Expect Steel Prices to Remain High
Monday, June 27th, 2011
As demand from industrial goods manufacturers and other steel-consuming industries increased in early 2010, steel producers took prices up. Since then prices have remained steady as manufacturers continue to rebuild inventories in a variety of industries.
“We’re a small fish in a big pond in terms of steel use so we buy where the market is at,” said Jody Tyson, owner of Tyson Steel.
Founded in 1976, Tyson Steel Building Products, Inc. manufactures and erects steel buildings through the southeastern U.S. Its main customers are in agriculture with typical projects including equipment shelters, hay storage shelters, enclosed workshops and residential workshops. The company fabricates and ships all buildings from its plant located in Doerun, Ga. and employs eight fully insured erecting crews.
Tracking the farm economy
According to Tyson, business has been steady for his company all year. With commodity prices up, most farmers have felt comfortable spending money on shelters to protect their investments in farm equipment and feed.
“Our business pretty much tracks the farm economy. We still need rain to get the yields but business has been good,” Tyson explained.
Six to eight years ago, Tyson’s business had seasonal dips around planting and harvest times. More recently, sales have been steady throughout the year.
A positive outlook
Tyson is optimistic about the ag economy over the next five to 10 years. Many issues on the horizon are largely government-related.
“I think immigration policies are a worry to many farmers. I’m not sure how that gets resolved but it is definitely a concern,” Tyson continued.
“The future depends on the shape of the U.S. going forward. We’ve been in business since 1976 and it’s been good over that time so I’m pretty optimistic.”
More information on Tyson Steel is available at www.tysonsteel.com.