Industry insight


As steel prices rise, is it time to think outside the box?


Steve Ford, marketing coordinator for HVAC fixing specialist Fixmart, says HVAC contracts may switch from traditional steel products due to rising steel prices


F


ollowing the increase in steel prices and fluctuations in supply caused by Covid during 2021, prices were beginning to stabilise. However once more we are seeing exceptional levels of volatility in the


market as steel production is impacted – COVID-19 cases are high and coupled with the horrendous situation in Ukraine, this is increasing prices for energy and the raw materials required for steel production. Russia was the world’s fifth largest steel producer and Ukraine 13th, together


accounting for a fifth of total steel imports to the EU. With stocks already depleted and some steel producers now choosing to cut output due to the high energy costs, steel availability is likely to continue to be lower than required for some time yet. So, with the combined pressures in the market, it is simple supply and demand that is driving steel and other material prices to rise. Recent polls for the first quarter of 2022 suggest the following:


¡ All manufacturers polled by the Construction Products Association (CPA) said they had seen their costs increase. ¡ Nearly all Federation of Master Builders (FMB) members (98%) reported an increase in material costs.


For any business, uncertainty can be crippling and with many steel quotes


now only being held for 24 hours or priced on application, it’s becoming increasingly difficult for all businesses involved in a supply chain that is reliant on steel.


With further 20% price increases on traditional steel support products such as channel (strut) and studding, (threaded rod), we are seeing HVAC customers switch to alternative support methods that use less steel. There are a number of options here such as; lightweight channel that can use up to 1.7kg steel per metre than a traditional 41x41 channel length; hollow-box-section that offers up to 80% weight saving compared with similar steelwork profiles; wire suspension which obviously requires far less steel and prefabricated brackets that have slimline mounting tracks. These alternatives also have a number of other benefits including the following: ¡ They are lightweight, so easier to transport, store and handle on site, requiring less fuel in the delivery process; ¡ Faster installation – up to six times faster than traditional methods. Saving time and labour can help off-set the increase in material costs. ¡ Flexibility – many of the alternative supports allow for quick and easy adjustments, incurring smaller costs in labour and materials if changes are required. ¡ The require the use of fewer tools and less waste – using prefabricated brackets or wire suspension removes the need for cutting, reducing the amount of space required on site during installation and wasted steel off-cuts. ¡ Reduced time working at height – improving site efficiency and lowering health and safety implications. Of course, channel, studding and other steel supports will continue to be trusted support methods and will maintain a place in HVAC installation. However as steel price increases, and supply fluctuates contractors will switch to alternative options which use less steel and can offer other benefits too. Whether this is a permanent shift or short-term fix time will tell. However,


it’s likely that out of the current steel crisis, we will see a change in approach by HVAC contractors where all options are considered and the best solution chosen according to the specific application, cost, time to install, storage and transportation, rather than having a one-solution-suits-all approach. This in turn will work up the supply chain to distributors and manufacturers to ensure alternative options remain as readily available as their traditional counterparts


www.heatingandventilating.net


26 June 2022


DOWNLOAD THE HVR APP NOW


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36