Metals Industry Resilience Through Process Mining

The metals industry is at a crossroads. A confluence of regulatory upheaval, volatile pricing, and sweeping new tariffs is reshaping the competitive landscape for metals producers, processors, and distributors. For industry leaders, the ability to adapt quickly and efficiently is no longer a competitive advantage; it’s a necessity for survival.

Process mining, a cutting-edge technology for operational transparency and optimization, is emerging as an essential tool for metals companies navigating these turbulent waters. While the current regulatory and pricing environment poses challenges, process mining can help organizations weather the storm and build a foundation for sustainable growth and compliance.

The challenge: Regulatory complexity, pricing volatility, and tariffs

2025 has ushered in a wave of new regulations that affect the metals sector. Tighter environmental, social, and governance (ESG) compliance requirements are coming into force, including the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD), the Corporate Sustainability Reporting Directive (CSRD), and the Critical Raw Materials Act (CRMA). These regulations demand unprecedented transparency and traceability from metals companies and have deep-reaching obligations for upstream operators and downstream buyers.

The regulatory environment is increasingly stringent and more fragmented, which complicates matters. While some standards are consolidating, others are proliferating, and companies now must navigate a patchwork of overlapping and sometimes conflicting requirements. Enforcement remains inconsistent, but pressure from civil society and the threat of legal action are growing, especially as high-profile lawsuits and public scrutiny intensify.

Tariffs and trade barriers: The new normal

On top of regulatory challenges, the metals industry is grappling with a dramatic escalation in tariffs and trade restrictions. In March 2025, the federal government implemented 25% Section 232 tariffs on steel and aluminum and eliminated previous exemptions and quota agreements. These tariffs are additive, and they significantly increase the cost of imported metals and their derivatives. The removal of exclusion processes and the expansion of covered products mean that virtually all imports from previously exempt countries are now subject to these duties.

The impact is immediate and far-reaching and includes:

• Cost increases. Tariffs directly raise input costs, squeezing margins for manufacturers and processors reliant on imported metals.
• Supply chain disruption. The need to map supply chains for compliance and to identify U.S. content is now critical, as is the risk of supply interruptions due to shifting trade relationships.
• Pricing uncertainty. With tariffs and reciprocal measures in flux, metals pricing has become more volatile, which makes budgeting and forecasting increasingly difficult.

Pricing volatility and demand shifts

Metals prices, already off their 2022 peaks, are struggling to stabilize. Overcapacity in key segments such as steel, batteries, and renewables is keeping prices subdued, while supply chain disruptions and geopolitical tensions periodically spike prices for critical minerals like cobalt and neodymium. The macroeconomic outlook remains uncertain, with monetary policy, fiscal deficits, and the specter of recession all weighing on demand and investment.

The bottom line: Metals companies must manage a complex matrix of regulatory compliance, supply chain risk, and pricing unpredictability – all while maintaining operational efficiency and profitability.

The solution: Harnessing process mining for strategic advantage

Process mining is a data-driven technology that enables organizations to visualize, monitor, and optimize their real business processes. By extracting and analyzing event logs from IT systems, process mining can help provide a transparent, end-to-end view of how processes operate – not just how they’re supposed to work.

Key capabilities include:

• Automated process discovery that visualizes the true flow of processes to identify inefficiencies and compliance gaps
• Conformance checking that helps confirm that processes align with regulatory and internal standards, highlighting deviations in real time
• Performance mining that can reveal bottlenecks, costly steps, and opportunities for automation
• Variant analysis that compares process versions to understand the impact of changes or different compliance regimes
• Predictive analytics that use AI and machine learning to anticipate delays, compliance risks, or supply chain disruptions before they occur

How process mining addresses metals industry challenges

Regulatory compliance and traceability

With new regulations demanding granular traceability and reporting, process mining offers metals companies a powerful compliance engine. By mapping every step of the supply chain and production process, companies can:

• Demonstrate adherence to ESG and due diligence standards
• Rapidly identify and remediate noncompliant activities
• Automate reporting for regulatory submissions and reduce manual effort and risk of error

For example, when a new regulation requires proof of responsible sourcing for a particular metal, process mining can automatically trace the material’s journey from supplier to finished product, flagging any deviations or gaps in documentation.

Tariff impact analysis and supply chain optimization

The new tariff regime requires companies to understand the origin and composition of every product and component. Process mining enables:

• Automated mapping of supplier networks and product flows by identifying which imports are subject to tariffs and where exemptions might apply
• Real-time scenario analysis to assess the cost impact of tariffs and model alternative sourcing strategies
• Streamlined coordination between procurement, logistics, and compliance teams to avoid costly errors and delays

By visualizing the end-to-end process, companies can proactively reroute shipments, adjust sourcing, or renegotiate contracts to minimize tariff exposure.

Pricing and margin management

In a volatile pricing environment, process mining helps companies:

• Identify inefficiencies and waste across production and logistics to unlock cost savings and offset rising input prices
• Monitor process performance in real time to enable rapid response to market shifts or supply disruptions
• Support dynamic pricing strategies by providing accurate, up-to-date cost and margin data

Continual improvement and competitive advantage

Process mining is not a one-time fix but a platform for ongoing transformation. Companies that embed process mining into their operations can:

• Achieve higher profitability
• Foster a culture of transparency and accountability, which is essential for meeting both regulatory and market expectations

Real-world impact: From compliance to performance

Consider a hypothetical metals manufacturer facing the dual challenge of new tariffs and ESG regulations. By implementing process mining, the company could:

• Map its entire supply chain and identify which products and suppliers are affected by the new Section 232 tariffs
• Automate compliance checks for ESG regulations, condense audit preparation time, and reduce costly manual errors
• Optimize production scheduling and logistics and achieve cost-savings by avoiding tariff-triggering imports and rerouting shipments
• Use predictive analytics to anticipate supply chain disruptions and adjust sourcing strategies in advance

The result: Companies can potentially achieve compliance, avoid regulatory penalties, improve margins, and increase operational agility by turning a period of crisis into an opportunity for transformation.

Turning challenges into competitive advantage

The metals industry’s future will be defined by those who can adapt to regulatory complexity, pricing volatility, and geopolitical uncertainty. Process mining offers a proven, data-driven path to resilience, compliance, and sustained profitability.

As a consulting services provider with deep expertise in both metals and digital transformation, Crowe can help organizations:

• Assess their current processes and compliance risks
• Implement state-of-the-art process mining solutions tailored to industry needs
• Achieve continual improvement and unlock new value from data

Contact us today to schedule a process mining readiness assessment. The future of metals is uncertain, but with the right technology and guidance, your organization can thrive amid change.