The steel material used in manufacturing commercial original equipment must fit the performance, pricing, delivery time, and quality requirements for the end-user. Industrial equipment suppliers, like Apache, must leverage relationships with mills and partnering suppliers to manage the constantly changing market. Part of the purchasing program for the stainless material program at Apache, focuses on partnering with quality domestic and foreign suppliers.
Stainless sheet and plate are produced in the United States, which is the majority of Apache’s base material for tanks, vessels and food processing equipment. Also, most Hastelloy and other high-alloy performance metal materials are made in the US. Pipes and fittings on the other hand are primarily from foreign suppliers since domestically there is not enough availability for demand.
Depending on the political climate, import tariffs affect the cost and availability of steel material from China and other countries. Some industries require products from foreign markets that may be a specific sheet, size, and material type, but those industries will pay a premium for it and may be subjected to extended delivery times.
One of the benefits to being a significant user of stainless steel is the relationships with stainless producers and distributors. Apache’s steel venders allocate an allotment of material to Apache, which affords relatively short transactions for supply. When we have a line on repetitive need, we initiate inventory strategies to keep our supply as fluid as possible. Many other components and materials are affected by timing and supply; Apache understands lead times and availability and also leverages relationships to manage delivery to provide the best timing possible.
Our suppliers understand our needs and hold a higher level of steel quality. The relationship and partnership with our steel vendors has strengthened our expectations, with some partnerships lasting up to 45 years when Apache was founded.
Apache uses more than 2000 tons of stainless and high alloy per year. We are in the business of heavy gauge commercial manufacturing of custom equipment for high-compliance industries. Our ability to manage domestic and foreign material as well as price, timing and quality of all material and components is resolved for serving over 100 industries represented by our industrial and commercial processing customers.
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