Manufacturngmo is one of the all-time best posters on this board. One of the best posters on ANY board. He is one of the few people in this world that predicted the economic meltdown of 2008. I am glad he is still with us and greatly value his opinion. Welcome back, manufacturingmo.
Did you realize, peopleprogram, that the entire Seguin Sales Department was offered a severance package the end of the last fiscal year? I was shocked and
disturbed to say the least when I learned of this. This should tell you all you need to know about the leadership and direction of this company.
The heart still beats in Seguin. I see evidence when employees from maintenance, the melt shop and the yard turn out for events like Habitat for Humanity. There are some strong managers who still believe in people. They still believe in servant leadership. They still believe in relationships. My hope is that those strong managers influence others (including their plant management).
BTW, did I miss it, did the Durant Connections video even mention customers? Umm...they pay the bills.
Yes, peopleprogram, the old SMI Culture has even died in Seguin. I understand one of their best and most experienced salesmen recently left the company. More than ever this company has become about jockeying for position and climbing the corporate ladder. People are now referred to as "human capital".
Regarding the Durant, Oklahoma mill, CMC will learn very quickly that they made a huge mistake. The new mill will cannibalize tons in a market they are already serving. Nucor and Gerdau are not going to lay down and die. Sadly, it will be front line workers that will pay the price for this bad decision. It is not going to be pretty.
CMC no longer has any culture, nor do they care a flying flip about employees, who are treated like commodities, to be used up and discarded. No matter how earnings or stock might perform, this will never again be a great company.
What a stark contrast. Twenty some years ago at the South Carolina mill dedication Clyde Selig spoke of relationships - with customers, vendors, and employees. With all the glitz of the CMC Connections announcement of Durant, OK I saw no reference to employees. Are employees truly an afterthought in the new order? Understanding we don't live in the past (a Marvin Selig axiom), have we forgotten keys to employee engagement which fuels a sense of ownership that translates to safety, quality and customer satisfaction? As a former employee, yes I'm ticked at what has happened to the great SMI culture. As a stockholder, can someone tell me what the future will hold if employees are not part of the equation? Is the company still running on the remnants, the survivors of the Seguin culture? What will happen in 5-10 years once this generation is completely gone? How sustainable are future results? Do bonuses alone create engagement (read Daniel Pink's material)? If I am wrong, please tell me how employee effort is encouraged at CMC. Please tell me what the people plan is for CMC. And I would hope that the answers are something beyond what is preached, and actually practiced.
I guess the next big change coming after Amazon selling rebar is that the easy bake oven will replace the EAF.
Rumors have it that Amazon, after crushing all the Mom and Pop stores, will want to trash the steel business.
How and when "Order your rebar on Amazon" will start, depends on the developments in the transportation industry.
Delivery by drone will not cut it and the UPS and Fedex drivers union already announced they will not make door deliveries. The USPS also sees difficulties in making deliveries, unless rebar can be delivered in 1ft length and no more than 10 pieces per package.
Thank you for your comments, roothogordie and scrapexpress. Yes, in recent years, it seems the constant reshuffling of Regional Managers has been quite damaging to CMC. Individual agendas. No consistency. No continuity. No follow through. It is sounding like those that can leave and have options already have left and those that remain will just hang on and hope they can dodge the next poleax. Such a shame. As always, I just hate to see good people treated badly. The progress and growth of any company is limited when people no longer have careers but merely have jobs.
There have been many blunders in past years at CMC. I agree with the statement about employees being afraid to communicate with each other. You never know who is listening or watching. Also, agree that the morale is at a all time low. The few talented employees that are left have their eyes and ears open looking for the next opportunity of employment. The talent that is willing to stay is nearing retirement and has decided to ride it out. My thought is that CMC was put on a path years ago to be sold once the right situation presented itself. For years, the current leadership has been right sizing CMC to get it ready to sell. Also agree that the Durant Mill will damage the cash cow in Seguin. With the new mill coming on line in Arkansas and SDI taking over the Columbus, Mississippi mill, scrap will in short supply and Recycling will not be able to anything about it. CMC is no longer the great company that it once was.
I couldn't have said it better, Mo. You were totally spot on. All of us who were long term employees are pulling for CMC to make it, but today's management team is only interested in packing their own saddlebags. The downhill spiral started in late 2006 and has rolled downhill like a snowball. There is absolutely no morale among the employees, who are afraid to even talk to one another about anything CMC related. Yearn for the days of Stan & Marvin.
Everybody thought that McClean, Larson, Alleman, Sudbury, and Passmore were a self-serving bunch. Boy, were we wrong. The new regime seems to be in it for themselves and nobody else. The "CMC Way" are now just hollow words that fill up space on a profile page and mean absolutely nothing. The fine corporate culture that was once CMC apparently no longer exists.
I think that CMC's commissioning of their Durant, Oklahoma mill will be a strategic blunder. It will take many tons off of the perennially successful Seguin, Texas bar mill and I understand that CMC is not growing their structural business, but merely trying to expand their rebar business. This is great news for their biggest competitor, Nucor Steel.
I am pulling for CMC to survive and succeed, but am not sure that they have the leadership to do so after Joe Alvarado finally decides to call it quits. The next 18 months or so will be very telling about CMC. I am thinking the time may be fast approaching to liquidate all of my shares. I will be watching closely.