2020 was a rough year for just about every corner of the globe. The pandemic saw travel and public life shutter to a halt, countless businesses close their doors, and economies stop in their tracks. Factories, restaurants, and pretty much everything in between saw a violent impact. And one sector that saw this the most is the steel industry. The pandemic threw the steel market into disarray, with each new wave of infections causing lockdowns and restrictions that rippled outward through every corner of the market.
The real rollercoaster ride for the steel industry began when the demand for raw steel went through the roof. This sharp increase in demand caused subsequent price hikes across the industry that affected everything from the country’s infrastructure to the manufacture of metal buildings. This trend continued, in waves, throughout 2020 and into 2021.
With the Coronavirus pandemic still hitting nations worldwide in 2021, restrictions and lockdowns continued in waves that affected everything from the automotive industry to steel-based construction. As soon as many cities saw decreases in cases and lifted lockdown restrictions, positive cases would return in subsequent waves. This continued throughout the year, causing breakdowns in supplies and shipping. Even after the shutdowns ended, steel manufacturers have been scrambling to keep up with insanely high demand.
As 2021 ends and we look forward to 2022, markets are showing steady signs of progress. Though the steel demand is still at an all-time high, improved vaccination rates and reduced travel restrictions have eased many shipping and supply chain issues plaguing the economy in mid-2020 and 2021. As a result, businesses are starting to receive the steel they need for their products, albeit at increased rates and with delayed shipping.
However, continued pandemic lockdowns in China, which produces roughly 20% of the world’s steel, can be partially blamed for ongoing supply issues. These resource issues will ripple into every industry, from the automotive sector to construction and beyond. Some of the main factors that are affecting steel prices are:
Across the country, many different businesses are experiencing a once-in-a-lifetime shortage of workers. From lower-level employees to highly skilled workers, industries across the world are suffering from this deficit. This trend will most likely continue into the future as businesses reassess their structures in the face of the pandemic.
The availability of raw steel is an enormous contributor to the overall steel shortage. With plants that process raw steel being repeatedly shut down due to pandemic restriction, sick employees, or worker shortages, steel is simply not being forged at the same rate as it was in 2019. However, with restrictions finally lifting, the steel market is expected to recover over the next decade.
The pandemic threw the economy into a recession, the effects of which are still rippling through all types of different businesses. As a result, everything from manufacturing to retail suffered. This upheaval affected the prices of almost every product, including the prices of metal buildings.
It’s no secret that the last few years have been tumultuous for many people in America. But how about those interested in purchasing a metal building? How does one go about getting the best price for their money? Statistically, the prices of raw steel are not only expected to hold firm over the next few years as part of the recovery, but it will also most likely increase. Therefore, if you’re aiming to seek the best bang for your buck, the time to act is now. Metal building prices will surely rise in 2022, and demand is not expected to falter anytime soon.
The period between when you first place your order for a premium metal building or metal building kit may vary depending on steel prices and current demand. For more information on current lead times, contact our building experts. They can help you find the most up-to-date lead times for your region, aid you in the design process, and answer any questions you may have.
No matter what the future brings or how the market surrounding steel behaves, Steel Carports aims to be your number one metal building dealer. We work closely with our manufacturers to try and bring you premium products at affordable prices. So, don’t let steel shortages and price increases get the best of you! If you’ve wanted a new metal garage or one of our metal building kits, act now and lock in your rates before any further price increases!
Our building experts are dedicated to helping you design and customize the structure of your dreams! From small equipment sheds to large industrial warehouses, we have the experience and skill to get the job done! Give us a call today at (833) 647-8335, and let’s get to building!