Companies that pursue value-addition strategies will secure new business, finds Frost & Sullivanâ€™s Metals & Minerals team
In the Gulf Cooperation Council (GCC), the demand for iron and steel casting is expected to grow by 5 per cent over the next five years. Growth is mainly driven by demand in valves, pumps, cement, mining, and aluminium smelts, with the Kingdom of Saudi Arabia and United Arab Emirates driving the market in terms of local production and consumption. Companies that cater to high-end engineering castings at a reasonable price will gain a competitive advantage.
Frost & Sullivanâ€™s industry docket, Ferrous Castings Market Outlook in GCC, 2017, explores drivers, challenges, opportunities, value chain dynamics, and application segments within the GCC countries. Cement and mining, pumps and valves, aluminium smelts, producers and production, consumption patterns, capacities, and import-export needs and challenges are also assessed.
To access more information on this analysis, please click here. A macro-micro overview showcasing insights relative to global trends across industries is available for the Middle Eastern & North African (MENA) and South Asian (India) markets.
â€śApplication engineering and working directly with end customers will ensure better quality and higher touch points,â€ť said Frost & Sullivan Metals & Minerals Program Manager Vikram Rajeev. â€śCompanies should look toward adopting a process-oriented business model to reap higher returns.â€ť
As buyers have several producer options to choose from, their bargaining power increases. Machining facilities producers have a clear edge over sole raw casting producers. Companies should look toward value-addition to secure business by:
- Lowering inventory carrying costs;
- Developing operational efficiencies;
- Implementing just-in-time delivery;
- Providing flexible commercial terms; and
- Adopting product customisation with technical services.
â€śForeign direct investment in the mining industry, housing infrastructure development, and growth in industrial sectors are factors fuelling strong demand uptake for ferrous casting parts,â€ť noted Rajeev.