Page 38 - MetalForming January/February 2022

2022
Passage of The Infrastructure Invest- ment and Jobs Act by the U.S. Congress this past November is expected to prime the construction pump in 2022 and beyond, as it provides public investment in transportation networks and public works projects. The act, reportedly allo- cating $1.2 trillion in total funding over 10 yr., includes $550 billion in new spending during the next five, divided between improving the surface-trans- portation network ($284 billion) and society’s core infrastructure ($266 bil- lion), according to McKinsey & Co.
Expect continued growth, albeit at a slower pace, for the off-highway mar- ket in 2022, according to a market fore- cast from oemoffhighway.com, which notes that new orders for U.S. con- struction machinery through Septem- ber 2021 topped same-period 2020 orders by 29.1 percent. Orders should continue rising through 2022, though leading indicators suggest a lower growth rate. Like everywhere else, sup- ply-chain issues will continue affecting
deliveries. Even so, production of off- highway equipment is expected to increase by 9.5 percent in 2021 as com- pared to 2020, and in 2022 top 2021’s production numbers by 12 percent.
Defense
U.S. defense spending, which still outpaces that of China, Russia, United Kingdom, India, France, Japan, Ger- many and South Korea combined, buoys a U.S. defense market that should grow at a CAGR of more than 2 percent through 2030, reaching approximately 900 billion by then, according to Mordor Intelligence. Like all other economic sectors, the pan- demic seriously impacted this market, with 2020 seeing a decrease in previ- ously planned spending, but a turn- around is underway.
The U.S. Congress has passed a $770 billion defense-spending bill for 2022, and at press time the bill awaits Presi- dent Biden’s signature. This signals an increase for FY 2022, from $704 billion
allocated in FY 2020.
Oil & Gas
An upsurge in demand for oil and gas pipelines worldwide as well as demand for processing the gas and oil are expected to result in 5.1-percent CAGR growth through 2025 in the glob- al oil and gas pipes market, according to Persistence Market Research. The need for safe transport has seen adop- tion of enhanced techniques and mate- rials to protect pipelines and materials from the corrosive environment and extreme temperature, according to the report, with governments worldwide helping drive such initiatives.
Of course, these initiatives and the use of new-generation technologies require high investment, leading devel- oping countries to continue opting for cheaper alternatives. Newer technolo- gies also demand greater operation and maintenance expertise, which will pressure the market in achieving the forecast CAGR growth. MF
36 MetalForming/January-February 2022
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