Ulbrich Business Conditions Update (August 2022)
To Our Valued Ulbrich Customer,
We want to take this opportunity to provide an update on current market conditions.
Unsurprisingly, there continues to be no shortage of sourcing challenges. The Russia/Ukraine conflict has been a significant disruptor of supply, creating a shift to Titanium producers in North America for the large Aircraft manufacturers such as Boeing and Airbus. While it is still in its early stages, like many of you, we see a rebound beginning in the aerospace industry.
As a result of the shift in sourcing for Titanium and the increased demand for Special Metals, which comprise many nickel and cobalt-based alloys, we have seen a surge in lead times and pricing. In many cases, our raw material suppliers have increased their lead times from 26 weeks up to 44 weeks and beyond.
Ulbrich is experiencing a continued increase in business, and our backlogs continue to grow. We greatly appreciate the business, but we realize that current lead times are difficult for our customers to forecast so far out. The greater visibility you and your customers can provide will help increase our ability to meet your demands. We are looking internally at scheduling and staffing to address our lead times and hopefully can successfully bring our lead times back in.
We request that orders placed are for “real demand” instead of “insurance” orders. Our objective is to reduce as much strain on the system as possible. This will allow us to satisfy the needs of as many of our customers and their customers as possible. Your help in communicating this is much appreciated.
We do not think this situation will be resolved in the near future. Material shortages started before ATI announced the strike and their decision to reduce capacity remains unchanged. This has put tremendous pressure on all Integrated Mills, Re-Rollers, and Service Centers. On-time performance from all mills has dropped to extremely low levels.
One of the Tenets at Ulbrich is Total Customer Responsiveness. Our employees remain focused on shipping products to our valued customers and work on your behalf daily. This includes our entire team of Sales, Purchasing, Technical Support, and Operations. All aspects of our organization will continue to strive to provide the service you need.
In closing, we would like to thank all our customers for their business during these unpredictable times.
Download the PDF version of this business conditions update here.
Best Regards,
Gregg Boucher
President of Distribution
