Today, the steel industry faces another riddle. It has long sought to create lighter, stronger, and more durable metals. Which is all great. But over time, less of the product has been needed. So, a law of diminishing returns comes into play.
The problem — for steel and other heavy industries — is that they are using an old playbook. They are investing in new machines and processes in an effort to improve their end product. That’s a laudable goal. But it’s not enough. Especially at a time when volatile resource prices, shortages of skilled labor, and heightened supply chain and regulatory risks are accentuating an already volatile market.