Study: Digitalization in the Steel and Metal Trade – Status, Needs, and Applications

To respond flexibly to economic changes, companies are increasingly relying on digital processes. Many small and medium-sized enterprises fall behind in this development. The Fraunhofer IPA presents in a study the current status and future needs as well as approaches to digitalization and Industry 4.0 applications in the metal and steel trade.

The core business of the metal and steel trade, besides trading, also includes the cutting and processing of semi-finished products. The latter involves additional simple manufacturing steps such as drilling, deburring, or planing. The modern steel and metal trade is thus increasingly becoming an active part of the value chain, which must contend with rising demands. Industry 4.0 applications and digital products can support this.

The surveyed companies focus on certain requirements when integrating these applications: data analysis, transparency, and real-time capability of systems are particularly important, while flexibility in production structures, networking of production resources, and decentralization of information storage tend to be less prioritized.

The biggest challenge in implementing Industry 4.0 systems in processing, from the perspective of the respondents, lies in integrating existing machines and interface issues. Examples of existing Industry 4.0 products show great potential but are often not yet market-ready or are only used to a limited extent. Data collection is mostly done manually or locally in machine control systems. External access is often not possible. However, digital applications could help, for example, to more easily access process data for order and production planning.

According to their own definition, 80 percent of all participants reported having no experience with Industry 4.0 applications. However, 60 percent of respondents want to use digital applications in the future and are also willing to invest. The degree of automation in the production of the steel and metal trade also shows high potential. 95 percent of the study participants indicated a level below 50 percent.

All levels of the company hierarchy accept digitized products within the company, but management is more open to the topic of Industry 4.0 than the workers at the machines. Acceptance also depends on the age of the employees.

The present study is based on a survey of 66 companies and nine interviews with industry experts.