Some far-thinking service center executives have been worrying lately about the future of their industry. They admit that during the metals-buying boom, buyers weren't exactly thrilled about the quality of the processed materials they were getting from their distributors or the timeliness of deliveries. Now that the metalworking economy has entered a slow-growth phase, these service center CEOs are acknowledging their industry is under renewed scrutiny—by tight-fisted investors—as well as buyers looking to cut costs. One CEO tells Purchasing that "only those companies that can reinvent their relationships with buyers will be the ones who will succeed." And it probably will be a smaller industry, suggests a global metals consultant. "The winners in metals distribution are going to be those that add value to the way business is done," he says. "But in the end, only a few will be left standing in each geographic region."

stundza@cahners.com