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Digital transformation to help the metal industry during and beyond COVID-19
COVID-19 has disrupted the already cash-strapped, asset-intensive metal industry. It is predicted that the industry may lose as much as USD 200 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2020 compared with 2019. The slackening demand and long leads to reopen operations require metal manufacturers to improve forecasting and swiftly respond to market dynamics. In addition, over supply of inventories can result in a sudden price drop. Manufacturers are under pressure to improve efficiencies while reducing costs, even considering shut down of facilities to avoid over production and inventory pile-up. According to the National Association of Manufacturers, about 80% manufacturers expect the pandemic to have a financial impact on their business. This paper throws light on how IT integration can enable digital transformation and help the recession-hit metal industry resurrect itself during and beyond the pandemic.
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