The Impact of Industry 4.0 on Suppliers and the Steel Industry
It is hard to believe we are in the fourth phase of the Industrial Revolution, or Industry 4.0. Each unique phase has had a distinct impact on the steel industry. At the end of the 18th Century, the first phase involved revolutionary mechanization through water and steam power. The second, at the end of the 20th Century, was characterized by the efficient, increased mass production of specialized goods. The third phase occurred in the early 1970s and furthered production automation using electronics and information technology. Lastly, this ongoing fourth phase sees Midwest steel suppliers and manufacturers adopting increased autonomous systems fueled by big data, machine learning, and artificial intelligence (AI).
Industry 4.0 generally has transformative effects on how all businesses operate—from strategy to innovation to operations to talent acquisition and development. The challenge for the steel industry, as with any “revolution,” is how to continue to provide products and services to existing customers while investing in opportunities presented by new technologies. The digitalization of Industry 4.0 already has and will continue to impact how steel suppliers work and how manufacturers across industries relate with their steel suppliers.
Supply Chain Effects
A Deloitte global survey of manufacturers and the impact of Industry 4.0 revealed a paradox around supply chain changes. While executives identified the supply chain as a top area for transformation, those in the trenches of daily operations were a bit slower in embracing investments in digital transformation. This tension between innovation and real-life operations certainly applies to the steel industry. However, there is a broad and strategic commitment among steel industry executives to access and incorporate data that is increasingly available to improve the overall productivity and efficiency of the supply chain.
Safety
With the increase in autonomous steelworking technologies comes opportunities for steel industry suppliers to create safer places to work. Although robots require maintenance and can break down, they do not get injured on the job. Also, data from robots, “co-bots,” and other connected devices can provide information about potential hazards from machinery or processes. Safer workplaces have less employee turnover and are more efficient, resulting in better pricing and value for customers.
Energy Conservation
Industry 4.0 gives steel suppliers more significant means for gathering more intelligence about their energy usage. For instance, different steel grades require different amounts of energy to produce. Sensors can measure exactly which steel grades are the most energy-intensive and then analyze energy pricing and modify production times so those grades are produced when power is least expensive. Organizations can also install sensors to monitor their O2 emissions and energy usage to improve processes and reduce waste.
Staffing
The digital transformation of Industry 4.0 poses challenges across industries when it comes to finding the right talent for new jobs. While some work completed by robots means that certain jobs are no longer necessary, new jobs are also created. Steel industry suppliers are in the thick of this organizational and cultural shift. They still need fabricators, welders, programmers, and robotics talent. Ideally, steel suppliers are investing heavily in training and retaining top talent to optimize production and meet the needs of their customers.
One steel executive sums up how the staffing shift should happen, saying, “Automated processes and plants require employees who understand how robots function, their requirements, and how they need to be managed. That is a lot of work for humans.”
How Industry 4.0 Impacts Your Steel Industry Relationships
While the steel industry is not typically a natural early adopter of new technologies, steel suppliers are connected to customers across diverse sectors. They must adapt to meet their changing needs. Products are becoming more technologically advanced across automotive, trucking, and construction projects. These evolutions mean new changes in steel parts, products, and applicable fabrication processes. More than ever, having a trusted steel supplier capable of customization and mass production is important.
When evaluating steel industry suppliers, consider the following:
- Large Inventory of the products you need most
- Value-added Services: stamping and forming, robotic welding, machining, forming, etc.
- Just-in-time delivery
- Staff with current certifications and affiliations
Choosing a Forward Thinking Steel Supplier
Westfield Steel is committed to continuous improvement and investing in new technologies. Westfield Steel leverages cutting-edge technologies to enhance our production processes, ensuring superior quality and efficiency. Our dedication to safety, energy conservation, and staff development positions us as a leader among steel suppliers. For a reliable partner who understands the importance of innovation and excellence, connect with Westfield Steel today and experience the benefits of a forward-thinking steel supplier committed to meeting your needs in this rapidly evolving industry.
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