9
CHALLENGE:
Continued growth
of the industry
It may seem strange to consider the
steel industry's predicted growth as a
challenge, but along with the potential
increase in opportunities and revenue,
ongoing industry growth also means
more fabricators are entering the
market, more bids need to be evaluated
and acted on, and there's generally more
work that needs to be done, all while
margins remain relatively thin.
With more providers seeking out a slice
of that continually diversifying pie, the
bidding phase of steel fabrication is
going to face an exploding volume and
complexity of work. If you're not careful,
that explosion can directly impact the
fabrication shop from a quantity and
quality perspective.
SOLUTION: Clearly established
standards for bidding
To e‡ectively mitigate the negative impact of steel sector growth,
fabricators need to establish more focused and stringent standards for
which jobs they're willing to bid on, and which fall outside the "sweet
spot" where the shop's abilities and prots intersect.
You can and should work directly with the fabrication manager to
spearhead the identication of that "sweet spot" and make sure those
responsible for vetting bid opportunities are continually aware of it. Once
that's accomplished, the narrowing of focus will subsequently make your
estimating job easier and more e‡ective.
Again, an integrated technology platform that can successfully bring
together all phases of the fabrication workow has proven to be a highly
e‡ective tool for identifying a shop's optimal job situation. By adopting
such a platform, you could see vast improvements almost immediately.
