Steel continues to be one of the most sourced products on the Thomasnet.com platform. It is no surprise that steel and metals represent an important supply source to today's aerospace, aviation, and medical industries.
So how can steel and metal manufacturing businesses continue the momentum of their business growth? First, make sure you have a clear business plan. Some manufacturers try to grow their manufacturing business by doing everything possible. In this post, we'll help you choose business goals that are realistic and how you can document them so you can see your milestones and track your growth along the way. Doing so will ensure you're not as overwhelmed and your employees stay motivated too.
Create A Business Plan
If you're just starting out, a good business plan will save you time later and potentially attract angel investors if you plan to seek out that kind of funding. There are several factors to consider, including your legal requirements, where you’ll be selling, your day-to-day roles, and when you’ll start making money. There are also production and personnel data you should detail in your business plan and answer questions like:
- How are your steel products or service produced?
- What does it cost to produce your steel products or service?
- Is there an adequate pool of talent for future hires?
- Do you have an organizational chart?
- Do you have a management strategy?
💡 Get Your Free Business Plan Template: Establish A Roadmap For Future Growth
Understand What Your Employees Need To Thrive
You may have heard before that when you keep your employees happy, they keep your customers happy. It’s true that both your employees and your customers are at the heart of what you do — and key to business success.
Amerequip Corporation, a designer and manufacturer for the utility tractor, skid steer loader, and lawn & garden equipment markets, implemented several steps contributing to their $150 million annual revenue. One of the first steps was improving the culture of their internal teams. They needed to improve processes and reduce employee turnover to ensure they were equipped to handle more growth. Ameriquip modified their working hours with morning and afternoon shifts that run 10 hours each, Monday through Thursday, and a weekend shift that comprises three 12-hour days, Friday to Sunday — and they're now able to fill their talent pipeline.
Flexibility is what the modern workforce is looking for today, and it’s a solving factor of one of the challenges many U.S. manufacturers are still experiencing to bridge the generational gap. Addressing internal improvements can ultimately lead to efficiencies, improved quality control on the shop floor, and increase your customer base.
Build On A Customer-Centric Model
As a business owner, we know you’re already focused on servicing your customers — but don’t get so busy tending to their needs that you forget they’re key to attracting new ones. Keep your customers happy by communicating with them regularly — outside of regular customer service needs or problems. Involve them in your new growth plan and ask them for feedback about what you could be doing better. This helps you keep their needs top-of-mind while opening opportunities to address new challenges for other customers. Also, reminding customers of your presence when they least expect it can go a long way in keeping them in your accounts receivable column. You may get a customer referral out of it.
➡️ Thomas Fact: More than 5000 manufacturers have requested a free custom in-market buyer report to see which buyers are sourcing for their services.
Take Advantage Of Modern Technologies
We can't stress it enough — it's an increasingly digital world today and the strength of your online presence is more important now than ever. Many manufacturers may argue that they don't need an online presence because they have sustained growth through word-of-mouth referrals and traditional growth methods. But this creates a false sense of security.
Add Videos To Your Marketing Arsenal
Video conferencing has taken a big role in meetings and tradeshow dollars are being shifted toward online solutions. More manufacturers are investing in different ways to stay connected with their customers.
Learn More: 10 Ways Manufacturers Can Spend Their Marketing Budget
But investing in digital marketing strategies doesn't always have to cost an arm and a leg. While it is an investment that secures the future of your business, you can start with small efforts that address your prospects' buying habits. According to Content Marketing Institute, more than half the engineers and technical professionals surveyed for the 2020 Smart Marketing for Engineers report indicated that they spend at least one hour per week watching videos for work (those aged 45 and younger reported spending the most time watching videos).
Steel and metals businesses looking for new customers should understand that the workforce is now largely millennials. And in response, smart manufacturers partner with industrial marketing experts to produce videos that keep millennial prospects and customers engaged.
Some machining or steel processes can be complicated for buyers. Videos help explain the size, conditions, capabilities, and products and services available from your business. The other most common reasons manufacturers use videos are:
Videos are easy to share. Videos are visually appealing and make them the ideal format to share on social media and emails.
Videos are proven to increase sales. Reports show that 77% of consumers reported that they’d been convinced to buy a product or service based on a video.
Competitors are already using videos. 92% of marketers who use video say it's an important part of their marketing strategy — up from 78% in 2015.
And according to HubSpot, marketers who incorporate video in their content marketing strategies have seen 49% faster revenue than those that don't. Manufacturers can get a factory tour or company profile video like the one below produced for free with an advertising program — click here to learn more.
Use Industry-Focused Content
Due to the in-person limitations of COVID-19, manufacturers are using the effectiveness of digital marketing to generate new customers.
As expected, companies are 21% less likely to invest in trade shows while the use of webinars & virtual events (20%), search & social media (14%), and websites (12%) all increased in light of COVID-19.
But in today's super-connected digital world, a website is not enough to get more customers. To fuel growth, manufacturers use a compilation of emails, videos, advertising, SEO strategies, and diversified website content.
Start small with an "Industries Served" page on your website and list all the markets your services supply. As you grow, include high-quality photos and graphics to validate the quality of your work further.
"Diversified content on our site has really helped us stand out as a leader in the industry," said Eoin Lynch, Executive Director of Sales and Marketing at Tex Tech Industries. "Some aerospace technology can be complex, but our graphics, datasheets, and videos from Thomas Marketing Services break it down for buyers to understand what they need and how we help them."
Corrugated Metals set a record for quotes and tapped into the aerospace industry after investing in online advertising from Thomasnet.com — they were contacted by the U.S. Air Force to create a custom part for them.
"Advertising with Thomas lets us develop accounts that build our backlog and keep us more stable as the economy grows," said Ken Carlton, VP of Corrugated Metals. "One Thomas lead that came to our company spawned an entirely new company for our business."
Steel and metal manufacturing companies looking to grow need to take advantage of the digital revolution not only from a marketing perspective, but to improve operation models and the supply chain. Digitization in the steel and metals industry will give supply chain access to real-time information and appropriately respond to unpredictable changes in the market while decreasing risk and providing growth opportunities.
Success Story: Growth For Continental Steel & Tube Company
The manufacturing industry has always aspired toward supply chain consolidation. Sourcing your products from fewer suppliers can significantly benefit your company's bottom line and reduce frustrations.
This kind of consolidation helped Continental Steel's Don Ascione grow his business in a way he didn't plan for — but recognized and capitalized on as a metal specialist with a world-class network. Continental Steel has established itself over the years as a company whose specialty is sourcing hard-to-find metals. Ascione, the company's founder, utilized his operations management background and connections from around the United States and Mexico to amass a tremendous network of metal suppliers.
By supplying numerous fabrication contacts with necessary materials, Ascione also created a tight-knit network of fabricators. This network allows Continental Steel to act as a manufacturer's representative for the fabrication companies and sell projects to customers looking for pressure vessels or staircases (as an example).
Continental Steel has an advantage to really help the customer because he can choose the best fabricator for the job and provide the best pricing on the raw material for the project. The customer gets the best of both worlds, and the network gets more business as well.
When Ascione realized the opportunity to generate revenue from connecting customers with the very fabricators he was supplying, he leaped at the chance. It couldn’t have happened without Continental Steel’s expertise, knowledge, reliability, and firm establishment as a leading source for procuring elusive metals.
Knowing that opportunities like these are few and far between, Ascione seized the opportunity to nurture this new stream of revenue. Pairing a network of metal specialists with fabricators is tremendously helpful for clients. Rather than looking to Continental Steel for metal procurement exclusively, groups can now find the fabrication services they need for their project, which they previously would have needed to quote from elsewhere.
Continental Steel is now positioned to meet all of its clients’ needs, from finding whatever metal materials are required for the project, to developing the top-quality final product. Clients know that the caliber of fabrication will be unsurpassed because of the wide reach to find the best for the job.
His team works to find metals and fabricators for his clients so they don’t have to do it themselves. And now Continental Steel has become a leading source for metals procurement around the globe and a premier source for custom fabrication, as well.
UNLOCK YOUR FREE PROSPECTING REPORT: See the buyers and companies searching for your services with a free Custom In-Market Buyer Report — your next new contract might be on this list
Promote Your Steel Business
Navigating the digital landscape can be tough, along with changing global policies, and complicated distribution channels — as a manufacturing business owner, you already have so much on your plate to manage. But Thomas has been powering the manufacturing industry for more than 122 years, connecting buyers to suppliers and helping engineers get their jobs done.
“As a small machine shop, it’s critical that every marketing dollar I spend attracts the right kind of customers — those that I actually want to do business with. My Thomasnet.com program paid for itself within the first 3 months.”
Steel and metals manufacturers looking for new customers can sign up for a free company profile on Thomasnet.com to get seen by more than 1.2 million procurement professionals sourcing for industrial products and services.
Our industrial experts have compiled the below resources to help ensure your business grows and continues to prosper no matter what economic or global health situations come your way.
Our related blogs to keep you up to date on the latest industry tips:
Our online solutions to help you grow:
Editor's Note: If you're sourcing suppliers for COVID-19 items, click here for those manufacturers and distributors. If your industrial business can support the production of essential supplies to combat the COVID-19 outbreak, please complete this form to notify us of your availability and willingness to dedicate resources. Thomas is working with State and Federal Government offices to help mobilize manufacturers to deliver supplies and services.
27 Things to Know Before Buying a Metal Building
If you’re thinking about buying a metal building, here is what you should know first.
Cost
Yes. Metal buildings are cheaper than wood. The exact price difference depends on the current cost of steel versus lumber. You can generally expect the shell of a wood building to cost about twice as much as a metal building.
Metal buildings are cheaper than buildings made out of wood or other materials. But that doesn’t mean they are of poor quality.
Are repossessed buildings cheaper than new buildings?
We did our own study to find out if repo storage buildings were cheaper than new storage buildings. We found that the average discount on a used building was only 12%, and that the used buildings we found were on average 42% more expensive than the new buildings we sell.
Metal buildings are usually a good investment because of their low cost to build, their long lifespan, and their low cost of maintenance. Adding a metal garage or shop to your home will usually increase the value of your property more than the amount you pay for the building.
Prefab metal buildings cost anywhere between $8 and $30 per square foot. This includes the price of delivery and installation, but not the cost of permits, site preparation, and a concrete foundation. The total cost will usually fall between $14 to $45 per square foot.
How much does a concrete foundation cost?
A concrete foundation will usually cost at least $8 per square foot. In some areas the price will be lower, but usually it will be higher. The biggest factor is the local cost of labor. If you pour your own foundation, you only need to pay for the cost of the concrete and any tools and supplies that you need.
Some manufacturers offer financing for metal buildings. Some lenders like New Century Bank and Acorn Finance specialize in financing metal buildings. A metal garage can be financed with a second mortgage, a cash-out refinance, or a home equity line of credit.
- New Century Bank
- Acorn Finance
- Banks and credit unions (via a mortgage, second mortgage, cash-our-refinance, home equity line of credit, or personal loan)
- Peer-to-peer lenders
Construction and Installation
Steel and aluminum are both used for prefabricated metal buildings. Aluminum is softer and is more likely to scratch and dent. Steel is stronger and more durable, so it is more commonly used to construct metal buildings.
Steel is stronger and more durable than aluminum, so it is a better material than aluminum for metal buildings. Large metal buildings are often made out of red iron I-beams. Red iron is actually steel that is coated with iron oxide. Smaller buildings are typically made with galvanized steel framing and panels.
Pre-engineered metal buildings are buildings that are designed and manufactured in a factory, and then transported and installed at the building site. Pre-engineered metal buildings are more cost effective than buildings constructed on-site because there is almost no material or labor wasted in the construction process.
- A permit is obtained
- The building site is prepared
- A foundation is poured
- The building is manufactured at a factory
- The building components are delivered
- The installation crew assembles the metal building at the site
Alan’s Factory Outlet sells metal buildings and metal garages in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia.
Quality
Most steel building will last at least 50 years, with minimal maintenance. With regular annual inspection and care, metal buildings can last more than 100 years. Metal builds can withstand many extreme weather conditions without incurring any damage.
Those who want the highest quality metal building should select the following features:
- Vertical style roof
- 12-gauge steel tubing for the frame
- 26-gauge sheet metal
- 170 MPH wind upgrade
- Woven R-17 insulation
- Weather stripping around windows
Safety
Metal buildings can be designed and built to withstand hurricane-force winds. The strongest hurricanes are class 5 hurricanes, with sustained winds that are at least 157 mph. You can get a metal building with a certification for winds up to 170 mph, which can survive most hurricanes.
About 1% of tornadoes are violent EF4 or EF5 tornadoes, with wind speeds above 207 mph, sometimes reaching speeds above 300 mph. Very few buildings will survive a direct hit from these violent storms. Metal buildings can be certified for 170 mph winds. These buildings are safe in most tornadoes.
Metal buildings can be grounded with metal rods driven into the ground that are bonded to the metal frame of the building. If lightning strikes the building, the electricity simply passes through the metal framing and into the ground.
A properly grounded metal building is safe during a lighting storm, provided no one is touching the metal frame, metal siding, or any conductive material that is attached to the metal shell of the building. Like any building, nearby lightning strikes may disrupt electrical systems that are not equipped with surge protectors.
Use as a Home
Note: Buildings sold by Alan’s Factory Outlet are not designed or intended to be used as homes.
Metal buildings can be safe to live in. However, they should be designed and built as a home and properly insulated. Metal buildings that are designed as garages are not air-tight, and are not designed for use as a home.
Laws vary widely between locations. The fastest way to find the laws in your area is to call the zoning planning department for the city or county that you live in.
Yes. A metal building may be used as a house if it is constructed to local codes for residential structures. Barndominiums are metal homes that have been gaining in popularity in recent years.
Customization & Insulation
Metal buildings can be disassembled and moved more easily than most other types of buildings. However, moving a metal building is still a complex operation. Obviously, the foundation of the building cannot be moved. A new foundation will need to be poured before moving the metal building.
The metal buildings we sell have the colors baked on. These colors last a long time and do not easily fade. If you want to paint your metal building a different color, you can use a metal specific paint, or paint the building with a metal primer before using an exterior paint.
Yes. There are several ways to insulate a metal building:
- Double bubble insulation
- Woven insulation
- Spray foam insulation
- Fiberglass insulation
- Foam boards
- Insulated Panels
At Alan’s Factory Outlet we offer double bubble and woven R-17 insulation.
Insulation is optional, but offers several benefits:
- Moisture control. Insulation prevents water from condensing on the inside walls and roof.
- Temperature control. Insulation with a high enough R-value can help keep your metal building warmer in the winter and cooler in the summer. If anyone will be spending long hours in your metal building, insulation is ideal.
Metal buildings are insulated by attaching insulation to the inner walls and ceiling of the building.
Have more questions?
Check out our Metal Garage Buyer’s Guide if you’re shopping for a metal garage.
Use our free 3D metal building designer if you’re ready to design and price a metal building or garage.