AMM.com Copying and distributing are prohibited without permission of the publisher
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5


Synalloy faces loss due to labor inefficiencies

Keywords: Tags  stainless steel pipe, Synalloy Corp., quarterley results, quarterly loss, BristolFab unit, labor inefficiencies, Thorsten Schier


NEW YORK — Synalloy Corp. expects to post a fourth-quarter loss as labor efficiencies fell "well below profitable levels" at its fabrication subsidiaries after the company doubled staff to handle a growing backlog.

"Both of our fabrication units have had difficulty adding experienced welders to support our current backlog. As a result, we are now working with our customers to assess how we can better align our production capacity with their delivery schedules," the Spartanburg, S.C.-based company said Dec. 17.

Synalloy’s BristolFab unit experienced a pre-tax loss of $1.4 million during October and November as a result of the lower efficiencies.

The company’s shipments of stainless pipe increased in October and November although the product mix was less favorable, with a higher percentage of shipments of pipe under 6 inches in diameter, which has a lower conversion margin than large-diameter pipe, the company said.

Synalloy’s business includes the production of stainless steel pipe, fiberglass and steel storage tanks, specialty chemicals, and stainless and carbon piping systems fabrication.


Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.



Latest Pricing Trends