SERVICE CENTERS 'IN GOOD SHAPE'--Despite softening markets and weakened demand, distributors move forward

摘要

As this year's forecast coverage shows, these days, the quality of a company's business is completely dependent on the markets it serves. Aerospace is still looking strong, as are the heavy equipment and energy markets. Construction, though, is feeling the heat, and the automotive industry's story is well-publicized. Fortunately, many U.S. service centers have a diversified customer base, but there are still a few unknowns, including the weak U.S. economy. "We believe service centers are increasingly feeling the effects of the deteriorating economic climate, as well as the volatile price environment," says Shairaz Ahmed, metals analyst for The GFMS Group, Livingston, N.J. "Many would've purchased material at a time when prices were rising and are now sitting on high-priced inventory."