Wednesday, November 1, 2017

Crude Prices & Metal Fabrication

The industry is related and often works as a complex web. This is an ecosystem that requires deep dwelling in order to perceive the ups and downs possible while fixing the business strategies.   

From over a hundred dollars to around fifty dollars that have been the story of oil per barrel. For the global industry, this is like manna from heaven.  The cheaper the raw material the better it is for manufacturers - fabricators included. Not only the industry the falling prices have given consumers a big relief.    

The dropping oil prices initially did not affect projects from the oil and gas industry but are bound to impact negatively. Large projects from this sector will keep the metal fabrication industry afloat. The resultant benefit of reducing oil prices will definitely impact favorably. The increase in oil production at the country level will act as a balancing factor. 

The lowering of oil prices will negate the rising cost of labor and other manufacturing inputs as far as the fabrication sector is concerned. Oil is a major variable as far as metal fabrication is concerned. Steel is dumped at lower rates in the US aided by lower shipping costs.   

Though demand from the energy sector may make a substantial impact on projects the uptick in the construction industry will act as a great leveler. A bright future awaits fabricators in the USA.

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