Steel Products

Majestic Proactive with Coronavirus Plan
Written by John Packard
March 12, 2020
When the media began reporting on the COVID-19 (coronavirus) a few weeks back, Majestic Steel sprang into action. This morning Steel Market Update spoke with Todd Leebow, CEO of Majestic Steel in Cleveland, Ohio, about how his company is dealing with the risks associated with the virus. As soon as the risk of the virus was evident, Leebow said, Majestic management put together an internal committee to draft an action plan. The team meets daily to go over the plan and implement steps as events dictate.
Majestic Was Prepared for the Unknown Risk
Majestic learned lessons from the Great Recession of 2008-2009 and made changes to the company in order to protect it against industry disruptions in the future. One of those changes was to move to an almost exclusive domestic supply chain to minimize risks associated with foreign steel. The only exceptions being products not produced domestically or where there is limited supply that could be compromised (such as ultra-light gauge galvanized steel).
As a dynamic and evolving organization, Majestic employees (they call them associates) can work remotely and each have access to laptops. “With changes happening so rapidly, we have updated our policy to now allow all office associates to choose if they want to work from the office or home. They have full access and capabilities to do their job effectively from either location. Plants remain open for business as usual,” Leebow said.
To provide for a healthy work environment, the company encourages associates to seek information from the Center for Disease Control (CDC) and World Health Organization (WHO) websites, wash hands and limit exposure to large groups.
Majestic is asking all associates and clients or suppliers who may be visiting their facility not to come if they are sick, have been exposed to someone who is ill or have been in a region where there is an outbreak of the virus.
The company is using video platforms for customer and supplier interactions as much as possible to limit exposure.
Leebow said his company is well positioned to handle any business that comes their way. They have been building their flat rolled steel inventories to “healthy levels” as they are anticipating more consumption for their products in the future. “I believe that it [impact of virus] will require more domestic sourcing from our end users and service centers,” he added.
Majestic CEO to Speak at 2020 SMU Steel Summit Conference
Todd Leebow is a dynamic young leader within the flat rolled service center segment of the industry. Based on the history SMU has had with the company, we view Majestic Steel as an innovative, forward-thinking company. SMU has chosen Todd Leebow and Majestic to represent how a service center works to attract new young talent into the industry. This is part of a special segment of the 2020 SMU Steel Summit Conference program dedicated to attracting, training, communicating and retaining young workers.
Leebow will be speaking alongside an executive from the innovative manufacturing company Big Ass Fans. You love their name, and we think you will be spellbound with their story as a booming Kentucky-based manufacturer full of young talent.
How can Majestic and Big Ass Fans succeed while others struggle?
We encourage attendees at this year’s conference to remain for the Wednesday afternoon program (which will be completed by 3:30 p.m. ET). Besides Majestic Steel and Big Ass Fans we have a tremendous keynote speaker, former winner of the Toastmaster speaking award (and the youngest to ever win the award) Ryan Avery. SMU has heard him speak and you will find his presentation both informative and entertaining. Also coming back is a gentleman who spoke on youth in the industry to one of our conferences a few years ago – Jack Bellissimo of Michelin. He will talk to the need for young people to be innovators and how companies can use their drive to the organization’s advantage.
You can find more details about our program on our website: www.SteelMarketUpdate.com/Events/Steel-Summit or you can click on this link.

John Packard
Read more from John PackardLatest in Steel Products

SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.

HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.

Beige Book: US markets remain cautious amidst volatile pricing environment
Sluggish economic activity across the US was largely attributed to uncertainty caused by tariff policies and growing cost pressures, according to the US Federal Reserve’s (The Fed) latest Beige Book report. The Fed’s latest economic report, posted on Sept. 3, consists of economic findings from the six weeks preceding Aug. 25 throughout 12 districts. Economic […]

Rig count dips again in both US and Canada
Oil and gas drilling activity waned in the US and Canada this past week. Ticking own for the second straight week in both regions.

Steel caucus pushes US trade officials to maintain strong S232 program
The bipartisan Congressional Steel Caucus is pushing for US officials to maintain a robust Section 232 program as they negotiate trade deals with America's trading partners.