Rebar fabricator and installer Camblin Steel Service Inc. is capitalizing on improving California construction markets and expanding its operations in a $4-million deal, vice president Mark Camblin told AMM.
The new location, just two miles from Camblins current Sacramento, Calif., property, will double the companys shop space and give the company direct rail access.
The move comes as construction begins to pick up in the California market, with rebar distributors and fabricators agreeing that business is slowly improving.
Were feeling like things are heading in a good direction and we want to get a little aggressive, Camblin said. Theres some private money (whereas) two or three years ago there was no private money.
Recent housing data from the National Association of Homebuilders show that Californias residential building permits jumped 115 percent in the first two months of 2013 compared with the same period last year, while nationwide residential building permits rose only 31 percent in the same comparison.
Although orders have begun to improve, margins are still thin at all levels along the supply chain in the California market, sources said.
(Business) is picking up a little bit but margins are not so good or so attractive, said a product manager at another rebar service center in southern California.
Theres a pretty decent amount of work coming back but the margins are still really tight, Camblin said.
Camblins company, which will begin transitioning to its new location in Placer County this month, is supplying warehouses, retail and residential construction this year.