Page 24 - Metalorming Magazine January/February 2023

Electronics
A stay-at-home mindset throughout the Covid pan- demic helped drive elec- tronics-industry gains, tem- pered by the computer-chip shortage. With the pandemic winding down and chip pro- duction rising, forecasters expect modest global growth in this sector for the near- term. Look for a CAGR of roughly 5 percent through 2024. Through 2027 accord- ing to analysts from ReportLinker, the electronics manufacturing services market is poised to grow by $167 billion, accelerating at a CAGR of 6 percent.
To meet “unprecedented demand for stamped and plated electrical contacts and terminals, Penn United Technologies recently opened its Advanced Materials Processing Facility in Sarver, PA, a 50,000- sq.-ft. facility housing a new electroplating line.
together with the growing real-estate market also will (increase) HVAC demand.”
Noted trends directly impacting industry dynam- ics include green HVAC sys- tems, nanotechnology in air- conditioning systems, and use of solar power for heat- ing and cooling. Further, the U.S. government continues to offer rewards promoting low power consumption and the use of renewable-energy sources.
In addition, according to ReportLinker, “standards established by the U.S. gov- ernment to keep a check on
2023 MARKET FORECAST
The downturn hitting components and semiconductors is likely to con- tinue for at least the first half of next year, according to Michael Yang, analyst for Omdia.
“We probably are not yet at the bot- tom,” he says, as quoted in Design News. “There will be an excess of supply and slowing demand for the next three to six months (through June 2023), until macroeconomic conditions work themselves through.”
While artificial intelligence and automotive continue to drive demand for electronic parts, Yang notes, con- sumer electronics, smartphones and data centers comprise the most appli- cations for electronics parts.
The copper market represents a key indicator for the electronics-manufac- turing market, with electronics driving an expected CAGR of 4.9 percent through 2030 to $447 billion, according to Acumen Research and Consulting (ARC). While ARC pegs the Asia-Pacific region as dominant in copper-market share—67 percent—we can expect the North American copper market to grow by a CAGR of 45.1 percent through 2030.
Assuming the expected full recovery of chip supplies, many remain bullish on this sector. Case in point: Penn United Technologies. Last fall the company opened its Advanced Materials Process-
ing Facility in Sarver, PA, a 50,000-sq.-ft. facility housing a new electroplating line. The new line, as explained by company president and CEO Bill Jones, enables it to expand electroplating capacity by 20 percent for inhouse-stamped metal con- nectors and terminals.
“During the last few years,” says Jones, “we have experienced unprece- dented demand driven by exponential growth in our connected world, and the need for stamped and plated elec- trical contacts and terminals. As a result, we have outgrown our current facility.”
HVAC
“The future of the U.S. heating, ven- tilation and air-conditioning (HVAC) equipment market looks good, with opportunities in commercial and res- idential sectors,” notes a recent ReportLinker article. The U.S. HVAC- equipment market is forecast to grow at a CAGR of 3.4 percent through 2027, with major market drivers including a higher rate of building renovation and federal tax credits to make existing facilities energy efficient and control greenhouse-gas emissions.
In another HVAC-market report, Grandview Research adds, “Global warming and the resultant extreme cli- matic conditions will help uptick mar- ket demand... In addition, the demand for energy-efficiency equipment
HVAC-system operations will play a pivotal role in driving demand. In addi- tion to efficiency standards on the demand side, standardizing manufac- turing processes on the supply side of the market also has helped tremen- dously in reducing hazards to the envi- ronment and carbon emissions... U.S. customers have access to favorable tax credit and rebate programs.”
On the supplier front, Lennox recently announced plans to explore “strategic alternatives for its European commercial HVAC and refrigeration businesses,” according to a recent press release, “which represent approximate- ly 5 percent of the company's revenue,” said company CEO Alok Maskara. “This decision is consistent with our focus on North America, where we are best positioned to achieve our revenue growth and profit margin targets." In addition, the company pledges to con- tinue to invest in its high-performing North American Heatcraft Refrigeration Products business. "With an even sharper focus on North America, Lennox has significant opportunities ahead to accelerate profitable growth over the coming years,” added Maskara.
Driving innovation in the sector are new federal regulations (effective Jan- uary 1, 2023). According to a recent website article from industry supplier Carrier: “Every 6 yr. the Department of Energy (DoE) reviews the effects of
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