Independent Steel Alliance

Purchasing Cooperative for Independent Rebar Fabricators

Purchasing Cooperative for Independent Rebar Fabricators

General

Survey Says!! Fabricators Share Opinions about Rebar Coils vs Spools

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Rebar “spools” may seem like the “hot new thing,” but rebar coils have been a go-to material for fabricators for many years. And recently, ISA sent a survey to over 430 independent rebar fabricators across the U.S. and Canada to ask their opinions about rebar coils versus spools.

Survey responses received: 55, or 12.5% response rate (that’s high for surveys!).

Scroll through the charts below to get a snapshot of what the fabricators said about their perceptions and experience with rebar coils and spools.

Question 7: Have you generated any notable time savings using spools?

Yes 43%
No 28%
Not using spools 30%

So for those using spools, nearly half — 43% — indicated that they have realized notable time savings. This finding bolsters the primary claim of added efficiencies with spools. However, the 28% who have not yet found higher production efficiencies might argue that their current process is “just fine” with traditional coils.

Question 1: Are you using either coils or spools?

Yes 97%
No 3%

97% of all respondents indicated that they’re using either coils or spools, with 3% saying that they’re not doing so. Nothing surprising here in these responses.

Question 2: What percent of your total volume is from coils or spools?

1-10%
10-15%
15-20%
20-25%
Over 25%

78% of all respondents said that coils/spools represent between 1% to 15% of their total rebar volume. An additional 7% said that coils/spools account for 20% or more of their volume.

Question 3: And do you use coils only, spools only, or both?

Coils Only (27%)
Spools Only (9%)
Both Coils and Spools (64%)

So, 27% are still on coils only, with 9% making the move to spools only. The remaining 64% are using a mix of coils and spools. This likely signals a trial period, or change-over occurring among fabricators as they become acquainted with using spools.

Question 4: What are the benefits of spools versus traditional coils?

Compact Size for Storage 65%
Larger Spool Means Less Change-Over 72%
Superior Straightening 56%
Ease of Unloading/Loading 35%

For this question, respondents could select as many options as they felt were relevant. The highest vote-getter was “Larger Spool Means Less Change-Over,” selected by 72% of respondents.

Question 5: What are the negatives of spools versus traditional coils?

Cost (of Spools) (35%)
Machine Wear/Tear (13%)
Handling / Storage (15%)
Availability (20%)
No Known Negatives (32%)

Cost and Availability were selected by many respondents (35% and 20%, respectively), and the two are likely related. Also of note is that 35% of respondents do not perceive any negatives with spools.

Question 6: Did you (or will you) make any investment in order to use spools?

Yes 33%
No 64%

There is a general perception that changing to spools will require some notable investment in new machines, racks/pay-offs, material handling, etc., in order to use the spools. Of the respondents who are using spools, 64% or two-thirds said that no such investment was necessary.

Have an idea for a future ISA Survey?

We’d love to hear your ideas for meaningful and relevant surveys for the rebar community! Click here to send an email with your ideas!

PCA forecasts more moderate cement consumption in 2018

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The Portland Cement Association (PCA) has updated its annual forecast of cement consumption to show 2.8 percent growth in 2018. This number is down from the projections released earlier in the year, and are based on poor weather and lower anticipated public sector budgets. However, PCA notes that a strong federal infrastructure bill could have a positive impact on cement consumption.

Historically, rebar consumption has followed cement consumption with nearly perfect correlation.

Full Story from PCA.

New AMM Article

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Source: American Metal Market
Click here for the full text of the article (subscribers only)

Steel rebar purchasing co-op gaining traction

Mar 01, 2013 | 04:50 PM | Samuel Frizell

NEW YORK — A two-month-old steel purchasing cooperative for independent reinforcing bar fabricators is picking up speed, participants told AMM, with the handful of suppliers already on board reporting a pick-up in ordering activity from member rebar fabricators in what is traditionally a slow season for long products.

“We’ve gotten some business from people we had not done business with (before joining the co-op),” said Parker Arthur, sales manager at Steel Dynamics Inc.’s Roanoke Bar division, a supplier to the Independent Steel Alliance (ISA) co-op.

A source at another ISA supplier who declined to be named said his company has also seen an uptick in buying activity from member fabricators since joining the co-op, which was incorporated in May 2012 and officially launched Jan. 1 (amm.com, Jan. 23).

“What we’re seeing now is the member accounts where we’d get one out of four trucks, now we’re getting three out of four,” he said.

In addition to SDI, the ISA also lists among its approved steel suppliers Byer Steel Corp., Salit Specialty Rebar and BlueLinx Corp., among others who preferred not to be named, ISA president and founder Chris Casey told AMM. Casey declined to comment on whether other steel majors Nucor Corp., Gerdau Long Steel North America or Commercial Metals Co. had been contacted about joining the group since its formation at the start of the year.

The co-op—the first of its kind for rebar in the United States and Canada—works by linking up member fabricators, who make an initial equity investment in order to join, and member rebar suppliers. Casey projects the co-op will have 50 members within 24 months, but declined to comment on the number of members the group currently counts.

Suppliers benefit by getting access to new, independent customers, the ISA says, while fabricators benefit by receiving a financial incentive to buy from ISA-preferred suppliers in the form of a rebate, which is distributed to fabricators after they buy more than a certain tonnage threshold.

“(Fabricators) have the option of buying wherever they want, but because of our preferred-supplier status, which has a rebate attached to it, (we’re) more attractive to them,” Kevin Cornell, general manager at Salit Specialty Rebar, an ISA supplier member, told AMM.

At least one fabricator member confirmed its purchasing strategy had shifted as a result of joining the group.

“We have changed our buying patterns, we are moving our tonnage to the ISA vendors, and we’re just two months into the year,” said Burke Byer, president of Byer Steel, which is both a supplier and a fabricator of rebar.

But while some members say they’ve seen a shift since joining the fledgling group, others said the business changes have yet to be dramatic, particularly as they await an expected pick-up in activity in the spring when the construction market resumes after a winter lull.

“We’re kind of in that gray area between signing on and the bidding area, and seeing where this is going to go. It’s just a little early to tell,” said Cornell. “(But) we have great expectations and we think it’s going to be good for our business.”

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