Analysis
July 24, 2026
Reliance finds competitive advantage amid suboptimal market conditions
Written by Kristen DiLandro
Strong steel prices and elevated interest rates may be reshaping the competitive landscape among metals distributors.
During Reliance Inc.’s second-quarter earnings call, Chief Operating Officer Steve Koch said that where some distributors could be struggling to carry inventory, Reliance may be at a competitive advantage.
“What we are seeing with a lot of our competitors, with high interest rates and the higher cost of carrying inventory, is there’s a lot of holes in inventories,” Koch said. “Our inventory levels are pretty robust.”
The gaps, suggested Koch, present Reliance with a new market opportunity.
“I think there’s just a great opportunity for us to capture more market share and help those customers who are having trouble getting steel out in the marketplace,” he said.
President and CEO Karla Lewis underscored these assessments.
“We’re very comfortable with where our inventory position is,” she stated.
Lewis noted that across the industry, steel inventories are probably lower than most would like.
Factors like higher financing costs and strong steel prices may prohibit small distributors from carrying robust inventory. Lack of inventory to meet customer demand forces some customers to pivot from those smaller providers toward companies like Reliance.
That reality puts Reliance at a strong advantage for acquiring new customers.
During its second quarter, Reliance reported net income of $322.9 million, up 38% from $233.7 million a year earlier. Net sales rose 27% to $3.66 billion in the same comparison.
