Rising Steel Prices – The Long Story, Short

It’s no secret that construction costs are on the rise, with the upswing in the economy, an increase in the number of building projects, and an ever increasing global market, there is a direct correlation between the above mentioned factors and supply vs. demand. Globally, there has been a decrease in the availability of raw materials due to not only demand, but also the decreased output capabilities of some major suppliers, click the link below for an interesting read for more on this topic.

How does all this affect your building project?

  • In the past price increases were most often forecast with ample time for owners to make smart decisions in advance on when and how to move forward with their projects, as of lately the volatile market has experienced literally overnight price increases that makes it critical for decision makers to anticipate this as the new normal and be ready to act in order to maximize savings. A 10% increase in raw steel prices on a $1,000,000.00 project is and additional $100,000.00 immediate cost. As your steel building supplier, we do everything in our power to asses the markets and communicate closely with our factories to stay ahead of the pricing curve, and we always work with our clients to minimize the risk to your bottom line with timely information.
  • The size and design of your project is obviously another key factor affected by price increases. A project that initially uses 150 tons of steel may be a candidate for redesign with critical thinking that allows for a reduction in overall steel while maintaining the desired footprint. Everyone of our buildings goes through rigorous design process that allows for maximum efficiency that translates into cost savings for our clients.
  • Price increases on steel can have a dramatic effect on funding, especially for pending projects about to begin. Most lending institutions insist on the upfront costs to be known, and it is often a process to renegotiate with the banks when additional costs are incurred, even more reason to make sure your project is in production sooner than later after funding is secured and deposits are secured.
  • One more aspect of steel price increases is components. Prices for items such as doors, window frames, hardware are all affected by steel price increase. Yet another reason to secure your materials as soon as possible.

Price increases are the “new normal” in today’s economic times, at least for the foreseeable future. With that said, building with steel is, and will always be the best choice for commercial construction in both time and money. With proper planning and understanding the markets, along with a knowledgeable supplier, your project(s) will still be highly affordable and successful. We work hard for our clients to achieve success in every project we are a part of, call us today, and let’s get building!

When Weather Strikes!

We all personally could probably pick our favorite season if we had to, I know I could! Every region and state have their own yearly weather patterns. From seasons changing to complete 180’s in weather day today. The weather plays a huge factor in the Metal Buildings Industry and can be diametrical to timelines being meant. Customers should always take a few key questions into consideration when buying a building;

  1. What time of year do I want to build?
  2. Is this time of year practical with the climate?
  3. Will the weather prove to be problematic?

Too Hot to Handle

You may want to build in the summertime thinking ‘oh the weather is great that time of year’. Yes, the weather may be wonderful but that may not be the case when working with steel. On a beautiful Sunny and 85-degree day, our erectors literally feel the heat and especially if the humidity is high. With the steel being exposed to direct sunlight the energy from the sun is absorbed quicker. This is when delays happen in a project and these ‘Acts of God’ are out of our control, obviously. As much as we would love to control the weather, we can’t. The heat alone can delay a project by days just because performance level goes down because keep in mind when people are in the heat for a long period of time they too can get overheated just like the steel. This is not saying don’t build in your summertime. This is simply saying your timeframe might expand a little because of the temperature.

Too Cold for Comfort

Heat isn’t the only weather we worry about. Cold/freezing temperatures can also take a toll on a project. The cold could make the ground unworkable if it freezes over. If the snow starts flying and/or wind chills are at dangerous temperatures that becomes a safety hazard for our crews. With snow and wind, you are always at a higher risk of ice forming and that gets extremely dangerous for our crews when they are working on any part of your building. These weather elements could cause us to demobilize and have to return when the weather is workable and we have no safety concerns about the weather. Because at the end of the day our number one goal is the safety of our crews.

Weathering the Storm

Yes, heat and the winter conditions can put a damper on a site but a huge element that affects our industry is rain. This is because every region most likely experiences it at some point in the year. Rain can have a huge impact on timelines due to the simple fact that rain can accumulate very fast and turn a nice firm job site into a mud boggers dream. Job sites that get rain can easily be delayed days depending on how much fell. When the ground becomes soft it affects our machinery from maneuvering around a site. Mind you we do everything in our power that we can do without the equipment but it can get to the point where a work stand still happens. Trying to go on without equipment after doing what you can is like asking a football player to play without a football…you can’t do your job without the correct tools.

Yes, I know that you will get excited when planning out your project. Who wouldn’t? But with everything said above just make sure you make your dream realistic as in the timeframe you want it. Take the time to wait for your area’s “building season”, this alone can make your building go up more smoothly and mitigate delays.