In the ever-changing landscape of the sheet metal industry, companies face numerous challenges and opportunities. To delve deeper into this topic, Metal-Interface interviewed Saso Petelin, a key figure at Rooster Ltd.
The Present Hurdles in the Sheet Metal Industry
Supply Shortages and Price Volatility: Over the past three years, the sheet metal market has seen dramatic changes, marked by a significant shortage of product supply. This, combined with high price volatility, has necessitated smart stocking and timely decision-making. Companies who managed to navigate this maze effectively stayed in their favorable market positions despite the turbulent times.
Global Freight Challenges
A notable challenge that emerged worldwide was related to sea freight shipments. Acquiring a container became a daunting task, and the prices soared, often increasing tenfold. These escalated costs inevitably impacted the final price of products, making them unsustainable for end consumers.
How Rooster Ltd Stayed Ahead of the Curve
Investment in Stock and Pricing Consistency: Rooster Ltd's strategy to confront these challenges was twofold. First, they invested more funds in maintaining a proper stock level. This ensured that they faced no significant hurdles during this period. Second, they managed to maintain a consistent pricing level, ensuring that their customers did not bear the brunt of global changes that occurred during these three years.
Future Opportunities and the Way Forward
Anticipating Market Saturation: While the past years witnessed a product shortage, Saso Petelin believes that an opposite scenario awaits in the future. The high demand in the past led to increased production, which might soon result in a market flooded with products. This oversaturation could again affect the final prices.
The Need for Diversification
In such an environment, companies need to diversify their portfolios. By broadening their range and being solution-driven in areas with product delivery issues, companies can find new avenues of growth. A diversified portfolio ensures companies are better equipped to serve end users, offering them a wider range of products under one roof.
Thinking Outside the Box: In addition to diversifying their core offerings, companies should also consider exploring unconventional opportunities, potentially outside their current base. Such side projects can offer stability and growth, ensuring companies remain in good shape.
Conclusion: The sheet metal industry, like many others, has its share of challenges and opportunities. However, with smart strategies, like those employed by Rooster Ltd, and a willingness to adapt and diversify, companies can not only survive but thrive in this dynamic market. As Saso Petelin rightly pointed out, diversification and out-of-the-box thinking are the keys to navigating the future landscape of the sheet metal industry.
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- Schweissen & Schneiden 2023 Press release
Adapting and Thriving: Rooster Ltd's Strategic Response to Sheet Metal Industry ChallengesPublished on 04/10/23