In this article, you'll uncover the key reasons why many steel industry players have transitioned into metal service centers and explore the strategies they've used to make that shift. You'll also get a glimpse into how one company successfully transformed its business model.
As part of the seminar titled "Laser Cutting in Structural Solutions", sponsored by BLM GROUP and the Steel Promotion Foundation, we're sharing an exclusive video excerpt featuring SICAM S.p.A., a company that has embraced Lasertube technology to enhance its operations and expand its services.
Watch the video of SICAM S.p.A.'s presentation.
Â
What drives steel stakeholders to become metal service centers?
Over the past few years, the steel industry has experienced significant fluctuations in demand while maintaining stable production levels. This has pushed steel producers to strengthen their control over distribution channels, often through vertical integration.
Meanwhile, middle-sized distributors found themselves caught between large corporations that include steel production in their operations and smaller players who thrive by focusing on local markets and niche segments.
To maintain their independence and remain competitive, these distributors began to focus on adding value to their products, offering everything from design support to machining, so that customers receive fully finished, ready-to-use materials.
Many companies specializing in tubes, sheet metal, and other steel products have therefore chosen to invest in additional machinery, aiming to increase profit margins and secure long-term growth opportunities.
Â
How can this transformation be achieved?
Distribution companies typically have two main strategic options:
- Focus deeply on specific market segments;
- Broaden their range of services while maintaining a wide scope of action, allowing them to later target specific segments once they’ve built a strong customer base.
One effective way to approach the first strategy is to segment your customer database and analyze order history carefully.
From there, you can start meaningful conversations with your clients—understanding what additional processing they might need, whether they can handle it internally or rely on external suppliers, and if they require help with design or production planning.
Once you have a clear view of the downstream supply chain, you can define the best strategy for future investments.
Optimizing your spending is crucial to avoid resource waste and ensure that your investment covers all necessary areas—whether that means buying new equipment, hiring staff, or expanding your service offerings.
Among the various solutions for processing tubular products like tubes, beams, plates, angles, and profiles, modern Lasertube systems stand out due to their flexibility, high level of automation, and efficiency. These features make them a top choice for transforming your distribution business into a full-service center.
Discover more about Lasertube systems.
Â
Â
SICAM S.p.A. Case Study
In the video below, you can watch an excerpt from the presentation by Massimo Fasolo, Technical Department Manager at SICAM S.p.A.’s Laser Department, and Luca Prasso, Area Director at SICAM S.p.A., during the seminar organized by BLM GROUP and the Steel Promotion Foundation, titled "Laser Cutting in Structural Solutions".
During this session, you’ll learn how SICAM S.p.A. successfully evolved from a traditional distributor to a full-service center, thanks to the advanced capabilities of BLM GROUP’s Lasertube technology.
Vape E-juice Nicotine Slat Blueberry Ice,Fruit Flavor For E-juice,Suitable For All Refillable Vape Device,Vape E-juice US Salt Guava Ice
Shenzhen Tianzhu Biotechnology Co., Ltd , https://www.yokaivape.com