It is clear that 2020 was a year that changed everything for everyone across the globe. A pandemic being announced, followed by a range of restrictions and changes to daily life, meant that most of us faced a new type of uncertainty that we had never experienced before nor expected.
The impact of the pandemic was devastating to businesses, and the global economy took a nosedive that we will be recovering from for many years to come. The steel industry in America was one of the areas that suffered the effects of COVID-19 with a huge reduction in demand. We wanted to update you on the US steel industry outlook as this new year rolls forward.
Many people assume that the steel industry virtually closed down in 2020, but when we look at the year in quarters, it is clear to see that it was actually a rollercoaster of a year instead. The first half of the year did see the decline that we all assumed happened as products were no longer in demand. As there were very few sales, the price of steel went down, and steel manufacturing services closed down due to there being little need for production.
As prices continued to drop, customers who wanted to access steel were seeing the benefit of buying it at its cheapest to get the most for their money. This surge in orders helped to start a surge in the steel market. Price ranges for steel were at their lowest during the middle of August, but then, with the increase in sales, the steel market update was positive, with signs of manufacturing bouncing back and coming back online.
One of the most frustrating effects of the pandemic is that the level of steel currently available is at the lowest point we have recorded in recent history, meaning that lead times have become longer, and the wait for orders to be supplied is getting worse each day. When you consider that steel mills had to close their operations during the enforced shutdown, you will begin to understand where the shortfall was, and even now, they are open, most places are running on limited capacity because of the lack of available materials to work with and the lack of available staff.
Interestingly, construction supplies were all heavily in demand during 2020, which meant prices skyrocketed for lumber and other items. The result of these price increases only went to increase demand for steel as it remains the most cost-effective solution. This, combined with the low supply of steel, has ensured that the steel industry has rebounded from the pandemic quicker than anyone ever expected.
Because the steel industry in America saw a surge in orders at a time where supply was low, the price of steel doubled during the last two quarters of 2020, and they are now higher than we have ever known. In reality, while the price may be high, the ability to get hold of the steel needed is still limited, and there are still blockages in the supply chain, meaning that customers are waiting longer than ever to get their orders.
When you check out the US steel industry outlook, you would be forgiven for thinking that the chances of you getting the building you need are impossible at the moment. But with Coast to Coast Carports, we are ready and able to help you get what you need as we push ahead with supplying our customers with high-quality metal buildings.
As America’s leading metal building manufacturer, we are always the first to know about any industry-specific issues and updates. This allow us to make the best decisions at the optimum time so that you can benefit from shorter waiting times than with other suppliers.
During the pandemic, we were the first to recognize that prices needed to increase in order to maintain the supply of steel to our customers. While you may now be paying slightly more for your building, you can be confident that you will get access to the best quality materials with the best lead times across the entire country.
Our mission is to ensure that your steel building gets delivered in a timescale that is appropriate despite ongoing shortages. This is because we care about our customers and strive to put you first with every single decision we make.
Because all our buildings are custom made to your individual requirements, you can trust us to deliver the results you need against the expectations you have. Ultimately, you will not find a better steel building supplier with better customer service because we are the industry experts that you need right now.
With the ongoing negative steel industry updates, we know that you may be worried about buying a new steel building right now. By providing our steel market update, we want you to feel updated, not daunted, as you decide whether to invest right now or not.
Many people are trying to find new ways to get hold of cheaper steel or other materials because of the price increase, but we would urge you to think twice before making your decision based solely on the steel market price. There are lots of sub-standard companies that will promise a lot but be unable to deliver the quality that we offer, resulting in a building that is not fit for purpose. When you choose Coast to Coast Carports, you will continue to get the absolute best information from the industry leader that you need right now.
We are committed to being honest with you at all times and sharing the insider updates as they become available because we know that an informed consumer is a confident consumer. We know that many people are tired of waiting and may even be considering canceling orders that are already placed. But, when you consider that we have the best lead times, then waiting may actually be the best way to get hold of the building you want.
The market will recover, and lead times will reduce, leaving the one thing that you have always been able to depend on – our quality steel buildings. Call us today at (866) 681-7846 to discuss your needs and take the next step to get the building you want.