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Associations
Climb Aboard Freight Program
Some members of the Copper and Brass Servicenter Association, Wayne,
Pa., are enjoying significant freight savings by banding together
with other associations to purchase logistics services negotiated
by TPA Partners, West Orange, N.J.
TPA’s
Transportation Programs for Associations has saved association members
up to 35 percent of their freight costs, says Joe Gartland, vice
president of Hillman Brass, Willow Grove, Pa., and chairman of CBSA’s
members operating committee.
While
CBSA has only been participating for the past year and a half, TPA
Partners has been offering this program to various trade association
members for about seven years, enabling them to take advantage of
freight rates often reserved for much larger companies. This could
be particularly advantageous in today’s business environment,
which is marked by rapidly escalating freight rates and surcharges,
says Jack Chambers, TPA’s founder and president. Chambers has
20 years experience in the transportation and logistics industry.
A decade ago, many companies had in-house traffic managers. Today,
only the largest companies can afford a person dedicated to that
function. In many cases, the task has landed on the desk of an employee
who really isn’t skilled in the area of transportation and
freight negotiation.
“Many
of these people were not dotting their ‘i’s and crossing
their ‘t’s when they were negotiating contracts with major
trucking companies and weren’t always getting the best complete
deal,” Chambers says.
Because
it works with 10 trade associations, TPA is able to get rates that
would not be available to individual companies. Besides obtaining
a lower base rate, TPA has been able to negotiate out certain charges,
such as the call-before-delivery charge and the single-shipment
charge. TPA also is able to lock in specific rates for a full calendar
year—something that a small- to mid-sized business would not
be able to achieve.
“Our
members are looking for anything that can save them money when using
common carriers,” says Frank Brown, executive vice president
of CBSA. He cited one CBSA member who said he saved enough money
in one quarter to more than pay for his association dues. CBSA itself
gets no rebates from the for-profit TPA, Brown adds.
Once
a trade association is accepted into the program, its members are
encouraged to sign up—at no cost—at TPA’s web site,
www.tpapartners.com. Signing up entitles the company to contract
with certain less-than-truckload, flatbed, truckload or bulk carriers
at the TPA-negotiated rate. The companies are billed directly by
the common carrier, which also assigns a local sales representative
to meet future needs.
Association
members have the option to pay for more expansive services, which
TPA offers through the VisiShip Internet-based transportation software
program developed by Transportation Management Technology.
VisiShip’s
rating engine allows the user to look at multiple carriers’
rates all on one screen. This includes the TPA-negotiated carriers,
plus other carriers the company has done business with. “That
allows the company to do an apples to apples comparison,” Chambers
says.
For
an additional fee, association members can also access the entire
VisiShip transportation management system, which includes the rating
engine, as well as such capabilities as order management, rating
load consolidation, load tendering, freight settlement and management
reporting.
As
time goes on, TPA plans to negotiate rates with more common carriers,
including more flatbed carriers, Chambers says.
Edgen,
Murray Combine Forces
Jefferies Capital Partners, principal shareholder of the Edgen Corp.,
Baton Rouge, La., has agreed to acquire Murray International Metals
Limited, Houston. Upon completion of the transaction, a new holding
company called Edgen/Murray L.P. will own 100 percent of Edgen and
MIM.
“Through
this series of transactions, we will establish a singularly focused
enterprise supplying the specialty steel pipe, pipe components,
structural sections and plate requirements for the oil and gas,
process and power generation industries,” says Edgen CEO Dan
O’Leary. “With over 25 worldwide locations, dedicated
and experienced staff and preferred long-term vendor relationships
serving our primary markets, we are uniquely positioned to service
our over 3,000 customers with a full range of specialty steel products.”
“We
are extremely pleased to be joining forces with Edgen and Jefferies
Capital Partners. This transaction allows us to expand the products
and services we offer to our long-standing MIM customers and continue
our targeted geographic expansion,” says Ken Cockburn, managing
director of Murray International Metals Ltd.
Edgen
is a leading global distributor of specialty steel pipe, fittings
and flanges for use in niche applications, primarily in the oil
and gas, processing and power generation industries. MIM is a distributor
of structural steel products for use in niche applications, primarily
to the offshore oil and gas industry.
AMG
Forms Plate Products Division
AMG Resources Corp., Pittsburgh, has formed Chicago Plate Products,
a new division that will expand AMG’s existing secondary steel
business. Chicago Plate Products, based at a new facility in East
Chicago, Ind., is engaged in the purchase, processing and sale of
plate products.
AMG’s
commercial group specializes in brokering secondary coils and other
usable grades of non-prime steel to consumers. The secondary products
AMG markets include master coils, pup coils, sheets, excess prime
steel, slit coils and plate and structural steel.
“The
creation of Chicago Plate Products will enable AMG to offer known-chemistry
secondary plate to our customers in addition to the wide range of
secondary steel products we already offer,” says Don Fotlani,
chief commercial officer and senior vice president for AMG.
Lee
Ann Trueblood, formerly of LB Steel LLC in Harvey, Ill., was appointed
general manager of the new division.
Metals
USA Deal Complete
The acquisition of Metals USA, Houston, by New York’s Apollo
Management L.P., announced May 18, has been completed. Under terms
of the merger, the company’s stockholders are entitled to receive
$22 per share in cash.
“We
are extremely pleased to have delivered such great value to our
existing stockholders,” says C. Lourenco Goncalves, president
and CEO of Metals USA. “This transaction is a clear endorsement
of our business model and industry leadership. Further, it demonstrates
that metal service center companies are good investments for smart
investors.”
The
merger was briefly at risk in late October, when Metals USA announced
it would not be able to meet one of the conditions of the agreement,
12-month earnings of $117.5 million. One week later, the agreement
was modified only requiring Metals USA’s EBITDA to exceed $113.8
million.
Specialty
Metals Enters New Facility
Specialty Metals Processing has moved its corporate staff to a new
finishing facility in Akron, Ohio. SMP is a toll processor of flat-rolled,
surface critical metal such as stainless, aluminum, titanium and
other high-temp alloys.
The additional facility was designed to precision grind, polish
and buff sheet and plate, along with offering special custom finishes.
Shearing, storage and protective coating applications are also available.
Soon, SMP will offer coil polishing on lighter gauge material.
Briefs
The Warren Company, Northwest Pennsylvania’s largest
steel distribution and processing center, recently achieved 1,000
days without a “lost-time” injury. This milestone exceeds
the previous record by 705 days.
Alro
Steel, Jackson, Mich. has opened a new 80,000-square foot facility
in Milwaukee. The new building holds a broad range of inventory,
including hard-to-find grades and sizes and numerous processing
services. The new building is located at 3000 N. 1114th St. in Wauwatosa.
Correction
Russel Metals’ third-quarter 2005 financial results were reported
incorrectly in the chart on page 45 of November’s Metal Center
News. Russel reported net sales for the quarter totaling $535.2
million (U.S.), down 8.6 percent from the $585.5 million reported
in third-quarter 2004. Russel’s net income for the third quarter
was $22 million, down 55.8 percent from $49.8 million in third-quarter
2004.
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