April 2016 Newsletter

• Scrap steel and iron ore prices continued to surge upward in April, as the price for scrap steel on the Chicago Metals Exchange posted up by $50/ton on April 6^th and prices on foreign metal exchanges increased by as much as $60/ton in April. The price of cheap Chinese billets, which Turkish and other foreign mills have been purchasing since last fall that helped drive the price of steel finished goods down, has increased nearly 20% since early March and is expected to continue to rise in the coming weeks.  Most analysts expect scrap steel and iron ore prices to increase even more in May. Because of these factors and others, prices for steel construction products are expected to continue to increase into the summer.

• There is little availability of imported rebar in the eastern and southeastern US, as distributors and rebar fabricators purchased heavily in March in anticipation of higher prices in April. The price of what is available is up more than 25% than what it was in early March. Currently there is relatively little imported rebar on the water headed to ports in the southeast.  These shipments are not expected to arrive until mid to late June, but most of these shipments have been pre-sold and at prices close to what domestic prices are now. The next wave of imported rebar from Turkey is not anticipated to arrive at US ports until mid to late July and prices for these shipments are expected to be up by as much as 10% or more than the ones which will arrive in June.

• Domestic rebar mills in the southeastern US increased prices between $20 and $25/ton the first week in April and made the price increases effective the dates of their announcements. This was the second price increase by domestic mills in two weeks. With little imported rebar being available in the southeastern US, demand for domestic rebar has surged and domestic mills have had stock outs of many sizes of rebar and are expected to have even more stock outs in the coming weeks. As there is little imported rebar available, most analysts expect domestic rebar mills to increase prices again sometime in May. If you have any projects which require rebar, we strongly urge you to buy out these jobs as soon as possible due to limited availability and to avoid paying even higher prices later this spring and summer.

• Concrete reinforcing wire mesh manufacturers increased prices by approximately 5% the first week in April and two manufacturers have announced a second price increase of 6% which will be effective May 2^nd.  Other manufacturers are expected to increase prices the first week in May as well. Most wire rod manufacturers, both domestic and foreign, increased prices by $30/ton in April and are expected to increase prices again in May. If wire rod manufacturers do increase prices again in May, expect concrete reinforcing wire mesh manufacturers to increase prices in June. As with rebar, if you have any upcoming projects which require concrete reinforcing wire mesh, we recommend you to buy out these projects as soon as possible to avoid paying higher prices in the coming weeks.

• Although no official price increase announcement has been made by masonry reinforcing and tie manufacturers, sales representatives have told their distributors to expect a price increase of 7 to 10% on or before June 1^st and that an official price increase announcement should be made we suggest you in early May. As it is a pretty safe bet that manufacturers will increase prices by June1st, buy out any projects you have which require masonry reinforcing and ties as soon as possible.

• Due to the recent surge in the price of steel, prices of other steel construction products which we distribute, such as nails, reinforcing bar and wire supports,  wood connectors, anchor bolts, and others have already risen recently and further price increases are expected by manufacturers in May and June. Please be sure that you get a current quote on all steel construction products for projects that you are bidding.

•  Demand for lumber products remained strong in April and prices for dimensional lumber and plywood have increased by 7 to 10% since March. Demand for May is anticipated to be even stronger than in April and most analysts predict lumber prices to continue to rise in May. Current lead times for mill direct truckload shipments is around two weeks and lead times are expected to increase in May, due to the expected strong demand.

• Polyethylene resin manufacturers were able to push through a $.04/LB price increase in April and have announced another $.05/LB price increase for May shipments. Polyethylene sheeting manufacturers have indicated they will increase prices between 4 to 5% in early May, due to the April  resin price increase and if the May resin price increase sticks, manufacturers will increase prices again in June.

• The producer price index (PPI) for final demand in March, not seasonally adjusted, increased 0.2% from February but slipped 0.1% year-over-year (y/y) from March 2015, the Bureau of Labor Statistics (BLS) reported on April 13. AGC posted tables and an explanation focusing on construction prices and costs.

Click here for the latest update on the construction economy from Ken Simonson, the chief economist of the AGC.

Ron Conover

Our associate profile this month is of Ron Conover, a driver/warehouse associate in Greenville. Ron is originally from Mount Orab, Ohio and is a graduate of Western Brown Senior High School. Ron is married with one son, Ron, Jr. His hobbies are hunting, fishing, and hanging around the bonfire with friends. Prior to joining us he was a district manager for Miller Brewing Company and a sales manager for Pepsi Bottling Company. Ron joined us in February 2015 and quickly has become a favorite with our customers.

Our management article this month is titled, Being a Good Boss Means Doing the Whole Job. This article describes the entire job of being a boss. Most people think it is all about giving orders but good managers know there is a lot more to it. If you manage people this article is a must.

APRIL’S MANAGEMENT ARTICLE

Being a good boss means doing the whole job
By Wally Bock

What’s a boss?
A boss is someone who is responsible for the performance of a group. That group might be a six person team or a 300,000 person company. What makes you a boss is that your performance is evaluated based on the performance of that team.

Great bosses are part of teams that have high productivity and high morale. Bad bosses destroy morale and drive away talent. Over time their negative impact overwhelms whatever numbers they may generate.

You’ll do better as a boss if you enjoy helping other people succeed. You’ll do better if you’re comfortable with making decisions and willing to have tough conversations with others about performance and behavior. And you have a lot of things to pay attention to.

When you’re a boss you have two objectives
Every day when you go to work, you’ve got two objectives. One or the other may be more important on any given day. But over time you have to achieve both.

Accomplish the mission
Your team has to get the job done. Your part of that is to do everything you can to make it possible. Remove obstacles and don’t be one yourself. Facilitate good work.

Care for the people
You’re the one responsible for keeping your people safe. It’s your job to help them succeed today and also tomorrow.

When you’re a boss you have to consider two time frames
You have to pay attention to the present and the future as you achieve your objectives. You must get today’s job done, but you also need to do things that build team and individual capacity to succeed in the future.

When you’re a boss you have three kinds of work
Forget the nonsense that some people are leaders and others are managers. If you’re a boss you have to lead and manage and supervise too. They’re different kinds of work.

Leadership work
Leadership work is about setting the direction and demonstrating the values. You can’t take a day off either. You must do your leadership work all day every day. Set the example because people are paying attention. Communicate the mission and other key messages.

Management work
Management work is about groups and processes and priorities. You’ll hold meetings and schedule activities and make sure the administrative laundry gets done.

Supervision work
Supervision work is the people part of the job. It’s all about helping team members do a good job today and a better job tomorrow.

Boss’s Bottom Line
Being a good boss is hard work. Your life is a daily bowl of trade-offs and challenges. But if it’s for you it can be the most rewarding work in the world.