Did you know that the amount of money being spent on construction in the United States is as high as it’s been? Construction spending is rising all over the United States. An unintentional effect of the COVID-19 Pandemic. However, the rising expenses affect all types of industries. This includes steel pipe suppliers.
Although people are getting back to normal, the prices for materials is not. Over 2020 and 2021, there have been rises in raw materials, especially lumber and steel.
Many Cities are experiencing rising construction costs. Detriot-Warren-Dearborn, Michigan’s current rank is 10 in large metro areas that have the largest construction spending increase. In fact, it’s 44.2% higher than in 2020. One of the main reasons why construction spending is rising is inflation. The 2021 inflation rate estimation is 5.4%. For comparison, 2020 inflation growth was only 1.4%. However, there is another contributor to the increased cost.
Everyone knows the concept of supply and demand. Basically, a combination of supply and demand affects pricing. During the 2020 Pandemic, many companies and construction projects were put on hold. As a result, supply production for stainless steel, carbon steel, and galvanized pipes, as well as other materials decreased. After all, what is the point of creating materials when nobody is buying them? However, the reopening of the United States changed that dynamic.
Demand for steel pipe fittings and other steel products and materials exploded. This problem occurred nationwide including in Dallas, Houston, New York, the Midwest, and Westcoast. And there were not enough supplies to meet that demand. This shortage leads to rising costs for construction materials. According to economists, the prices of these goods will not slow down till mid-2022.
Odds are you or your company are not spending nine figures on your construction project. But if you’re getting ready to tackle a job and think you might need some help, don’t hesitate to Request a Quote for the appropriate pipe and tubing, fittings, flanges, valves, or energy-efficient materials necessary to get your job done right!
In this day and age, there are many options for steel pipes, such as galvanized pipe, ERW Steel pipes, DOM tubing, and much more. What makes each one unique or stand out from the crowd? The galvanized pipe has many features that make it appealing to many industries.
The process of galvanizing is the submersion of a steel or iron pipe in a molten zinc bath. Before it is dipped in zinc, the steel tube needs to be properly cleaned. The thickness of the coat can be adjusted as needed.
Cost is on everyone’s mind, and to find a good product with a low cost is hard to do. That is why galvanized tubes are high on everyone’s list. Galvanizing a pipe usually cost much less than other protective methods. In addition, galvanizing is much less labor intensive, which in turn, makes the cost lower. Along with the cost, longevity is another added bonus of galvanizing. A properly galvanized tube can last decades.
The coating of the pipes makes it much more tough and durable than other types. Very seldom will you see damage from service or transport from these pipes. Naturally, because of the toughness and long life, a lot less maintenance is needed to maintain galvanized pipes. Also, inspection of the pipes is much easier, they can be examined by eye not really needing any special tools.
Finally, another advantage is assembly. Galvanized steel pipe is ready to use right from the manufacturer. No need to coat or paint, just install and you are good. At Detroit Nipple Works we have been supplying galvanized pipe and other types to companies all over the country. We have extensive knowledge of steel fittings, valves, nipples, and pipes for over 80 years. You can request a quote today for any of your steel pipe needs.