When it comes to a manufacturer’s success, their partnership with their metal supplier is one of the most impactful factors. Many manufacturers tend towards local metal suppliers because of their familiarity with the local market, the potential for a more personal relationship, and other benefits, but small metal suppliers often lack the deep inventory and stability of national metal suppliers.
Fortunately, some national metal suppliers offer the best of both worlds. These suppliers invest in a network of regional reps who bring localized expertise with national reach. Read on to learn more.
Why Manufacturers Often Default to Smaller Regional Suppliers
When choosing a metal supplier, manufacturers often default to local metal suppliers because of their perceived benefits. The more local a metal supplier is, the greater familiarity they’re believed to have with local industries, markets, and manufacturers. Many manufacturers also anticipate that working with a smaller metal supplier will foster closer personal relationships and enable greater accessibility for customer service needs.
These idealized benefits, along with the emotional appeal of “buying local,” often drive manufacturers to seek out their local metal suppliers. Unfortunately, they’re often surprised to find that working with a local metal supplier isn’t ideal.
The Limitations of Small, Local Metal Suppliers
In reality, sourcing precision metals from a small, local metal supplier comes with significant limitations. These include:
- Limited product availability: Because smaller metal suppliers tend to have less cash flow than national metal suppliers, they often have significant inventory constraints. These suppliers simply can’t offer the deep inventory and availability of a national metal supplier.
- Greater vulnerability to disruption: Whether due to market fluctuations, supply chain disruptions, or staffing concerns, small metal suppliers are much more vulnerable to disruptions that can impact your business.
- Longer lead times: Because they aren’t able to keep such deep inventory on hand, local metal supplier lead times can be extensive, particularly in periods of high demand.
- Limited processing capabilities: Processing raw materials requires expensive technology and significant manpower. Local metal suppliers typically don’t have the resources to offer extensive processing capabilities and other metal services.
Each of these limitations individually can put manufacturers at risk. When combined, they present serious concerns that have the potential to increase costs, delay manufacturing, and interfere with production.
What National Metal Suppliers Bring to the Table
Where local metal suppliers face serious constraints, national metal suppliers have the flexibility to overcome limitations. The advantages of partnering with a national metal supplier include:
- Broad and deep inventory: National metal suppliers have the purchasing power to offer a broad variety of metals and significant inventory in each product.
- Greater stability: Larger suppliers’ deeper inventory enables greater stability when market fluctuations or supply chain disruptions occur. Manufacturers can rely on their reserves to carry them through these disruptions.
- Processing capabilities: National metal suppliers can afford the technology, equipment, and manpower required to offer an array of in-house processing capabilities. This shortens lead times and lowers costs for manufacturers.
These advantages all boost reliability and drive better outcomes for manufacturers. They commonly find lower costs, shorter lead times, and broader availability when working with a large metal supplier.
How to Choose a National Metal Supplier
The benefits of national metal suppliers are undeniable, but some manufacturers hesitate to commit to a large metal supplier. They assume partnering with a large supplier means generic service and a lack of understanding of local needs. But by choosing the right national metal supplier, manufacturers can get the benefits of both worlds.
When choosing your metal supplier, look for one that offers national presence, but regional expertise. The ideal metal supplier experience comes from those that are structured with regional teams who live and work in the markets they serve. Working with a national metal supplier with this structure means your rep will bring a deep understanding of your local market and responsive local support, while still allowing access to the deep inventory, advanced processing capabilities, and great stability of a national metal supplier.
Get the Best of Both Worlds with Fry Steel
For the best of both worlds, partner with Fry Steel for your precision metal needs. Fry Steel pairs deep inventory and extensive processing capabilities with a network of knowledgeable and personal reps across the US, Canada, Europe, and Mexico, as well as strategically placed Fry Steel locations. Get started by finding a Fry Steel representative in your area today.
