Steel Supply Chain Management: How Contractors Can Prevent Project Setbacks

Steel supply chain more resilient with reliable sourcing and other best practices

Preventing Delays in the Steel Supply Chain

Steel creates the framework for countless construction projects. Whether framing a commercial building, erecting a bridge, or installing other structural elements, contractors depend on the timely delivery of steel products that meet required specifications. When the supply chain stumbles, setbacks ripple through your schedule and budget, ultimately impacting you. Consider good practices and partnerships that can mitigate project setbacks.

Steel Supply Chain Management for Contractors

The steel supply chain encompasses each step the metal takes from raw material to finished product. This includes mill production, processing, quality checks, sales to distributors, logistics, and delivery. As a contractor, you deal with this chain when you specify steel, order it, have it processed or adjusted, and receive it on-site. Steel supply chain management involves controlling these steps to ensure you receive what you need, when you need it, and in the right condition.

Good supply chain management involves the following:

  • Choosing reliable suppliers who stock or obtain material quickly and offer processing services.
  • Material test reports or certificates of conformity tied to ASTM or ASME specifications.
  • Building redundancy in suppliers, so you aren’t forced to depend on a single source.
  • Understanding your project’s demands so your orders align with your needs.

How Supply Chain Disruptions Impact Construction Projects

When the steel supply chain drops the ball, your project may suffer:

  • Logistics obstacles: Truck shortages, port delays, or regional constraints can mean materials arrive late.
  • Supplier disruptions: If your supplier’s mill faces a raw material shortage, your order might be delayed for weeks, leaving you scrambling to find an alternate supplier at a higher cost.
  • Project delays: A missing component creates a domino effect of delays, leading to idle crews and pushed-back deadlines.
  • Cost overruns: Paying for last-minute rush orders or expedited shipping eats into your profit.
  • Out-of-spec material: Steel that fails to meet specifications results in returns, rework, or failure during inspection.
  • Inventory mismanagement: Holding too much steel ties up capital and storage space. Having too little on hand risks running out of stock.

Proactive Strategies for Contractors to Prevent Setbacks

Rather than being reactive, follow these proactive strategies to make your steel supply chain more resilient:

  • Engage suppliers early: Select a steel partner during the design or early procurement phase.
  • Leverage value-added processing: Work with a supplier who can deliver steel that is already cut, deburred, or otherwise processed to reduce in-field labor and minimize your exposure to mistakes.
  • Use multiple qualified suppliers: Don’t rely on one supplier or mill. Maintain a network of vetted stainless steel chain suppliers and service centers. If one can’t deliver, another can cover part or all of the order.
  • Lock in orders with firm specs: Before fabrication begins, send drawings, specifications, and tolerances to the supplier so they can flag issues, lock in lead times, or reserve inventory. The earlier you place your order, the more lead-time cushion you build.
  • Require certification and testing: Request that all steel arrive with material test reports or certificates verifying conformance to ASTM or ASME standards. Ensuring everyone is on the same page regarding the importance of your specifications is the key to avoid rework or returns.
  • Implement just-in-time or staged delivery: Instead of receiving all your steel at once, schedule deliveries to coincide with your installation phases. This reduces storage mishandling and risks while maintaining a flexible schedule.
  • Monitor and forecast demand: Use data from past projects to forecast your steel needs. Maintain buffer stock for long-lead or specialty items. Track market trends, lead times, and mill schedules, so you’re not caught off guard.

Strengthen Your Project with McKnight Steel & Tube Co.

McKnight Steel & Tube Co. is a family-owned metal supplier that has been in operation since 1954. As an in-stock wholesale distributor of tubing, pipe, and other metal products, we’re confident we can get you what you need, on-time and on budget. We offer value-added processing and fulfill your order to ASTM/ASME standards, accompanied by material test reports.

Our trucks deliver within 120 miles of our location in Philadelphia, PA, and we ship via common carrier across the United States. We maintain strong relationships in the steel industry. For reliable steel production supply chain support, please request a quote or contact us today to review your next project’s needs.