Why Do Steel Structure Manufacturing Costs Differ Around the World?

When planning to build a warehouse, factory, or even an airport, steel structures are often the most practical and efficient solution. But one common question arises: Why do the costs of manufacturing steel structures vary so much from one country to another?
click here to Watch video 

The answer is not simple, as it depends on several economic, technical, and logistical factors. Let’s break down the most important ones:

  1. Raw Material Costs

Steel is the backbone of any steel structure, and its price varies significantly across regions:

  • China: As the world’s largest steel producer, China benefits from economies of scale and government support, making raw materials cheaper.
  • Europe & the USA: Steel prices are higher due to strict environmental regulations, import duties, and more expensive extraction and production processes.
  • Turkey: Positioned strategically between East and West, Turkey can source steel competitively and offer balanced prices to international clients.
  1. Labor Costs

Labor costs are another major factor in determining the final price:

  • In China, wages are relatively low compared to Western countries, which reduces overall project costs.
  • In Turkey and Europe, labor costs are higher due to higher salaries, plus legal obligations such as health insurance, pensions, and worker protections, which increase the final cost.
  1. Standards and Technical Specifications

Steel structures are not just welded steel; they must comply with engineering codes and safety standards:

  • In Europe & the USA, strict codes such as Eurocode or AISC are mandatory. These codes often require thicker steel sections and more complex designs, which naturally increases costs.
  • In China, manufacturers can follow these same standards if required, but for many African and Asian markets, simpler codes are used to keep costs down.
  • In Turkey, manufacturers are flexible—able to comply with international standards when necessary, while still offering cost-effective solutions tailored to market needs.
  1. Quality and Finishing
  • In Turkey & Europe, strong emphasis is placed on welding quality, anti-corrosion coatings, and overall finishing to ensure durability.
  • In China, quality often depends on the price you pay. Higher investment results in higher quality, while lower-cost projects may come with more basic finishing.
  1. Additional Factors

Several other elements also impact the final cost, including:

  • Shipping: Proximity to the project site can make a big difference.
  • Taxes & Customs Duties: These can significantly increase overall costs depending on the country.
  • Delivery Time: Urgent projects often require faster production schedules, which can raise prices.

Conclusion

In short, the differences in steel structure manufacturing costs around the world are influenced by a combination of factors—raw materials, labor, technical standards, and quality levels.

In Turkey, especially with companies like Hasanoğlu, clients can benefit from:

  • High-quality production that meets European standards.
  • More competitive pricing compared to Western markets.
  • A strategic location that reduces shipping costs and delivery times.

This unique combination makes Turkey an excellent choice for customers seeking the best balance between quality and cost-effectiveness in steel structure projects.