The status of the steel fabrication industry in the USA depends much upon the construction activity. The slowdown in the construction industry results in a slowdown in the fabrication industry. This is suggestive of the relationship between the two.
The supply chain in this sector is dependent upon major players. The producers of steel, service centers involved in the storage and preprocessing to some extent, fabricators, and erectors.
Steel Fabricators manufacture structural components used in the construction industry for buildings. They also fabricate components that are used in old buildings as replacements and addition. Hence the overall status of the fabricators is much dependent upon the construction scene in the USA. Though fabricators of steel also process parts of bridges and other sectors the heavy reliance is on construction. In the year 2006 to 2007, the building activity was at its peak which has now slithered down.
Fabrication is a lengthy work with multitudes of processes, hence the cost of operations is high. The requirement for workers and skilled professionals is also high. The the impact on job scene is palpable whence the slowdown takes place. At peak total employment was over two million with more than 2500 companies participating.
From total revenue of twenty billion dollars, the industry in 2018 is projected to grow by 4 to 5 % which is not very encouraging.
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