In our current economy, most of the decisions to buy or not to buy are based on price. And when you are looking for a steel supplier, this is especially true.
The international market has shrunk a great deal. Many industries find that their competition is no longer the guy up the road. Nowadays, it’s just as likely to be a faceless company in China. The fact is, importing your steel can be a very appealing option – especially when buying in bulk.
Let’s take a closer look at the benefits of importing rather than using a local steel supplier.
We’ve all heard the term “false economy” – but what does it mean in the steel industry? Many companies use the ‘best country sourcing’ policy when pricing their steel products. This often means China.
But historically, we have seen that many imported steel products from China have proven to be substandard. One example of where this can go wrong is with low-cost housing projects, where they would need sheet metal for roofing. An inferior product can mean early decay or collapse – resulting in damage to property or loss of life. It is nearly impossible to predict the quality of steel coming from an off-shore supplier until it lands on your door.
We were all thrilled with the Consumer Protection Act and happy to know we were safe from rogue businessmen. But did you know that if your steel supplier is offshore, the CPA can’t help you if problems arise?
Hidden costs such as shipping – and shipping delays – should also be factored in. Taxes and import duties need to be added to your final tally to get a true picture of how much you are paying for your steel at the end of the day. This can prove a costly problem when the Rand wobbles and your final order price goes through the roof.
Our moral obligation
In 2013, the SAISC launched a “buy local” campaign. They hoped to curb the loss of jobs in the steel industry. Their research showed an alarming statistic: For every 1000 tons of fabricated steel imported, 100 South African jobs are lost. The multiplier effect (which measures the knock-on loss to the country) in the steel industry alone, showed a frightening long-term negative impact on the country. Where we are trying to create jobs, this is a big factor worth considering.
With the cheaper alternatives available, the short-term gain may be a saving here and there, but the long term results may cripple the local steel industry – and the industries it supports.
So bearing all this in mind, we really encourage you to give your local steel supplier a call. Steelmor Industries prices are competitive and our team is always on hand to answer any of your questions and will assist you. To find out more about the products on offer through Steelmor Industries, visit their website Contact Us