Metals manufacturing and fabricating companies have many opportunities to thrive and grow — as long as they keep adapting to a dynamic business and logistical environment. Global events will continue to trigger both sudden and gradual changes across the sector. Meanwhile, technologies, energy options, and sustainability strategies continue to advance.

By focusing on four strategic capacities in the next 3 – 5 years, management teams can build the flexibility and resilience that metals companies require for long-term success; namely, supply chain, strategic technology, employee experience, and energy leadership. 

Optimize your supply chain

Supply chain disruption has become the new normal. To find new ways to manage risk, most manufacturers are now constantly exploring new supply chain partners and options. This increases supply chain complexity, which can be more challenging to manage. However, complexity is not necessarily a problem. New business benefits, such as increased competitiveness and new markets, can make this extra effort worthwhile. 

Keep an eye on what’s working in your supply chain, and discard what is not. Implement policies to regularly review existing processes, partners, and technologies all along your supply chain and retire ones that are not performing well.

Nurturing stronger relationships with supply chain partners can also create new opportunities. Try periodically speaking with your supply chain partners about their evolving capabilities, resources, and business considerations. Such conversations can provide early insight into emerging opportunities and risks. Don’t limit interactions with suppliers to transactions and logistics. In-depth conversations with partners can yield valuable business intelligence that is difficult to obtain through other means. 

It can be especially helpful to nurture relationships with local supply chain partners, as well as agencies and/or organizations that support regional industry. Understanding local capabilities and working with nearby companies can offer surprising flexibility when more globalized supply chains become compromised. 

Apply strategic technology

Deploying the latest digital technology for business and operations is essential for success in the metals industry. From robotics to enterprise resource planning (ERP), technology complements people, operations, suppliers, and customers across the industry. 

For instance, smart inventory management can help your company more accurately align material availability with production. This reduces the amount of “safety stock” that must be kept on hand. A modern inventory management system can help manufacturers organize production schedules based on available materials, which keeps production flowing even when certain jobs are delayed.

Decision analytics is a key capability for business, operational, and workforce planning. Advanced ERP and capital investment planning platforms enable executives and managers to get data-driven answers to deep questions about how their business is operating internally, and as well as within its market or industry context. 

Traceability is an increasingly important consideration for compliance with regulatory and sustainability requirements. Metals companies can gain a competitive advantage by being able to easily furnish end-to-end information about their products. Traceability also enhances quality control and safety, for instance, by ensuring that workers in metal fabrication are not exposed to unsafe fumes or substances. Ensure that any technologies you implement support traceability in your products.  

Improve employee experience

It takes great teams to make great metal products. Attracting and retaining skilled talent remains a key challenge for any manufacturing business. Factories and offices that are excellent places to work, offer competitive pay and benefits, and provide opportunities for advancement will enjoy economic, operational, and business benefits. Providing an excellent employee experience supports every other corporate goal. 

Learning to invite and welcome input from your employees at all levels, taking that input seriously, and making improvements that employees see and benefit from supports long-term business gains. For instance, plant workers can offer informed ideas about useful ways to reduce waste, or to deploy robotics and automation.

Often, inflexibility is a key point of friction in the manufacturing workforce. Workforce management software can give employees more flexibility and control over their work schedules. This technology also can help companies innovate incentives to motivate workers to meet business needs. 

By offering attractive career paths and support for professional development, metals companies can grow the value of the talent they already have and reduce attrition. Human resources managers can play a crucial role in long-term business planning, not just by looking at how many workers might be available in which locations but also by offering insight into how employees can shape the company’s future success. 

Delegate energy leadership

The cost, sources, and reliability of energy are key considerations for long-term success in the metals business. Typically, the largest metals companies already have dedicated energy management executives or departments. But often, mid-sized and smaller companies fold energy responsibilities into operations or facility management roles. 

Elevating strategic responsibility for energy to top company leadership is one of the best ways to ensure overall efficiency, sustainability, and resilience. A vice president of energy or a chief energy officer can give energy a clear voice in all planning decisions. Also, designating this top role and assigning it to an individual enhances accountability for energy performance.

A top energy executive at a metals organization can more easily spearhead long-term contracts for power and fuel prices, implement initiatives for renewables and energy efficiency, negotiate with utilities and other energy providers, and diversify energy resources. Multilayered or unclear corporate responsibility for energy and the energy budget typically leads to missed opportunities. 

Taking these steps in the coming years could help your metals company be adaptive, innovative, and efficient enough to meet 21st-century challenges.

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