Top Market Trends for Cold Formed Steel in 2023
The demand for cold-formed steel, also known as cold-rolled steel, has been steadily increasing in recent years. Cold-formed steel is not a new concept, but despite its history, we are seeing increases in cold-rolled steel on the global market, with some significant market trends driving its growth.
What Are the Driving Factors for the Growth of Cold Formed Steel?
The steel market is a massive industry, and the size of cold rolled steel was estimated to be worth $131.1 million in 2021. Growth in the cold formed steel market is expected to increase year over year, hitting $159.8 million by 2028 with a Compound Annual Growth Rate (CAGR) of 2.9% during this market forecast period.
Market segment information is now showing that demand is returning to pre-pandemic levels. COVID-19 lockdowns in numerous nations caused widespread disruptions in construction sites, which was already experiencing a labor shortage. While workers attempted to work remotely where possible, the loss of investment in planned projects, combined with labor shortages, resulted in the pausing of the majority of construction projects. The return to pre-pandemic production levels has resulted in rising construction activities and created a demand for building materials, including cold-rolled steel, based on some of the following reasons:
Rising Population
Many people have relocated because of the pandemic, facilitating the need for expansion across the global market. This increased demand for homes and apartments, including in developing countries, precipitated the formation of industries to encourage new technologies, commercial development initiatives, and greater growth opportunities. Cold-formed steel will be one of the key players in boosting infrastructure.
Infrastructure Construction
Another driving factor is the growing demand for simple and effective infrastructure in the construction industry. There is always demand for lower costs in such a competitive landscape. Given cold-formed steel’s cost-effectiveness, leading companies in the global construction industry can position themselves for real revenue growth as they take on more and more project scopes utilizing cold-formed steel framing.
Market Dynamics
Another factor includes the rising levels of the spending capacity of consumers. Despite a downstream market in many industries, primarily relating to the war in Ukraine and associated regional conflicts, countries like India have recently seen an increase in their disposable income and increased spending capacity, partly driving the growth rate. As industrialization rises further, this demands a need to cater to a rising population, which is where cold-formed steel and certain structural steel products can buck the trends.
Which Industries Are Expected to Benefit From Cold-Formed Steel in 2023?
As cold-formed steel is in huge demand and is a flexible material, many industries are naturally benefiting from it. Due to its machinability and fine surface finish, it is being used in several industries, including the following:
The Construction Industry
Because cold-formed steel is light, shipping and handling are easy. Moreover, cold-formed steel products are rolled-formed into the exact shapes and sizes required — with detailed labeling of all pieces — making assembly fast and foolproof. The construction industry uses cold formed steel to create a variety of structural and nonstructural components from beams and decking to columns, studs and trusses.
Light gauge steel framing even speeds up construction time because cold-formed steel panels come with pre-punched holes, which allows electrical wires, plumbing, and mechanical installation to be done quickly.
Furthermore, the strength of cold-formed steel translates to less material, so there are fewer studs to install.
The Manufacturing Industry
Cold formed steel is an integral part of a number of materials. It is used for the formation of many end products, for example, strips, bars, and wires, utilizing a number of methods to create tubes, coils, sheets, and much more.
The Home Appliances Industry
Cold rolled steel is the best choice for you if you are looking for a modern and trendy home. Steel has been a popular material in construction and home design for some time. Specifically, cold-rolled steel has been commonly used to create home decor elements like light fixtures, brackets, and appliance components. Cold-formed steel members are made from structural quality sheet steel formed to forge steel through a series of dies to make sections and other shapes and cold rolled steel is formed without heating.
Even when it’s not used decoratively, you’d be hard-pressed to find a home that doesn’t contain cold-rolled steel in one form or another. Almost all equipment has parts made of this reliable cold-rolled material. Cold-rolled steel includes washing machines, dryers, and refrigerators. Cold-rolled steel is also commonly used in computer hardware, lawnmowers, and water heaters.
Whether cold-rolled steel functions as a decorative element or forms the internal components of the appliances we use daily, we’ve come to rely on this versatile material.
The Machinery Industry
The cold-formed steel process can strengthen infrastructure more than practices like hot rolling. Cold rolling allows materials to be extensively malleable, creating amazing results and making cold-rolled steel an ideal material in the formation of machinery.
Why Companies Should Use Cold Formed Steel
Cold-formed steel significantly benefits major companies and industries, not just construction. The construction world is at the whim of a rising population, resulting in greater demand for construction companies and, therefore, the associated products. Whatever industry companies operate in, there are fantastic benefits to cold-rolled steel, including the following:
Environmentally-Friendly
Steel has the exceptional environmental advantage of being highly recycled and infinitely recyclable. Climate change is causing many organizations to rethink their methods to appeal to a broader client base. Cold-formed steel is perfect because of its durability, corrosion resistance, non-combustible properties, and its resiliency to the adverse effects of changing climates and fluctuations in moisture and humidity.
Durable Material
Cold-formed steel can take on a variety of shapes and thicknesses, making it malleable and flexible enough to accommodate any number of industrial and even aesthetic requirements, from commercial and office buildings to industrial plants and homes.
Easy to Incorporate
As companies are looking for methods to reduce construction costs without compromising the quality of the final product, cold-formed steel may be the perfect solution. Cold-formed steel components can be prefabricated off-site and assembled at the job site using less skilled labor. So, companies save on not only the cost of fabrication but also labor. It’s a win-win that will make CFS one of the key market players in 2023.
As 2023 progresses and the world slowly goes back to pre-pandemic levels, businesses can utilize the emerging demand for cost-effective construction products like cold-formed steel.
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Want to find out more about cold-formed steel framing? Contact our friendly experts at All Steel Mid Rise today to learn more!
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