Page 36 - EDM Today Winter 2025

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the mold beat

Driving the industry pulse

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In 2024, U.S. mold manufacturers conti nued to face a varied landscape of challenges. Even as the
average rate for all shop services rose (more than fi ve percent over 2023 data) and wage growth slowed
to average growth of only one percent (according to the recently released AMBA 2024 Wage and
Salary Report), U.S. mold manufacturers sti ll struggled to fi nd their footi ng when it came to improving
profi tability.

While it may seem that the survey results would be somewhat favorable to the employers’ bott om line,
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and administrative fees, EDM Today Magazine
EDM Today Magazine For example, U.S. mold manufacturing organizati ons
the easing of wage and salary increases observed in the 2024 report does not necessarily equate to more
money in their pockets, due to a variety of other conditi ons.
“[Employee] retention costs,
who faced external strains on their bott om line in
including wages, health
other areas (such as heightened energy, rising raw
insurance, 401K plan fees
material costs and/or other increases to overhead)

with current shop rates, even aft er raising them.
have risen dramatically; reported a struggle to balance these rising costs
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property/liability insurance,
Many employers also reported fi lling new and
existi ng roles slower than in the previous few years,
utilities, professional fees
thus impacti ng producti on and capacity uti lizati on.
and other elements have all
Sti ll others indicated that they were maintaining
increased as well.”
current salaries or pausing pay increases in an
att empt to maintain profi tability amidst the rising
cost of other services and goods.
2024 AMBA Shop Rate Survey Participant

Ulti mately, lower infl ati on in 2025 is vital to curbing these upward yearly wage trends, easing the
intensity of other rising costs and improving profi tability.
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Changing Conditions equal Opportunities for U.S. Mold builders

The challenge of profi tability (parti cularly in 2024) is made more clear by a deep dive into last year’s
economic conditi ons, which included high infl ati on rates, rising consumer prices, elevated overhead,
higher labor costs and economic uncertainty due to the coming 2024 U.S. presidenti al electi on.
Executi ves also signaled that, at the ti me, many customers were withholding or pausing work, parti cularly
in the automoti ve industry.

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EDM Today Magazine EDM Today Magazine EDM Today, Winter 2025 Issue
*Reference: Data collected from the AMBA 2024 Shop Rate Report and AMBA 2024 Wage and Salary Report

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