IOWA LASER'S PURCHASING POWER  top

By Jim Mattson, Purchasing Manager

I like to use this newsletter as a means to keep our customers informed on the state of raw material pricing, yet one drawback is I seem to always be bringing news of price increases or material availability problems. This year began in the same manner, but we’re seeing price decreases moving into the summer.  

Since November of 2010, we saw the average spot buy price of hot roll band, as reported in the American Metal Markets, increase by 58%. The two biggest increases occurred in December 2010 (16%) and January 2011 (18%). The causes for these increases can be attributed to higher scrap costs and lower mill capacity combined with an upturn in manufacturing. The current model for steel pricing is very similar to what we experienced in 2008, but the increases in 2011, while substantial, have been smaller. In 2008 steel pricing started slower and increased momentum through the late second and early third quarter. This year’s increases started earlier and appear to be losing momentum already.

Traditionally steel pricing will lose a little steam during the slower summer months. We are currently experiencing this in a solid way. How long decreases will last remains to be seen, but I would anticipate the pricing to remain soft for the summer months. Fortunately we have not had to deal with a lot of material availability issues. So while 2011 started a bit cumbersome for steel price increases, we, as consumers, are fortunate in that it is not 2008.

I am confident that even though there are some pricing similarities between 2008 and 2011, they will end up being different in how manufacturing was affected in both years. If you recall, the end of 2008 foreshadowed the difficult year that we as manufacturers experienced in 2009. At Iowa Laser, all signs are pointing to a strong finish for 2011.

AN ACTIVE SELLING POINT    top

Introduction to Roger Blakesley, ILT's new Sales & Marketing Manager  

I have been a proud employee of Iowa Laser for over 20 years and I am very proud to serve our customers in this new position. The transition from sales rep to sales manager is eye-opening and exciting. Above all else, it has confirmed I made the right decision for the right reason - to accept this position based on my support of Iowa Laser’s personnel. Through each of my roles, from deburring and forming parts for 5 years, to the last 15 years in sales, I could never have asked for a better group of individuals to work with.

Our first and second quarters have been incredible, leaving me at times thinking baptism-by-fire might be a better description of my transition. Iowa Laser has been growing and changing over the last 30 years and I don’t see that stopping any time soon. Every indication is pointing us to another record year. This means new challenges with more success for your companies and Iowa Laser alike, but only if we are willing to work as a team. We will do our best to help you manage the challenges your companies face.

I would like to invite you to contact me with any issues or concerns you have.

CAPABILITY UPDATE   top

We added a new Trumpf sheet laser this spring to aid capacity (#24!). All indications for June/July are strong, so contact your sales representative today to secure your spot in the schedule. As always, if you encounter a short lead situation, let us know and we'll do our best.    

• Sheet laser cutting:  3-4 weeks
• Plasma cutting:  1-3 weeks
• Tube laser cutting:  2-3 weeks    
• Custom laser cutting:  2-3 weeks
• 5-axis laser cutting:  3 weeks or less
• Laser welding:  3 weeks
• Cutting with secondary operations (forming, machining, welding):  2-5 weeks depending on project

THE ANALYTICS OF QUALITY     top

By John Lamos, Quality Manager

Customer Feedback  

Just a brief note...I send out customer surveys randomly on a monthly basis via mail, in hopes of letting you know we actively pursue your feedback. This is our chief form of communication on success and failure, so I wanted to make sure you know any comments are communicated internally for praise or resolution. Please continue to inform me of any concerns. Your feedback is much appreciated and continues to help us grow both as a company and as individuals.  

PRESIDENT'S STATE OF LASER   top

By Joe Barber, President

In the past I have had the opportunity to address all of you from my previous role as Iowa Laser’s Sales and Marketing Manager. This is my inaugural article as President, and I am a little excited about it. As President, I can write on a vast range of topics, so it should be easier to meet the deadlines given by our editor, Matt Miller.

At the time I was promoted, I will admit that my view of Iowa Laser was very one-sided. As Sales Manager, all of my time and effort was directed towards generating more sales, and maintaining the relationships we have with our customer base. As President, my concerns now include not only the sales aspect, but all aspects of our company, our plans for growth, and serving our employees as well as our customers.

ON THE ROAD AGAIN  top

By Matt Miller, Outside Sales   

But You're Iowa Laser 

Several years back, we began using an online survey to get feedback from visitors on our website. Shortly thereafter, I was surprised to hear a comment from a loyal customer about this method of generating crucial customer information. “But you’re Iowa Laser,” he said, and followed with his perception that we would be above doing such a thing.  

That’s pretty honest feedback.  

We always consider how our marketing decisions will be perceived before implementation, so this rather candid response to an anonymous survey was both revelatory and insightful. It has affected our marketing program since.  

As Jim alluded to in his earlier article, we are considering a venture into social media. When I think about our customer’s earlier response and my own perceptions of this new technology, my gut clenches a bit. There’s no question that Facebook, Twitter and LinkedIn are super, real-time communication tools. I’m reaching for the Pepto because I’ve seen a lot of time and money wasted on social media with little return.  

In my opinion, social media in the B2B world tends to take one of two forms - Success or Gone Fishing. Roy H. Willams, an advertising and marketing guru, says social media is mostly hype and not the best use of time, energy, or an ad budget over traditional media outlets. Others claim great things.  

Success appears to be generated by relevant customer content and is indicated by large numbers of Likes, Friends, Followers, and/or Network connections. The best performers are large corporations and entrepreneurs who commit full-time hours every day to generate new content. Defining ‘Success’ is key and varies based on each company’s time management and accounting logic.  

Many-a-fishermen have tried this ‘fishing hole’ based on expert suggestion, didn’t catch anything and simply left. There are a number of potential reasons why. First, social media is about connecting with people where they are, with relevant information. If you’re not offering relevant information, like a recent ‘friend’ posting the details of her new toaster, you might have a similar gut-twisting feeling and respond “I thought you were above this. Get out of my Facebook!” (Note: Even with the most technologically-advanced toasters, narcissism can run rampant on these sites, and in effect, cost you potential customers. Relevance is about your customers’ interests, which can be challenging to decipher from inside the company walls).  

Second, the time required to produce an effective social media campaign for brand recognition can be enormous – whether using one site like LinkedIn or multiple sites to develop further brand awareness – often yielding varying degrees of success. What is the return on time invested? Numerous fabricating companies I’ve followed advertise “Reach Us Here” but I arrive to find a 2010 post that reads “have a safe labor day” or “wishing you a merry christmas.” They too have left the fishing hole. If I’m their customer, how confident am I of getting a response to a question using this site? Also, where did they go? To realize an effective ROI, relevance has to include recency. Striking the commitment balance appears to be difficult.  

Another major issue is privacy. Protecting customer relationships is paramount to making any social media decisions for Iowa Laser.  

Roy Williams sums up an effective marketing campaign distinctly. “Response to your message will be dictated by its relevance and credibility, not by the vehicle of its delivery.” We know communication is key to success. Obviously we want to generate a return on our time investment, but the prevailing goal for Iowa Laser is to find more efficient avenues to communicate key information that our loyal customer base can benefit from. The latest metal market news for purchasing agents or reference articles about what we’ve learned in our 30+ year laser cutting history come to mind as leading posts.  

Our next newsletter should reveal our intent. We hope you’ll be as eager to explore this new path with us. Whichever route we choose to go, if you arrive and see a sign that reads, “Gone Fishing,” know we’ll be back after the lunch hour.  

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