The US has caused controversy in recent weeks with the introduction of trade tariffs on steel and aluminium imports, in a move that is likely to heavily impact these industries around the globe.
The UK steel industry has been facing difficulties for a number of years now. High energy prices and international outsourcing have jeopardised the fortitude of some manufacturers, leading to calls for the nationalisation of companies in some areas in order to safeguard jobs.
The latest UK ‘Steel Manufacturing’ report from Plimsoll Publishing has examined the overall financial health of the industry’s 189 leading companies. The findings show that 25 companies have lost over a quarter of their value in their latest year, 50 companies are making a loss, and 47 companies are in danger.
But despite these figures, the picture may not be all doom and gloom. More than half of the UK steel manufacturers analysed are rated as ‘Strong’ or ‘Good’ according to the Plimsoll Model. There are also 67 companies which have been classed as ripe for acquisition.
David Pattison, senior analyst at Plimsoll, said “the trade tariffs imposed by the US have certainly ruffled a few feathers internationally. Of course there should be concerns about the impact these will have on the UK steel and aluminium industry, however it is important to look at the entire picture.
“More than half of the UK’s steel manufacturers are in a strong position based on the Plimsoll model, despite having been through a rough period in the past two years. This, to me, demonstrates resilience.”
Only time will tell to what extent the UK steel industry will suffer as a result of US tariffs, but this resilience could be a decisive factor in the long-term survival of the businesses involved. The Plimsoll ‘Steel Manufacturing’ report provides detailed information about the industry leaders as well as a monthly overview of the sector, enabling decision makers to monitor every outcome and help their companies to succeed.
Click here for more information about the Plimsoll ‘Steel Manufacturing’ analysis.