2012 Expectations: How do you feel your organization will perform for the last half of this year?
June 22, 2012 Leave a comment
As the fist half of the year comes to a close, we are reflecting on our results year to date in regards to our forecasts and also discussing where we think we will be by year end. In regards to North American activity in the stainless steel market, we have found that although demand was stable for Q1 and Q2, there is still a degree of uncertainly in the market that we must contend with. We also feel that although levels have greatly improved for us over 2011, there is still a certain level of hesitation and market activity could be higher than it is currently.
For the most part, our lead times were controlled year to date and market feedback indicates that this is fairly typical across many manufacturers.
It also has been suggested that low lead times will limit the inclination for buyers to place sizable orders. Could this fact, paired with the still persistent uncertainty, be restricting purchasing activity?
I have also heard that a recession can be a horrible thing to waste. The thought behind this statement is that necessity breeds creativity and many companies learned a great deal about fiscal responsibility and working capital management during the recession. This too would lead to more strategic purchase patterns and using efficient internal processes to manage customer demand as opposed to equating high inventory levels with high customer satisfaction.
What are your Q3 and Q4 expectations for our industry? Have you experienced similar activity characteristics as our plant? We would love to hear from you.