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For steel casting manufacturers, it is a crystal ball exercise to materialise the opportunities after the widespread of the deadly Coronavirus. In order to achieve growth, the steel casting manufacturers need to overcome the challenges and follow

Here, we will enumerate the trends & challenges of steel casting industry in 2021.

Trends in the Steel Casting Industry

Adding value to production whilst remaining efficient

To add value to production is the trend followed by Indian steel casting Industry. Simultaneously, it calls for being efficient.

Investing in technology

In order to maintain unison with the fast-paced world, the latest technology is always demanded. Consequently, investment in technology is a major trend followed by Indian steel manufacturers. Moreover, maintaining technology leadership will ensure quality standards.

Increasing the number of skilled workforces

To add value, to remain efficient and to run technology requires highly skilled workforces. So recruiting skilled staff is required to run the industry with greater ability.

Retain qualified staff

Every year few members of staff retire. This calls for loyalty programs, namely, pension plans, profit sharing, etc. This in turn helps retain qualified staff who further recommend skilled and qualified people.

Maintaining quality

Production of lightweight casting which has a longer life span is the key to success for Indian steel manufacturers. Maintaining and improving the quality of production can be maintained with hardcore research and effective communication between foundry owners, engineers and the entire staff.

Moving to international frontiers

Globalisation and expansion is the dream of every steel manufacturer. Penetrating into international markets will be a trend in the year 2021.

Being innovative

In order to excel in market and maintain a position, innovation is required. Embracing new concepts & ideas ensures goodwill in the industry for decades to come.

Strategic Challenges of Steel Casting Industry

Shortage of Man force

The current scenario portrays the fact that the steel casting manufacturers are facing a shortage of labour. This is the outcome of lockdown, due to which labourers have fled to villages or their hometowns. Hence, the rate of production can’t meet the demand. Eventually, elevating the cost of production. This becomes a tough challenge.

Finance

The spread of COVID-19 has led to higher cost of borrowing capital. In spite of the fact that RBI has reduced the policy repo rate five times and by 135 basis points, yet, the steel casting industries in developed countries will continue as big players. In order to compete with the big shots, huge finance is required which in turn will be the primary challenge in 2021.

Logistics

Indian steel manufacturers depend majorly on roadways and railways for logistics. Owing to the increase in the price of petrol, the freight tends to increase, thereby, reducing the revenue. Similarly, Indian railways suffer an infrastructural setback. Overcoming these setbacks make managing logistics another big challenge.

Shortage of Raw material

Due to the pandemic, importing raw materials from other countries has decreased to a large extent. Procuring raw material from domestic sources does not full fill the requirement. Thereby, leading to cut throat competition. Resultantly, the cost of raw materials has increased.

The final word

To excel in the upcoming era, steel casting manufacturers need to follow the trend and be aware of the challenges. Overcoming challenges wisely will ensure prosperity.