In light of the recent trade negotiations in U.S., most steel industry professionals have been expressing their concerns about how steep tariffs might impact their businesses. As you may already know, although Trump vowed the industry “protectionism” and making it more competitive, many businesses have been suffering and worry about the near future, trying to assure that revenue is coming in consistently. For many businesses, these tariffs mean both higher costs to obtain their materials and higher prices for consumers looking to purchase steel.
The tariffs are eliciting many different emotional reactions from industry members. Some believe the tariffs are in good intention for the U.S. economy – in sum, they are being implemented as an effort to reform the global trade system and stimulate fair trade, rather than hurt businesses. But many others believe the tariffs are perpetuating the trade war unnecessarily and punishing American businesses rather than helping them. It would also not be surprising if there were fewer goods made in the U.S. and fewer workers hired to produce them.
Regardless of which side you find yourself on, the uncertainty around the pricing of steel is calling for action, and it’s important for professionals to make proactive decisions and preventative measures to assure revenue is coming in through this economic hurdle.
We’ve seen several strategies being taken by steel building businesses in order to protect their assets and customer base as much as possible. Some businesses are stockpiling inventory to avoid possible price increases. Others are opting to raise prices to customers, if local competitors are doing the same. What we recommend as a best practice during this time is to keep selling. Focus on revenue growth by encouraging customers to act on their metal building decisions now. Since the tariff negotiations have been fluctuating and there’s always potential for price change, leverage the risk of change when discussing options with your leads. Urge them to take advantage of current prices to maintain a responsible buying plan.
Regardless of your business’s strategy during this economic hurdle, it’s always important to push through industry complications and continue thriving. To read more about current news and trends in the Steel industry, take a look here. To get a better idea of what to expect in the steel industry next year, you can prepare yourself by reading here.
If you’re looking for some assistance on leads in your area, 360Connect might be able to help. We have a steady influx of true-intent steel building buyers on our website right now. Continuing to build your pipeline through these summer months is a good way to protect yourself against the possible economic shift. Give us a quick call at 512-980-9229 or visit our online form to let us know how we can help!