Allison’s observations about the industry

What’s happening with steel pricing?

There has been confusion with the on/off again tariffs, yet with the anticipated tariffs all the steel suppliers in US have taken an 8-10 percent increase across the board.

How does that impact the industry?

There is a lot more steel in the pipeline (as people tried to beat that price increase). Where it shakes out once all the pricing increases is hard to predict.

Why are customers exploring steel/metal buildings for construction?

Clients are looking for buildings with style and durability. Since commercial metal building offer resilience, it makes that structurally sound; thus a solid investment. Our DPW projects are required to be steel.

What concerns are top of mind for your customers?

Our customers are always looking for opportunities to lower construction costs and lower operating costs. Yet, lead times are elongated every time there is a rush of orders. The entire process takes longer  through every phase with a heavy lag on approval drawings which then snowballs to a backlog in manufacturing. 

Are bid requirements changing?

Overall, customers are looking for more detailing in the engineering/design phase. That’s where Tekla gives projects a great foundation for construction. 

What about Buy American Requirements?

We are seeing much more focus on Buy American requirements and/or AIS (American Iron and Steel) requirement for the steel.  70 percent of our new projects have the requirement of Buy American/Build American which requires manufacturing and sourcing of all materials in US and also the appropriate documentation. The AIS requirement applies to projects for the construction, alteration, maintenance, or repair of water and waste infrastructure

Where do you see the future of the steel market?

It is unsteady time, and I advise everyone to get the steel ordered sooner than later.