Adjusting to Price Increases in the Metal Building Industry

 Let's Work Together to Stay on Schedule and on Budget

The 25% tariff on aluminum and steel, which went into effect on March 12, has already resulted in a significant price increase in the metal building industry. Steel mills raised prices by 25% ahead of the tariff’s implementation, meaning builders and general contractors are now facing these higher material costs. While these price hikes are unavoidable, there are steps you can take to minimize their impact on your ongoing or upcoming projects.

1. Adjust Your Budget and Project Estimates
With the price increases now in effect, it’s essential to revisit your project budgets and adjust your cost estimates accordingly. The 25% rise in material prices will undoubtedly affect the overall financials of your projects, so it’s important to update your estimates for materials, labor, and any other affected costs. Having these updated projections will allow you to manage your budget more effectively and prevent surprises down the line.

2. Rethink Your Project Design and Scope
Given the rising material costs, now is the time to rethink your project design. While it’s too late to lock in previous prices, you can still optimize your design to better align with your current budget. Consider ways to simplify or adjust the scale of your project without sacrificing quality or functionality. By focusing on streamlining certain aspects of the design, you can make the most of your resources and minimize the impact of increased material costs.

3. Plan for Supply Chain Delays and Lead Time Issues
With tariffs already in place, supply chain disruptions and extended lead times are now a reality. The cost of materials is rising, and delays in delivery are inevitable as manufacturers and suppliers adjust to the new tariff rules. It’s crucial to account for these delays in your project timelines. Reach out to suppliers to get an updated understanding of delivery schedules and adjust your plans to ensure you’re prepared for any setbacks.

4. Tighten Project Schedules
To further mitigate the impact of rising prices and supply chain delays, tightening up your project schedules can help reduce the risk of additional costs. The quicker you can move through the phases of your project, the less likely you are to face unexpected price hikes or delays. By focusing on completing tasks efficiently and keeping your project on track, you’ll be better able to absorb any cost increases that arise along the way.

5. Transparent Communication is Essential 
Now more than ever, clear communication is key. Keep your clients, subcontractors, and other project partners informed about the impact of the price increases, as well as potential delays due to supply chain disruptions. By discussing these challenges up front, you can help manage expectations and maintain strong relationships with everyone involved in the project.

The tariffs on steel and aluminum have made price increases a reality for builders and contractors across the metal building industry. While this change may cause challenges, it’s important to adjust your plans accordingly. By rethinking project designs, updating budgets, factoring in potential delays, and keeping communication transparent, you can continue moving forward with your projects without compromising on quality or timelines.

The team at Aegis is ready to work with you to deliver a project that is on time and on budget. Please contact your Aegis Representative for additional questions or email us at: Tariffinquiries@aegismetal.com.