Steel pricing and industry trends.

As we push our way through 2023, we have seen a rise in just about everything.

From personal life to business life, there has been a boom in the original price of necessary items.

We have talked previously about the plight of the market in our FABWorld magazine and here on our ‘News’ as it is a prevalent issue which many steel fabrication industries around the UK need to now manage more closely.

Today, we are looking specifically into understanding the cost factors in steel frame buildings in 2023 and trends the industry expects to see.

Rising Demand

Steel frames and buildings are not new. Steel has been said to be the most popular material for building since the 1880’s. So why the sudden boom?

Steel is known for its durability, strength, and versatility. Cities keep growing, companies keep growing and expansion is everywhere.

The rise in demand for the material resulted in there to be a rise in costs.

Finances must be more closely managed due to the rise in cost, ensuring that projects now reflect the cost of materials also.

It’s an issue that many businesses and clients have been struggling with since the COVID-19 pandemic.

The industry has said that due to the rising demand for structural stee, there has been an average price hit of around £1,300 per ton of steel.

What are some of the factors that are affecting the cost of steel frame buildings in 2023?

We have already seen the affect these factors have had on steel frames within the past few months, however these have been predicted by the industry.

First is location.

The location of a building plays a large part in the quote created for the project. Rural area builds are obviously quoted less than urban builds.

The higher price point is to mitigate the time spend on site. Building in urban areas will mean issue with transportation of materials, typically a smaller site area within confinements of buildings and the general public and other issues with can cause teams to be on site for longer.

Next is the size and design of the building.

Although steel is extremely versatile and flexible to an extent, constructing a simple column and frame building is much more simple and takes less time than a complex building.

Buildings which contain intricate details and flexes in the frame will take longer to both manufacture and install, which needs to be integrated into the quote of the building.

Material cost is one of the main factors we have seen a boom in price.

The shifting prices for raw materials, such as steel and cement, play a crucial role in determining the overall cost of a steel frame building.

COVID prices are still a common theme with most suppliers, we have manged this for many years now which allow our team to be able to understand new prices for projects and contractors.

The higher it costs to source and have the material delivered, the higher contractors will price.

Like the cost of materials, labour costs are another reason we are seeing a rise in steel frame projects.

The wages of workers, for example, can hugely affect the price of steel frame buildings. These costs depend on the region, so research the local labour market before investing in a steel frame building.

We have also spoke previously about the issues with teams, this has been seen in all industries. With teams working with reduced overheads, this can mean another rise in costs as subcontractors are brought in to assist.

Unfortunately, there is little we can do to stop the price rise, but there are ways to mitigate the possible loss for your business.

Ensure all projects are priced correctly and protect yourself.

For more information on the rising cost in the industry and other news, follow SCH on Facebook and LinkedIn at @schsiteservices.