Powdered Metals in North Central Pennsylvania

Powdered metallurgy manufacturing processes form green metal parts from particulate powders which, then, are sintered to produce complex, near-shape parts with high dimensional controls, low scrap, and desirable metallurgical properties. Pennsylvania, especially the North Central WIA, has captured the dominant share of the U.S powdered metallurgy manufacturing. Threats to the powdered metallurgy manufacturing industry in the North Central WIA include global competition and the possibility that the industry might begin reaching a growth ceiling associated with maturing industries.Opportunities exist for the powdered metallurgy manufacturing industry in the North Central WIA to yield cost and flexibility advantage relative to more traditional metal forming industries. Additional opportunities are available for improving the impact of the powdered metallurgy manufacturing industry on employment and earnings in the North Central WIA through substitution of local supply for imports and through increasing the competitiveness of manufacturing industry is subject to global competitive pressures. Porter's Five Forces Analysis provides a framework for benchmarking the global competitive position of the powdered metallurgy manufacturing industry. The five forces underlying Porter's model include: threat of new entrants; threat of substitute products; bargaining power of customers; bargaining power of suppliers, and competitive rivalry within an industry. The Penn State WED Initiative is designing a study of the global competitive position of the powdered metal part manufacturing industry around Porter's framework as an aid to strategic planning for the stability and growth of the industry.