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The Impact of Tariffs on the Steam Industry


The Impact of Tariffs on the Steam Industry

With recent government announcements of tariff hikes on steel and aluminum imports, the impact on the steam, air, and water industry is expected to be significant. 

Raw materials like steel and aluminum typically account for over 50% of costs associated with process equipment. With tariffs on imports increasing by 25%, we encourage our customers to budget an extra 10% - 25% for equipment to cover the added costs. 

Already prices of raw materials have increased sharply since January 2018 as shown in the charts below:


This will impact many of our vendors: Armstrong steel products, Johnston boilers, condensate pump packages, BFS deaerators, boiler stacks, flash tanks, and separators to name some of them.

We encourage customers to order equipment early if possible, to minimize the impact the tariffs will have on their budgets. If you have questions regarding how this may impact your company, contact the team at Campbell-Sevey

 


1 comment (Add your own)

1. Ken Huisinga wrote:
I wholeheartedly agree that tariffs are a bad idea in a free economy. They only hurt the consumer. But to blame a 100% increase in aluminum prices on a 10% tax is laughable. If 50% of the prices of products comes from cost of steel and aluminum, prices would only go up 5-12.5%. The steel prices your graph is highlighting, were on an upward trend before the tariff discussions. And according to your graph, it appears the May 30 prices are slightly below that trend. These price changes must be due to changes in demand. Demand from a strong economy. Demand from manufactures trying beat the tariffs by buying up supplies and creating a shortage. Just like the old toilet paper shortage or the 9/11 gas prices. It's easy to join the bandwagon and blame this on an unpopular policy or politician. But the reality is prices of your goods were going up with or without the tariffs.

Thu, June 28, 2018 @ 9:22 AM

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Products We Carry

GENERATION
  • Hot Water Boilers
  • Watertube Steam Boilers
  • Firetube Steam Boilers
  • Deaerators
  • Heat Recovery Steam Generators (HRSG’s)
  • Automatic Recirculation Valves
  • Economizers
  • Gas-Fired Water Heaters
  • Gas-Fired Humidifiers
  • Boiler/Generator Flue Stacks
  • Continuous Emissions Monitors (CEMS)
DISTRIBUTION
  • Pressure Reducing Valves
  • Safety and Relief Valves
  • Control Valves
  • Pressure Independent Control Valves
  • Expansion Joints, Guides, Anchors
  • Flash Tanks
  • Flow Meters
  • Balancing Valves
  • Check Valves
  • Separators
  • Pumps
  • Pressure Booster Systems
  • Piston Valves
UTILIZATION
  • Heating/Cooling Coils
  • Plate and Frame Heat Exchangers
  • Shell and Tube Exchangers
  • Water Heaters
  • Steam Humidifiers
  • Vacuum Systems
  • Condensers
  • Steam Traps
  • Wireless Steam Trap Monitors
  • Tube Bundles
  • Direct Gas-Fired Space Heaters
  • Direct Gas-Fired Make-Up Air Units
  • Unit Heaters
  • Strainers
  • Air Vents
  • Liquid Drainers
  • Heat Transfer Packages
  • Digital Water Mixing Valves
  • Air Cooled Condensers/Dry Coolers
  • Steam Filters
RETURN
  • Electric Condensate Pumps
  • Steam/Air-Powered Condensate Pumps
  • Packaged Condensate Pump Skids