For upcoming small-scale steel fabrication companies, competing toe-to-toe with the big firms for business poses a severe challenge. For instance, big enterprises in the steel fabrication industry have a significant influence on the supply chain, which makes it hard for startups to compete effectively. Startup steel fabrication companies should keep their ears on the ground for emerging trends and take advantage of the business prospect. It is one of the surest ways for startups to gain a competitive edge since the big firms in the steel fabrication industry struggle with slow decision-making. This article provides insight on trending issues that startup steel fabrication firms should explore.
Adoption of the Newest Technology
According to a report that was published by the Department of Jobs and Small Business, there is a shortage of structural steel and welding experts countrywide. The problem has become a source of frustration for steel fabrication shops. The fact that there is no immediate solution to the problem is something that small steel fabricators can use to their advantage by investing in newer technology. Instead of competing for the skilled workforce, small startup steel fabricators can adopt emerging robotics and automation solutions early on. Large steel fabrication enterprises are slow to react and adopt newer technology in different aspects of production
Tariff Policies
In March 2018, the United States of America proposed an increment of 25% in tariffs on steel from China, Canada, Mexico and the European Union. The policy has disrupted the global steel supply chain and slowed down business for steel fabricators in the United States. Startup steel fabrication businesses in Australia should take advantage of the disruption and explore the US market. The chances are that startup steel fabricators in Australia can build business relationships with a few overseas clients by the time the dust settles.
Additive Manufacturing
For one reason or another, steel fabrication machines do break down despite regular maintenance and servicing. When it happens, fabrication shops approach the manufacturer for repairs or part replacements. However, with increasing competition in the fabrication industry, time has become a highly valuable resource. The ability to print machine parts from plastic and composites as and when required has become essential for steel fabrication companies. Through 3D printing, additive manufacturing has an enormous potential for startup steel fabricators since the know-how is affordable. It is especially the case when there is an immediate need for custom fabrication of tools, fixtures or robotic end effectors.
For more information on trends in steel fabrication, talk to a local company like Ready Steel.
