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News Release from: Frost and Sullivan | Subject: Korean welding growth
Edited by the Manufacturingtalk Editorial
Team on 11 August 2006
Ships and vehicles drive Korean welding
growth
Requirements for welding equipment will continue to expand as strong global demand drives South Korea's export-focused industrial sectors with demand from the shipbuilding and automotive.
The presence of welding-intensive end-user sectors such as shipbuilding and automotive has fuelled the growth of the South Korean welding equipment market Requirements for welding equipment will continue to expand as strong global demand drives South Korea's export-focused industrial sectors with the principal demand originating from the shipbuilding and automotive sectors
This article was originally published on Manufacturingtalk on 28 Apr 2004 at 8.00am (UK)
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Frost and Sullivan finds that South Korean Welding Equipment and Consumables Markets earned revenues of US$656.2 million in 2005 and estimates this to reach US$955.0 million in 2012.
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The presence of strong unions in the sector means that enhanced productivity through automation will be the best way to offset the possibility of rising labour costs.
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"Strong shipbuilding orders will ensure robust demand for welding technology in South Korea in the short and medium term," said Frost and Sullivan research analyst Titus Hocevar.
"Increasing productivity in shipbuilding will force companies to hike investment and capital expenditures, thereby having a positive ripple effect on the uptake of welding equipment." Heightened international trade is triggering a need for more ships, which, in turn, is having a beneficial impact on the welding technology markets of the Far East.
At the same time, rising incomes are fuelling demand for cars in emerging Asian markets.
As capital expenditures rise in order to expand automotive production capacity in the region, the use of welding equipment will receive a boost.
Moreover, strong global growth will stimulate export demand for industrial goods, translating into higher capital expenditures.
This will positively influence the demand for welding technology in the export-focused South Korean economy.
However, the loss of international competitiveness in relation to China threatens to have a detrimental effect on export demand, on which South Korea is heavily reliant.
The impact on some industries could be particularly severe and could dampen demand for several capital equipment inputs, including welding equipment.
"China is attracting most international investments in the Far East region at present," cautioned Hocevar.
"At the same time, South Korea's automotive, shipbuilding and other industrial sectors are under constant competitive pressure from other South-east Asian economies, meaning that they have to continually invest in new capital equipment to remain competitive." A strategic response to this challenge will centre on increasing competitiveness by boosting productivity through process automation.
As this trend widens, it will have a favourable impact on welding equipment demand in the country.
South Korean Markets for Welding Equipment and Consumables is part of the Welding subscription, which also includes research in the following markets: Malaysian Welding Equipment and Consumables Markets, Latin American Welding Equipment and Consumables Markets and, Emerging Opportunities in Russian and Ukrainian Welding Equipment and Consumables Markets.
All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
* About Frost and Sullivan - Frost and Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years.
The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities.
Frost and Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
* South Korean Markets for Welding Equipment and Consumables - B822-10.
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