Table of Contents
Research Review, July 7-9
Please make your plans to participate in the annual SFSA Research Review on July 7-9. This year’s meeting will be held in-person in Rosemont, IL. The Review covers the latest in both Carbon & Low Alloy and High Alloy steel casting research under the AMC and STAR programs. The meeting is also your opportunity to interact with the researchers and provide industry steering. The event vets our research portfolio to select the R&D projects to be featured at the National T&O. Registration and hotel information can be found on YM here. Like in previous years, the Research Review will include a Design Day that is open to designers/users of steel castings. Designers/users of steel castings can register to attend the Design Day here.
For any questions, contact Caelan Kennedy (ckennedy@sfsa.org).
SFSA Foundation Scholarships
Will you have summer interns this year? If so, please inform them of these scholarship opportunities. They’ll appreciate you sharing these scholarships with them.
About the Scholarships
The steel casting industry is focused on building the next generation of leaders. As part of this effort, the Steel Founders’ Society of America (SFSA) Foundation encourages companies to hire student interns and recognizes the important work they do. The Foundation offers $2,000 scholarships to student interns who worked at an SFSA member foundry in 2026. These scholarships reward students for their contributions and support their future in the industry.
Scholarship Opportunities
- Schumo Scholarship
Created in memory of Robert M. Schumo, a former SFSA president. His contributions helped establish the Foundation. - Peaslee Scholarship
Created in honor of Dr. Kent Peaslee, a leader in steelmaking education.
Note: Projects for this scholarship must focus on melting or refining. - Cooke Scholarship
Created in honor of Jim and Betsy Cooke, a foundry leader and his wife, an inspiration to the Society.
Note: Projects for this scholarship must focus on management or other non-technical or production. - Stevens Scholarship
Created in honor of Sandy Stevens, wife of Tom Stevens, who edited our Handbook and other Society publications.
Note: Projects for this scholarship must focus on high alloys (corrosion, heat and wear resistant SFSA-supported grades). The High Alloy scholarship offers the opportunity for an additional $3000 scholarship (contact SFSA for additional details).
Who Can Apply
To be eligible, interns must:
- Have worked at an SFSA member foundry during 2026
- Have been responsible for a specific project (not just assisting others)
- Submit a written paper and a PowerPoint presentation about their project
All submissions are reviewed by a committee of experienced industry professionals.
Recognition
Winners will be recognized at the SFSA Technical & Operating Conference in Chicago on December 11, 2026.
Each winner will be expected to present their project at the conference.
How to Apply
To apply, interns must:
- Complete the registration form
- Prepare a paper and PowerPoint about their project
- Get approval from their supervisor
- Email the paper and PowerPoint to Renee Mueller at rmueller@sfsa.org by August 14, 2026
Cracking Class
Fixing cracks that appear during the production of steel castings comes down to knowing what caused them and then understanding the physics to resolve them. At this class in Birmingham, AL on June 9-11, Tom Stevens will teach about the technical mechanics and alloy dependencies, and be joined by Ken Murphy who will share his experience with under riser cracking. SFSA members can register here: https://sfsa.site-ym.com/event/CrackingClass2026 (registration closes 5/25).
Automate 2026
If you plan to attend Automate in Chicago on June 22-25, several automation companies will be attending with interest in foundry opportunities. Two companies will showcase ARM Institute projects done in collaboration with SFSA/members. If you’d like more information or to join our Next Gen Mfg (Industry 4.0) group, please contact Dave.
80th Technical & Operating Conference
The T&O Committee is in the process of setting up this year’s conference. It will be December 9-12 at the Loews Hotel in Chicago. If you would like to recommend a topic and presenter, please contact Dave.
Market News
Manufacturing & Industrial Markets Outlook
Source: ITR Economics
Overall momentum across manufacturing and industrial markets remains positive despite ongoing geopolitical volatility, with even previously lagging segments beginning to move into Phase A, Recovery. Growth is increasingly concentrated in defense, machinery, electronics, and infrastructure-related markets, while broader manufacturing conditions continue to improve.
The outlook for Defense Capital Goods New Orders was revised upward, supported by a significantly larger proposed FY2027 defense budget and elevated geopolitical tensions, positioning defense-related manufacturing for continued strength through 2028. Machinery, electrical equipment, and metalworking sectors are also expected to benefit from continued spending on data centers, digital infrastructure, and industrial upgrades.
Traditional industrial markets remain more uneven. Heavy-duty truck production has entered recovery, while medical equipment shows long-term growth potential supported by demographic trends. Conversely, chemicals, mining, and portions of the automotive sector continue to face near-term softness driven by weaker utilization rates, import pressure, and demand constraints. Higher oil prices could create opportunities for new exploration and drilling activity, though price instability suggests measured growth rather than rapid expansion.
Looking ahead, rising costs for energy, transportation, and manufacturing inputs are expected to pressure margins. Businesses should prioritize operational efficiency, productivity improvements, and disciplined cost management to protect profitability while positioning for opportunities in defense, digital infrastructure, and advanced manufacturing through the anticipated broader upswing into 2028.
SFSA Business Trends
To benchmark your facility with other steel foundry members, SFSA encourages you to participate in the monthly SFSA business trends survey – only participants have access to the results. The quarterly data will no longer be included in the Casteel Reporter. Please complete the business trends survey for April 2026: https://www.surveymonkey.com/r/SFSA_BTB_Apr26. Survey results are provided to participants the following month.
SFSA Business Report
| STEEL FOUNDERS' SOCIETY OF AMERICA BUSINESS REPORT | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 12 Mo Avg | 3 Mo Avg | March | February | January | ||||||
| Department of Commerce Census Data | ||||||||||
| Iron & Steel Foundries (million $) | ||||||||||
| Shipments | 1,884.80 | 1,981.00 | 1,972 | 1,993 | 1,978 | |||||
| New Orders | 1,916.30 | 1,982.00 | 1,972 | 2,030 | 1,944 | |||||
| Inventories | 3,302.00 | 3,338.00 | 3,345 | 3,345 | 3,324 | |||||
| Nondefense Capital Goods (billion $) | ||||||||||
| Shipments | 89.3 | 91.3 | 91.5 | 91.1 | 91.3 | |||||
| New Orders | 98.3 | 94.7 | 91.4 | 92.4 | 100.4 | |||||
| Inventories | 249.3 | 250.2 | 250.3 | 250.3 | 249.9 | |||||
| Nondefense Capital Goods less Aircraft (billion $) | ||||||||||
| Shipments | 77.6 | 79.7 | 80.7 | 79.8 | 78.8 | |||||
| New Orders | 77.9 | 80.7 | 83 | 80.2 | 79 | |||||
| Inventories | 184.3 | 185.9 | 185.8 | 185.9 | 185.9 | |||||
| Inventory/Orders | 2.4 | 2.3 | 2.24 | 2.32 | 2.35 | |||||
| Inventory/Shipments | 0 | 2.3 | 2.3 | 2.33 | 2.36 | |||||
| Orders/Shipments | 0 | 1 | 1.03 | 1.01 | 1 | |||||
| American Iron and Steel Institute | ||||||||||
| Raw Steel Shipments (million net tons) | 7.7 | 7.5 | 7.4 | 7.6 | 7.5 | |||||
Casteel Commentary
Modernization is critical to sustaining the future of the steel casting industry, which provides manufacturing of custom engineered steel parts. As a product form, casting can be readily scaled in volume for a range of quantities, create net shape geometry and take advantage of the wide range of steel grades to provide performance. Steel castings provide an essential service supporting systems from ships to heavy equipment in the most demanding environments.
The largest threat to the steel casting supply chain is from Low-Cost Countries (LCCs) such as China. The disparity in costs comparatively in the US for labor and benefits, energy, regulatory and environmental compliance negatively impact reinvestment in the industry and long-term competitiveness. Many US foundries suffer from aging infrastructure as four decades of globalization have limited investment opportunities for the capital expenditures required for steel manufacturing. Compounding margin pressures is the cyclic nature of steel casting markets. A shrinking pool of skilled tradespeople and engineers poses a challenge for manufacturing custom engineered products.
Our biggest opportunity to make effective and lasting change is through tax policy to help offset foreign subsidies, imbalance in regulatory and compliance costs, and modernization investment risks. Recently, US changes in tax on overtime and accelerated depreciation tax deductions have been helpful. However, a tax credit better incentivizes good businesses to reinvest. The R&D tax deduction to be taken in full for the year it occurred is likewise helpful; however, allowing to account for full value instead of prorated amount promotes continued investment and growth.
Targeted Policy Opportunities for the Steel Casting Industry to Incentivize Modernization, Cap Ex Investment and Workforce Development
- 50% Investment Tax Credits (ITCs) on:
- Labor (all labor – hourly and salary) + benefits (healthcare, FICA, etc.) would directly and significantly address the labor cost differential with LCCs. This would support employment and also help enable US foundries to be more competitive and promote higher wages to attract a stronger, talented workforce.
- New equipment (modernization including Industry 4.0 and Operational Technology). This could be traditional process equipment such as mixers, furnaces, welding equipment, etc. but also new automation/robots. Bolstering foundry equipment demand will also incentivize the suppliers to build new capability/advancement to help advance the industry.
- Workforce education and development (hourly and salary) to promote training for new hires and advancement for current employees including certifications. Existing program funding is largely inaccessible due to requirements for created and retained jobs, which cyclic business limits.
- Infrastructure (new buildings, water pipes, electrical, roofs, parking lots, cafeteria upgrades, etc.) to enable foundries to expand their businesses or improve their companies. Low margins and cyclical business do not support moving forward on these basic needs.
- Tax credits (similar to R&D)
- Safety and environmental improvements/advancements or compliance costs (labor, certifications, auditing, etc.)
- Expand overtime tax credits and offset cost of hiring (advertising, interviewing, etc.)
- Additional considerations:
- Lower tax bracket.
- 0% sales tax for domestically produced castings used in domestic projects, or otherwise encourage customer-supplier partnerships for domestic sourcing.
- Environmental and safety regulatory and compliance – decrease burden, modernize reporting, reduce duplicity, use functional limits and speed permitting.
- Directly fund new equipment. This investment could also be targeted at new Industry 4.0 technology that needs to be implemented and refined.
- Restore and expand Department of Energy Industrial Training and Assessment Centers (ITAC) grants for plant and equipment, and cybersecurity.
- Guaranteed production during lean times. Buying capacity also insures surge demand with castings that are needed moving to the front of the line. This fixed business helps to promote retaining skilled employees and minimizes the cyclical nature of heavy manufacturing.
- Modify FAR and SBA headcounts for business classification and assistance based on foundry site instead of parent company total.
- No (or low) cost loans.
All of the above need to be straightforward, minimizing administrative burden to access and use, to ensure the benefits can be ascertained by the business they are intended to assist. Supporting legacy disadvantaged businesses with these policy changes will provide incentives for the longevity of steel foundries and the supply of steel castings. This commentary was based on SFSA industry surveys. Please let me know if you have any suggestions, comments or questions.
David Poweleit