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New Investments in Automotive and Construction Step Up the Demand for Welding Consumables in Europe - The European welding consumables market has been on the road to recovery this year, after the economic downturn
New Investments in Automotive and Construction Step Up the Demand for Welding Consumables in Europe

 

PRZOOM - /newswire/ - London, United Kingdom, 2010/06/15 - The European welding consumables market has been on the road to recovery this year, after the economic downturn.

   
 
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Increasing installations of wind turbines in Spain, Germany, France, Italy and the United Kingdom will continue, stepping-up the demand for wires and electrodes. There will be greater investments in automotive and construction in the long term, boosting the demand for welding consumables.

New analysis from Frost & Sullivan (industrialautomation.frost.com), Strategic Analysis of European Welding Consumables Market, finds that the market earned revenues of $983.4 million in 2009 and estimates this to reach $1,139.5 million in 2016. The welding products covered in this research service are stick electrodes, solid wires, flux-cored wires, and submerged arc welding (SAW) wires and fluxes.

"Consumption of steel is expected to rise due to the restocking of depleted inventories along with the new demand spurred by the energy and automotive sectors," says Frost & Sullivan Senior Research Analyst Archana Chauhan. "This increase indicates a spurt in welding activities and thereby a rise in the demand for the welding consumables."

However, the spectrum of competition in this market ranges from the highly competitive markets, where there are many sellers and each has little or no control over the product price, to fairly less competitive for niche consumables. Therefore, there is a lack of product differentiation. Additionally, increasing customer service requirements pose a major challenge for European welding manufacturers. Customer satisfaction is essential in building long-term, profitable relationships, which lead to customer loyalty and repeat business.

"With escalating raw material prices, competition from Asian manufacturers, and low profit margins, several manufacturers are unable to provide effective customer services such as efficient packaging, after-sales service, and expert guidance to their customers," explains Ms Chauhan.

Welding consumables manufacturers can differentiate themselves and increase their profit margins by providing rapid and on-time delivery, higher alloys of consumables that present higher productivity, better packaging and marketing, and a reduced average production cost.

"A one-stop-shop for all the welding needs can be one of the key strategies to drive the growth and penetration of welding companies," concludes Ms Chauhan.

If you are interested in receiving an Executive Summary of this study, please send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com, with your full name, company name, title, and contact details.

Strategic Analysis of European Welding Consumables Market is part of the Industrial Automation & Process Control Growth Partnership Services programme, which also includes research in the following markets: European Welding Consumables Market, Indonesian Welding Equipment and Consumables Market, Global Welding Market for Automotive Applications, Asian Resistance Welding Equipment and Consumables Market, and Global Welding Automation Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Strategic Analysis of European Welding Consumables Market / M548-10

 
 
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New Investments in Automotive and Construction Step Up the Demand for Welding Consumables in Europe

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Contact: Joanna Lewandowska 
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