METAL POWDER INDUSTRIES FEDERATION 105 COLLEGE ROAD EAST PRINCETON, NEW JERSEY 08540-6692 USA TEL: (609) 452-7700 FAX: (609) 987-8523 E-MAIL: info@mpif.org WEB SITE: www.mpif.org

Despite facing a perfect storm of challenges in 2007, the powder metallurgy (PM) industry in North America remains the world’s largest and most innovative PM market, reports Mark Paullin, president of the Metal Powder Industries Federation (MPIF), here at the 2008 World Congress on Powder Metallurgy & Particulate Materials.

“The shrinking market share of domestic OEMs, the shift away from full-size SUVs and light trucks, spiraling energy costs, and volatile commodity prices have all hit the PM industry simultaneously,” Paullin says. “However, the weaker dollar has made PM parts makers more competitive in the international marketplace, and U.S. manufacturers report a 66 percent reduction in PM parts lost to offshore companies.”

Metal Powder Trends

Iron powder shipments, continuing a downward trend begun in 2005, posted a modest decline of 2.9 percent in 2007 to 404,649 short tons. The PM parts segment declined 3.3 percent to 364,688 short tons. Weakening automotive production, especially SUVs and light trucks, which contain up to about 65 pounds of PM parts per vehicle, greatly influenced the downturn.

Copper powder shipments declined 8.2 percent to 19,991 short tons. The PM parts segment decreased by almost 8.9 percent to 16,610 short tons. Tin powder shipments plunged 19.4 percent in 2007 to 785 short tons. Both copper and tin were impacted negatively by the softening PM parts market and higher commodity prices.

The stainless steel powder market in 2007 declined an estimated 5 percent to 9,676 short tons. Nickel powder shipments were off about 5 percent to an estimated 9,190 tons. Tungsten and tungsten carbide powder shipments increased an estimated 3 percent to 4,650 tons and 7,360 tons respectively. Total metal powder shipments in 2007 declined 2.8 percent to 509,103 short tons.

Positive Trends in the Automotive Market

“While PM has suffered because of structural changes in the automotive market and vehicle production cuts, there is still cause for optimism,” Paullin stresses. As a net- or near-net-shape technology, PM’s cost savings benefits continue to benefit automotive parts buyers. High- visibility products like powder-forged connecting rods, main bearing caps and transmission carriers are still manufactured in high volumes and used by both the domestic OEMs and transplants. Industry insiders report that Japanese automotive transplant companies are opening their doors wider to new PM applications as they seek to reduce costs.

New engines and six-speed transmissions contain more PM parts. For example six-speed transmissions contain 18 to 26 pounds of PM parts. The new GM High Feature 3.6L V-6 DOHC engine contains about 36 pounds, which is more than the total PM parts content in the average U.S.-built vehicle was in 1998. Another new product is the dual-clutch transmission, a growing product that contains about 16 to 18 pounds of PM parts.

The next generation of North American-built diesel engines, scheduled for introduction during the 2009 to 2011 timeframe, is another bright spot. New PM applications include cam gear drives, idler gears, timing system sprockets, and fuel injector gears. In addition, powder-forged connecting rods and PM bearing caps are currently undergoing validation testing and the outlook for acceptance looks promising.

Because of the shift away from full-size SUVs and light trucks to crossover vehicles and cars, the average PM content per vehicle has stabilized in 2008 at 43 pounds, the same as 2007. This number will improve when production volumes are expected to normalize at the annual rate of 15 million to 15.5 million light vehicles after the second quarter of next year. In contrast, the average European-built vehicle contains 20.5 pounds of PM parts, and the average car in Japan, about 19 pounds of PM parts.

During the past year the MPIF Technical Board has been working with its members to assess the total number of applications and PM parts in a typical North American-produced vehicle. While the study is not yet finalized, the typical vehicle has at least 230 different applications and more than 750 PM parts.

The MIM Market

The North American metal injection molding (MIM) market is expected to grow in the range of 10 to 15 percent this year. The market in 2007 is estimated at about $155 million in sales from 20 to 25 job shops. Medical products, firearms, and hand tools are the top three domestic markets. Only a handful of MIM parts makers make parts for automotive applications, the most important of these being turbocharger vanes. Injection molding has been successful in making hardmetal twist blades with a uniform helical twist. While iron–nickel alloys and stainless steels dominate the MIM materials mix, specialty materials are finding applications too. They include copper, titanium, hardmetals, soft magnetic alloys and superalloys.

Technology Trends

Faced with macroeconomic and marketplace challenges, the PM industry continues to invest in new technology. Developments in metal powders, equipment and processes are leading the way to higher- performance materials and new applications.

MPIF and the PM industry have been investing in new technology through the MPIF Technical Board and the Center for PM Technology (CPMT).

Investment in new technologies is vital to the success and future growth of the PM industry, Paullin reports. “Our industry has been through many up-and-down cycles over its history, and has always survived into the next growth phase,” he says “We are still a relatively young industry with a great potential. Innovation will prevail.”