The Covid-19 pandemic has had a significant impact on South Africa’s steel industry, but Stewarts & Lloyds is taking advantage of this by making changes within the company. These developments have allowed the steel supplier to not only survive but benefit from these circumstances.
According to Stewarts & Lloyds’ steel and tube branch manager, Richard Horsley, before Covid-19 struck, stock levels were already low due to price reductions. He adds that once the pandemic swept across South Africa and lockdown measures came into effect – companies in the industry either conducted very little production or none at all, which created an incredible ripple effect on the manufacturers’ ability to keep up with demand for their products as well as affecting their ability to sell what stock they had left. Companies had to be innovative if they were to survive.
Steel Shortages Led to Price Increases
While it was expected that the market would recover quickly, projects in South Africa created a bigger demand than what could be met by the current supply. Consequently, price increases occurred due to steel shortages and challenges in the construction sector throughout the country, explains Wayne Field, Stewarts &Lloyds’ Bloemfontein branch manager. A major factor responsible for recent changes within global markets is an increase in the activity related specifically to infrastructure development which has led many firms in the sector to prosper, says Field.
Be that as it may, manufacturing mills did not expect the industry to come back as strongly and as early as it did, so some started production later than expected. This delay created significant shortages in flat steel which affected the supply of tube-range products such as long or wide tubes for boilers; it also caused shortfalls with other types like heavy wall mild steels used during welding processes that create structural elements on building fronts where there’s less room between them due to their proximity.
Focus on Productivity Despite Global Economy’s Negative Impact
The Covid-19 pandemic and lockdown regulations contributed to Stewarts & Lloyds’ increased production volumes to meet demand. The difficult times were challenging, but the company managed them by focusing on what they do best: providing high-quality consumer goods at competitive prices through an excellent customer service experience.
The global economy is currently facing many challenges and South Africa has been impacted, Field points out. China, which manufactures more than 50% of the world’s steel (and therefore stimulates economic growth), had a reduction in exports due to their environmental concerns as well as problems with production efficiency that caused them fewer profit margins on what they were selling- so, naturally, this created an effect in South Africa too!
Field clarifies that overseas mills have also had to deal with the same issues as local ones, where demand exceeded supply which resulted in significant price increases for steel globally over recent months and it continues even now. The uncertainty is caused by a few factors such as higher transport costs due to increased material prices like iron ore being demanded abroad; extended rolling programmes leading up towards bottlenecking at some point, so overselling occurs while others can’t produce enough products. Put differently, they’re underutilised because there are not enough raw materials coming through on schedule from suppliers either domestically or in international markets.
Stewarts & Lloyds’ Commitment towards Improved Service Delivery
The changes at Stewarts & Lloyds have resulted in a shift towards an experience that is more industrial than financial. While they still provide the same level of service, there are some new features worth noting for both end-users and contractors alike.
“Many Stewarts & Lloyds’ branches have increased their product offerings to customers and are focusing more on all steel subranges, as well as a Fluid Control range,” highlights Horsley. These expansions are an ongoing process to ensure total customer buying satisfaction.
Field concludes that the team at Stewarts &Lloyds is committed to providing the best products and services they can offer and will continue to innovate to give their best to the customers, industry and South Africa at large.
