Scot Forge SWOT Analysis
Scot Forge has over 125 years of experience in the industry. However, despite serving a wide range of industries, it does not serve the automotive market. This company's SWOT analysis is provided below.
- Scot Forge was founded in Chicago in 1893. It is an employee-owned company that manufactures custom open die forgings and seamless rolled rings.
- The company manufactures discs and blanks, step shafts, bars, hubs, tooled forgings, complex forged shapes, hollows, rings, semi-closed die forgings, and torch and profile cut forgings, among others. It serves the aerospace, bar service centers, defense, education and research, gears, heavy industrial equipment, infrastructure, mining, nuclear, oil and gas, power generation, and shipbuilding markets.
- The company has over 125 years of experience in the industry, including working directly with OEMs (original equipment manufacturers).
- It can forge parts that weigh up to 300,000 lbs. and roll seamless rings up to 252" in diameter.
- They partner with universities to help them innovate and grow. For example, they have partnered with the Kellogg School of Business and Northern Illinois University (NIU).
- Scot Forge invests annually a great amount of capital back into the company to improve, innovate, and expand operations. This move has helped them "stay at the forefront of the forging industry."
- According to some employee reviews, working at Scot Forge does not leave time to spend time with family and friends. This has been corroborated by other employees that say it is hard to find a work-home balance.
- Unlike its competitors, PCC Forged Products and Aluminum Precision, Scot Forge does not serve the automotive industry.
- Strict regulations that encourage the use of "high-performance lightweight components" in the global aerospace industry are generating demand for metal forging. This is an opportunity for the company, as it serves the aerospace market.
- In respect of volume, construction is expected to be the "fastest-growing application for metal forging" in the next years. This also represents an opportunity for Scot Forge as it serves the infrastructure market.
- Globally, lightweight forging is expected to remain highly demanded in the automotive sector. Since Scot Forge does not serve this industry and some of its competitors do, this represents a threat.
- Because steel prices have always been remarkably volatile, they represent a potential threat to the forging industry in general.