Has business slowed down for your contracting business because of high lumber prices? Did you lay off employees or cancel jobs when lumber prices rose by 400%? If you’re in this type of situation, you have other options for generating revenue.
For a while, many people have been choosing steel buildings over wood and concrete. Now that lumber prices far exceed steel prices, steel makes even more sense. With steel being advantageous and cheaper, there are plenty of steel job opportunities. In fact, industrial steel suppliers hire local contractors to complete jobs for steel building companies.
If you need to generate more revenue without paying the high cost of lumber, here are six reasons to take on local steel building projects.
Demand is increasing
As lumber inflation continues, more people are hiring contractors to build steel-framed buildings. Since wood has become too expensive for most people pursuing new construction, their next choice is steel.
As more people change their plans to build steel-framed buildings, they’re going to find out that steel is actually the superior choice. Steel provides many benefits you can’t get from wood. For example, there’s no need to install incremental support columns with a steel building. This creates more floor space and makes it possible to arrange the inside of a building however the owner desires.
With the demand for steel-framed buildings rising, it makes sense to take on local projects. You’ll generate more revenue than if you wait for lumber prices to drop.
Wood lumber prices may not fall for a long time
Bloomberg reported that rising lumber costs have added an average of $24,000 to the cost of new homes. That was enough of an increase for many builders to halt and even cancel projects. Lumber inflation has also put new constructions out of reach from most buyers.
Experts are attempting to guess when lumber prices will fall, but there’s no way to know when or if this will happen.
If you want to generate income while lumber prices are high, you need another type of project, and that’s where steel comes into the picture.
Steel prices have risen and may rise even more, but they’re still far below the cost of lumber. When people can’t afford to frame their new construction with lumber, most will be happy to switch to steel.
Steel framing is fireproof
Fires aren’t something everyone thinks about, but now that people are being forced to look at steel as a framing option, they’re going to realize it has great benefits. Being fireproof is just one of those benefits.
Unlike wooden frames, steel isn’t combustible. This is an attractive feature not only for safety, but because insurance premiums are sometimes lower for steel-framed buildings.
Steel is more eco-friendly than lumber
Despite lumber originating directly from nature in the form of a tree, it’s not eco-friendly. Pressure-treated wood is full of chemicals and emits Volatile Organic Compounds (VOCs). While wood can certainly be reused and repurposed, it’s not recyclable. Pieces of wood that can’t be reused or burned must be thrown away into the landfill.
On the other hand, steel is generally made of 25% recycled material and is overall 100% recyclable. There are no VOCs emitted by steel and after a project, steel produces far less scrap (2%) than wood (20%).
Revenue is revenue
If your team of contractors can work with metal, there’s no reason to pass up the opportunity to take on steel building jobs. If your contractors can’t work with steel, find a new team of people who can work with steel.
You might not have expected to change or expand your business at this time, but revenue is revenue. If you can get a strong team together you can take on local projects and start generating revenue once again.
Steel buildings are adaptable
When your team gets a remodeling job or a job to expand an existing wooden or concrete structure, it takes some decent demolition to complete. Steel, on the other hand, is easier and less messy to adapt and expand.
Steel is naturally modular, even when walls are present. It’s less labor-intensive to remove a steel wall and add a room than it is to demolish a concrete or wood-framed wall and add another room.
Local steel projects are your ticket to increasing your revenue
Times are tough. If you want to generate more revenue without waiting for lumber prices to fall, consider taking on some local steel projects.