What Drives the Cost of a Steel Shop Building?

Whether you’re planning a small-scale repair shop or a large-scale fabrication facility, understanding what drives the cost of a steel shop building is essential to staying on budget. In Utah, developers often weigh their options between traditional Pre-Engineered Metal Buildings (PEMBs) and newer systems like ACT cold-formed framing. While both are steel structures, they differ in cost, capability, and design flexibility. Here’s a breakdown of what impacts the price of your steel shop and how to choose the best system for your project.

1. Framing System: ACT vs. PEMB

One of the biggest cost drivers is the framing system you choose.

ACT Building Systems use all cold-formed steel with lighter-gauge materials. This makes them significantly more affordable from a material and labor standpoint. Because the framing is lighter, it’s easier to transport and faster to erect, resulting in lower overall construction costs. However, ACT systems do come with more design limitations — they’re ideal for small to mid-sized buildings without the need for heavy interior spans or large overhead equipment.

Traditional PEMBs, on the other hand, use heavier I-beam frames designed for larger spans and more complex layouts. They offer more flexibility in design, making them better suited for industrial shops that require bridge cranes, mezzanines, or specialized clearances — but they often come at a higher cost due to the structural steel involved.

2. Size and Building Use

The size of your steel shop building will always impact cost, but so will its intended use. Are you planning a simple shell with minimal interior finishes? Or will you need insulation, HVAC systems, large roll-up doors, or reinforced slabs?

ACT systems are especially cost-effective for smaller auto shops, service bays, and hobbyist garages. If you need something bigger or more customized — like a full-scale machine shop — PEMBs might be a better fit, despite the added expense.

3. Foundation and Site Conditions

Even the most affordable steel building won’t stay that way if your site requires significant prep work. Grading, drainage, soil compaction, and foundation engineering all affect total cost. If you’re planning a heavier PEMB, your concrete slab and footings may need to be larger or reinforced — increasing both material and labor costs.

ACT systems, because of their lighter frame weight, can sometimes reduce the load requirements on your foundation — especially beneficial in rural or less-developed Utah lots where soil conditions may not be ideal.

4. Finish Materials and Insulation

Whether you choose ACT or PEMB, exterior finish materials and insulation play a major role in total cost. Rigid insulation systems, insulated metal panels (IMPs), or traditional fiberglass batting all come at different price points. You’ll also want to consider roofing type, siding profiles, color options, and any architectural features.

ACT buildings are often delivered with standardized panel systems designed for cost-efficiency. PEMBs offer more finish options, but customizations can quickly drive up the price per square foot.

5. Local Code Requirements

Utah's building codes vary depending on location, snow load, wind exposure, and seismic activity. Both ACT and PEMB manufacturers offer stamped engineering packages to meet local requirements, but meeting these specs in high-load zones (like mountainous areas) may require additional reinforcements — especially for cold-formed systems like ACT.

Make sure to work with a contractor who understands Utah-specific permitting challenges so you can avoid costly design revisions or delays.

6. Construction Timeline and Labor

ACT buildings are often faster to install thanks to pre-punched, bolt-together designs that minimize field labor. PEMBs take longer due to heavier equipment needs and more complex erection processes.

Shorter timelines mean fewer labor hours — and that can translate to thousands of dollars saved, especially in today’s competitive labor market.

Final Thoughts: Which Steel Shop Building Is Right for You?

If budget is your top concern and your project fits within typical dimensions, ACT cold-formed systems offer unmatched cost-efficiency. They’re fast, affordable, and well-suited for straightforward shop builds.

If your shop requires heavy equipment, long clear spans, or architectural flexibility, a traditional PEMB may be worth the added investment.

At A.D. Constructors, we work with both ACT and PEMB systems — and we’ll help you make the right choice based on your needs, site conditions, and long-term goals.

Ready to get started? Use our building designer for an ACT structure or explore our PEMB services to learn more.

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Common Uses for Commercial Metal Buildings in Utah