsector also manufacture metal alloys and superalloys by introducing other chemical elements to pure metals. The output of smelting and refining, usually in ingot form, is used in rolling, drawing, and extruding operations to make sheet, strip, bar, rod, or wire, and in molten form to make castings and other basic metal products.
Primary manufacturing of ferrous and nonferrous metals begins with ore or concentrate as the primary input. Establishments manufacturing primary metals from ore and/or concentrate remain classified in the primary smelting, primary refining, or iron and steel mill industries regardless of the form of their output. Establishments primarily engaged in secondary smelting and/or secondary refining recover ferrous and nonferrous metals from scrap and/or dross. The output of the secondary smelting and/or secondary refining industries is limited to shapes, such as ingot or billet, that will be further processed. Recovery of metals from scrap often occurs in establishments that are primarily engaged in activities, such as rolling, drawing, extruding, or similar processes.
Excluded from the Primary Metal Manufacturing subsector are establishments primarily engaged in manufacturing ferrous and nonferrous forgings (except ferrous forgings made in steel mills) and stampings. Although forging, stamping, and casting are all methods used to make metal shapes, forging and stamping do not use molten metals and are included in Subsector 332, Fabricated Metal Product Manufacturing. Establishments primarily engaged in operating coke ovens are classified in Industry 32419, Other Petroleum and Coal Products Manufacturing.
The Primary Metal Manufacturing sector, classified under NAICS 331, is experiencing a transformative phase influenced by several key qualitative trends. One significant trend is the increasing focus on sustainability and reducing carbon footprints. Companies in this industry are investing heavily in green technologies and renewable energy sources to minimize environmental impact. This shift is driven by regulatory pressures and a growing consumer demand for eco-friendly products. As a result, innovations such as carbon capture and storage technologies, as well as processes that enhance energy efficiency, are seeing substantial development and implementation.
Another trend is the integration of digital technologies, like the Internet of Things (IoT) and artificial intelligence (AI), to improve production efficiency and product quality. These technologies enable predictive maintenance of equipment, real-time monitoring, and automated controls, which are essential for optimizing operational processes. As the digital transformation continues, companies that adopt these technologies are likely to gain a competitive edge through increased productivity and reduced operational costs.
In terms of forecasts, the demand for primary metals is expected to rise due to infrastructure growth, particularly in emerging markets. The ongoing global shift towards electric vehicles and renewable energy projects, which require extensive use of metals such as aluminum and copper, is expected to further drive demand. However, constraints such as fluctuating raw material prices and geopolitical uncertainties pose potential challenges. Overall, while the industry is poised for growth, players must adapt to these evolving trends to capitalize on new opportunities.
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