Inflating steel prices is something you can prepare for when it comes to building your shed and not getting slammed with massive price hikes.
We’re working with over 15 years of experience behind us; hence you can trust we’ve been around this block a few times. Tapping into our knowledge and resources can help you to avoid the common traps that can cost you your back pocket.
We’ve seen inflation in steel prices happen before, but what’s the difference now?
To cut to the chase, we are operating in a volatile market where calculated and agile moves can save you and your ag business big bucks. It’s important to fully know the situation and its effects so you can act with all the information at your disposal. Let’s dive into this:
This doesn’t mean an increase in your shed investment
A big difference to understand is that increasing steel prices doesn’t mean an increase in your shed investment. Hypothetically, if we were to see a 15% jump in steel prices, that doesn’t mean we’d witness the same increase in the total price of your shed investment. This is as we expect some aspects to likely remain stable moving forward, which are:
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- Manufacturing
- Galvanising
- Freight
- Installation/construction
- Concrete
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A report conducted by Rabobank showed some positive morale among the Aussie ag industry – particularly in our state. South Aussie farmers reported our nation’s highest farm viability expectations, with 98% of those surveyed rating their business as viable.
Steel Price Still Means Quality
While the price fluctuation of steel might be volatile and unpredictable, receiving a top-tier product and service from our team will always be commonplace. But with prices of steel and its demand on the rise, we suggest locking into your shed build sooner rather than later.
A great example we saw recently was with Sheep Farmers Murray & Lorraine Jones. They came to Spanlift looking to invest in new holding yards and shelter for their livestock (can we insert when) – something that would be resilient and withstand harsh weather conditions.
We designed and engineered a product that met all their requirements and more. Hot dipped galvanising of the structure facilitates longevity and protection from the elements. Additionally, the curved roof design maximises airflow throughout the building, minimising noise levels and controlling ammonia levels. The end product exceeded expectations, to say the least – something we strive for with each and every client.
“We couldn’t be happier with our Spanlift yard cover. Whenever we wanted anything, they were right there. Nothing was ever too much bother, we could ring them up any time. We thank Spanlift for their kindness, their patience. Every time you wanted to discuss something, they were always readily available, polite, couldn’t fault them,” said the Joneses.
Opting to action construction sooner rather than later, Murray and Lorraine evaded increasing steel prices. Now not only are their livestock more comfortable, but their farm has an added investment that will only accumulate in value.
The Steel Price Extends Globally
The price jump isn’t limited to Australia, and as such, we can expect fluctuation over the next few years. Our Aussie Ag industry saw a 13% increase back in March, and with more looming, it’s clear that this is a volatile market – taking advantage of locking in the current steel price is something to consider.
We’ve been in the game a long time, and consequently, we’ve experienced rising prices before in a similar situation. In our opinion, after the steel prices increase after some time, the prices will lower again but not to the point where they are currently set. Therefore, we believe it’s not an exaggeration to say sheds will never be cheaper.
Rabobank Australia’s chief executive officer Peter Knoblanche said, “Increasing productivity is vital to ensuring business strength and boosting profits during good years, and we are seeing a big focus on this in the investment plans of Australia’s farmers.”
The quote featured on Farm Weekly’s blog, also added that farmers were largely positive about the yields to come amid 2021 – despite the fickle nature of the steel market.
To Sum Up The Steel Price Situation
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- Global steel prices are expected to continue to rise at unprecedented rates.
- The demand for sheds is high so it’s important to start planning your shed now.
- We don’t expect to see sheds this cost-effective ever again so get your steel at the best price possible.
- Increasing steel prices doesn’t mean an increase in your shed investment. Steel is just one component.
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At Spanlift, we’re committed to keeping you in the know so you can make the decisions that secure you the best outcome possible with your new shed investment. To find out the current steel price and how this impacts your future shed build, call 1300 234 321 and talk to one of our experienced staff today.