Pre-engineered metal buildings are experiencing a huge demand increase for various reasons. Armstrong Steel explains that some of the reasons include the flexibility the structures provide as well as the comparatively low cost and ease of assembly.
The price of metal buildings isn’t just fueled by the demand for them and the available supply, however. Since these buildings utilize steel, the price of the structures can be greatly affected by the price of their materials.
As a commodity, steel prices can fluctuate based on several factors, too. Below, Armstrong Steel Buildings will discuss how steel prices — and other factors — can impact pre-engineered metal buildings.
Raw Materials Cost
As with any industry that deals in products created with raw materials, the final cost of the product is determined in large part by the cost of the materials that are used to make it. In the case of pre-engineered metal buildings, the raw material in question is steel.
Scrap metal and iron ore are the two primary ingredients that are used to produce steel. Therefore, the availability of these ingredients goes a long way in determining the cost of steel of a commodity, which then has a direct impact on the price of pre-engineered metal buildings.
The nice part about steel from a price perspective is that the supply of scrap metal is only on the rise as old structures are taken down to make way for new ones. Steel can be used over and over again without compromising its integrity, which is why recycling is so important to keep costs low.
The cost of steel is directly correlated to the cost of oil — possibly even more so than the cost of iron ore. While no oil is used in steel production, the material needs to be shipped from refineries to the manufacturers that use the steel to create structures.
The cost of steel can skyrocket when the cost of oil increases dramatically, simply because it becomes much more expensive to transport. This is especially true when oil costs become so high that U.S. steel imports drop low, creating an increased demand for domestic steel.
Armstrong Steel points out that oftentimes, spikes and dips in steel prices often mirror that of oil.
Demand is High for Pre-Engineered Metal Buildings
Steel prices have dropped consistently over the last few months of 2022 after experiencing huge spikes in prices throughout much of 2021 and early into 2022. This has resulted in the cost of pre-engineered metal buildings to stabilize as well.
Even when steel prices were at their high point, the demand for these structures rose. Armstrong Steel Buildings says that’s because of all the benefits that pre-engineered steel buildings provide, especially compared to structures made from wood and other materials.
Steel buildings provide outstanding usability and flexibility, are extremely durable, and are cost-effective. They also last for years yet take a fraction of the time and effort to erect compared to wood structures.
About Armstrong Steel
As a leading manufacturer of pre-engineered metal buildings, Armstrong Steel Buildings takes pride in delivering high-quality steel buildings across North America. Armstrong Steel Buildings has been delivering high-quality steel buildings for nearly twenty years and provides structures to residential, commercial, agricultural, industrial, cannabis, government, and military agencies.