Drastic Steel Shortage Causing Headaches For Steel Building Components Suppliers
Drastic steel demand increases and raw material shortages have greatly impacted the construction industry for the past nine months. This has created a trickledown effect that is now impacting companies and consumers in the cost of goods and services. Design Components, Inc, a leading steel building components supplier, understands the frustration with the industry-wide shortage and is here to offer our expertise on how this shortage is impacting business globally.
Steel Building Components Suppliers Insights, How It All Happened
When the global economy was crippled in March of 2020 due to Covid-19, steel production was critically effected by shutdowns in manufacturing and drops in the labor force. Steel imports were held up, and continue to be an issue.
While things are opening up, steel producers are still experiencing slowdowns in production while consumers are creating massive demands for raw materials. In addition, a national labor shortage continues to plague companies across the board.
Analysts had predicted that this “bubble” would be short-lived. But, due to continued issues with the new covid variants and global import delays, many steel building components suppliers are seeing skyrocketing prices, project delays and unhappy customers.
Here’s what to expect:
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- Steep prices for what little steel is available.
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- Alternatives to steel becoming more popular where they can be used.
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- Increased prices and limited quantities for steel goods such as consumer appliances, automobiles, manufacturing equipment, construction equipment, and more.
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What Can Be Done?
Unfortunately, patience is needed until steel mines and manufacturers finish playing catch-up with the increasing market demand. Operations are slowly getting back on track, so the end of 2021 looks like a promising end to this ongoing shortage. The best thing to do is to wait and seek out alternatives whenever possible.
For a more in-depth look at this issue, Read More…
Steel Building Components Suppliers’ Tips For Managing This Shortage
As a #1 provider of steel building accessories, Design Components understands the pressures felt by companies and consumers during this steel shortage. Here are a few tips for companies on addressing customers during this critical time.
- Be Transparent – Customers are more likely to understand added lead times if you are honest about the delays and why they are occurring. “Putting off” or constant delays due to overpromising can have a negative effect, so it is best to shoot straight.
- Review your Products Offerings – This may seem simple, but reviewing your products offering and allocating resources to your highest demand products can be a lifesaver. Often supply chains will get stuck in a spiral of ordering based on normal operations. Treat the shortage as you would a disaster response episode.
- Use Downsizing or labor Cuts as a Last Resort! – There is a labor shortage going on in addition to steel. While many companies are seeking ways to cut costs to accommodate steel shortages cutting labor should be your very last resort. Before taking such a drastic measure, sit down with your operations team and review other options first. Maybe it’s time to offer new service or product offering? Keep in mind, if you let go of your team, you may not get them back.
- Communication is Critical – Even when delays have been communicated initially, customers can get antsy when the delays string out after a couple weeks or more. Communicate with your customers frequently. Let them know you appreciate their patience. Offer solutions for part shortages, do your engineers know of a workaround for another part? Let the customer know.
70% of consumers say they have already made a choice to support a company that delivers great customer service.
Design Components, Your Trusted Steel Building Components Suppliers
Design Components, Inc. is the trusted expert when it comes to steel building component suppliers. We understand the difficulties this steel shortage has caused. We are working closely with our manufacturers, engineers and supply management team to assure this shortage has the least effect possible on our customers.
At Design Components, Inc., we offer steel building accessories that keep our client’s commercial buildings OSHA compliant and safe for employees and customers. Check out our extensive steel building products here, or contact us at sales@designcomponents.com for a quote.
