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Key Facts on the Steel Tube and Pipe Industry

Posted by IndustrySelect on Wednesday, June 3, 2020

steel pipe and tube and blue wiring in factory


Category searches on IndustryNet increased 42% in April 2020. This surge is connected to COVID-19 disrupting supply chains. In consequence, manufacturers have to adapt and seek new solutions to acquire the supplies they need.

The most-searched category for April 2020 was tools, with steel pipes and tubes coming in second.

The most popular searches included steel tubing, carbon steel tubing and welded steel tubing.

With the influx of searches for this industry, it is likely that these manufacturers will be looking to scale up.

As a sales and marketing professional, you can use this spike in demand as selling points to help manufacturers achieve their goals and solve problems.

Sector Growth

IndustryNet search trends reveal a strong demand for steel and pipe products, but this entire sector has been experiencing significant growth over the past year. In fact, data from MNI shows that job creation has increased by 1.96%.

This sector is experiencing sustainable growth because it produces a wide range of specialized products needed in key industries. For example, steel tubes and pipes are used to build the energy grid, develop the water infrastructure and create new renewable energy systems. These products are also used to make critical tools and machinery, such as hydraulic systems and conveyor belts.

Moreover, steel tube and pipe manufacturers also make automotive and appliance parts, products for the construction sector, and solutions for the aerospace, defense and medical industries.

A Targeted Focus

There are 414 steel tube and pipe manufacturers in the US. Only two of these companies have over 1,000 employees, and seven have more than 500 employees.

Most of these companies are relatively small and likely to have a highly-targeted focus on a family of products or niche industry. The increase in demand we're seeing could result in growth opportunities for these small manufacturers.

Marketers with solutions that support growth should reach out to these manufacturers. Market research, marketing services, design services, product portfolio management solutions and training are areas manufacturers could invest in as they look to scale up.

Top Challenges for the Steel Tube and Pipe Sector

While 70% of all manufacturers rely on domestic distribution, it's a strategy that only 57% of steel tube and pipe manufacturers have adopted. As domestic demand increases, there is a real potential for growth by implementing new distribution strategies on a domestic level.

These businesses are also more likely to import steel. While 11% of all manufacturers import raw materials, this percentage jumps to 21% for steel tube and pipe makers. Seeking new acquisition strategies could become a priority as COVID-19 disrupts global supply chains and steel tariffs continue to increase costs for raw materials.

Marketing supply chain management solutions, shipping or inventory management services, or raw material sales could help manufacturers address these challenges.

Additionally, because steel tubes and pipes are products that need to meet strict performance requirements, solutions that can enhance precision and quality are likely to be valuable to these manufacturers as well. Investing in new machinery, technology, design tools or quality assurance solutions could help manufacturers go after new opportunities in industries with specific requirements.

Other Opportunities

There are other products and services steel tube and pipe manufacturers are likely to benefit from:

• Hiring and onboarding solutions
• Janitorial services for production facilities
• Specialized tools and machinery
• Analytics
• Affordable financing for machinery
• Invoicing or payroll software

Selling to Steel Pipe and Tube Manufacturers

Looking to sell to the steel pipe and tube indsutry? An IndustrySelect provides comprehensive data for potential leads in the industry, including direct executive contact information and other actionable data among 500,000 industrial companies -- including manufacturers of steel pipe and tube. To learn more about how you can use IndustrySelect to generate reliable leads for your company, visit our website.

Looking for steel pipe and tube manufacturers? Search for suppliers near you & request a quote on IndustryNet.


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