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S&Z Imports Your Global Sourcing Advantage |
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Steel Price Advantage 2 Further to my memo of last week on our steel price advantage, I had the opportunity to tour a huge General Electric plant in Salem,Va last night. They have a large sheet metal shop in the plant and I had the opportunity to ask lots of questions on steel buying of their plant manager. As you should all be aware the cost of steel is higher than it has ever been and going higher all the time. G E is a company that corporate-wide believes in the lowest possible inventory level. They are taking huge positions in the steel market to lock in material costs at today's historically high prices. They feel steel pricing will go even higher. As we all know only too well, today's business climate is very poor. If steel costs now are high what happens when business improves and more demand chases a fixed supply. As we all know prices will go even higher (economics 101). Further it will take years for additional capacity to come on line. Now is the time to get customers to seriously consider overseas sourcing of sheet metal parts so that we can start saving them money on parts ranging from stampings, weldments and all other types of assemblies. If you would like I would be happy to email customers (complete with our website link) a letter showing them all of the services we have to offer. We have a tremendous selling opportunity here which will not last forever. Please contact me to discuss how we can take advantage of this historic opportunity. Regards, Stu Roanoke, Virginia 24014 Voice 540-989-0457/ F 831-603-6399/ |