Wofford
Thanks. I was close.
Bad news today. Aluminum and steel prices rising due to tariffs. 
Yeah, wouldn’t actually surprise me if it gets delayed at this point.
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Just stop…there is zero reason to expect that.
Actually a 25% tariff is significant and could impact the viability of the project. Certainly will impact the budget so it depends on whether there is additional money available or if the school is allowed to borrow to fill the gap. It’s a major issue and is going to stall a lot of construction projects.
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So,you think all our materials are coming from China?
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FWIW, Canada is the largest supplier of steel to the US, followed by Brazil, Mexico, South Korea and Vietnam.
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I make my living in international shipping. I literally deal with these things every day. Additionally, my son is in the construction industry working on bids and sourcing. I have a little knowledge in this area as well.
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China accounts for around 2% of imported steel, which you already know I’m sure. Everything I’m seeing shows that US steel mills started increasing prices last week in anticipation of the tariffs landing. They don’t just target China, it’s all steel and aluminum imports, which you also already know.
When this happened 7 years ago steel prices rose significantly. It’s good for US steel mills because they can increase prices and justify increasing production but the downstream impacts cause everything made of steel to rise as well. You son and I can’t really build anything without steel these days. And we certainly can’t build a football stadium without it. So construction costs will rise more than they already were. It’s the nature of the business.
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Exactly. American makers of steel and aluminum have to match foreign prices, or they don’t sell. When you get a 15% tariff, prices on foreign steel go up a little less than 15% as the foreign producers eat some of the tariff. Meanwhile, just as domestic producers price matched before the tariff, after the tariff, domestic producers price match again, so expect them to raise their prices by somewhat less than 15%, perhaps 10%.
Think of tariffs as a wealth transfer system, just like most government policies. The winners are American steel and aluminum producers, and their employees. The losers are foreign producers, and steel and aluminum purchasers. The biggest loser of all, is domestic manufacturers that use steel in their products. It can put them out of business.
Back in 2002, Bush put a tariff on steel imports, but neglected to also put a tariff on imported steel products. Within a month, every US manufacturer of wire hangers (the hangers that you get clothes on from the cleaners) went out of business. Why? They had to raise their prices 15% as they used American steel. Meanwhile, foreign hanger makers could buy cheap Chinese steel with no tariff, and then export them to the US with no tariff, and they suddenly could underprice American makers by 15%. The same thing can apply to any product made of steel, from computer cases to fingernail clippers to siding for homes. If they put a tariff on steel/aluminum, but no tariff on imported products that include steel/aluminum, then American manufacturers of those products are hosed.
They may have also already contracted for the steel and locked in a price point.
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Oh you sweet summer child.
I’d like to believe that too.
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Normally there is an “excuse us” clause that mentions current market prices vrs what was quoted originally
No one is saying that steel prices aren’t going up…I was only stating that it is ridiculous to already take the GIANT leap to say “we’ll probably stop the project.” That will not happen.
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clt assumes the build is CM at risk?
Looks like Western Carolina is fundraising for a similar stadium renovation.
clt asks if director hill has considered beavers for our expansion projects?
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Don Beaver would have expanded our stadium years ahead of Mike Hill if he was in Mike Hill’s position.
Mike Hill might be good for winning championships in sports that don’t generate much revenue, maybe, if you believe his own propaganda. Mike Hill sure sucks at stadium expansion planning and construction.
Our High-schoolfootball stadium was originally designed and constructed to be expanded to at least the size of a competently lead FCS Football Program at a large University in a large City!
The same Done Beaver that took years to get the knights into uptown?