November, 2008

Since I wrote my last letter, many things have changed in America.  We now have a new President-elect, Barack Obama from Illinois.  The further deterioration of our banking system and the deterioration of other aspects of our economy are bringing the focus now to the auto industry.

Despite all the disruptions around us, these are still very good times, with business at Weldbend remaining brisk, although not at the frenzied pace of July and August, which was unsustainable for us.  The addition of new equipment and working seven days a week have enabled us to get our stock situation back in a more normal pattern.  As of this writing, we hear that a pipe maker in Italy has announced a price increase on seamless pipe from 12 to 20 percent depending on the pipe size as of January 1, 2009. We have already had one increase that we have not passed along, to hold the line on price. If domestic pipe makers follow suit and we get another increase on seamless pipe, our prices will have to increase on our fittings.

Regarding steel for flanges, the scrap market has declined to the point where scrap is being trucked out of our plant with no compensation.  Trace elements, or surcharges for the steel, are nil, and because of this we have been able to secure steel for flanges at a better rate than we have in the past.  We have worked very hard to get steel orders placed starting with our Class 150 flanges, and passing the savings on to you.  We are looking at our other Classes and sizes and as we make new contracts for steel, we will pass the savings on to you, as well. 

On December 1, 2008, Price Sheet 1208-I will go into effect, reflecting our recent steel purchases.  The discounts and freight allowed are unchanged at this time.

We want to keep our distributors as competitive as possible in all market conditions, and also to thank you for your past support.  If you have any questions, feel free to call.

James J. Coulas, Jr.
President

You can depend on Weldbend!

www.weldbend.com