The pandemic has severely impacted almost every market you can think of. It’s not easy to remain optimistic, but being in the steel industry comes with its perks of resilience. Those in the steel industry experienced the 2008 real-estate crisis first hand. At the time, it seemed like nothing could be worse. This experience prepared the industry for the worst-case scenario. Unlike many other industries, those in the steel industry were ready to take on the challenge.
The good news is with a growing number of the nation fully vaccinated, we can expect to see things slowly start to go back to normal. To get back to normal, we need to first look at the “new normal.” Let’s look at two ways Covid-19 has impacted the steel industry.
1.) Rise in Cost of Metal Materials
Building material prices are soaring, and they don’t appear to be going down any time soon. The metal has risen anywhere from 20 to 25 percent in 2021. In addition to the price increase, the pandemic hasn’t made things easier.
2.) Changing Industry
We are living in the era of day-to-day forecasting. While not ideal, it’s the most efficient way to stay on top of current steel industry trends and news. According to a study done by the National Association of Manufacturers (NAM), 80 percent of manufacturers believe COVID-19 may have a financial impact on their business.
Lumber Industry Price Skyrocketing Due to Covid-19
Although new tariffs and Covid-19 may have caused suppliers to raise the price of metal buildings. It’s still a more affordable option than lumber. According to the National Association of Home Builders, in 2020, lumber prices rose by 130 percent. As the cost of lumber increases, metal buildings will continue to be the more affordable option sought after.
Buyers on 360Connect.com indicated that they’re looking for alternative methods for constructing their building due to the skyrocketing price of lumber. Expect this to continue throughout 2021.
3 Steps to Grow Your Steel Building Business during Covid-19
Step 1: Be Honest About The Rise in Cost
You know the cost of metal construction is rising due to the market demand during the pandemic, ensure that message is communicated to potential prospect and current clients. It’s important to remain transparent regarding why your prices may have gone up for a steel building or barn.
Being honest about the price increase, also inherently helps you sell. Let us explain. According to “Influence: Psychology of Persuasion” by Ronald Cialdini, there are 6 fundamental weapons of influence to cause someone to act or change behavior. Scarcity is one of the weapons of influence. Scarcity is the state of being scarce or in short supply.
This rise in cost is due to scarcity, it’s harder to get steel causing it to be more expensive. Use this as a way to influence your customers and prospects to act and purchase now. Because prices are going up, it’s in their best interest to buy now before things become even more scarce and expensive.
Step 2: Expect Change
In 2019 the steel industry was impacted by new tariffs that caused higher costs to obtain materials and higher prices for consumers looking to purchase steel. Before this, the steel industry faced China decreasing its steel production, creating a lower supply worldwide. And even before that, we had the 2008 real estate crisis.
In the book “Who moved my cheese,” the author used mice and humans as its main characters. The author talked about how change impacts a person’s work and life. Giving examples of how people typically react to change. It’s a short story, and we recommend you read it if you haven’t already. You’ll see that you want to be the mice in the story, not Hem and Haw, the humans!
The point is, we don’t know what the future holds. We certainly did not know Covid-19 would happen. But as long as your business stays on top of the trends, and most importantly, expects changes, you’ll be set up for success.
Step Let 360 Connect Help
If there’s one thing certain, it’s that the demand for steel buildings has been consistent even during the pandemic. As the world moves forward, people will be looking to buy an affordable, durable, versatile building solution for their needs. Contact us today to learn more about how we can help grow your steel building business using our Revenue Growth Program.