Ulbrich Business Conditions Update (October 2022)
To Our Valued Ulbrich Customer,
The manufacturing industry and the US economy continue to be impacted by a wide range of situations. Due to things like inflationary issues, rising interest rates, the Russia/Ukraine conflict with its impact on titanium, and the looming energy shortage in Europe, we felt it was timely for Ulbrich to give an update on market conditions.
Ulbrich continues to see increases in our overall backlog. We greatly appreciate the business and realize that current lead times can be challenging to forecast around. Lead times out of our Specialty Reroll Mill are, dependent on gauge, ranging from 30-34 weeks. Some products in our Specialty Alloy category have lead times that extend beyond a year just to get the raw material. We do not think this situation will be resolved in the near future. Fortunately, our Service Center Group can still supply raw materials with quick lead times, even with on-time performance from the melt mills at an all-time low.
As we’ve stressed in past communications, we request that orders placed with Ulbrich are for “real demand” instead of “insurance” orders. Our objective is to reduce as much strain on the system as possible. This will allow us to satisfy as many of our customers as we can, who in turn, can then satisfy their customers. “Insurance” orders directly impact our lead times and ultimately hurt those in desperate need of that raw material. The greater the visibility for “real demand,” the easier it will be to support your future demands. If needed, we are more than happy to support you with your customers by helping you better communicate current market conditions.
Integrated Mills are still working with allocations which we must adhere to. Our purchasing decisions are based on open orders and anticipated demand. Cancellation requests and pushouts can put us in a position where our inventories are misaligned in supporting our customers’ requirements.
One of the Four Tenets at Ulbrich is Total Customer Responsiveness. Our employees remain focused on shipping products to our valued customers and work tirelessly for you on a daily basis. This also includes our Sales, Purchasing and Metallurgical Groups. All aspects of the organization continue to strive to provide the product and service you need.
On behalf of the Ulbrich family and all their employees, we thank our customers for their business and support in these unpredictable times.
Download the PDF version of this business conditions update here.
Group Chief Operating Officer