Unprecedented rises in global steel pricing is impacting shed kit pricing for customers. We’re doing what we can to reduce the impact these price rises are having on the final shed kit costs for our customers and wanted to provide some more information and an update.
Why are global prices rising?
2020 and 2021 have seen unprecedented rises in the cost of steel on a global scale. Raw iron ore is at record-breaking prices, and the demand for steel is continuing to increase as governments pursue infrastructure projects to stimulate their economies post-pandemic.
We’re also seeing this exacerbated by import delays, which are creating a higher demand for Australian made steel; combined with a positive outlook in several sectors, including agriculture, which is driving more construction projects in Australia.
So it’s really a combination of the increased cost for raw materials and an increase of demand for steel in Australia that is driving these continued price rises.
These rises and fluctuations in steel prices are expected to continue for the foreseeable future.
Iron Ore Pricing
To view the most up to date pricing for iron ore, visit Market Index.
What does this mean for our customers?
The increasing steel prices mean the overall cost of your shed kit is, unfortunately, going to rise. Between January & June 2021, there have been price increases of as much as 30% across the materials TechSpan uses to manufacture your shed.
Consequently, the total cost of a shed kit will increase proportionally to the cost of the required materials. While TechSpan is doing all we can to mitigate this price rise, some of it is inevitably going to be passed on to our customers.
What are we doing to mitigate the price increases for our customers?
We’re in daily contact with our steel suppliers, but they’re unable to commit to pricing or supply availability more than six to eight weeks in advance. This has lead to us including a special pricing provision in all new shed contracts. This notes that it may be necessary for the contract price to vary to reflect steel pricing changes that are beyond what TechSpan is able to absorb; and that due to limited supply, delivery dates may have to be extended if the required materials are not available.
TechSpan strongly believes in being completely upfront and honest with our customers about the potential impacts of the fluctuating steel prices on their shed project. We’re keeping all of our customers up-to-date with price rises that affect their contracts. If you have a contract with TechSpan and would like to discuss the impact of these price rises, please contact us.
How can customers avoid these price rises?
In some instances, we can alleviate some of the impact of further cost increases by working with clients to pre-purchase part of the materials and store onsite prior to installation. This is only possible if engineering drawings are completed, and the building design has all the required approvals. You will also need to be able to provide suitable site storage and make payment for the goods as they are delivered. Please contact us if you would like to pursue this further.
What does this mean for you if you’re considering building a new shed?
If you haven’t started the design consultation process yet, but are thinking about getting a new shed in the coming months, then it’s a good idea to keep the fluctuating prices in mind, but we are doing all we can to minimise the impact this will have on our customers. We will continue to keep you updated throughout the entire process. TechSpan is committed to long-term partnerships with all our clients. We believe that being up-front and honest about the challenges of our current times is the best way forward. And as always, the team here is happy to discuss your concerns about steel pricing, or any other aspect of your project, at any time.