Outsourcing Structural Steel Fabrication to Turkey Offers Multiple Strategic Advantages

Jul 29
08:44

2009

Matthew Stefen

Matthew Stefen

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Working with Turkish structural steel suppliers ensures that high quality structural steel components will be manufactured and delivered on time, with the added guarantee of cost savings. Outsourcing to a low cost country is becoming a necessity in today’s ultra competitive world.

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Structural steel provides the strength needed for components within bridges,Outsourcing Structural Steel Fabrication to Turkey Offers Multiple Strategic Advantages Articles high-rise buildings, damns, and other large construction projects.  The reliability, quality and efficient design of the steel components is of the utmost importance.  Therefore, selecting the right subcontractor for the fabrication of the steel receives much attention.  At the same time, outsourcing is becoming a requirement to meet strict budget constraints.  With so many countries in the world offering structural steel fabrication, it can be difficult to determine which low cost countries serve as the best source of reliable subcontracting partners.

 

 The primary low cost countries offering large numbers of structural steel fabrication facilities include China, India, Brazil, and Turkey.  Each country offers very unique experiences when carrying out transactions related to structural steel.  The cultural norms, business styles and political characteristics of each nation must be taken into account when selecting a structural steel subcontractor.

 

China typically stands out as the lowest cost supplier of structural steel in the world.  Many purchasing managers quickly accept offers for fabrication services from Chinese suppliers simply based on the initial price offerings.  However, leading international business scholars have noted that Chinese steel fabricators are infamous for adding “hidden costs” to projects.  The large number of differences between Chinese and Western business ethics and norms cannot be discussed here, but it can be said that it leads to much frustration and wasted time when negotiating contracts.   Furthermore, the Chinese do not have the same cultural outlook toward intellectual property as Western societies.  All engineering drawings and proprietary company information is available to the government, regardless of the confidentiality agreements made between the Chinese and Western companies.  If a company does not want its steel fabrication designs to be copied, it should not be manufactured in China.

 

India is also a popular option for low cost structural steel fabrication.  However, purchasing managers should take not that the lack of infrastructure within the country leads to many frustrations.  Items are often delivered late, or even worse, completed, but too large to travel on Indian roads, therefore never able to reach the end customer.  Additionally, Indian politicians are constantly at odds with each other over tariff levels.  The import and export duties quoted when starting a project are rarely the same by the project completion date.  Lastly, a recent study from the United Nations found that Indian workers are ranked as the least productive in the world.  Extreme caution should be exhibited when locating an Indian supplier.  Nonetheless, companies such as Tata Steel have emerged in India, as an exception to the rule that Indian suppliers are not reliable.  However, now that Tata Steel has earned such a strong reputation, its structural steel fabrication services are often not priced competitively.

 

Brazil is a popular source of low cost structural steel fabrications.  Brazil’s proximity to the United States in comparison to other low cost suppliers like India makes it an attractive option.  However, Brazil is infamous for depleting the rainforest in the name of industrial development.  In this sense, purchasing managers are faced with an ethical dilemma when supporting companies that source raw materials for important ecological areas.  Not taking into account ethical issues, Brazilian companies can be considered reliable and timely manufactures of structural steel fabrications.  Brazil is recommended far above India or China.

 

Finally, Turkey is among the most popular sources of custom steel fabrications.  Turkey is the highest recommend nation as a supplier of structural steel.  Its proximity to the European Union and its lack of tariffs on steel products exported to the United States make it an attractive choice.  Its young, highly skilled workforce ensures products are manufactured to highest standards of quality.  Thanks to funds provided by the European Union, Its infrastructure is much stronger than any of the other low cost countries mentioned, allowing for flawless logistics.  Multiple international seaports, multi-lane expressways, and railway lines with direct connections to the West serve the steel fabrication shops throughout Turkey.  Furthermore, scholarly research has shown that Turkish business culture is highly pro-Western, meaning Turkish steel fabricators are highly motivated to prove their dependability to Western customers. 

 

With the increasing complexity of large infrastructure projects it has become essential to verify the quality of structural steel components prior to delivery and to assure they are durable, safe and perform as designed.  Turkish structural steel suppliers prove to deliver high quality structural steel components in a timely manner, while still offering the cost savings found by outsourcing to a low cost country.  Due to cultural and political factors, Turkish structural steel fabricators prove more reliable and better-equipped than those from other low cost countries.