The global welding and cutting industry
The global welding product market is expected to grow at a CAGR of 4.5% until 2020. The market is expected to touch $23.8 billion by the end of 2020. The global welding product market is primarily driven by the booming construction and automotive industries. Both segments are rapidly expanding in the developing nations.
The revival in industrial (XLI) demand and increased oil and gas capex, heavy fabrications, export demand, and focus on renewable energy usage should give an impetus for growth in the welding markets.
Demand for automotive products, consumables, and equipment across the region will rise. Lincoln Electric (LECO) should benefit from this trend.
Regions that may drive future welding demand
Growing welding activities in developing countries such as China and India may be a major factor influencing the growth of the welding products industry. One of the restraining factors for growth in developing countries would be the lack of skilled labor.
Lincoln Electric’s network
LECO has manufacturing facilities in numerous countries, including the United States, Australia, Brazil, Canada, China, Germany, India, Italy, Poland, Russia, the United Kingdom, and Venezuela. The company also undertakes major distribution efforts through its wholly owned subsidiaries and joint ventures.
Lincoln Electric’s position in global welding and cutting industry
ESAB, Illinois Tool Works (ITW), and Lincoln Electric are three companies that dominate the global welding products markets in terms of its product range, sales growth, innovation, and distribution network.