Over 140 ASD members enjoyed five days of networking, outstanding presentations by industry experts and lots of sunshine at this year’s Annual Convention at the beautiful Grand Wailea Resort and Spa in Maui.

This year’s convention attendees enjoyed exceptional business session presentations by Keith Busse, president and CEO of Ft. Wayne, IN-based Steel Dynamics, Inc.; noted economist and ASD favorite Dr. Deborah Allen; Purchasing Magazine’s Executive Editor Tom Stundza; and Solutions, Inc. President Dr. Drake Beil.

ASD members get a look into Steel Dynamics

Keith Busse’s presentation focused on the growth and development of his world-renowned company. Busse discussed how Steel Dynamics has successfully established a presence in the industry for quality and state-of-the-art technology in cold-rolling and finishing capabilities.

Busse took ASD members on a virtual tour of Steel Dynamics facilities while reviewing the company’s financial growth. In 1996, Steel Dynamics shipped 800,000 tons, flat roll. Busse estimated that in 2000 the number of flat roll shipments will reach 2.1 million tons, net sales will reach $800 million and net income will reach $68 million.

Busse cited "adapting to change and embracing technology" as key drivers to success. He also discussed the importance of keeping your employees motivated and establishing them as "part of the team."

Dr. Allen predicts trends and patterns in the economic marketplace

Always an ASD favorite, Dr. Deborah Allen, noted economist, author and president of Rutledge Research, returned to ASD’s Annual Convention to present "Gazing in the Crystal Ball for the New Millennium".

Dr. Allen began by describing her interpretation of the "New Economy". "The New Economy is the tradition economy utilizing new tools," said Dr. Allen.

New tools, according to Dr. Allen, include technology-based delivery methods that "squeeze" the time it takes to get a product where it’s going.

"Traditional industry is growing due to technology," said Dr. Allen. "Productivity is being driven by capital investment."

Some of Dr. Allen’s overall predictions included:

• Economic growth will average 3 percent over the next five years, with no severe recessions. "Technology has removed several factors that caused recession," Dr. Allen pointed out.

• The price of oil will remain near $22/barrel.

• Inflation will remain low.

• Mega-mergers will continue in the banking, automobile and airline industries.

• Al Gore will be elected U.S. President in 2000.

Tom Stundza offers a look into the future of steel

Purchasing Magazine’s Executive Editor Tom Stundza presented his upbeat "Fearless Forecast" for 2000, applying trends and figures from the current marketplace to the year ahead.

"The North American metalworking economy was stronger than expected last year," said Stundza. "And, the steel buyers expect to be busy again this year, sourcing a sizeable amount of heavy metal."

Stundza noted that the overall strong U.S. economy will harbor continued growth in the areas of housing and infrastructure development, as well as continued demand for automobiles and trucks, automotive parts, and major appliances – all of which involve some form of metal for production.

"The Brussels-based Association of Steelmakers projects world demand of a record 719 million metric tons this year," reported Stundza. "The International Iron and Steel Institute economists see ‘fairly strong growth’ from the 699 million tonnes consumed last year."

Of particular interest to the audience were the results of Purchasing Magazine’s March metal buyers survey. According to the survey, 76 percent of the respondents were extremely optimistic about the next six months. That is the largest percentage of metals buyers optimistic about their companies’ future business trends since the survey began in January 1997.

Panel discussion gives ASD members a look into new sides of the marketplace

Following his presentation, Tom Stundza led a panel discussion titled "Viewpoints: Perspectives from Different Sides of the Fence" with panel participants Keith Busse, Dave Nelson (Deere & Co.) and Mark Casey (GREIF Brothers, Corp.)

Busse, president and CEO of Steel Dynamics, brought to the discussion a knowledge of the inside workings of steel processing.

Dave Nelson, who began his career at TRW and later joined Honda of America Manufacturing, has nearly 40 years experience in the manufacturing business. Under his 10–year leadership Honda of America’s purchasing division grew from 100 to 400 employees — and purchases grew from $600 million to $4 billion. Since 1997, Dave has been vice president of worldwide supply management for Deere and Company, based in Moline, IL.

Mark Casey, manager of supply chain management of steel and resins raw materials for GREIF Brothers Corporation’s industrial shipping containers business, was global manager of raw materials purchasing in charge of steel, aluminum, magnesium, scrap and foundry alloy purchases for Ford Motor Company prior to joining Greif.

The panelists each brought to the table their unique perspectives of the steel marketplace.

A popular discussion topic was relationship building between buyers and suppliers. "Manufacturers want to have long-term relationships with suppliers," said Casey. "We want to make sure we do everything we can to improve our cost to keep suppliers in business."

On the topic of e-commerce, and its effect on the relationship between buyers and suppliers, both Casey and Nelson indicated that the long-term relationships they have established are still important factors. Nelson added that it hasn’t been Deere’s nature to make spot buys — one of the values of using e-commerce. "We’re studying [possible] strategies," Nelson said.

The direction shifted a bit with a question regarding the involvement of suppliers in the design process. Busse commented that most of Steel Dynamics’ production goes to value added. "Value purchasing is extended to two to three service centers. We convert scrap," said Busse. "[A company like] GM doesn’t want too much involvement from that point; they don’t want us to know how they value their scrap."

Casey added that engineering is a key part of the cross-functional team. "It is important that there be some input from throughout the industry."