Lincoln Electric Competitive Landscape

Part
01
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Part
01

Lincoln Electric

Lincoln Electric is a global manufacturer of welding products, arc welding equipment, cutting equipment, and robotic welding systems. The company's 2019 annual revenue was $3.011 billion.

Company Overview and Products

  • Lincoln Electric is a global leader in the manufacturing, design, and development of welding products, arc welding equipment, robotic welding systems, plasma, and oxy-fuel cutting equipment. Its headquarters is in Cleveland, Ohio.
  • Lincoln Electric has about 60 manufacturing locations.
  • The company's products include welding equipment, cutting equipment, gear & tools, accessories, welding wire, flux & rods, guns & torches, automated welding & cutting systems, training equipment for educators, weld fume control, orbital welding systems, and automation systems solutions.
  • Lincoln Electric also offers welding training and welding safety training.

Revenue

Pricing

  • Lincoln Electric's featured products have a wide range of prices, from $36.82 and $4,856.00.
  • On Amazon, Lincoln Electric's best-selling welding products cost between $168.54 and $21,000. The most expensive of these is the Engine Driven Welder, while the lowest in price is a Drive Roll Kit.

Perception of Quality

  • The general customer sentiment on Lincoln Electric's products is positive, customers believe that Lincoln products last longer. Many customers who gave their feedback on Amazon after buying the company's products perceive them as of superior quality.
  • One customer who bought a Multi-Process Welder said, "THIS machine is a wise investment...not some junk that will break after a couple months with pathetic delays getting the problem taken care of..."
  • Another customer who bought a Lincoln Electric Powermig said, "Just a great welder works perfectly my Old Lincoln welder lasted 26 years so I replaced it with this Lincoln Powermig 210 out of the box first weld was perfect".

Social Media.

  • The company has 1,010,823 followers and 1,018,067 likes on Facebook. The company's posts include welders, their work and equipment they use.
  • On Twitter, the company has 32,300 followers. The company's posts include welders, their work and equipment they use. Lincoln Electric also posts about welding safety measures.
  • On Instagram, the company has 177,000 followers and it posts photos of welders, their work, and equipment they use.
  • On LinkedIn, the company has 57,156 followers. It posts about their products, events, seminars, and welders and their work.

Monthly Website Traffic

  • According to SimilarWeb, the company's website has an average of 374,510 visits per month.

Research Strategy

To find the marketing budget information with a focus on digital marketing, our initial approach was to search through the website of Lincoln Electric and its social media pages such as Facebook, LinkedIn, Twitter, and Instagram. Here, we were able to determine the company's description, products, and services. We were unable to determine the marketing budget through this strategy.

Next, we scoured through the company's annual reports, white papers, blogs, and newsroom to determine its marketing budget. Although we found information on revenue using this strategy, we could not identify the company's marketing budget through this strategy.
We also searched through third party reports and articles such as CNN, PRNewswire, Business News Daily, Forbes among others. Here, information available was mainly about the company description and revenue, but we could not retrieve the marketing budget through this strategy.

Furthermore, we attempted to triangulate this data. We reasoned that if we could find the sum of expenses and the percentage spend on marketing, we could then find the marketing budget for Lincoln Electric. We searched through for this on the company's website, annual reports, media publication and reports such as PRNewswire and Business News Daily. This strategy was also not fruitful as we were not able to find enough data for triangulation.
Part
02
of two
Part
02

Welding Products Market: Trends

Some trends driving the welding products market in the US include building and construction industry growing demand, rising innovative developments in the automotive industry, and the rising demand of welding technology (automation).

Trend #1: Building And Construction Industry Growing Demand

  • According to research, one of the major driving trends in the United States welding product market is the growing demand from the construction industry. Due to rising infrastructure and urbanization development, the growth of the industry is increasingly propelled, which results in the boost of demand for welding products.
  • Welding products are extensively used in the construction of buildings, pipelines, bridges, and other engineering projects for the development of buildings. The increasing number of commercial and residential projects will, therefore, create a demand for the welding products.
  • Colfax Corporation is a renowned welding company that formulates, manufactures, develops, and supplies products and equipment used in automated welding, cutting, and joining for steels, aluminum, and other metal alloys. As of 2018, the corporation’s welding segment represented 43% of its total net sales.
  • In order to support the growing building and construction trend, the corporation, under its ESAB division, invented covered welding electrode that are required by different industries, including power generation, construction, transportation, ship building, and energy. The corporation also remains the largest supplier of filler metals to the US construction industry.

Trend #2: Rising Automotive Industry Innovative Developments

  • The Fortune Business Insights report forecasts an increasing demand of welding products in automotive due to the industry’s changing behaviors. Currently, the US automotive industry is focusing on reducing the weight of vehicle by replacing metal parts with plastics. In order to join such parts, high precision welding is required.
  • The automotive industry also prefers embracing advanced welding technology, which is capable of making high tensile strength steels that are required to manufacture automotive parts. This technological superiority will only be achieved through the utilization of welding products.
  • Illinois Tool Works Inc. remains one of the top suppliers of welding products in the United States. The company’s welding segment is branded a specialty consumable and value-added equipment manufacturer with the most innovative and leading welding technology. Because of its latest welding products, the company primarily serves the automotive sectors, including other industries like fabrication, energy, and shipbuilding.

Trend #3: Rising Demand Of Welding Technology (Automation)

  • There is an increasing demand for advanced welding technology in welding automation, which is anticipated to drive the demand of welding products.
  • Fortune Business Insights reported that there is rapid growth in the welding industry and new welding methods are currently invented and implemented, which causes challenges and opportunities for current engineers. For this reason, welding techniques like arc welding and plasma welding are holding for greater opportunities in the future for creating innovative designs and shapes of products.
  • According to Grandview Research, arc welding, which is the latest technology segment, witnessed the highest growth in 2018, and is anticipated to lead the market in the forecast period due to its innovative opportunities.
  • Lincoln Electric, one of the leading welding products supplier continues to drive innovation in welding automation. Earlier this year, the company introduced its latest innovation of arc welding product, known as POWER MIG 140 MP. The multi-process welder is expected to increase efficiency of welding processes.

Research Strategy

To determine the trends driving the welding products market in the US, our research team browsed through numerous marketing reports, press publications, expert blogs, and news articles related to the inquiry to gather any insight about the current trends. We also reviewed welding products experts' opinions regarding the trends in the market. The research team specifically curated these trends based on the latest and most updated information found in different market reports, including Market Watch, Grandview Research, and Fortune Business Insight. To locate examples of companies driving these trends, the research team located reports outlining the top players in the US welding products market, from which we searched through their websites, blogs, and annual reports to see how they are driving the trends.
Sources
Sources

From Part 02
Quotes
  • "The growing construction and building sector across the globe coupled with increasing demand for welding products is boosting the welding products market growth."
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  • "U.S.; being the largest contributor in North America, is also expected to drive the market owing to increasing demand from building and construction sector"
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  • "The market is majorly driven by growing demand from construction industry. Rapid urbanization and infrastructure development are the key factors propelling the growth of the construction industry, which in turn is projected to boost the demand for welding products. "
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  • "The significant market players profiled in the report include Colfax Corporation (U.S.), Fronius International GmbH (Austria), Hyundai Welding Co., Ltd. (Singapore), Illinois Tool Works Inc. (U.S.), Kemppi Oy. (Finland), Obara Corporation (Japan), Panasonic Corporation (Japan), The Lincoln Electric Company (U.S.), Tianjin Bridge Welding Materials Group Co., Ltd. (China), and Voestalpine Bhler Welding GmbH (Germany)"
Quotes
  • "For the year ended December 31, 2018, welding consumables represented approximately 43% of our total Net sales."
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  • "ESAB produces equipment and filler metals for virtually every welding and cutting application. We invented the covered welding electrode more than 100 years ago and remain the largest filler metals supplier globally."
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  • "Businesses in this segment produce arc welding equipment, consumables and accessories for a wide array of industrial and commercial applications. "
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  • "Over time, acquisitions have helped in the development of the company's core segments while creating new platforms for expanding long-term growth opportunities. Since it got acquired in July 2016, the Engineered Fasteners and Components business has strengthened the company's Automotive OEM business."
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  • "The POWER MIG 140 MP welder will allow our customers to work efficiently have one tool to satisfy a variety of projects,” said Joseph Keipert, Associate Product Manager of Commercial Equipment at Lincoln Electric. "