How Consistent Communication Avoids Shipping Confusion and Issues

Have you ever stopped and considered all the items you use daily that are made of metal? Metal is used extensively all over the world. It is used to manufacture automobiles, electronics, kitchen utensils, and medical supplies. The sanctions levied against Russia in reaction to the invasion of Ukraine in February 2022 upended metal manufacturing worldwide. Russia and Ukraine were 3rd and 8th globally before Russia’s invasion. The war has created a sudden shift in metal manufacturing, sending metal prices skyrocketing and shrinking supply chains. Moreover, current trade issues between the United States and China have forced U.S.-based companies to consider seriously looking elsewhere for metal production.

Although China has the most well-developed infrastructure and we have established an extensive network there, the reality is we have responded to the needs and wants of our customers and are sourcing in other countries. As regimes and administrations change, so do the relationships between nations. Attractive offshore supply chains today may not be so attractive 5 or 10 years from now. The one consistent is ITI Manufacturing’s commitment to source and manage the offshore supply chain of our customers no matter where in the world it takes us.

Establishing reliable manufacturing in any county requires much more than a few phone calls and emails. It’s a slow and detailed process. We must go through our due diligence and believe we can manage the offshore supply chain in accordance with our proven process just as effectively as we can currently. For your information, below are five countries to consider for metal manufacturing.

1. India (#2 country in metal production)

2021 Production: 118,100 Tons

India is one of the largest manufacturing countries globally, and they only seem to be rising. As recently as 2019, India has surpassed Japan as the #2 metal-producing country in the world. India’s Union Minister, part of India’s executive body, continues to expand and modernize its steel industry. However, as of this blog, there is no set goal for production.

Countries that manufacture metal

2. South Korea (#6 country in metal production)

2021 Production: 70,100 Tons

South Korea has many key manufacturing industries, including electronics, telecommunications, chemicals, and automobiles, all of which are supported by their metal manufacturing industry. South Korea is also focusing on greener production techniques and improving efficiency.

These greener techniques come in the form of increasing reliance on wind and solar energy. Since 1968, POSCO, the number one South Korean steel-making company headquartered in Pohang, South Korea, has been an essential part of the economy. The South Korean government fostered an environment for POSCO to thrive in the steel industry.

metal manufacturing countries

3. Brazil (#9 country in metal production)

2021 Production: 36,000 Tons

Brazil is still in the Top 10 countries for steel production. Since 2014, Brazil has faced an economic crisis forcing the steel industry to close 83 functioning units, lay off 40,000 workers, and defer investments worth $3.2 billion U.S. dollars. These changes have reduced the crude steel output by almost 9.2%. Although Brazil still holds a position in the top tier of world steel producers, according to experts, its situation will not improve any time soon.

4. Vietnam (#13 country in metal production)

2021 Production: 19,900 Tons

Vietnam’s metal industry is still a growing industry. Vietnam continues to keep up with its domestic market, but it may be a few more years before it can meet market demand. Based on extensive research, many companies see the vast potential of the steel market in Vietnam and Southeast Asia; a large number of enterprises have invested in Vietnam’s steel industry in recent years. With the increase in production capacity of the steel industry, the supply of some types of steel in Vietnam has exceeded demand. According to Globe News Wire, “to reduce large quantities of imports, the Vietnam government is actively attracting foreign investors to establish positions in the country.”

city lights at dusk

5. Mexico (#15 country in metal production)

2021 Production: 19,800 Tons

Mexico has understandably seen an increase in demand for steel production. Moreover, this increase in production comes amid an economic recovery in Mexico and an increasing demand for steel in the U.S., Mexico’s biggest steel export market. Steelmakers are also looking to capitalize on global supply chain disruptions and the US-China trade war to make Mexico more attractive as a manufacturer.

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ITI’s Commitment to Our Clients

Moving your manufacturing to a different country is a significant undertaking and one that can be time and financially consuming. ITI Manufacturing carries that weight and keeps a close eye on the issues and trends that can affect manufacturing trends.

Whether you are currently manufacturing in China and are looking for a superior company to manage your offshore supply chain or want to explore a different country, you should contact ITI Manufacturing.