How to Get Out of Trouble for Seamless Steel Pipe Manufacturers

The Seamless steel pipe industry has been in a downturn for nearly a year. Faced with this phenomenon, many seamless steel companies are demanding a new way out. So, in the face of this phenomenon, what exactly do companies need to survive in such a market environment and even make a profit?

Seamless steel companies must focus their transformation on how to enhance the competitiveness of their main steel business, and there is no shortcut. To improve competitiveness, you might as well try the "stupid idea" of "doing one thing to the extreme".

Please believe that no one industry can go down forever. Everyone should understand the truth that the extremes of things must be reversed. The seamless steel pipe industry is also the same. It was in a downturn this year. I believe that soon this most difficult period will pass!

In the Ruhr area of ​​North Rhine-Westphalia, the coal and steel manufacturing industries were very prosperous in the 1950s and 1960s. According to common sense, they should seize the victory, launch projects, expand production capacity, and focus on making them bigger and stronger. However, they were not fooled by the prosperity. At the end of the 1960s, companies there consciously thought about how to develop their core competitiveness. Every small and medium-sized enterprise had at least one core technology or product of its own. This has brought several enlightenments to the transformation and upgrading of my country's steel industry:

1. Hold on to areas you are familiar with.

With the rapid development of the market, no company can achieve full product coverage. The more advanced the market develops, the stronger the dependence on product segmentation, so as to achieve product complementarity. If you look at this product to make money today, you will be anxious to transform to produce this product, and tomorrow you will see that product makes money, and you will be busy organizing the production of that product, just like "the bear picking corn." In the end, you may even be proficient The field is also lost.
(Expand information: The bear picking corn is a folk proverb. Its story probably means:The bear walked into the cornfield, broke a stick and clamped it under his armpit. After a few steps, he broke a stick and clamped it under his armpit, but the original stick fell off. The bear has been busy in the cornfield for a long time, and finally only has one or two sticks in his hands.This story warns us not to just chase what we don’t have and discard what we have in our hands. In the end, we will only get even less. )

2. Create your own high-end advantages.

The gap between ordinary companies and outstanding companies lies in their unique high-end advantages. Generally, steel products are at a low level, and most companies have the ability to make them. They can only compete for prices in market competition, triggering fierce homogenization competition. The excellent steel companies set their transformation strategy on fine processing. Doing one thing to the extreme, to the point where others can't, can create high-end competitiveness.

3. On the basis of becoming stronger, consider becoming bigger.

At present, the phenomenon of product homogeneity in steel enterprises across the country is serious, sales networks are entangled with each other, repeated research and development, and repeated introduction are frequent. From the perspective of the entire industry, this is actually a huge waste of raw materials, logistics, talents and scientific research resources. In the long run, improving the use efficiency of various resources through integration will be the inevitable development trend of the steel industry after it has grown to a certain extent. This year, the Ministry of Industry and Information Technology issued relevant policies to increase the merger and reorganization of steel enterprises, thereby forming a more influential steel enterprise group. Enlarging the market influence of enterprises through mergers and reorganizations on the basis of stronger competitiveness will become a choice for superior steel companies.

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