IOWA LASER'S PURCHASING POWER  top

By Jim Mattson, Purchasing Manager

Compared to the previous year’s rollercoaster ride, the steel market in 2009 offered a welcome change with relative market stability in pricing and adequate supply.  Although demand was less than par causing a strong uneasiness, the monthly variances we saw were small and stable, similar to 2005 through 2007.  As most of you know, drastic movement in the market, up or down, brings large price adjustments.  (Or better said, high stress for purchasing departments.)  For the short term, thankfully we’re only seeing a slight price increase and the occasional availability concern.  It’s very manageable. 

December brought a slight increase in customer orders for Iowa Laser and January forecasts show additional increases.  As companies move through the holiday shutdowns and begin to build to full-week production schedules again, I suspect material demand will increase but probably won’t sustain opening more capacity at the mills (currently at 40-60%).  Service center inventory will potentially dwindle.  The added expense for the mills to produce more steel at existing capacity – higher production costs, energy - will most likely drive more price increases, which we’ve already seen for January.  (What the market will bear is another pricing variable at play here.  We’ll discuss this in the coming months.)  

Availability is the other component to meeting customer requirements.  Considering lower production capacity at the mills and a slight increase in orders, we’ve already encountered problematic supply of certain materials for early January requirements.  In just a few cases, delivery dates had to be moved out.  To offset these situations and offer an additional buffer for our customers, Iowa Laser strategically sources material based on historical and current material requirements.  Our largest inventoried materials are:  

• Cold Rolled - 16 ga

• Hot Rolled Pickled and Oiled - 12 ga, 11 ga, 10 ga, 7 ga, 6 ga, 3/16", 1/4" 10mm, 3/8", 1/2"

• High-strength, Low-alloy (HSLA, Gr50) - 7 ga, 1/4", 3/8", 1/2"

As always, feel free to contact me for further discussions on current conditions or new/existing material needs.  I will wrap up this article buy wishing all of our customers and suppliers a very happy and cheerful holiday season. Let’s hope that the New Year will bring renewed growth and prosperity to all of our companies. Happy New Year!

AN ACTIVE SELLING POINT    top

By Joe Barber, Sales & Marketing Manager  

As 2009 quickly draws to a close, I’m sure that we all are spending some time reflecting on the past year and trying our best to look ahead to 2010.  There is still that looming question “Is it over?”  I don’t know if we’ve seen the level of recovery that each of us hopes for, but it does look like things are stabilizing throughout several markets and demand is slowly starting to revive.

This year finally ushered in the economic slowdown to the Midwest.  We feel fortunate the impact has been as tempered as it is.  We recognize that for many, this has been the most severe economic cycle they can remember.   I want to take a few moments and thank each of you for your continued business and relationships.

Iowa Laser strives to provide everyone with great service and competitive pricing, no matter what our current workload looks like.  We recognize these two components during the good times lead to continued opportunities throughout the slower times.  Each and every employee here sincerely thanks you for continuing to trust in our equipment and performance.

Iowa Laser looks to continue to improve the services that we offer to our customers.  We are privately-held; the ownership recognizes the importance of on-going reinvestment and improvements, even through the lean years.  You will see us upgrading our machinery and technology to continue to better serve you and remain competitive in the market.

I hope everyone has a wonderful holiday season and that 2010 is prosperous. 

CAPABILITY UPDATE   top

Similar to your own business, Iowa Laser has multiple tracking indicators in place to predict future business.  One of these methods is pre-sold sales numbers, which we've been gathering for well over a decade.  Historically, January's pre-sold sales total is quite accurate in indicating how busy Iowa Laser will be the first half of the year.  Considering the great amount of variables outside our control this year, we cautiously state for the first month of 2010 our pre-sold sales total is the 3rd highest on record. 

Our lead times are calculated according to schedule, which definitely is affected by a high amount of pre-sold sales.  We offer the following lead times moving into a fairly busy month.  If you're running behind on releasing PO's, let us know and we'll make every effort to accommodate your needs.       

• Sheet laser cutting (material on hand):  2 weeks or less

• Tube laser cutting:  3 weeks or less    

• Custom laser cutting:  3-4 weeks

• 5-axis laser cutting:  3 weeks or less

• Laser welding:  2 weeks

• Secondary operations (forming, machining, welding):  1-2 weeks

THE ANALYTICS OF QUALITY     top

Thanks-giving from a Quality Perspective

By John Lamos, Quality Manager

For most of us, this time of year is typically organized chaos.  Between the holidays and year end reports it’s always hard to fit in anything extra, but as I age I find it important to reflect and give thanks.  I would like to highlight a few professional thank you’s that have contributed to Iowa Laser’s 2009 success.   

The newest addition to the Quality department is a Virtek Automated Inspection System that allows us to accurately and efficiently verify 2D parts and generate complete dimensional reports.  I’m thankful Iowa Laser was in a position to approve the purchase.  The Virtek will return value on our investment for years to come by reducing manual inspections and limiting the potential for recording errors.

My thanks goes to our Logistics department who handles final prep of customer parts, ensuring we’re delivering what you want, packaged in a manner we would expect to get here at Iowa Laser. 

I’m thankful to our Purchasing department who saves me countless hours because of their knowledge and willingness to take the extra step in documenting materials.

I’m thankful to our Order Entry department for their accuracy.  This is where it all starts and our staff has it down to a science.  Thank you all.

My thanks to our Accounting department that walks the extra mile to make sure every-i-is-dotted-and-t-is-crossed.  When an issue or fact check arises, I’m always confident.  Thank you, ladies.

I’m thankful to a Materials department that pulls hundreds of different materials for production, thousands of times a year, and have made 0 errors two years running.  This accomplishment should be mirrored by our government (but that’s another topic!).

I’m thankful to a Quality/Manufacturing Engineering group whose main focus is to ensure the customer gets the part the exact way they need it, a process that encompasses every aspect of Iowa Laser’s service for our customers.

I’m thankful to our Sales department who has made it a priority to continually educate themselves in understanding the needs of the customers.  Delivering on promises is key to our business.

I’m thankful that Iowa Laser passed our ISO 9001:2008 certification audit.  This is a direct result of our Internal Audit team’s professional and thorough techniques.  Many, many thanks.

I’m thankful to our Maintenance department who deliver time and time again, no questions asked, from posting signage to fixing a deer-hit-door…thank you.

I’m so thankful for our Production personnel that bring relevant questions and concerns to me daily, along with meaningful continuous improvement suggestions.  You are so greatly appreciated.  These things make the difference at the end of the day.

Cindy and Barb, thank you for making so many aspects of my job better, the little reminders and professionalism you show is so greatly appreciated.

I’m thankful to an Information Systems department who has brought our paperless system passed the realms of possibility to real-time.  Seeing this in action is believing that much can be accomplished.

I’m thankful to our supervisors who are dedicated beyond words, evident in all aspects of what they do. 

I’m thankful for the teamwork and sincere support my coworkers show me day-in and day-out, a silent but absolutely critical trait of Iowa Laser.  Thank you so very much.

I’m thankful for my boss.  His leadership is like no other I have experienced in my life.  He leads by example, allowing mistakes to be made, as long as those mistakes are made in an effort to improve.  This is absolutely priceless.  Thanks Sean.

Finally, I’m thankful to our customers for making us better in everything we do at Iowa Laser.  Requirements that seemed impossible just a few short years ago are considered commonplace today.  Expectations that appeared to be overwhelming are now achieved routinely.  Thank you.

PRESIDENT'S STATE OF LASER   top

By Sean Abbas, President

The 2008 Crisis, previously known at the 2007 Crisis, then the Crisis of 2009 and soon to be known as the crisis of 2010…continues.  It’s easy to become paralyzed by the insanity of our world today - pending inflation, deficits, debt ceilings, consumer confidence - the list goes on and on.  How can we be in control of our lives and businesses when the dollar is falling, energy prices are rising and our government won’t stop spending?  How can we be in control of anything anymore? 

Let’s take a deep breath and talk about that.  When have you ever been in control of any of those things at a macro level?  They are happening whether we like it or not.  How about we admit that we cannot control them.  That kind of feels good, doesn’t it?  To just let it go, to acknowledge our helplessness.* Now that we have all this free personal capacity to utilize, what might we do with it on a micro level? 

Here are some things to consider: 

1)      What key developments have occurred in your industry during the last 18 months?  Businesses were spending billions in research and development in the 1^st half of 2008.  Many of those projects have been completed and their results are benefiting someone.  In other words, the entire world did not drive off a cliff 18 months ago.  New technology is in the marketplace, and that new technology is making a huge difference to those that are looking for it.

2)      What was it, that one thing that you wished you had the time to do in 2007 & 2008 that could drastically improve the way you do business?  Maybe you were looking at manufacturing management software, drafting/design software, a new layout on the plant floor, a value stream mapping project for a “bottleneck” area, a 5S project, and the list goes on.  You had a need (or should I say have a need) but you just didn’t have the time to address it.  Today you have that time.  The real question is: do you have the will to do something for the future of your business?

3)      Training.  One of Iowa Laser’s values is learning.  We call it “the only sustainable competitive advantage” that we have left and we fully embrace it.  We all have equipment, buildings, software packages and tools.  If we all possess the same things, what separates your company from the crowd?  How are you planning to utilize your resources more efficiently and effectively than your competitor?  Training takes time, time we haven’t had available to us for many years.  It’s an investment in our future, and more importantly, it’s how we will lead our industry back to prosperity. 

These are just a few things, there are many others to consider.  The most important thing is that you are moving forward and doing something.  You have a resource at your disposal that you haven’t had for months or years.  That resource is TIME.  How are you utilizing this valuable resource?  It appears as if many are focused on things that are outside of their control.  Things that will not set their business apart, make it more efficient, more effective and better able to serve their customers.

The simple fact that everyone else is focused on the things they cannot control means that there is opportunity for those that focus elsewhere.  The rules of the game are changing, but the game is still being played.  As my old high school football coach used to say, “you play until you hear the whistle.”  Nobody has blown the whistle on the game we are playing.  It’s time to take back the control it feels like you have lost.  When you do, you will remember how good it feels to be in the game. 

*  By all means, write your elected representatives, vote, contribute to political action committees and lobby those who can bring about the kind of change that can help us all.  BUT, do not let those activities replace running your business, having vision and planning for success.

ON THE ROAD AGAIN  top

A Supplier’s Preferred Time of Year:  Manufacturing during the Holidays

By Matt Miller, Outside Sales   

First of all, Iowa Laser hopes your holiday season kicked off with a Thanksgiving bang.  Knowing family gatherings tend to bring up the occasional pesky problem with our brothers, sisters, mothers and fathers, we wish you all happiness.  Happy, happy, joy, joy. 

We take great pleasure in being a supplier during the holidays.  The anticipation and excitement (read: days off work) tend to offer Iowa Laser’s customer relationships a great change in conversation.  Quote requests arrive with kindness, phone calls end with “Merry Christmas” and “Happy New Year” and the greatest benefit, new quote requests are offered with conversation rather than the typical “I’m too busy to discuss this, please just quote it!” 

Even if the door opens for only a month, it’s great progress.  Tell us how we can help!

Our preferred relationship as a supplier is with customers like this.  We begin to understand each other’s needs as time ticks – from understanding your quality requirements to delivering within a window that works for both companies.  When conversation flows freely, true needs are known before you send the PO.  Value and savings comes from our experience.  Conversation equals intuition equals your bulging pocket of present money.  Isn’t that something!   

The many factors that can’t be figured into a quote are discovered early and predict the weather, unlike the first snow here in CF a month ago (it wasn’t supposed to stick).  Instead, the light dusting our local meteorologist forecast fell heavier than expected, hanging around just long enough to melt and freeze at dusk, causing minor fender-benders, curb shots and a few serious accidents.  First snows, like the first order with a new supplier/customer, tend to show who you're traveling with. 

Relief is upon us.  Ahhh. 

We wrapped up our Thanksgiving holiday with an end to the 2009 fiscal year.  Sales topped out at $24.5M, a slight 10% drop from 2008 sales and a promising indicator of how you - our customers - run your businesses.  We worked again with over 450 customers in 2008 (and added Hawaii to our list of states served) – a sign that the ebb-and-flow of manufacturing in the heart of the U.S. is alive and well.  With the same destination in sight, we appreciate your business.  Happy New Year!   

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