The first-ever inaugural West Coast Steel Dinner by SteelOrbis and AIIS, held on a clear Wednesday night at the Hilton Long Beach in Long Beach, California, provided a chance for some of the steel industry's best and brightest professionals, who are enduring some of the toughest times their respective companies have ever seen, to discuss the future of their industry.
The overall mood of the night was not as dark as one might expect considering the current state of the steel industry, as many professionals have gotten over the initial shock of the terrible slide that was experienced in the fourth quarter, and are now trying to get back to business basics, keeping inventories low and keeping business flowing as much as possible until the market improves.
The two guest speakers, Jim Hillebrandt, president and CEO of Heico Wire Group, and Michael Hoffman, president and CEO of Macsteel Service Centers USA, provided brief speeches on the current status and future prospects of their respective markets and the steel industry as a whole. In a nutshell, both agreed that there is not going to be any quick fix for the market.
Current demand for steel remains at the lowest levels some veteran steel professionals have seen in their 40-plus years of experience. However, there are some bright spots for demand prospects going forward, such as the $90 billion in infrastructure funding contained within the economic stimulus package as well as pent-up demand, which beg the all-important question: When can we in the steel industry expect things to turn around?
The answers to this question were not provided with any particular confidence, considering that recent predictions by some of the industry's brightest have been off the mark recently, but Hillebrandt linked the turnaround of the steel industry to the turnaround in the housing market, which he predicts will not occur until the second half of 2010, heading into 2011. On the other hand, Hoffman, who considers himself the "ultimate optimist," confessed that he wishes he could go with his heart and provide an optimistic prediction but he felt obligated to go with his head and say that the market is going to continue to remain poor throughout 2009, adding that he thinks it is optimistic to say it will even recover in 2010.
For what these predictions are worth, Jim Hillebrandt and Michael Hoffman both predicted the Arizona Cardinals to Win SuperBowl XLIII.
(Picture: Left- Jim Hillebrandt, President and CEO of Heico Wire Group; Right- Michael Hoffman, President and CEO of Macsteel Service Centers USA)
