Of all the metals, aluminum counts as the most important non-ferrous metal, as well as the most abundant metal found in the Earth’s crust.
The global metals market typically comprises of establishments engaged in the manufacturing of metals, including base metals, precious metals, and aluminum. Over the past few years, the metals market has started to reshape owing to the disruptive forces of technology, the threat of new entrants, and political changes across the globe. As a result, leading organizations the metals market space have started investing highly in technologies to automate operations, improve the quality of the products offered, and drive efficiencies. Although the metal market is driven by the rise in the demand for metals among the end-user segments such as automobiles, heavy machinery and equipment, and construction, several factors are expected to influence the growth of the market. The factors include:
- Volatility in the price of raw materials: The recent economic slowdown has dramatically affected the prices of raw materials used to manufacture end products. As a result, it becomes essential for the metals market players to increase investments to maintain consistency in their offerings.
- Lack of supply chain visibility: Disruption in the supply chain is one of the major concerns for metals market players as it is one of the main aspects to bridge the demand-supply concerns. A lack of visibility in the supply chain process will hamper the overall operations and performance in terms of planning and execution. As a result, organizations are finding it essential to effectively respond to supply chain disruptions while maintaining the quality of the offerings.
Many such factors are compelling firms to leverage the use of robust industry risk assessment solutions. Industry risk assessment solutions help firms comprehend the relative risks involved while entering new markets within a specific geographic area. The risk assessment solutions also help companies to increase their focus on understanding the opportunities and accordingly position their offerings.
The Business Challenge
- The Client: A metals market client
The client, a leading player in the metals market with business operations spread across the US, wanted to understand the relative risk across the industry and determine the opportunities to position their offerings based on the target audiences efficiently. With the help of the industry risk assessment, the client also wanted to seek ways to enhance the time to market of the products being offered. Moreover, the primary objective for the client was to reduce the supply disruptions and reach out to their target audience seamlessly.
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Our Approach
The industry risk assessment experts at Infiniti followed an extensive research methodology to comprehend the potential risks in the metals market. The research methodology comprised of interviews and discussions with prominent stakeholders in the metals market space. The experts also compiled information from secondary sources such as industry databases and company presentations in the metals market.
The Solution Benefits and the Business Impact
With the help of Infiniti’s industry risk assessment solution, the client was able to analyze the risks involved while entering new markets in the US. The client also sought ways to realign their offerings to meet the rising consumer demands and accordingly allocated the resources to meet the business requirements. Realized savings in operational cost by 13%.
The Future
The future of the metals market is expected to be influenced by innovations and automation, which will play a fundamental role in the production of metals. Additionally, advancements in technologies and the growing popularity of robotics are expected to drive the growth of the metals market over the next couple of years.
