Executive Vice President of our Metals Center of Excellence and steel industry veteran of more than 30 years, Brad Hendrickson, recently provided his insights as to how the coronavirus is impacting the U.S. Steel Industry and how Glenmount Global, an E Technologies Group Company, can help steel producers during this turbulent time.
With automotive and aerospace manufacturing, construction sites, and big box stores shutting down, the hot-rolled coiled steel industry is suffering from a sharp slowdown in production. The outlook does not look good for that to turn around until the economy recovers and consumers feel comfortable making large purchases again. The exception to the slowdown in the metals market is tin producers with the consumer stocking up on canned goods, food manufacturers are scrambling to meet grocery store demand.
“First and foremost, we want steel producers to know that we are still open and in business. We have ridden through these hard times with our steel customers in the 90s, in 2001, 2008-09, and we are here to ride it out with them again in 2020,” said Brad. “We can help you with maintenance needs during the shutdown and when the time comes, we can help you bring your equipment back online. But beyond the typical services, we have been having personalized conversations with our customers’ engineering and process control groups to find creative ways to fund and execute projects to come out of this downturn stronger.”
The Opportunity – Looking Beyond the Slowdown
In Brad’s tenure with the steel industry, his observation has been that steel producers are typically in two different positions. One position is having all sorts of time, but no money, which we seem to be headed into. The second position is having plenty of money, but no time. So given our current situation, Brad’s advice is to think about what has been a ‘thorn in your side,’ something that on a regular basis slows your production when times are good. Maybe you can’t invest in that project right now, but as recovery starts to happen, it can become a priority and we can help you jump on it.
Brad suggests, “Every time there has been a crisis, or even a depression, the economic recovery has always spurred a significant growth spurt. While the industry may be in survival mode now, it will turn. Let us start the engineering for correcting production problems now.”
“We’re still here, you’re still here, and we all know that time and money typically do not happen together. As the recovery is approaching, let’s take that squeaky wheel and give it some grease so that when you get back to it, it’s not squeaking anymore. With our deep domain experience and flexible approach to projects, we can help you structure a program that is favorable to your capital spending plan.”
To learn more about how we can tailor a solution for you, reach out to us for assistance.