September 1999
Authors: A. Wilkes, R. Emmott
Abstract
Despite the capital intensity and longevity of its assets, the steel industry has witnessed an increasing amount of technology innovation in recent years. Steel is in its relative infancy as a world material: 50% of all steel has been made in the last twenty five years, and consumption is likely to double again within the next twenty five. Part of this growth will be possible using currently under utilised capacity, but since new capacity will also be needed, there will be many opportunities for technology suppliers, steelmakers, and stakeholders.
The rate of technology innovation has been high, as steelmakers are motivated to reduce costs and improve quality, yet the ability of the steel industry to absorb new technologies has not always kept pace. While steel producers continue research in areas of product development and operational improvements, equipment suppliers have been the driving force behind radical process advances. Innovations are increasingly the result of the combination of new equipment developed by suppliers, and process and operational skill - "software"- contributed by the steelmakers. As their roles evolve, suppliers and producers will need to redefine their relationships in line with new organisational and operational challenges: traditional organisational structures will have no place in this new world.
