Takeaways from AFS CastExpo 2025

Last week, Michael Stone and Zac Venos of Porter White’s investment banking team attended the American Foundry Society’s CastExpo 2025 along with over four hundred foundries, metal casters, suppliers, and related service providers. We spoke with many owners in the foundry and metal casting industry who are gearing up for a strong year, optimistic about aggressive trade reforms (and enforcement), surging reshoring efforts, and evolving federal policies, all of which make it easier to compete with international competitors. If you’re an owner of a metal casting operation and missed the conference, here are the key takeaways:

Reshoring Is Real – And It’s Accelerating

Over 1.1 million U.S. jobs have been announced from reshoring and foreign direct investment efforts since 2021, and U.S. manufacturers continue to see a resurgence in interest from OEMs seeking domestic supply chain stability. A recent survey showed 42% of foundries have already reshored for customer needs, and nearly half reported winning contracts based on delivery times and quality. The message from OEMs is clear: proximity, speed, and reliability now trump lowest cost. This is a prime moment for foundries with modern capabilities to capitalize – or, for owners considering a transition, to sell into a strong market with increased demand.

Key Trump Trade Policies Impacting Foundries

Trade policy under the Trump administration is in full focus, and it’s impacting foundries across the board. Tariffs have been expanded to level the playing field for U.S. manufacturers, including adding tariffs to many industries’ goods, targeting bad actors, and removing many country exemptions to streamline tariff enforcement and crackdown on dumping and customs fraud that hurts U.S. manufacturers.

Regulatory Rollbacks Could Ease Operational Costs

The Trump administration is also targeting deregulation. Dozens of EPA and OSHA rules are being revised, paused, or eliminated – from air quality standards to climate reporting mandates. The Trump administration has yet to hire a new OSHA Chief and is expected to reduce the burden on business owners. The EPA is also expected to undergo a $20 billion budget cut for grants related to climate control and clean energy programs.

Labor Issues Remain

Reshoring is expected to strain labor markets, as the number one barrier to bringing more production back to the U.S. is a lack of skilled workforce. Over the past few years, even existing foundries we have spoken with have had difficulties finding talent to fill a 3^rd shift or have had to rely on H-2B employees from Mexico to meet its normal labor operating needs. Based on what we are seeing in the market, employment verification (proof of E-Verify) and labor issues have become a larger due diligence focus during transactions, and we expect that focus to continue during the Trump administration.

Technological Advancements in the Foundry and Metal Casting Industry

Automation has become a focus point for manufacturing businesses across the board. Foundries and metal casters are leveraging automation technologies to improve production processes, precision capabilities, product quality, and workplace safety while also reducing reliance on human labor. Over the past year, we have spoken with many foundry and metal casting businesses who are integrating Industry 4.0 technologies such as smart sensors, AI, big data, and machine learning to enhance decision-making, predictive maintenance, and operational flexibility. In our discussions with private equity firms and corporate strategic acquirers, the integration of these technologies is consistently highlighted as a significant value driver in acquisition considerations.

What This Means for Foundry and Metal Casting Owners

Whether you’re scaling to meet reshoring demand or contemplating your next move, it’s critical to understand how these macro trends impact your company’s value and future. Domestic producers should likely see pricing power strengthen, although the extent of which will depend tariff implementation and enforcement, but the threat of future tariffs may accelerate reshoring efforts already underway. Supply chain complexity will rise for any operation relying on imported materials or unfinished cast components, and the compliance risk and enforcement exposure related to importers and multi-national companies are significantly higher. Strategic buyers and private equity firms are looking to invest in U.S.-based foundries and metal casting businesses that benefit from these trends or can help fill supply gaps.

As investment bankers with significant experience advising foundry and industrial owners, we’re here to help you evaluate your questions:

• Is now the right time to sell?
• How could tariffs and reshoring affect your valuation?
• What types of buyers are actively acquiring foundries?
• What can I do to maximize the value of my business?

If these questions are on your mind, please contact Michael Stone or Zac Venos to learn more. We specialize in helping business owners like you understand what your business is worth and navigate the potential decisions to sell, acquire, or expand.

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