The CN Specialists Index 2023 highlights significant revenue growth for most of the top steel contractors, reflecting a recovery in the sector.
- Severfield leads the index with an impressive £88.2m increase in revenue, achieving a strong market position through diversification.
- Bourne Group faces challenges, experiencing an 87% drop in profit, attributed to economic instability and geopolitical tensions.
- Notably, newcomer Elland Steel has returned to profitability, marking a promising entry into the index.
- Industry experts express optimism, despite ongoing concerns over government infrastructure policies and fluctuating steel prices.
The CN Specialists Index 2023 paints a promising picture for the steel industry, as all but two of the top 10 steel contractors experienced revenue growth. Amidst recovering from COVID-19 impacts and material-cost inflation, the sector shows resilience.
Severfield, securing the top spot, increased its revenue by £88.2m reaching £491.8m. Chief Executive Alan Dunsmore attributes this growth to the company’s diversified approach in sectors and geographies they serve. The firm’s strategic expansion, including the acquisition of Voortman Steel Construction, is expected to boost future earnings significantly.
While Severfield leads with impressive figures, J&D Pierce also recorded a substantial revenue increase of £108.4m, bringing its total to £195.3m. This reflects a strengthening position in the market, despite a broader backdrop of economic challenges.
Conversely, Bourne Group finds itself grappling with an 87% plunge in profit and an £18.5m fall in turnover. The company attributes these setbacks to the lingering effects of the COVID pandemic and the ongoing geopolitical instability caused by the Russian invasion of Ukraine.
Among the new entrants, Elland Steel stands out by reversing a previous financial downturn, now posting a £0.3m pre-tax profit. This achievement highlights their potential for sustainable growth within the competitive construction industry.
Steel prices, a critical factor for the industry, have seen significant fluctuations, reaching peaks of £970 per metric tonne. David Moore, CEO of the British Constructional Steelwork Association, notes a recent stabilisation in prices, yet concerns remain regarding the future trajectory.
Despite challenging market conditions, optimism prevails within the industry. However, there is a cautious eye on government infrastructure projects, such as HS2, which continue to influence the sector’s stability.
The steel sector exhibits robust growth amidst economic recovery, though challenges linger, requiring strategic navigation to sustain momentum.
