Mitigating the impact of the steel shortage in South Africa

By | 2021-08-04T06:48:37+00:00 August 4th, 2021|

The current global pandemic, paired with the economic conditions in South Africa, mean that the ongoing steel shortage is negatively affecting the manufacturing sector.

“Five years ago, any company tendering for a large project could comfortably quote on the most economical solution to save the end user time and money, while safely making a comfortable profit and thereby positively contributing to the economy. This was largely due to the availability of all sizes of steel sections, as well as the favourable pricing that made everyone tendering highly competitive,” says Ian O’Hara, RGM Cranes Engineer and Project Manager.

“Over the past few years, this situation has slowly changed due to the inability or reluctance of producers to supply various sizes and sections of steel. This can be attributed to either technical or political influences and has resulted in increases in the cost of materials. In fact, increases in steel prices occur almost bi-monthly.”

“Unfortunately, the effects of these negative trends will affect every contributor to the process, with the biggest impact ultimately being on the end user,” he adds.

RGM Cranes maintains a philosophy of striving to supply its clients with the best quality cranes and lifting equipment at a cost-effective price. O’Hara says that this has become more challenging as every project is meticulously planned from the design stage to produce the most cost-effective solution.

“With the inability of steel suppliers to stock all the lengths and sizes, it means that the process of procuring raw materials is now costlier and protracted. We have adapted our way of thinking and designing so that the impact is minimised, and a solution is achieved with minimum impact on project timeframes. We have also formed solid relationships and agreements with specific suppliers in various sectors so that we receive the best available pricing and receive priority deliveries,” O’Hara explains.

O’Hara is emphatic that every project undertaken by RGM Cranes is treated as high priority and with cognisance of the uniquely individual needs of each client. The distinctively diverse and capable team at RGM Cranes treats every project with the attention it deserves from the sales, design, procurement, and manufacturing teams, all the way through to the final assembly.

“Every person in the team understands their role and responsibilities and executes their specific tasks flawlessly and seamlessly. This teamwork mentality is what drives the success of every project we undertake.” O’Hara concludes.

Ian O’Hara, RGM Cranes Engineer and Project Manager. Photo credit: RGM Cranes

Ian O’Hara, RGM Cranes Engineer and Project Manager. Photo credit: RGM Cranes