The current state of steel is on the minds of many people around the world. With the recent introduction of tariffs on international steel and aluminum shipments, American manufacturers are scrambling to make sure they have an adequate supply.
The uncertainty has driven up the price of these metals substantially over the past few weeks. With a 25% tariff on steel and a 10% tariff on aluminum, this is a significant supply barrier to overcome. And even with American metal suppliers available, prices are rising steadily along with demand. Just last month, the price of hot-rolled coiled steel was upwards of $800 per ton, which was already 32% higher than 5 months before in October. It’s a significant increase over a relatively short span of time.
The rising cost of raw materials has caused many manufacturers to raise the cost of their products. This trend is already impacting numerous seemingly unrelated industries, including farming. Farmers rely on metal-based products for their daily operations. Everything from heavy equipment such as tractors, to the massive grain storage bins that are vital for their operations rely on metals such as steel and aluminum. As the price of the material rises, producers of these items are raising prices in response, making equipment upgrades difficult or impractical for many end users.
And for projects that involve construction and infrastructure, the budgeting process is even more difficult. With material prices fluctuating so much, it’s hard for even the suppliers to gauge how much a final job will cost. A customer that ordered a particular product just a few months ago may find the price considerably higher if they need to re-order anytime soon. And for ongoing projects, the costs are continuing to climb – a problem especially felt in the public sector where budgets are relatively inflexible.
At Ohio Valley Manufacturing, our pricing is relatively stable thanks to a reliable supply. We are fielding many questions regarding lead times, however. Currently, we’ve been able to keep up with demand and don’t anticipate any major impacts within our own business. We continue to monitor the situation, however, and understand the volatility of the market.
If you need a dependable heavy gauge stamping provider, give us a call to see how we can help. You can reach us at 419-522-5818 or by emailing firstname.lastname@example.org.