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Generation [S.sup.2] steel's successors.

Article Excerpt
For the small to mid-sized family-owned service centers that are members of the Association of Steel Distributors, grooming a new generation of leadership is essential to their long-term survival. Young executives from ASD's Future Leaders Forum, along with ASD President Dominic Vitucci, shared their views on the current state of the industry and their aspirations for a career in steel. Following is an edited transcript of the Jan. 30 roundtable in Detroit with a handful of midwestern flat-roll distributors, moderated by MCN Editor-in-Chief Tim Triplett.

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Panelists:

* Mike Barnett, Grand Steel Products Inc.

* Desiree Ellerholz, Bean Steel Co.

* Lisa Goldenberg, Delaware Steel Co.

* Stephen Margles, Jade Metals Corp.

* Jennifer Moore, Anchor Bay Steel LLC

* Jon Richeson, JM Steel Corp.

* Matt Skillman, Ken Greco Co. Inc.

* Tom Taylor, Lee Steel Corp.

* Dominic Vitucci, Vitco Steel Supply Corp.

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MCN: How's business? Which markets are strongest, which are weakest?

Barnett: It was an interesting January for Grand Steel. We actually had a very good month in January, but I wish I could say the same for the fourth quarter of 2007. Last year, we hit the fourth-quarter wall sooner than usual, and it lasted a little longer. So it's pleasant for our company to come into 2008 and have a record month. Hopefully, the strength in the market will continue.

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MCN: To what do you attribute that mushiness late in 2007?

Barnett: Well, inventories. People had high inventories, and they were slow to buy throughout the year. Inventories have come down and people see steel prices going up [so they are in a buying mode now]. It's no secret that the mills have successively raised prices. It makes for a crazy market right now. Good, but crazy.

Margles: But do you believe it's an increase in demand or an adjustment to the supply situation? This whole industry is focused on the supply chain: where the steel is coming from, what's available and inventory levels. As we read about the economy, I don't see demand being particularly strong. There's less volume out there. It's a question of who has the steel at the right point in the marketplace. We had a good January, too, but that's because we had inventory at the right price for people who needed it at that time. I'm not sure the volumes are going to be there for the rest of the quarter.

Barnett: Right. The mills are citing scrap increases and increases in demand [as the reasons for their price hikes]. Well, we know about the scrap increases, but we haven't necessarily seen the increases in demand. Our company sells mostly secondary and excess steel. Less than 5 percent goes to automotive. Demand in our sector is average.

Vitucci:...

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