2021 metal roofing price projections help contractors determine how to move forward with estimates and building projects as the year progresses. So far, the year has been quite unpredictable! Wagner is here to inform customers and contractors about what is currently happening within the steel industry. From steel supply, price fluctuation, and the consumer market, all your answers will be found here. Any other year, we wouldn’t have issues determining where the price of steel should fall month after month. Living through the pandemic for over a year makes determining 2021 metal roofing price projections more difficult than ever before. Here is what we know.
2021 Metal Roofing Price Projections—Steel Supply
A year ago, Americans were put into a situation that forced us to adapt to a new normal that frequently changed from one day to the next. COVID-19 has certainly impacted the metal construction industry from 2020 to now. This widespread virus has caused a business crisis around the world. Last year, many domestic steel mills were required to shut down to do their part in slowing the spread. Shutting down these mills for weeks at a time meant metal suppliers would not be receiving shipments to fulfill orders. At the time, it wasn’t too terrible of a problem because the steel demand was lower than usual. Unfortunately, that isn’t the case now.
Most businesses—as they follow COVID-19 guidelines—have begun to reopen their businesses to serve customers. With the market slowly opening, the steel demand began to rise rather quickly. The ability for metal suppliers to meet the new demands after experiencing a nationwide shutdown less than a year ago has certainly created unforeseen setbacks. One of the largest current issues with the steel industry is production ability. Supply is low due to inactivity over the shutdown months. This makes it incredibly difficult to fulfill the new growing demand for steel. New steel mills are being built and utilized more than ones used previously to keep up with the ever-increasing demand. The new mills take less time, energy and create faster production times than the older mills. High demand combined with low supply is a recipe for price inflation. The current steel production crisis is a global concern—not just nationwide.
Fluctuation in 2021 Metal Roofing Price Projections
2021 metal roofing price projections have dramatically increased over the past six months under the given circumstances. Limited supply with high demand will naturally cause a price increase for products within the industry. From early August to today, steel prices have consistently increased month after month from 7.5% to 75%. This price progression may pose many questions. What does this mean for metal supply companies that frequently purchase steel for their business? How will this dramatic price fluctuation impact the metal construction industry as a whole? Unfortunately, steel is becoming hard to come by. The price isn’t fluctuating by a few cents either. It’s dramatically changing.
We recommend contractors to allow some wiggle room while developing estimates to compensate for the ever changing price of steel. This will protect you from potentially losing an immense amount of profit in your future jobs. Estimates for a metal construction project are given based on the current prices of steel. Nobody within the industry expected or had a clear understanding of how much the 2021 metal roofing price projections would be increasing based upon the situation our nation is currently enduring. With that said, estimates customers receive in August could be completely different now due to unforeseen steel price fluctuation. Customer education is important now more than ever.
2021 Metal Roofing Price Projections—Future Outlook
With a short supply and increase of prices, this raises many questions regarding the future outlook for metal construction customers. The 2021 metal roofing price projections are unpredictable. All of these changes may leave customers confused about what it means for their future projects. Customers can expect to see:
- Extended lead times
- It’s becoming difficult for contractors to keep up with the work, with steel demand being as high as it is.
- Estimate fluctuation
- An estimate given six months ago could have increased by up to 20% due to short supply and high demand. This increase is simply because of lack of materials.
As mentioned, customer education is extremely important right now. You don’t want to lose the trust of your customers because their estimates increased. Be transparent, explain what is happening within the steel industry, and offer plausible solutions. We wish we knew what was projected to happen in the next six months in the steel industry. Alas, everything is still uncertain. Customers can wait to purchase their metal supplies, but there is no guarantee that the price will significantly drop the way it rose. We live in unpredictable times right now. We are working closely with our vendors to provide materials at the most affordable price we can. Wagner is committed to providing services to the customers who got us this far in the first place. Despite the ever-changing challenges we face, we promise to provide our customers with the best services possible.