Originally Posted by
Lisa Starr
Mark, We run CNC Lathes primarily making parts from higher grade Stainless Steels and exotic metals such as Monel, Inconel, Titanium and others. The products are components of medical, hydraulic, check valve and energy sector products.
As mentioned earlier, this economic down turn will weed out some of our competitors. We've been weathering the storms since 1962 and know what it takes to survive. It will be uncomfortable, but doable.
Some of the work we're seeing right now are parts that were outsourced to India about 10 years ago. Now, in a crisis, the parts are going to be made in the US again, and at much greater cost, as all the casting patterns are in India. We'll be producing the parts from solid bar stock.
Lastly, on the lack of material availability. One of our customers shipped a semi load of material from one of their plants to us halfway across the country. It is all oversize, making the production of their parts take longer. This morning I had a machinist sent up one of our older CNC lathes that can't hold tight tolerances anymore and I spent the day hogging pieces down to rough size. I'm no machinist, but I can load parts and push the "go" button. At least then my real machinists aren't tied up longer making the actual parts.
None of this is complaining. It is just the way the industry is...boom or bust. We'll do whatever it takes to service our customers and later we'll take some time off while they deplete the over buying.