5 Essential Steps Every Steel Manufacturing Startup Must Take
After the crisis of 2009, a noticeable growth was again visible in the industry.
20:41 10 June 2020
Today in industrial production, metallurgy occupies 18% of the total, and in export - 14%. At the same time, 10% of production is accounted for by ferrous metallurgy. But 80% of all capacities are provided by nine large enterprises. Modernization of production and installation of new advanced equipment helps create competitive products.
But it is difficult to gain a leading position in the production market, especially for a beginner. Business requires significant investment, which, even with the most favorable forecast, will pay off only after 2 years. However, having correctly adjusted the production process, the business owner will receive a stable high income.
- Don’t rush to pay too much for energy
You can make a big mistake overpaying for utilities if you are dealing with huge energy costs. It is better to choose the right energy supplier, which provides the lowest cost. This will help save on monthly payments. For convenience, you can use the online price comparison of service providers in your country.
- Do market research
If you fail as the owner and manager of a steel company, this may have a negative impact on you, given the time, effort, and money invested in such a business. In order to avoid big losses, you need to weigh everything well and study the market before you begin full-fledged work. The best option is when startups work on the basis of contracts of large companies that control all processes. That is how you will not lose.
- Find a unique path
Currently, many products use steel, respectively, the possibilities are endless. But for your startup, it’s best to find one unique path and follow it. No need to try to work for many different industries and lose in all of them. For example, some manufacturers boast advanced technology in their processes like the production of galvanized coils in unusual ways. And it works!
- Rationalization of energy efficiency
If we are talking about energy efficiency, then there is a very favorable environment for manufacturers in our time. For example, some companies have a significant advantage, unlike competitors. If you are a significant enough steelmaking enterprise in the world market, you will just have to create all the conditions for receiving a large part (or even all) of the energy from modern methods of producing renewable energy. For example, it can be solar panels or wind turbines.
- Work with the right people
The staffing plan will depend on the scale and direction of the enterprise. In any case, the selection of stuff must be approached very selectively. The competition in the market is high, the requirements for the volume and quality of products are constantly growing, and accordingly, the requirements for the management and staff of the enterprise are growing as well. In conditions of intense competition, good specialists can be lured by someone else.