Precast Inc. - November/December 2008 - (Page 14) required, but using the larger diameter bar to meet the requirement means more weight of steel in the product. Steel goes by the hundredweight, so this means we pay a higher price per ton for the steel in the product. Smith: We have been buying further out and in larger quantities to get better pricing and ensure supply. Our reinforcing steel needs are in very common sizes and shapes, and with better planning we have mitigated any influence of availability. Will the industry move to nonsteel reinforcing, like carbon fiber reinforced polymer (CFRP) reinforcing? Smith: We have expanded our use of fiber in lieu of WWF (welded wire fabric) for secondary reinforcement. We have not looked into other reinforcing materials. Hahne: CFRP is still considerably more expensive than steel reinforcing. We evaluate all our options for a particular project, but it still gets down to dollars and cents in selecting the most economical materials available that will do the job. What can the precast industry do about steel prices? Hahne: The different sizes of steel available affect the product. In a big market where production capacity is an issue, we look at the area of steel needed. Say we need a certain area of one-quarter inch-diameter steel rod but we can only get three-eighths inch-diameter steel rod; in this case we still need to meet the spec for the area of steel 14 NOVEMBER/DECEMBER 2008 | PRECAST INC. We have had steel bids that have only been firm for as short as 72 hours. This inflationary environment leads to risk for the supplier. currently, but we are evaluating our options. How does the shortage of available steel affect production? Hahne: Industry associations and technical committees can work as lobbyists on the Hill to make sure our views are heard. Every association has something to offer to help producers and make sure important issues are discussed. We try to stay apolitical as a company. Our main goal is to provide the best design and the best quality product for our customers. We can work with the local community to make sure the decision makers know that we support the local economy with employment and the use of regional materials. We also invest in our education system to make sure we develop the best people to work in our industry. We need to demonstrate the advantages of precast concrete over alternative materials that do not support local economies, hire local workers or use regional materials. Smith: As an industry we need to communicate with our customers about the factors of production. Many customers do not understand that we have energy surcharges on our raw
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.