As per latest global steel industry analysis, until 2020, the demand of crude steel is predicted to grow at the rate of 1-1.5 % and the demand for stainless steel is predicted to grow at the rate of 2.5-3 %. The construction and automotive components industries are the major drivers of the steel industry.
Research suggests an immense rise in global steel products demand in the coming years. The demand for steel in both developed and developing countries are in favor of the steel industry's sustained growth with low associated risks.
With the rising demand of the steel industry, the opportunities for businesses and startups are also increasing in the global steel industry. Here is a list of 10 beneficial startups and businesses that can be started in the steel industry.
1. Steel plant
Establishing an alloy steel plant is a large scale business that produces a wide variety of products for customers. The products that are manufactured in the plant include alloy constructional steel, case hardening steel, carbon constructional steel, die blocks, spring steel etc. The different types of stainless steel are also manufactured in these plants such as ferritic steel, austenitic and martensitic steel. A large amount of capital and area is the basic requirement for starting this business.
2. Export and import
The export of global steel in terms of volume has risen steadily from 29.4% in 2014 to 31.1% in 2016. The major exporters of steel include China, Japan, Russia, Ukraine, and Brazil. While the major importers of steel are the U.S., Vietnam, Thailand, Indonesia, and the European Union. Export and import of steel is a beneficial opportunity in foreign trade. Most of the countries are involved in importing and exporting of steel. Licences and permits are required for starting this business.
3. Production of Furniture
Steel furniture has a huge demand in the market that involves cupboards, chairs, tables, shoe racks, kitchen racks etc. More and more consumers are demanding steel furniture due to its durability and strength. There is no need for huge investment and the business can be started at a small scale.
4. Production of bolts and nuts
The nuts and bolts business is predicted to grow at 4 percent CAGR until 2020. There is a huge demand for these products in the market. The main industries that utilize these products are construction industries, electrical industries, transportation industries, and engineering industries. This business doesn't need huge investment and can be started with machine and hand tools.
5. Making of gem clips
Gem clips have a regular and tremendous demand in schools and offices for organizing papers properly. With an initial modest amount, this business can be started. The main raw material is steel wire. With a machine, this business can be started at home with an initial investment of as little as $100.
6. Fabrication of steel
The fabrication of steel involves processes such as bending, cutting and assembling of steel. The industries with a demand for these services infrastructure, automotive production and construction. This business can be started with a moderate investment.
7. Recycling business
This business has many environmental advantages as it reduces the need for landfills and also the need for extracting and manufacturing of the raw material. With increasing awareness of saving the environment, the need for recycling units is also increasing. Alone in the U.S., the recycling business accounts for more than $3.7 billion in value and has around 7,000 companies in this field.
There is an abundance of products for recycling such as household appliances, steel beams, old cars, railroad tracks, food tins, paint cans, aerosols etc. A recycling plant and scrap metals are the requirements for starting this business.
8. Establishing a welding unit
This business needs specific skills and knowledge about welding of products. With a welding machine, hand tools, raw materials, and equipment this business can be initiated. Along with the repair work, the production of steel products can also be done.
9. Business of wrought iron furniture
Wrought iron furniture is widely popular and has a regular demand. Wrought iron is an alloy of iron and it is suitable for rolling or forging rather than casting. Due to this property, it is easier to produce aesthetic furniture using wrought iron.
10. Production of TMT Bar
TMT (thermo-mechanically treated) bars are extensively used in the construction industry. These bars have very high strength and are durable. With the increase in the construction industry, the demand for TMT bars is also expanding. This business needs proper planning and investment.
The steel industry has a lot of scope for growth. With expertise and investment, there is a huge number of business opportunities for both startups and existing businesses in the steel industry.
10 Beneficial Startup and Business Ideas in The Steel Market, Every Entrepreneur Must Know
