Does Metal Roofing Cost More then Asphalt Shingles?

Posted by Kevin Yoder on

Does Metal Roofing Cost More then Asphalt Shingles?

Have you ever asked the question “Does Metal Roofing Cost More then Asphalt Shingles? ” If so, your first thought might have been that it does cost more than asphalt, if that is your belief than you are mistaken. Metal roofing actually costs LESS that asphalt, lets find out how together.

The first step is to understand the difference between COST and PRICE. Cost is the total amount of capital that is invested throughout the life of the product. Price is the initial purchase price of the product. Lets look at an example….

Bill purchases a car built by Cars-R-Us for the price of $3,000.00, He had looked at a similar vehicle at a lot across town that was manufactured by Built-Right Automobiles. However the price for that similar sized car was $5,000.00. There was no doubt in Bill’s mind that the Cars-R-Us vehicle costs less that the one by Built- Right Automobiles.

In the first year that Bill had the car, the right tire flew off and the front door refused to open, just a small issue, he thought, so he wreck2had that repaired for $500.00.  The following year, while going down a hill at 60 MPH, his brakes froze up and he ended up in Mrs. Pickles yard after running over her Rhododendron bush, and hitting the side of her house. It was then that he discovered that his insurance policy by Cut-Rate Insurance Co. did not cover incidences that occur on Fridays. The total bill for all the damages reached $2,500.00. Within 6 months of having the car repaired, the piston on the engine blew apart while idling at a gas station, and caused unrepairable damage to the car. It had to be towed to the junk yard. The worst part about the engine failure, was that at that very moment, Mr. Tootles was walking past the car, He suffered major hearing loss, and had to purchase a new pair of pants, as brown streaks on khaki pants are not appealing. Bill ended up putting 50,000 miles on the car.

Bill had a conversation later on with his friend Jim who had purchased a car from Built-Right Automobiles, and asked Jim about his experience with his car.  Jim had driven the car for 10 years, and had put over 200,000 miles on it. He did need to change the left wheel bearing at 80,000 miles, but the bearing was covered under the Built-Right Automobiles warranty, so there was no cost to him. Lets look at the final numbers…

Built-Right Automobiles
Purchase Price–$5,000.00
Bearing Replacement–$0.00
200,000 Miles = $.03 per mile Cost

Cars-R-Us
Purchase Price–$3,000.00
Door and Tire Repair–$500.00
Mrs. Pickles Repair–$2,500.00
Mr. Tootles new pants = Priceless
50,000 miles = $.12 per mile Cost

We can easily see that even though the Price for  the Car from Built Right Automobiles was more, the actual Cost is less. The same principle goes for when we compare Metal Roofing to a Asphalt shingles. We will be posting a article later with the broken down costs so that we all can see the true COST of Metal Roofing. Stay Tuned…..

If you have any questions feel free to visit our website at www.classicmetals.com or call 330-674-7051

The information provided is for reference only and may change without notice

Domestic Steel Pricing is Uncertain in 2017

Posted by Kevin Yoder on

Domestic Steel Pricing is uncertain in 2017

We all live in a global economy, and there are various forces that help drive the costs of products that we all use everyday. This fact is nothing to be afraid of, however there is a benefit to being aware of market trends and what is effecting the global economy. The raw steel market has been experiencing a major upward trend since the middle of 2016 because of several dynamics that are effecting the U.S. market.

One of the major drivers is the fact that in June 2016 the domestic steel industry won a major victory when the United States federal government decide to hit Chinese steelmakers with tariffs of more than 500 percent. The U.S. International Trade Commission found cold-rolled steel products from China and Japan, which the United States imported $431.6 million of in the previous year, were unfairly subsidized and sold for less than fair value. As a result, the U.S. Department of Commerce will slap tariffs of as high as 522 percent on cold-rolled steel from China that’s used to make cars and appliances. Record volumes of cheap Chinese steel caused a global import crisis that the United Steelworkers union blames for more than 14,500 steelworker layoffs in the United States. The Asian nation exported an unprecedented 112 million tons of steel in 2015 as demand there slowed, flooding world markets and driving down prices in an industry with high fixed costs. In simple terms, the US domestic steel mills have been trying to force tariffs on imported steel for years, saying that they are losing money because of the cheaper imports. In order to prove that point, there were even several mills that were shut down and workers that were laid off.Dow-Jones-US-Steel-Index_opt

Now that the Tariffs have been put into place, the imported steel has became more expensive, so everyone is turning to domestic mills in order to supply the demand. Unfortunately the United States does not have enough capacity to supply the entire demand, Less product available = Higher Prices. It will take a number of months for some of the mills that were shut down to be reopened and for the market to balance itself out.

Among President Donald Trump’s many campaign promises was one to utilize more U.S.-produced materials, including steel, and his actions thus far have reinforced those promises. Two weeks ago, Trump signed executive orders expediting the approval and subsequent construction of the Keystone XL and Dakota Access pipelines. An important caveat to those orders included the use of domestic steel for the upgrade and repair for the new pipelines. Forcing the use of domestic materials and labor is great for the United States economy, although it does trend the overall costs of products upward.

Here at Classic Metals we are working closely with our suppliers to stay up to date with the market, and do everything that we can to keep the pricing in check. Although there potentially will be a uptick in the costs for materials, we are confident that the market will balance itself, and business will continue as usual. Feel free to contact us if you have any questions or concerns.