Page 16 - Fall 2024 EDM Today

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the mold beat

Driving the industry pulse

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As U.S. mold builders begin to look towards the next year, executi ves are focused on one thing - how will
2024 end and how will 2025 compare?

For many domesti c mold manufacturers, 2024 has been a year of holding steady, cutti ng costs and
fi nding ways to leverage an ever-shrinking workforce. As reported in AMBA’s recent 2024 Shop Rate
Report, industry capacity has held steady at 71 percent, and manufacturers are heavily focused on ways
to reduce overhead and produce alternate revenue sources. Examples include mold/die repairs and/or
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engineering changes, contract machining, part producti on and the generati on of prototype molds.*

Secondary Sources of Revenue for U.S. Mold Manufacturers

70%
61%
60%
50%

40%
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30%
18%
20%
10%
10%
6%
1%
0%
Import Tools
Mold/Die Repairs / New Mold/Die Builds
Contract Machining
Part Production
Prototype Molds
Engineering Changes
Moving forward, U.S. mold manufacturers do anti cipate capacity rising by three percentage points;
this opti mism is likely due to a variety of factors, such as new tools coming through in the automoti ve
and medical industries, the U.S. presidenti al electi on passing and slowing infl ati on. However, to begin
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forecasti ng the coming months, mold manufacturers must consider a few key factors in order to plan and
budget appropriately.

First, having an understanding of economic conditi ons within industries served is one key considerati on.
With insight into consumer demand, industry needs and anti cipated purchase orders, mold builders can
budget more accurately for the coming months, anti cipate profi tability and pivot if needed. Another
factor of equal importance, however, is an understanding of new profi tability opportuniti es and the
business strategies that allow management teams to increase revenue while simultaneously reducing
costs.
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*Reference: Secondary revenue and current and anti cipated industry capacity is pulled from the AMBA 2024 Shop Rate Report

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