- Maintaining Effective Metal Building Designs Despite Increasing Costs
June, 16 2021
Maintaining Effective Metal Building Designs Despite Increasing Costs
The pandemic has impacted global supply chains in nearly every industry. When steel manufacturing companies were forced to shut down in 2020 to help curb the spread of the virus, this impacted the available supply of steel. As steel manufacturing is slowly coming back, supply is still limited compared to pre-covid availability, resulting in rapidly increasing steel prices.
There is good news, however. Steel costs less than lumber, making it a more affordable building material. Metal building kits are available now, with prices locked in. Steel manufacturers are starting to turn furnaces back on, which means production will increase. Industry experts expect steel prices to level out throughout 2021, and perhaps even drop.
What Causes Steel Prices to Increase?
The price of steel can increase for a wide variety of intertwined and independent factors, these include;
Raw Material Supply: Steel is made from iron and scrap metal, and when the costs of mining iron ore goes up (or supply goes down due to the pandemic), that impacts the price of steel. In addition, if demolition of older buildings isn’t occurring, scrap metal is more challenging to come by, which will reduce supply resulting in increased costs.
Inclement Weather: Weather can have a surprising impact on steel pricing. When storms delay shipping barges containing steel or raw goods or even damage them, pricing will go up. When weather slows shipping, shipping prices increase, increasing steel’s cost.
Oil Prices and Steel Connection: Oil and steel pricing are closely linked. Just as lower oil prices contribute to lower gas prices for cars, lower oil prices also reduce shipping costs for steel.
Supply and Demand Tied to Chinese Reduction in Production: Until recently, China flooded the market with cheaply produced steel. This ample supply of steel made it cheap and easy to procure. When President Trump introduced tariffs, China decreased steel production, resulting in lower steel supplies and increases in costs.
New Tariffs on Foreign Steel: President Trump also introduced new tariffs to help protect American steel manufacturers. Unfortunately, these tariffs caused an increase in all steel prices, including American-made steel.
Increased Steel Prices Lead to More Expensive Building Costs
Building Materials Are More Expensive: When steel prices rise, it will increase the overall cost of the construction project. Even if all other expenses related to the construction project remain the same, the project cost will still go up because steel is a significant part of the building.
Hidden Fees to Hide Steel Price Increases: Builders don’t want to share the bad news about cost increases with their customers because it could cost them business and harm their reputation. To protect yourself from this kind of unsavory business practice, make sure to sign a contract before construction begins.
Tips to Economize Steel Building Costs
Focus on Needs: Understand what your needs are for the project and focus on those. Size, windows/doors, color schemes, roofing, height, quality, and flooring all contribute to building costs. Know what you need and proceed from there.
– What size fits your actual needs? Constructing a structure that you will outgrow quickly will not serve you in the long term. Take the time to measure and determine what size will suit you now and in the future.
– How much lighting do you need? How many doors do you need? If you only need a simple structure, that will decrease costs due to fewer windows.
– Carefully consider the color scheme you choose. Do you want your building to match your current space? Do you want it to blend in or stand out?
– Roofing is an integral part of the aesthetic of your building. Do you want a more modern look? Does the roof appearance matter to you, or do you want a simple and basic look that is more economical?
– The height of your building can impact your pricing. You may need higher walls (more significant than the standard 12-20’) than typical metal buildings if you plan to store grain or oversized vehicles. Consider current and future needs to determine this.
– Quality may cost more in the short run, but going with the cheapest option may increase your costs down the road. Consider that you get what you pay for.
– Floors are the most critical part of the building because they are the footprint for your project. Make sure the size is exactly what you want because that will greatly impact building costs.
Climate: Construction needs are different for every area of the country due to weather. For instance, buildings will need to withstand hurricane forces in Florida, but not in Nevada. California, however, needs to have buildings that can withstand earthquakes, while Kansas will need structures that can stand up to tornadoes. Consider the climate and location for your building needs.
Do Your Due Diligence: Protect yourself from rapidly increasing costs by knowing exactly what you need. Relying on someone else (a contractor in the business of making money) will not save you money. Rely on yourself to figure out precisely what you need. You will be the best advocate for yourself and your budget.
Hire a Pro: Once you’ve done your homework, hire a professional that will have your best interests at heart. Experienced and honest builders are worth their weight in gold, because that’s what they will save you. If you embark on a project without knowing what you are doing can cost you money. Processionals are just that – pros at doing their job. It’s what they are good at. Find an honest one and step out of the way.
Low-Cost Deals Aren’t Real: If you hear of a “cheap, low-cost deal,” steer clear. The price may sound good, but you will end up paying more in the long run, either from hidden fees or poor workmanship. Consider why the cost is so much lower, and remember that you will get what you pay for.
Metal Buildings are Still Cost-Effective, Even with Increased Steel Prices
Steel buildings are still a cost-effective option for construction; even more so than wood. They are low maintenance, safe, affordable, easy to install, durable, environmentally friendly, easily customized, flexible, and energy-efficient. With so many benefits, steel buildings are the best option, despite rising steel prices.
Low Maintenance: Steel never has a need to be refinished, painted, treated for termites, or sanded. The long-run costs for steel continue to be low due to the low maintenance nature of steel, especially when compared with wood costs.
Safe and Secure: You can easily and economically fireproof steel buildings, making them much safer than wood buildings. They are also incredibly strong, one of the features of steel. Steel buildings can be securely locked, protecting both people and assets.
Affordable: Wood costs continue to rise while steel prices are expected to level out. In addition, steel costs are currently lower than wood and require little maintenance. Steel buildings are an incredibly affordable construction option.
Easy Installation: Due to the nature of steel buildings and steel building kits, they can be quickly and easily assembled, without intricate blueprints.
Durable Steel: is one of the most robust construction materials available. It is impervious to weather, fire, mold, and insects and will outlast any wooden structure.
Environmentally Friendly: Due to its recyclable nature, steel can be reused time and again, making it one of the most environmentally friendly building options. Strength is not lost when it is reused, and it simply transforms into another structure.
Easily Customized: Steel buildings are not a one size fits all type of building. They are easily and quickly customized for each individual’s needs and can be changed down the road as an individual’s needs may change.
Flexible and Expandable: If a customer wants a simple metal building but has their needs change later, steel buildings can be expanded later. The flexible options for steel buildings make them an appealing option for many people.
Energy Efficient: Steel buildings can have many customized options to make them energy efficient. Skylights can decrease the need for electrical use. You can use the sunshine to light the building. You can open large doors to increase airflow and reduce the need for air conditioning. The options are endless when it comes to creating an energy-efficient steel building.
Get Your Next Steel Building from Triple-A Steel Structures!
Triple-A Steel Structures can help you with your next steel building project. They are one of the largest dealers in metal buildings and offer the best industry selection, at the best prices available.
Triple-A Steel Structures is a dedicated team of professionals with leading industry experience and can help you keep your project within your budget without compromising quality. Contact Triple-A Steel Structures today at (888) 511-0899 for a steel structure installation.