The current steel shortage in the United States is not a new situation to anyone in a supply chain that requires the iron alloy needed for countless production processes. With the plant closures of summer 2020 and COVID-19 outbreaks finally catching up to production schedules, it is almost impossible for suppliers to stay current.
And according to a research article from The Fabricator, we most likely have yet to see the peak of the inflated prices.
So while the current steel shortage is here with us for at least the first half of the year and will most likely bleed into Q3, we at Pentaflex Inc. refuse to sit back and wait for it all to be over. For our customers, our employees, and our community, we will continue to persevere through these difficult times. We sat down with Pentaflex Inc. President, Ross McGregor, to learn more about what Pentaflex is actively doing to mitigate the impact of this current crisis.
With the shortage of steel in the U.S., how is Pentaflex Inc. preparing their customers and employees if they cannot get a hold of the material needed for customers?
RM: Over years of reliable and quality products, the Pentaflex Inc. team has built strong and trustworthy relationships with our customers. Our best action moving forward will be to keep the customer engaged and aware of any shortage that might impact their production schedules. In some cases, we have even found that the customer has resources to help us locate steel on the spot market.
What is the current average waiting time for a customer to receive their order?
RM: At seventeen inventory turns per month, Pentaflex customers are receiving their orders as soon as they are processed and are ready to ship. Due to the steel shortages, we have seen the need to work with customers’ to adjust production schedules, but in these situations we work closely with the customer to prioritize their critical needs.
How is Pentaflex Inc. strategizing for the rest of 2021 given this current situation?
RM: We know the current disruption in the domestic steel market will not last forever. We continue to plan for the future knowing that raw material will begin to be more available yet this year. This is a temporary condition that has been brought on by the pandemic and the decisions that the domestic steel industry made last year. Nobody thought the recovery would start as soon, or be as strong as it has been.
Is there anything in particular that you would like to say to Pentaflex Inc. customers?
RM: In this current environment communication is critical. We will keep you apprised of the steel supply situation daily. Sometimes the news we share may not be what you want to hear, but we will always make sure you know exactly what the situation is so you can plan accordingly.
If you have any questions or concerns about the current steel shortage or about a specific project, please call us directly at 937-325-5551.