The research “The Future of Heavy Industry – Focus on Metals Manufacturing” conducted by KPMG in Greece, investigates the structure, size and development of Greek metallurgy focusing on financial issues and industry trends. Presenting an overview of the key market players, their financial data and the key challenges they face at the moment, it highlights the future prospects of metallurgy, the trends, the opportunities, but also the driving forces of the “smart transition” of the sector.
In the last decade, the heavy industry and especially the sector of Basic Metals has suffered a significant “disruption” in our country and worldwide, however, despite any adversity and in the midst of the pandemic, this industry is following a steady path of growth and transformation.
Key findings of the research:
– The turnover of the Basic Metals sector (copper, aluminum, iron and steel) shows a significant increase, with an annual growth rate (CAGR) of 6.2% from 2013 to 2019, mainly due to increased exports and important infrastructure projects.
– The Basic Metals sector is an important employer in the Greek economy, as in 2021 the sector directly employed more than 20,000 people, ie 0.5% of the total Greek workforce.
– Prices of raw materials (scrap) & ores) rose sharply in the midst of a pandemic. From the start of COVID-19 until June 2021, the prices of aluminum, copper, iron and steel’s increased by 44%, 79%, 137% and 75.6% respectively.
– The industry has recorded remarkable growth, with a 28% increase in revenue from 2015 to 2019.
Pandemic disruptions in the supply chain, environmental concerns, ambitious infrastructure and trade policies continue to drive up metal prices.
THE Alexandros VeldekisGeneral Manager, Auditing Services, KPMG in Greece on the occasion of the results of the research commented, “The metal industry as a branch of Greek industry remains one of the driving forces of the national economy. In recent years, it has shown that it has coped with a series of crises and difficulties and is in the process of development, and the next day reveals significant challenges such as rising energy costs, limited supply of raw materials, limited workforce and commitments to green adjectives. Meeting these challenges presupposes that the metal industries will remain flexible, resilient and versatile in terms of finding alternative energy sources and adopting new technologies and automation that help increase productivity and improve the quality of their products. “This industry has started to take successful steps in this direction by investing significant funds.”
According to the research, the next day for the Basic Metals industry focuses on ESG (Environment, Society, Government) initiatives, carbonization and the implementation of the green agenda.
The “disruptions” caused by the pandemic have led the domestic industry to look at ways to enhance automation processes by investing in production practices and supporting the development of digital capabilities that transform the way production plants operate. with robotic applications and automation to enhance productivity and ensure consistent product quality.But at the same time, emphasis is placed on strengthening human resources.
In addition, the pandemic situation has led to a sharp increase in both the price of raw materials and energy costs. Therefore, as raw materials and energy consumption are the biggest costs, companies find it difficult to maintain their profitability and uninterrupted operation. They still face difficulties in accessing raw materials, loan obligations and shortages in the availability of manpower, as well as means of transport.
Over the next decade, large-scale projects worth more than EURO 21.5 billion planned will boost the sector’s growth and sales. Utilization of industrial production capacity has recovered and exceeded pro-pandemic levels, but operational capacity is still limited to 77%. Greek metalmakers should see this as an opportunity to further support production by focusing on exports.
You can find the survey here.
Source: Capital
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