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INDUSTRY NEWS LETTER TO THE EDITOR


Editorial Leads to Thoughts on Burden of Carrying Costs In regards to the editorial (Engi-


neering Answers) in the October issue of Modern Casting, there is mention of increased output, elimination of waste, increased revenue and decreased cost. I fully agree on each of these points, although I believe there is a huge area being completely overlooked, which if not crippling to metalcasting facili- ties, definitely hinders the ability to meet the key points mentioned above. Especially in today’s economy… Why do we (as metalcasters) allow our customers to put the burden of carrying all of the costs through the entire casting process? Te pay upon shipment would make sense for prod-


ucts that have a short manufacturing lead time, but as metalcasters, we don’t have that luxury. We all know castings can take up to several months to get through the entire process to final shipment. I wonder how many good facilities


are struggling or we have lost directly related to carrying these costs? Looking at the construction


industry, as an example, the moment a builder is hired they require a down payment to begin the project. Ten draws are prearranged at the various phases of the building process and a final percentage upon receiving occupancy. Would it not make sense


and isn’t it time to utilize this same philosophy in the metalcasting in- dustry? Typically our customers have larger revenues available to work with than we do, so why do we struggle and harm ourselves with covering manpower, purchasing supplies and other associated costs? I would be very interested in hear-


ing back opinions from other met- alcasters and can be available for any further discussions on this matter.


Joseph A. Drolshagen Director of Sales, Sivyer Steel Corporation, Bettendorf, Iowa


10 | MODERN CASTING April 2016


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