Frost & Sullivan: Positive Automation Trends and Rising Demand Sparks Growth in the Central and Eastern European Welding Equipment and Consumables Market

LONDON - The outlook for the Central and Eastern European (CEE) welding equipment
and consumables market is positive due to escalating demand for consumables
and equipment from the heavy industries, construction, and power sectors. The
automation trend is driving arc welding and laser welding industries. Several
manufacturing projects have moved to East Europe because of lower cost of
production and inexpensive labour. This trend has given a fillip to the
welding market in CEE.

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To remain competitive in this expanding market, manufacturers should
increase their penetration in the CEE region. They should also establish a
strong brand image, while offering end-users cost-effective, standardised and
high quality products.

New analysis from Frost & Sullivan
(www.industrialautomation.frost.com), Opportunities in Central and
Eastern European Welding Market, finds that the market earned revenues of
over US$355.3 million in 2007 and estimates this to reach US$548.9 million in
2014.

“Significant demand from the construction, power, pipelines and
automotive industries have resulted in mounting uptake of welding equipment
and consumables in Eastern Europe,” says Frost & Sullivan Senior Research
Analyst Archana Chauhan. “The shift of the industrial base to Eastern Europe
and automation trends is inducing welding manufacturers to penetrate into the
Eastern European regions.”

Manual methods of welding are being replaced by technologically
innovative methods, and arc and laser welding systems sales have stepped up.
End users are now focussing on more reliable and improved operating
equipment, in a bid to lower production costs and address issues of smoother
weld and increased productivity. There is an escalating need for high-alloyed
consumables to comply with safety regulations and yield higher productivity.
Most end-user industries are using laser technology and replacing
manual-welding techniques with mechanised equivalents. This trend will
continue and the market will grow during the long term.

Poland is the largest contributor to the welding market in CEE. It has
benefited from the shift of the industrial base to East Europe. The welding
industry in the countries such as Czech Republic, Slovakia and Romania is
stable and thereby the completion of the previous projects and some new
greenfield projects have contributed to increasing welding revenues.

The rising demand from residential and non-residential construction as
well as restructuring activities in Eastern Europe is further supporting
growth. Heavy manufacturing industries also account for a sizeable share of
revenue generation. There is sufficient demand from job shops and repair
garages, which constantly use welding equipment. All these factors are
driving the uptake of welding equipment and consumables.

One of the key challenges for manufacturers is to maximise penetration of
East Europe and successfully pitch their products and services to the
industries located in the region. Manufacturers should build the long-term
viability of the welding equipment and consumables by convincing the broad
customer base about its quality and superiority.

Manufacturers should explore or leverage untapped end-user industries
such as power, oil and gas and fabrication where demand is increasing. This
will offset the lack of potential revenue from Western European regions.
Market participants should devise effective cost-cutting and sales strategies
as well as promote innovative technologies that support improved
productivity.

Manufacturers should create awareness about new technologies in the
Eastern European region, which is mainly dominated by manual welding and
traditional methods. Research and recent welding studies have concluded that
enhanced welding quality and speed can be accomplished by using sophisticated
welding equipment, quality welding consumables and automating the welding
processes.

With rising demand from end-user industries and automation at its peak,
manufacturers should undertake constant investments in Research & Development
(R&D). They should also develop mechanised equipment and different alloys of
welding consumables that are cost-effective and effectively meet the demand
of end-user industries.

There has also been sufficient R&D in the welding consumables market to
bring out diverse alloyed consumables that cost less than nickel and steel,
while offsetting inferior quality, low-cost hydrogen electrodes from China.

“Continuous technological advances have stimulated demand for welding
equipment,” concludes Archana Chauhan. “Manufacturers should improve their
service portfolios, broaden their market reach, and increase penetration into
the CEE region.”

If you are interested in a virtual brochure, which provides a brief
synopsis of the research and a table of contents, then send an e-mail to
Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com
, with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country. Upon receipt of the above
information, a brochure will be sent to you by e-mail.

Opportunities in Central and Eastern European Welding Market is part of
the Industrial Automation & Process Control Growth Partnership Service
programme, which also includes research in the following markets: European
Welding Consumables Market, European Metallic Welding Equipment Market,
Indonesian Welding Equipment and Consumables Market and Asian Resistance
Welding Equipment and Consumables Market. All research services included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.
Interviews with the press are available.

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Opportunities in Central and Eastern European Welding Market
M288-10

Contact:
Joanna Lewandowska
Corporate Communications - Europe
P: +48-22-390-41-46
E: joanna.lewandowska@frost.com

www.frost.com/

Source: Frost & Sullivan

Joanna Lewandowska, Corporate Communications - Europe, +48-22-390-41-46, joanna.lewandowska at frost.com, for Frost & Sullivan ; Photo: https://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO