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The Official Publication of the National Association of Steel Pipe Distributors, Inc. • March/April 2002 PIPELINE National Association of Steel Pipe Distributors, Inc. 14760 Memorial Dr., Suite 302 Houston, TX 77079 PRSRT STD U.S. POSTAGE PAID PERMIT NO. 600 HOUSTON, TX Highlights from the Miami Convention March 7 - 10 Clockwise from top left: Don Karchmer (center) pictured with John Mocker and NASPD President Gerald Merfish, receives the Knowles-Rubenstein Award of Excellence; Steve Nowacki and Matt Orban get to know the local wildlife; Susan Kallas and Fidel Nabor impress the crowd with their dancing; Robert Tanis, Wayne Conrad, and Gary Canonge (not pictured: Ray Davila) win the golf tournament. INSIDE Strategic planning report page 4 More pictures! pages 8 - 9

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Page 1: The Official Publication of the National Association of ...The Official Publication of the National Association of Steel Pipe Distributors, Inc. • March/April 2002 PIPELINE ... at

The Official Publication of the National Association of Steel Pipe Distributors, Inc. • March/April 2002

PIPELINE

National Associationof Steel Pipe Distributors, Inc.14760 M

emorial Dr., Suite 302

Houston, TX 77079

PRSRT STDU.S. POSTAGE

PAIDPERM

IT NO. 600HOUSTON, TX

Highlights from the Miami ConventionMarch 7 - 10

Clockwise from top left: Don Karchmer (center) pictured withJohn Mocker and NASPD President Gerald Merfish, receives the

Knowles-Rubenstein Award of Excellence; Steve Nowacki andMatt Orban get to know the local wildlife; Susan Kallas and Fidel

Nabor impress the crowd with their dancing; Robert Tanis,Wayne Conrad, and Gary Canonge (not pictured: Ray Davila)

win the golf tournament.

I N S I D E

Strategic planning reportpage 4

More pictures!pages 8 - 9

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President’s MessagePresident’s Message

by Gerald MerfishNASPD President

If you missed the AnnualConvention in Miami, you missed alot. We heard sterling presentationsand participated in a two-houropen discussion of the potentialimpact of President Bush’s recentSection 201 ruling. To supplementthe activities of the NASPD for cal-endar year 2001 I have included areprint of my State of theAssociation address given duringour formal Annual MembershipMeeting in Miami, 2002.

The past year 2001 has been avery busy year for the NASPD.Membership retention has

been excellent in spite of the manyconsolidations in our industry andthe economy. In fact, we renewedthe highest total of companies everand when adding our new membersat this convention our associationmember list now numbers 165.

As you have heard in theTreasurer’s report the associationcontinues to be on strong financialfooting and is using some of its equi-ty to fund and underwrite two impor-tant projects.

One is the effort of the EducationCommittee. In 2000-2001 the mem-bership dues increase was designatedto underwrite the association’s edu-cation efforts. In its wisdom, theNASPD recognized the value ofdeveloping a curriculum so that theNASPD is the “place to be” if some-one wants to learn about the steelpipe business. Currently, through theefforts of Bob Rau and our consul-tants, A F Kelly Co., we will be using

the information we gathered last year asa “Body of Knowledge about Steel Pipe”to generate a first-class training manual.We should see some of the results ofthis effort at the next association meet-ing in Chicago. Jay Roccaforte andRobert Griggs have ably led this effortfor the past year.

At our Fall meeting in Houston inOctober, the NASPD Board of Directorsauthorized three members to conduct afeasibility study for the creation of aWebsite whereby the association regu-lar members could list their inventoriesthat are available for sale. The feasibilitystudy showed an easily achievablebreak even point and payback over ashort period. Consequently, a contractwas signed for the development of soft-ware for the NASPD’s Online ListingWebsite. The anticipated launch date islate May. You may notice people walk-ing around with a button suggestingyou ask them about “E”. I encourageeach of you to discuss the Website withthese volunteers and to sign up for theintroductory listing offer. The morecompanies that have committed to theWebsite the greater the success. DonPorr and Yves Pognonec have generous-ly contributed their time toward thisproject.

Although these are two of the mostvisible projects, your association hasbeen hard at work reviewing its basicorganization, including the recent estab-lishment of an updated personnel poli-cy handbook. Thanks to Glen Marcel, alawyer specializing in labor law, whohas reviewed the policy on a pro-bonobasis. A special thank you also goes toCullen King for his efforts.

It has been more than five years sincethe NASPD convened an ad-hoc long-range Strategic Planning Committee.The work product from the lastStrategic Planning Committee was sub-stantially implemented and, in my opin-ion, has allowed the association tomature and grow. A new StrategicPlanning Committee with Ken Hayes asChair will convene later today as it istime to take a new broader look at ourassociation and our goals.

A special thank you to each memberof our committees, to each committeechair person, to each member of theBoard of Directors and to each Vice-President and officer. We could not runthis association without you. Alsoplease we should not forget the leader-ship of John Mocker as he and his com-mittee have constructed an excellentgroup of directors and officers for2002-2003.

Last, but certainly not least, it wouldbe remiss to end this speech withoutacknowledging the superb effort theassociation receives from our employ-ees. Susannah, Nancy, Elaine and Sueare excellent employees and associa-tion ambassadors who serve us welland always keep the betterment of theNASPD in their focus. Thank you foryour hard work and devotion.

Finally, let me thank each of you forthe opportunity to serve the NASPD foranother year. This job, though at timesengulfing, is rewarding. I promise tobring substantial energy to the positionof President of the NASPD and todevote my efforts to the betterment ofour association.

Reviewing the state of the NASPD

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From the Executive Director

by Susannah Feux PorrNASPD Executive Director

From the Executive Director

It is a very exciting time at theNASPD. This year alone we are pro-ducing two new services that will

continue to increase the value of yourmembership in the NASPD.

We are producing a training manu-al that should be available in a first draftform by the time of our Chicago meet-ing in June. Members can use this docu-ment to train new employees aboutsteel pipe or offer it as a referenceguide to current employees. The manu-al will contain basic knowledge that allsales personnel and some support staffneed to know to be able to work moreeffectively. We believe this documentwill contain all of that pertinent knowl-edge. The training manual should be aresource that your company must haveto excel.

The NASPD Online Listing Websiteis another very exciting addition to thearray of services that the NASPD offers.This is an opportunity for regular mem-bers to list products they want to selland view products for sale by other reg-ular members. No transactions willoccur on the Website but rather will bedone directly between parties. Noprices will be listed on the site. With aminimal monthly usage fee, you will beable to list and/or view as much as youdesire. We believe this will be a quick

and easy way to locate pipe as well asencourage even more business amongour members. For more information, or

to sign up for this new service, pleasecontact the NASPD office at 281-531-7473.

NASPD enhances member benefits

New limited service ERW line pipe, PE&B, 20-64’ lengths, tested 750# PSI Min. FOB: Baton Rouge, LA

2,196’ 10 3/4” OD x .465”W x 51.13# $7.67/ft.3,823’ 12 3/4”OD x .250”W x 33.41# $6.51/ft.5,042’ 12 3/4”OD x .500”W x 65.48# $11.79/ft.5,583’ 12 3/4” OD x .562W x 73.22 # $13.18/ft.919’ 16’ OD x .375”W x 62.64# $12.21/ft. 6,781’ 18”OD x .593”W x 110.35# $17.66/ft.3,501’ 20” OD x .500”W x 104.23# $20.32/ft.3,271’ 20”OD x .548”W x 113.95# $22.22/ft.1,103’ 22” OD x .375”W x 86.69# $12.79/ft.1,072’ 22” OD x .500”W x 114.92# $16.95/ft11,123’ 24” OD x .250”W x 63.47# $12.38/ft.8,441’ 24”OD x .281”W x 71.18# $13.70/ft.10,040’ 24” OD x .312”W x 79.01# $15.21/ft.14,145’ 24” OD x .344”W x 86.99# $17.40/ft.4,037’ 24” OD x .375”W x 94.71# $18.47/ft.5,196’ 24” OD x .456” W x 114.77# $22.38/ft.1,295’ 24” OD x .547”W x 137.14# $26.74/ft.899’ 24” OD x .625”W x 157.17# $30.45/ft.

Surplus Prime Line Pipe38,581’ 24” OD x .469”W - 117.86# New ERW API 5L X-70 Gr.

Line Pipe, PE&B, Drls, Lite pitting, 4 years old with MTRs.(16,444 FBE coated) MFG by Stupp Corporation. Price$24.75/ft. Load trucks Morgan City, LA. 30,000# Min.

Used Line Pipe32,282’ 12 3/4”OD x 250”W x 33.38#, #1, Drls., Torch cut

ends, cleaned OD, straight. Price: $4.85/ft. FOB: Houston, TX

Subject to prior sale.

Please Contact DEAN PIRKLEPhone: 830-278-6606 • Fax: 830-278-4305

P.O. BOX 2470 • UVALDE, TEXAS 78802-2470

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4

Strategic Planning CommitteeMembership Committee

by Ken HayesChairman

The ad hoc long-term Strategic Planning Committee met on Friday afternoon,March 8, during the Annual Convention in Miami. It began with introductionsof committee members. Gerald Merfish, past Chairman of the committee, gave

a brief review of the history and purpose of the committee. We challenged ourselvesto “step outside the box” and offer, without limitations, ideas on how additionalvalue can be provided to members of the Association. Thoughts from this processled to discussions of current issues along with suggestions for the future.

The idea exchange was broad-based, ranging from considering whether or not thename “NASPD” is still representative of our organization, to having assigned seats atone of our social functions to encourage members to “get better acquainted” withfellow members. Other suggestions were:

• Offering “breakout” sessions for the group’s varying interests• Developing a member panel to act as an arbitrator to help settle disputes and

avoid litigation• Having NASPD members serve as liaisons for other associations to assist in the

development of standard pipe sizes and specifications• Having a third party develop and implement surveys on a regular basis to extract

and convey useful and meaningful data to our membership.

As you can see, the ideas were free flowing within the committee. Equally importantare your ideas. Please convey your thoughts to one of the committee members sowe can discuss them at our next meeting at the Summer Conference in Chicago.Topics already on the agenda include a review of current membership types todetermine the need, if any, to change, and review of our mission statement toensure current applicability. We hope to present concrete recommendations to theBoard of Directors during our Summer Conference. The Board must approve all rec-ommendations prior to implementation.

In closing, I would like to thank my fellow committee members whose dedicationand forward-thinking ideas will ensure the success of our Association.

The Annual Convention inMiami has come and gonebut the NASPD year 2002

has just begun. We welcomeseven new members and areproud to report that our currentmembership totals 164.

Your Membership Committee ischallenged to continue the qualitygrowth that has been experi-enced over the last several years.Difficult economic times and tran-sitions in our industry will contin-ue to shrink our available mem-bership base. However, yourCommittee has accepted this chal-lenge and has established a year-end goal of 175 members — anew record! To achieve this goalwe need your help. TheMembership Committee solicitsyour active participation andinput.

Please join us in welcoming thefollowing new members:

• Advance Corporation• Carleton Unit at Crane Agency• Commercial Metals Company• Center Line Equipment &

Consulting, Inc.• Hamilton Metals, Inc.• Midway Supply• North American Pipe & Steel.

New year, new goals

Free-flowing discussion yields fresh ideas

by Dennis HaydenCo--Chair

Let’s go to

Chicago!NASPD Summer Conference

June 6 - 9

Register today! Call 281-531-7473 or register online at http://www.naspd.com

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Treasurer’s Report

NASPD by the numbers

by Robert GriggsChairman

It was great to see everyone in Miamiat the Annual Convention. What amarvelous city with a diverse popu-

lation—just like the members of theNASPD. At the Finance Committeemeeting we reviewed the major itemsfrom last year’s budget. I’ll list a fewhighlights here.

We had a surplus of $31,700 for2001, some $17,000 over budget. Themeeting results were as follows: The2001 Annual Convention in Las Vegaswas approximately $6,000 under thebudgeted surplus amount of $19,000.This shortfall was due to speakerexpenses and a need for additionalevent sponsors. While attendance atthe Summer Conference in Cincinnatiwas lower than anticipated, ourexpenses were also reduced. TheConference had a $2,200 surplus whichwas only $1,000 below budget. The FallConference in Houston was a rousingsuccess with a $33,800 surplus, whichwas $26,000 over budget. As they say,“Don’t mess with Texas!”

Interest income was down in 2001,but so was member interest expense,so it was a good trade-off. Finally, mem-bership dues were $8,000 over budget.Great job, Membership Committee!

On the expense side, accountingexpense was $2,500 under budget.Internet expense was $2,000 over bud-get due to upgrades to our Website.The Member Directory was $1,700under budget. Pipeline advertising

income was $8,000 short of projectionsand expenses were $3,000 under bud-get, resulting in a net expense of$16,300, which was $5,000 more thanthe budgeted amount. As with mostassociations, the cost of our magazine isonly slightly offset by advertising, but itis an effective tool for communicatingwith our members and helps establishan image for the association.

Now we turn to 2002. We have avery conservative budget due to uncer-tainty in the steel industry. We budget-ed for 150 members, and as of theAnnual Convention in Miami we have167 members. Again, thank you to allthose who have recruited new mem-bers this year. We had 188 attendees atthe Miami Convention, which is closeto the normal amount. As of now, weare showing a tentative surplus of

5

$2,000 on the Convention, comparedto the budgeted amount of $13,500.Registration fell $10,800 short of ourbudget of $77,850. Sponsorships were$3,500 short of budget. These numbersare not final but they are very close. Inmaking the 2002 budget, we discussedthe Section 201 filing and how generaluncertainty in the steel industry mayaffect us this year.

I hope that everyone will try toattend the Summer Conference inChicago, June 7 - 10. I know that youwill love the city. I would also like tothank the members for the honor ofbeing chosen president-elect. I onlyhope that I can lead as well as the pastpresidents did. I promise that I will doeverything in my power to makeNASPD the place to be.

And now here are two questions toponder before the Summer Conference:What committee are you going to join?Why do they call it the Windy City? I’llsee you there.

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6

Education Committee

by Robert GriggsChairman

Don Karchmer honored for service to NASPD

The Knowles-Rubenstein Awardof Excellence was

established in 1995 by theNASPD Board of Directorsin honor of its foundersPete Knowles and JerryRubenstein. The awardwas established to recog-nize those individualmembers whose contribu-tions and leadership havebeen instrumental to thesuccess of the NASPD. Itis the highest tributebestowed upon a mem-ber.

This year’s recipient,Don Karchmer, has demonstratedleadership and dedication over manyyears having served on and chairedcountless committees. He has actedas treasurer of the NASPD, and wasthe youngest president in 98-99. Donwas also the youngest person ever toserve on the board of Temple B’naiIsrael, where he was Sr. Ex-officio for

the youth groups and has chairedmany committees. He is also activewith the Oklahoma City Chamber ofCommerce and is involved in manylocal civic and charity groups. Amonghis philanthropic contributions wasone he took particular pride in whenhe donated pipe to devastated areas ofEcuador. The material was used to

rebuild bridges sofood and medicalsupplies could bereceived.

After graduatingfrom the Universityof Arizona BusinessSchool in 1985, hestarted his career atInternational Pipeand Supply. The busi-ness was founded byDon’s father AlKarchmer. Don hasgreat admiration forhis mentor/father andfeels very fortunateto have had the

opportunity to learn and grow overthe years together.

Karchmer’s greatest source of happi-ness comes from his beautiful wifeHilary and their two children, Sam, 5,and Haley, 2. His outside interestsinclude boating, skiing and collectingart and antiques.

The major focus of the Education Committee meeting in Miami was thetraining manual. While there we received AF Kelly’s first draft of the gener-al knowledge section on math fundamentals. It looked great.

This project is moving somewhat more slowly than expected, but weshould have a draft for the Association to review by June. There is a lot of infor-mation to gather and organize in order to make this training manual somethingthat all NASPD members will be proud of.

Special thanks to Bob Rau for all his work on the technical aspects of themanual, as well as the steel specifications section. I would also like to thank BillBuckland for coming aboard as co-chair of this committee. His knowledge andhard work will be welcomed. I encourage anyone else who is interested in work-ing on this project to call me or Bill.

Training manual underway

Golf tourney winners

The NASPD Annual GolfTournament was held Saturday,March 9, at the Presidential

Country Club in North Miami Beach.First place team members were

Wayne Conrad of Stelpipe LTD, GaryCanonge of Marmon Keystone Corp.,Raymond Davila of S & P SteelProducts & Services, Inc. and RobertTanis of Kurt Orban Partners LLC.

The second place team consisted ofDave Whitney of Tenaris, Mike Phelanof American Piping Products, andJohn Cary of Tubos ReunidosAmerica Inc.

John McClure of CommercialMetals Company had the longestdrive. Roland Balkenende of Tenariswas closest to the pin.

The steel pipe business is a family affair for the Karchmers. From left to right: Aland Marsha Karchmer, Don and Hilary Karchmer. Don, an NASPD Past President,joins a select few as recipient of the Knowles-Rubenstein Award of Excellence.

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7

American Piping ProductsChesterfield, MOMike Phelan

Atlas Tube, Inc.Plymouth, MIDan Carito

Baltimore Pipe Inc.Baltimore, MDRichard Northfield

Bredero Price CompanyHouston, TXJerry Jones

Berg Steel Pipe CorporationPanama City, FLCathy Streff

Cappco/PSCFt. Washington, PATom ConnerHamilton, Ontario CanadaMichael Kovacs

Corpac Steel Products Corporation *North Miami Beach, FLJorge Woldenberg

The Crispin CompanyHouston, TXAndre’ Crispin

Florida Pipe & Steel Inc.West Palm Beach, FLVince Bianco

Houston Tubulars, Inc.Houston, TXDennis Hayden

Kayem Pipe & Steel, Inc.Dallas, TXDoug Kayem

Lone Star SteelDallas, TXSteve FowlerRusty Fisher

Marmon/Keystone Corp.Butler, PAGary Canonge

McJunkin Applachian OilField Supply Co.Charleston, WVReynoldsburg, OHSteve Park

ModernMetals MagazineChicago, ILMichael D’AlexanderMichelle Arjona

Network International, Inc.Houston, TXDon Porr

Northwest Pipe CompanyPortland, ORJim RollandiAtchison, KSBuddy Sumpter

Northwest Pipe FittingsBillings, MTBud Reichenbach

Saginaw Pipe Co.Saginaw, ALHoward Wise

Sepco Tubulars, Inc.Houston, TXFranco Palazzouli

Skyline Steel CorporationCartersville, GAPittsburgh, PAMark Brumbaugh

Texas Tubular ProductsLone Star, TXBill Walker

Thomas Pipe & Steel, Inc.Baton Rouge, LAJay Roccaforte

Trinity Metal Products, Inc.O’Fallon, MORobert Griggs

Tubular Steel, Inc.St. Louis, MOCaryn Ezra

United Casing Inc.Houston, TXTor Vatne

Universal Steel & Pipe Supply, Inc.Ft. Myers, FLLou Lehman

* Sponsor of four events

Thank you, Sponsors!The NASPD wishes to thank the very generous sponsors ofour Annual Convention in Miami, March 7-10.

NASPDONLINE LISTING

WEBSITE

Attn: Regular NASPD Members• Gain access to tens of thousands

of tons of pipe!• Find out where to get that one item

of pipe you do not have in stock!

Monthly rates3 months $1006 months $9012 months $80

Sign up today and be a charter member.

Call 281-531-7473 or download registration form at

www.naspd.com

New

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NASPD makes waves in MiamiPhotos from the AnnualConvention, March 7 - 10

Gina Phillips, Johanna Cornell, Peter Borgards and Dianne Burger

Balor Moore and daughter, Diana

Above: Connie Jerrome, Fritz Doepkin and Gary EisenbrandtLeft: Jorge Santibanez learns to roll Cuban cigars

George and Cathy Streff, Patsy and Jerry Jones, Connie Jerrome, Gary Canonge, C.J.Franchetti and Robert Sites

Derek Meyers learns a new tradeAdrienne Chew and Roland Balkenende

Alice Rau teaches Fidel Nabor afew new tricks

Below:Alexsys

Nabor andRene Parrawere a per-fect dance

team

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Sandra and Jay Roccaforte,Betty and David Laxton

Jorge Woldenberg, Balor and Paula Moore, Buddy Sumpter

Phillip Nicholas and Doug Kayem

Sandra and Leon Gutierrez don’t need any salsa lessons

Sol and Tola RosenbergMort and Andy Keiser and Gene Kalsky

Vince Bianco, Lou and Lisa Lehman Polly Broussard, Robert Wardlaw, Lorraine and Gene Bennett, and Bill Buckland

Dave Whitney and Mike Phelan won second inthe golf tournament. (not pictured John Cary)

JackBardandRobertGriggs

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by Scott Franklin

Like crocuses signaling the beginning of Spring, economicnews heralding a recovery began to sprout these pastfew weeks. Long-awaited positive economic indicators

from the manufacturing sectorappeared, and in testimony beforeCongress, Federal Reserve ChairmanAlan Greenspan declared that a recov-ery had indeed begun.

Whether the US economy had experi-enced a recession at all was broughtinto question. The preliminary estimateof fourth quarter Gross DomesticProduct (GDP) released earlier this year showed an anemic0.2 percent growth. Experts expected that figure to be reviseddownward into negative territory. When the updated figureshowed a surprising 1.4 percent increase, many economistsgleefully declared that the U.S. was never really in a recessionsince GDP had not been negative for two consecutive quar-ters.

That assessment was surely greeted with disbelief in themanufacturing sector where industrial output has shrunk 15of the past 16 months, and factories are operating at below 75percent capacity, the lowest level in 18 years. The more than1.5 million workers who have lost jobs since March 2001 mayalso argue with this conclusion.

Consumer spending patterns during the past year canexplain this disparity between overall economic health anddismal industrial performance. In 2001, consumer spendingincreased 3.1 percent, compensation rose 2.5 percent, and

sales of new and existing homes reached record levelswith the median price of existing homes jumping over 8percent from one year earlier. Overall, GDP grew a posi-tive 0.4 percent last year.

Historically low interest rates coupled with a modestrise in household income providedthe primary impetus for the housingboom. Zero percent financing andrebates helped drive the sale ofautomobiles and accounted formuch of the rise in consumerspending.

If the economy is to show con-tinued improvement, manufacturingneeds to lead the charge. In past

recessions, pent-up demand from consumers has drivengrowth. However in this downturn, consumer spendinghardly wavered. Future household spending will be chal-lenged by higher interest rates and growing consumerdebt.

There has been some good news on the manufacturingfront. The Purchasing Managers Index jumped into posi-tive territory for the first time in 19 months, with theFebruary manufacturing index jumping to 54.7 percentup from 49.9 percent in January. An index of over 50indicates that a majority of firms report a rise in econom-ic activity.

Capacity utilization rose to 74.8 percent in February,the first increase in nearly two years. Durable goodsorders jumped 2.6 percent in January, the third increasein four months. Industrial production jumped 0.4 percent

Recovery, what recovery?

Despite the good news

of the past two months,

there are still threats to

an economic recovery.

With PresidentBush's Section 201

decision comingdays before the

Annual Conventionin Miami, Will

Leonard and GeraldMerfish facilitated atimely and insight-

ful discussion.Panel membersincluded (left toright) Leonard,

Steve Fowler, DonBohach, Buddy

Sumpter, JayRoccaforte, SonnyJain, and Merfish.

Section 201 panel

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C L A S S I F I E D SC L A S S I F I E D S

© National Association of Steel Pipe Distributors, Inc. All rights reserved. No part of this publication may bereproduced or utilized in any form, or by any means, electronic or mechanical, including photocopy or otherrecording, or by any information storage or retrieval system, without the express written permission of thepublisher, the National Association of Steel Pipe Distributors, Inc. Pipeline is the monthly publication ofthe National Association of Steel Pipe Distributors, Inc. (NASPD), a nonprofit organization repre-senting the steel pipe and tubing industry. The views expressed herein are the opinions of theauthors, and do not necessarily represent the policies or opinions of NASPD.

Executive Director/PublisherSusannah Feux Porr

Editor/Publishing ServicesRobin Perry

PIPELINE STAFF AND NASPD CONTACT INFORMATION

NASPD MEMBERSHIP AND SERVICES: Contact NASPD headquarters: 14760 Memorial Drive,Suite 302, Houston, TX 77079; phone: 281-531-PIPE (7473); fax: 281-531-7475. E-mail:[email protected]; Web site: http://www.naspd.com. Office hours: 8:30 am - 5:00 pm

ADVERTISING IN PIPELINE: Contact Chari Archer: phone: 512-219-6384; e-mail: [email protected];

delivery address for advertising materials: 8211 Wexford Dr., Austin, TX 78759.

Advertising SalesChari Archer

Administrative ManagerNancy Strickland

in February and has now risen for twomonths.

Perhaps the biggest drag on themanufacturing sector is the reluctanceof companies to commit to new capi-tal spending. Profits are still dismallylow and CEOs want to make sure thatan increase in demand is sustainablebefore they make any major capitalinvestments.

Despite the good news of the pasttwo months, there are still threats toan economic recovery. The dollarremains strong against most interna-tional currencies, making U.S. exportsmore expensive. Foreign economiesare expected to rebound, but notuntil there is meaningful growth inthe U.S.

At least in the short-term, prospectsare rosy. The continuous dwindling ofbusiness inventories will eventuallycause production to increase, a factorthat is no doubt contributing to gainsin the recent industrial output and fac-tory utilization rates. This processshould continue through the mid-year. If the recovery is to gain anymomentum, businesses will need tobuild, rather than just maintain theirinventory levels.

Regardless of whether the Federal

Reserve decides to tighten or leaveshort-term rates at their current level,yields have risen on 10 and 30-yearbonds, which along with consumerdemand establish mortgage rates.Thirty-year mortgage rates are nowslightly above 7.0 percent.

As rates begin to climb, householdsmay be discouraged from buying newhomes, and recent homebuyers whotapped into adjustable rate mortgagesmay face a jump in monthly payments.That not only decreases the amount ofdiscretionary income that can bepumped into the economy, it mightalso heighten the foreclosure rate.Consumers bolstered the economy inthe past year with unfettered spending,but they may be the culprits whodeflate the recovery in the months tocome.

Scott Franklin is a principal at FirstGeneration Consulting and holds amaster’s degree from the LondonSchool of Economics. He develops sem-inars, speaks, and writes about eco-nomic issues facing the business com-munity. Scott can be reached by e-mailat [email protected] or byphone at 913-642-6951.

Got stuff?

May 3

Are you selling, buying or hiring?Advertise in Pipeline. The deadlineto reserve space for the May/JuneSummer Conference issue is

Call Chari Archer 512-219-6384

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Atlas named top supplier for steel network

Atlas Tube Inc, (NASPD Associatemember), based in Harrow, ON, wasnamed Supplier of the Year for the117-member Steel Plus Network at itsconvention January 19. Atlas was rec-ognized for offering attractive and sta-ble incentive programs for Steel Plusmembers. Atlas has also been a lead-ing participant in the organization’snetworking activities.

Bayou Coating, LLC wins safety award

Louisiana Workers’ CompensationCorporation (LWCC) recently pre-sented Bayou Coating, LLC (NASPDAssociate member) with a Partner inSafety Award in recognition of thecompany’s dedication to providing asafe workplace. This year the awardwas given to only 22 of LWCC’s25,000 policyholders around the state

to recognize the extraordinary timeand resources they invested in exe-cuting safety recommendations.LWCC is a private, nonprofit mutualinsurance company created in 1992to revitalize the state’s failed workers’comp system.

M/K upgrades vendor program

Using recent advances in computerand Internet technology,Marmon/Keystone Corporation (NASPDRegular member) upgraded its VendorManaged Inventory (VMI) program sothat suppliers can get information fivetimes faster than previously. “Thesource and organization of the infor-mation is key,” said Jay Powell, directorof e-commerce at Marmon/Keystone.“Extracting information from ourStelAIM purchasing system has beenmade easier through reorganization ofdata.”

Steel Bridge Forum

The American Iron and Steel Instituteis sponsoring the Steel Bridge Forum,a national exchange of informationand ideas to improve the life cyclecosts of steel bridges. Meetings willheld June 12 at the Pittsburgh Hiltonand Towers, July 8 at the VirginiaDepartment of TransportationAuditorium in Richmond, andSeptember 17 at Rutgers UniversityNew Brunswick campus in NewJersey. For more information call 703-536-4995 or go to

Got news?Send your announcements to NASPD,attn. Pipeline: 281-531-7475 (fax) oremail: [email protected]

Over thirty years of experience in servicingand supplying the Oil & Gas Industry with

Prime API OCTG and Line Pipe.

Our stock size ranges:

Line Pipe: 2-3/4” thru 12-3/4” API 5L, X-42, & A-106Tubing: 1-1/4” thru 3-1/2” J-55 & Alloy GradeCasing: 4-1/2” thru 16” J-55 & Alloy Grade

Please call or e-mail us for your tubular requirements.

[email protected] (Doug)[email protected] (Steve)

[email protected] (Max)[email protected] (Donna Sue)

KAYEM Pipe & Steel, Inc.P.O. Box 130143, Dallas, TX 75313-0143(214) 979-0042 (214) 979-0074 Fax