How AI and Technology Are Transforming the Steel Industry in 2025

The steel industry is at a crossroads. With increasing competition, tighter timelines, and ever-growing demands for quality and efficiency, companies must evolve to keep pace. The bottom line is simple: those who don’t adopt new technologies will be replaced by those who do – or already have.

Daniel Kamau, Founder & CEO
19 April, 2024

As an engineer turned founder of sketchdeck.ai, I’ve seen this shift firsthand.

From AI-driven automation to smarter production processes, technology is no longer a nice-to-have; it’s a necessity. Many of our customers have already used AI to double their bid capacity and complete takeoffs up to 95% faster. And they’re not alone - other tools are paving the way for industry-wide transformation.

Here’s what I see happening in 2025:

Why is it time to change?

The steel industry has long relied on traditional methods that worked well in the past but are increasingly falling short. Projects today demand greater speed, precision, and flexibility, all while keeping costs under control. This is where technology steps in. Companies leveraging AI and automation are already seeing measurable improvements, from streamlined workflows to better project outcomes.

For example, one of our customers adopted AI-powered tools and saw their bid capacity double within months. Another significantly reduced takeoff times, allowing them to pursue more projects without adding staff. These examples highlight a critical point: technology isn’t just about staying competitive; it’s about survival in a rapidly changing industry.

Our Key Predictions for the Steel Industry 2025

Automation for Routine Tasks

Routine tasks like administrative work and document management consume valuable time and resources. Automation is stepping in to handle these repetitive tasks, freeing teams to focus on high-impact activities like strategy and client relationships. This shift improves productivity and reduces errors, creating a more efficient back office.

AI-Driven 2D-to-3D Design

The transition from 2D drawings to 3D models has historically been a time-consuming and error-prone process. Early AI tools are now streamlining this workflow, making it faster and more accurate to create 3D models. Companies using these tools can accelerate project timelines and reduce costly mistakes by maintaining instant links between the contractual documents and the 3D Model, ultimately giving them a competitive edge.

Enhanced Change Order Management

Change orders are a constant challenge in the steel industry, often leading to delays and budget overruns. AI-powered solutions are making it easier to identify, track, and manage these changes. By identifying changes or areas where there is missing information on drawings early, teams can stay on schedule, avoid costly disruptions, and find opportunities for increased fees.

Tighter Bidding Timelines

Competition is heating up, and bidding schedules are shrinking. Companies need smarter tools to keep up. AI can analyze historical data and market trends to help teams create more accurate and competitive bids in less time, giving them a leg up in a crowded marketplace.

Smarter Production Processes

AI is transforming manufacturing by analyzing data across production lines to identify inefficiencies and areas for improvement. By fine-tuning processes, companies can enhance quality, reduce waste, and lower costs—a win-win for producers and customers alike.

Real-Time Quality Monitoring

Defects and inconsistencies in production can be costly. AI-powered monitoring systems can track production parameters in real-time, ensuring consistent quality and reducing waste. This proactive approach minimizes rework and enhances customer satisfaction.

What AI tools matter right now for Steel Estimators?

Several tools are leading the charge in this technological revolution. Trimble and Strumis are great examples of platforms that help companies improve efficiency and precision. At sketchdeck.ai, we’re helping businesses streamline bidding and takeoffs, enabling them to tackle more projects with greater confidence. These tools aren’t just adding value; they’re redefining how the industry operates.

Our software, LIFT, is allowing estimating teams to complete more bids faster and more accurately than ever before.

If you want to try LIFT for free, when you book a demo with us, you can bring your drawings to the meeting to see how LIFT speeds up your next takeoff bid.

How will using AI benefit my business?

Increased Productivity

AI takes over repetitive, time-consuming tasks, enabling teams to focus on higher-value activities. This means more work gets done in less time, without compromising quality.

Example: Tata Steel’s implementation of AI-driven automation results in improved productivity and reduced inefficiencies.

Improved Customer Relationships

By automating routine communications and providing better insights, AI helps businesses engage with customers more effectively, leading to stronger relationships and higher satisfaction.

Example: Nucor uses AI-powered platforms to analyze competitor data and market trends, enhancing customer engagement strategies.

More Reach

AI-powered tools can analyze vast amounts of data to identify new opportunities and optimize marketing strategies, helping you reach more customers and grow your business.

Example: AI tools in steel distribution are improving demand forecasting, allowing companies to meet market needs better.

More Profit

With better efficiency, reduced errors, and smarter decision-making, AI directly impacts the bottom line, driving higher profits and sustainable growth.

Example: U.S. Steel’s AI initiatives, like MineMind, have cut costs and enhanced operational efficiency.

What’s next in the industry?

The trends outlined here are just the beginning. As technology continues to evolve, the steel industry will see even greater advancements in areas like predictive analytics, machine learning, and process optimization. The question is, are you ready to adapt?

Companies that embrace these changes are positioning themselves for long-term success. Those that resist may find themselves struggling to keep up. It’s time to take a hard look at your operations and ask: how can technology help us work smarter, not harder?

Conclusion

The steel industry is transforming, driven by the power of AI and automation. Companies that adapt will thrive; those that don’t risk being left behind. The good news? The tools and solutions are already here, ready to help you succeed.

PS - You can trial LIFT for free, or when you book a demo with us, you can bring your drawings to the meeting to see how LIFT speeds up your next takeoff bid.

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LIFT automates data extraction from drawings, creating accurate Bills of Materials quickly and effortlessly.

Copyright © 2024 SketchDeck.ai. All rights reserved. Privacy Policy. Terms Of Use.

LIFT automates data extraction from drawings, creating accurate Bills of Materials quickly and effortlessly.

Copyright © 2024 SketchDeck.ai. All rights reserved. Privacy Policy. Terms Of Use.

LIFT automates data extraction from drawings, creating accurate Bills of Materials quickly and effortlessly.

Copyright © 2024 SketchDeck.ai. All rights reserved. Privacy Policy. Terms Of Use.