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Dear Friends,
I’m happy to share that despite the challenging weather over the last few weeks, activity still remains strong and the feedback we are getting from the field is positive! Backlogs (both customer and vendor) are strong, bidding activity is high, and the overall market sentiment is positive. Our leadership team has reviewed a lot of economic forecasts and we continue to believe that the Southeastern market is still one the strongest in the country. And in the event we do see a softening, we are committed to “not participate.” Simply put … you can expect our level of service to continue no matter what.
Shifting gears to our integration activities … it’s been busy! We have spent the last few weeks looking at areas where we can improve our product offering, identifying areas of opportunity, and creating plans to position our teams to serve our customers better. After all, that’s why we’re here – to serve our customers and support our suppliers. One way we plan to do that is to expand the content of this newsletter to include a wider market view and incorporate new products/suppliers that we have due to joining forces with Colony. With that said, Colony’s CEO, Tim Rash, and Colony’s Director of Marketing, Kevin Lamoureux, will be handling this newsletter going forward. Their wider insight on the overall market, product opportunities, and further integration details will be extremely insightful.
Now … let’s get down to business with a market update from Peter Bemisderfer, our Director of Purchasing:
The overall market demand continues to have an impact on many of the commodity based materials within the construction industry. With the beginning of the busy season quickly approaching, many manufacturers and buyers are trying to figure out what the demand and needs of the market will look like for the near term.
From a lumber perspective, the broader market continues to lack momentum with manufacturers, wholesalers, and importers of both SYP and SPF looking to move inventory. This push to move inventory, coupled with no mention of new mill curtailments on production, is driving the market softer. The consensus is that there will be more volatility in the SPF market for the coming few weeks.
The SYP market looks to be very similar to the SPF market. Demand is lacking and inventory is readily available. There is the feeling that SYP may be at the bottom, so many buyers are considering making a play. Once that play is made, the market should see a slight rebound with inventory thinning and lead times beginning to lengthen.
Polyethylene sheeting has seen a recent surge in demand. South Carolina’s 2023 code change for residential under-slab vapor barrier requirements has created an uptick in regional demand. The change from a standard 6mil (historical heavy stocked item) to a 10mil (historical lighter stocked item) has generated a surge in 10mil purchase orders. This recent surge has pushed lead times out to three or four weeks. Expectation is for lead times to return to normal (two weeks) once distribution’s inventory levels of 10mil are modified to meet new demand.
Rebar and mesh are two other commodity items that have seen recent softening. Adequate mill stock and lower industry demand has generated a surplus of supply in the market. Lead times for both items are currently about a week after a purchase order is placed. With scrap metal pricing rising again this month, the mills are hoping a bottom is reached soon. Overall demand will be the key indicator moving forward. With the busy season quickly approaching, expectation is for the floor to be reached within the coming months.
Click here for the latest update on the construction economy from Ken Simonson, the chief economist of the AGC.
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CATCHING UP WITH OUR CUSTOMERS
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This month, we are catching up with the team over at Ascension Concrete Construction, based out of the Carolinas. Ascension Concrete Construction was established in 2022. They provide concrete services for commercial construction and their main specialty is providing Tilt-Up construction services to General Contractors. To learn more about them, read here.
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Owens Corning
Premier supplier of insulation, roofing, and fiberglass composites
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Access Tile
The ultimate solution in detectable warning systems
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Nomaco
Nomaco is a leader in the design and extrusion of custom engineered foam products
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Peter Bemisderfer, Director of Purchasing
Our featured associate of the month is of Peter Bemisderfer. Peter is our Director of Purchasing and is based out of our Greenville, SC branch. Peter has been with the New South team a long time, as he first started as a Manager-in-Training in March 2008, and eventually worked his way up to the leadership team after previously being the Sales Support Manager and Operations Manager of the Greenville, SC branch. If you’ve worked with New South for a while, you probably know Peter, as he is a huge asset to our team. More about Peter: he was born in Stuttgart, Germany, and later went to high school at Cedar Shoals High School in Athens, GA. A graduate of Clemson University, Peter settled in Greenville with his wife, Kendall, and their four children, Ward, Reaves, Theo and Katie. When Peter isn’t working, he can be found golfing or cheering on his Clemson Tigers.
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Recently I attended a leadership seminar focused communicating with our people, our families, and our business partners by Alex Swire-Clark – an award-winning speaker, author, and emotional intelligence expert. While there are many ways to determine how to work with others, he went back to the basics of the DISC profile … and dove deep on how to communicate with people based on their profile, not yours. It was a good refresher on the DISC tool … and a great roadmap on how to improve communication with others. Hence it is our February Management Article. I hope you enjoy it as much as I did.
Click here to read the article.
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In closing, thank you all for your trust, support, and belief in New South. Our team is here for one reason and one reason only – to better serve our customers. Without your trust, we would not exist.
Thank you for everything you have done for us – in the past, the present, and in the future. If there is anything we can do for you … please never hesitate to contact me directly.
Abhi Singh
EVP & Chief Operating Officer
abhi.singh@newsouthsupply.com
864-263-4387 (direct line)
Main Office/Branch: Greenville, SC
Other Branches in:
Columbia | Charleston | Myrtle Beach | Hilton Head | Greensboro | Raleigh | Charlotte | Atlanta | Jacksonville | Ponte Vedra
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