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.