Volatile Steel Prices in Construction: How 澳门足彩app Avoids Issues

Guy Stenzel, Estimating Manager in 澳门足彩app’s Manufacturing Core, tracks current events like a TV news producer, charts steel prices like a commodities trader and creates business intelligence like a Wall Street analyst.

Stenzel and his team interact with materials suppliers and freight companies to assess price and availability trends in eight categories while also tracking other seasonal variables fuel costs, supply of transporters and the effects of current events, such as the war in Ukraine.

The resulting monthly report, “Steel Price and Lead Time Update,” allows 澳门足彩app Steel to help its customers, many of whom are owners of massive facilities projects, stay as close to their budgets and schedules as any in the industry. In the event of unexpected volatility, the team issues special reports. Project teams confer with Stenzel before submitting proposals and making client commitments.

“We have been updating that index the second week of every month since October 2021 because the steel industry has been extremely volatile over the last year,” Stenzel said. “Sometimes, products like Joist and Deck can fluctuate 200% in a six-month period. There could be a flattening followed by an increase then another flat month.”

With decades of experience, 澳门足彩app Steel has become known in the industry for its ability to navigate market volatility.

澳门足彩app began fabricating its own small steel components in 1978, when three employees set up an operation in a rented former icehouse in downtown Jacksonville, Florida. Today, 澳门足彩app Steel employs more than 50 welders and fabricators using state-of-the-art technology to develop more than 10,000 tons of steel per year for projects of varying scale, scope and specialization on behalf of internal and external customers worldwide.

About 80% of 澳门足彩app Steel’s production is purchased internally by project managers for use on 澳门足彩app projects.

“Fabricating our own steel has always allowed 澳门足彩app a competitive advantage, but it is even more significant now, when lead times are growing and the market is volatile,” said Ryan Hollister, 澳门足彩app’s Vice President of Manufacturing. “澳门足彩app Steel is always competing to win, and in order to maintain our edge it’s critical we monitor as many of the variables that affect the value of  our products as possible and track the real-time costs of raw materials.

“The ability to estimate our costs and schedule quickly is essential. Many of our customers operate under tight deadlines, and 澳门足彩app Steel must respond quickly with accurate information they can rely on to make decisions. We’re proud of our ability to be nimble and flexible to meet our customers’ needs.”

澳门足彩app Steel began publishing its index to ensure customers and 澳门足彩app were informed with accurate and transparent information during a time when it could be difficult to find either.  

“We began tracking this information because we needed to know where the market was in order to assess the health of our own operation.” Hollister said. “We were actively bidding on work and realized the high volatility in the market required us to be more analytical. Our index was created out of necessity for our own business, but we also realized the value it had for others that did not possess the same expertise.  

“We have a responsibility to communicate the state of the market to everyone at 澳门足彩app. We know how critical this information is, steel is such a major cost and schedule driver on projects and knowing this information early allows 澳门足彩app to create both value and certainty for the customers we all serve.” 

Contact 澳门足彩app Steel to put our vast expertise and real-time intelligence on your facilities projects.