Are the success factors for the US steel industry any different from those in other parts of the world? Similarities are most certainly there, so some of the aspects of successful steel trading are universal for sure, but not all of them. Stay with us as we take a brief but informative look through some of the most important problems, expectations, and solutions in the US steel industry, that can make or break a newcomer.

Attention to Quality

There is only a handful of steel manufacturing nations that the world holds in high esteem on account of their attention to quality above all else. The United States happens to be among those few nations, so quality is of the highest importance here. This prioritization of quality is not just exclusive to the steel manufacturing industry alone, mind you, because any trade-related directly or indirectly to the US steel industry must also adhere to those same standards if they hope to have any chance of success here.

The Federal Group USA stands as an example of the famous American quality in metal fabrication, metal casting, and machining services. The top US manufacturers utilize Six Sigma principles to bring affordability to their customers with lean manufacturing, without sacrificing on the quality they expect.

Understanding the Competition

The business has suffered to a significant degree over the course of the last six years in particular, and there’s no denying the fact that cheap Chinese steel is the major reason behind the setback. China has managed to reduce the price of steel manufacturing significantly because of two advantages that it always has in any industry the country decides to enter.

1. They have a virtually unlimited supply of cheap labor
2. Quantity over quality

Metallurgy is a complicated science, so it’s impossible for anyone unsuspecting to determine the differences in poor quality steel and high-quality steel without a lab test, which in itself is quite difficult. As a result, many businesses on US soil often end up choosing cheaper Chinese steel products.

After all, if something is cheaper to buy, looks and feels the same as higher-priced products, it just makes more business sense to go with the cheaper product. That thinking is exactly what has led to the following negative impacts.

1. The authentic American steel industry has not just failed to grow, it has shrunk by about 4.5% between 2014 and 2019
2. This happened in spite of the higher quality that American steel is famous for
3. Poor quality steel has now been used in a lot of construction projects, which might be a risk
4. The Chinese steel industry is now controlled to an extent in its internal impact within the US, but internationally, China has a huge lead
5. Understanding the difference and the possible repercussions have led to even stricter quality control within and around the steel industry

These are all important factors to consider because it is necessary to understand the importance of lean manufacturing.

Lean Manufacturing Must be Adopted to Remain Competitive

In order to remain competitive and produce high-quality steel, lean manufacturing, and management are going to be crucial. To be able to remove unnecessary expenses, time-wasting steps, and deliver exactly what the customer orders are all critical essentials for any steel company in the United States today.

Lean is already quite widely adopted in steel manufacturing,  but perhaps more attention is needed from the industries that surround steel as well. The relationship between the manufacturer and the consumer in the steel B2B sector is particularly direct, so in order for the core steel industry to succeed again, the ones depending on it must also be able to see growth.