How AI And MPFs Are Helping The UAE Steel Industry
The UAE leadership and country intends on and is planning to diversify its income portfolio and has plans similar to the neom city project in action.
The Steel industry plays a critical role in such developments in various economic sectors of the country, and its consistent growth is aligned with the leadership’s vision.
But UAE’s steel industry faces many challenges due to various current constraints.
Here are some significant challenges they face:
- Competition from cheaper imports:
Chinese Industries have been producing steel rapidly, with production in excess in the market, dropping rates, but it doesn’t have better quality. Many such countries in Asia export steel to UAE, which has become a major competition to domestic Industries suppliers as they have advantages, like cheap labor and adequate resources.
- Vitamin Steel deficiency:
UAE doesn’t have Iron ore reserves, the principal material for steel producers and suppliers in UAE.
This causes significant problems like a rise in reliance on imports, which affects production costs, making it hard to compete in the market. Along with it, a large amount of energy is used for refining the imported material, which is again needed to be secured as the continuous raw material supply is essential or may cause problems in production. This causes more problems in maintaining production costs, and also, when a country is dependent on other nations for such imports, they get limited command on prices, dampening the profits.
- Production costs management issues:
When the UAE steel industry faces problems like a rise in reliance on imports for raw materials, this eventually leads to difficulties in subsequent issues like energy use and labor issues, which help production costs rise, which is a significant disadvantage against countries with lower production costs.
- The Environmental Scenario:
The steel industry has been a generous contributor to environmental issues and hence is subject to check about environmental regulations.
This leads to frequent inspections, raids, checks, etc., and if the strict regulations aren’t met, then there can be consequences like the facility shutting down, which again results in production problems.
This forces steel manufacturers to invest in very costly technologies impacting the production prices, making things hard to manage, as technology and innovation are just taking a flight to enter into various sectors of the economy in UAE.
- The Customer backoffs:
The primary customer of the Industrial steel suppliers is the construction sector which is facing problems due to the global economic slowdown. Investment problems and entries of new players in the construction business who established corporations back are too a cause to affect the local construction sector in UAE, which adds to the issues of the steel industry.
So what has UAE been planning to sort things out?
- The steel 2023:
To explain steel fab is an exhibition and a show of the steel industry in UAE which is held annually.
This provides the Steel industry to display its commodities and tech to a wide range of people who are manufacturers, engineers, and consumers.
Now steel fab 2023, with UAE’s aim to be a global AI leader in 2031, has also been promoting AI use in the steel industry.
This has led to several companies showing interest which is growing in the steel fab as it showcased the latest tech in the Steel industry, which encompassed AI-based intelligent solutions.
The focus was on the unification of robots and AI that fixes the manufacturing system and provides efficient productivity with manageable costs, reducing the impact on nature.
Ultimately AI can solve many challenges faced today by the UAE steel industry if done correctly, which they are working on actively.
- The Metal Park Facility
A Metal park facility is an enormous industrial complex designed particularly for firms and industries in the metal industry. They offer a vast number of facilities and services to support this industry. They play an extravagant role in UAE’s plan of diversifying the economy and helping AI and innovation enter the steel industry.
How is this metal park going to help, let us tell you?
The Raw material solution:
The MPF ( metal park facility) intends to bring steel industry suppliers, producers, and consumers into one place, securing a win-win scenario for all the parties involved.
Sorting production cost:
As all the parties in the steel industry come in one place, access to resources and logistics can be brilliantly managed to sort out various problems with production.
The development of new consumers:
As consumers from UAE and the world join the park, they will be able to maintain demand, uplifting the local steel industrial suppliers.
The AI promotion:
The metal park wants to create a healthy environment for innovation and new tech which would steer the favor to the local steel suppliers in UAE in various aspects.
So to conclude,
MPFs with AI integration keep a lot of potentials to help the problem of the UAE steel industry vanish.
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