The Unprecedented Steel Demand

In the past year, we have seen an unprecedented demand for steel that has pushed steel prices to a record high; surpassing the 2008 record. Steel costs vary by type of steel and availability. However, raw material prices can be an indicator of future steel costs. Like all manufacturers, McShane has been severely impacted by a spike in our material costs. Steel has increased by more than 30% already and the trend is likely to continue for much of 2021. Unfortunately, we are unable to absorb material cost increases this high. For that reason, McShane must increase our pricing. This is in addition to the 8% price increase launched January 4, 2021.

Variable Steel Surcharge

Starting with April 1, 2021 shipments, McShane will apply a 20% surcharge to our products. We realize this is difficult for our customers too. Rather than another flat price increase, we’ve decided to implement a Variable Steel Surcharge (VSS). This surcharge will be updated monthly based on our average material costs. By using a variable surcharge, we are able to compensate for the spike in steel costs but reduce the VSS immediately as our material costs begin coming down later in 2021.

McShane’s Long Term Commitment

Our overall goal has and always will be to build the best solutions for our customers at the very best prices. This is why as the price a VSS is the best option as the price will decrease as the cost of the actual material drops.