Steel & Tube - Shareholder Newsletter - June 2024

View email in browser
June 2024
C E O A N D C H A I R
Dear Shareholder
Kia ora, tēnā koutou
It is no secret that 2023 and the 2024 year to date have been challenging for New
Zealand businesses, marked by a notable reduction in spending, cost cutting and
projects and investments put on hold. This has a ripple affect across the supply
chain, including impacting steel distribution and processing businesses like ours.
Despite this, Steel & Tube has continued to strengthen customer relationships,
maintain market share, grow margins and significantly improve operating leverage
to position itself for New Zealand’s economic recovery
. We have continued to focus
on what we can control and explore new opportunities to grow higher value
products and services.
While economic headwinds are expected to persist for much of this year, we remain
focussed on our strategic goals. The macro-trends and opportunities for our sector
remain strong, our dual pathway strategy is delivering tangible and valuable results
and we have a lean and efficient operation. We are well positioned for demand
growth when it returns, with quality inventory on hand, strong customer
relationships and significant operating leverage.
Steel is one of the world’s most essential and sustainable building products –
permanent, forever reusable and the most recycled substance on the planet. For
many construction applications, steel is the only choice. We have the expertise and
the products to deliver innovative solutions in a future where climate change is likely
to become more common.
We are pleased to provide shareholders with an update on our strategic progress in
this newsletter, including our guidance for the year ending 30 June 2024. Stories
demonstrating our strategy in action are also included below.
Susan Paterson Chair
Mark Malpass Chief Executive Officer
Please click here to read the full newsletter.
O U R S T R A T E G Y I N A C T I O N
Rodex Acquisition
In April 2024, we announced the
expansion of our fleet of specialist steel
freight trucks, with the acquisition of 20
trucks and eight trailers, as well as a
great team of drivers. These will add to
our existing fleet and service the upper
North Island, providing improved service
for our customers and positive earnings
for our company.
Read more here
Project Strong
Twelve months ago, we commenced
Project Strong to increase our warehouse
capacity and improve our service offer
and productivity. Work has progressed
well and we are now in the final stages to
enable full capacity.
Read more here
M A K I N G L IFE E A S I E R
Webshop Milestones
Four years ago we launched our
digital ordering platform – the first in
our industry. At the time there were a
few concerns it wouldn’t take off
because many of our customers had
traditional ways of working. It’s
fantastic to see how this has evolved
and how important it’s become for
customers who want to do their
business online and at times that suit
them.
Read more here
Steel & Tube’s Newest
Site, in Hamilton
Steel & Tube has invested in its
Waikato customers, with a brand-new
roofing site, purposely designed to
process orders faster and meet the
demand for roofing products across the
region.
Read more here
I N T R O D U C I N G S A M R E I N D L E R
Sam is the new GM Freight, Logistics
and Distribution Centres, bringing his
experience in project management,
operations and commercial
management to the role.
Read more here
WH A T M A T T E R S
Celebrating
women in the
steel industry
International Women’s Day is an opportunity to celebrate our amazing female team
members. It warrants a special acknowledgement, because although we continue
to make grounds to even the participation rates in our sector with almost 30% of
Steel & Tube’s workforce being female, the reality is that the steel (and building
products) industry remains a male dominated area. And until there’s equal levels of
participation, the females in our team are a minority who have chosen to carve out
a path in our sector.
In keeping with the day, we held a great session with Te Kahukura Boyton, Founder
of Māori Millionaire, for a Financial Wellbeing session. Statistically females typically
experience lower superannuation savings and life time earnings – particularly
through less time in the workforce to raise families – so advice on bridging the gap
is something Te Kahukura provides specialist advice on.
C A S E S T U D Y
Woollen Mills Site in Onehunga
Transforming the Woollen Mills site in Onehunga into a modern industrial campus
was the work of JWA Architects. Steel & Tube’s Legacy™ profile was selected to
line the signature saw-tooth roof and exterior walls, bringing a sophisticated accent
to this award-winning 15,000 sqm build.
Read more here
https://marketing.steelandtube.co.nz/shareholder-newsletter-june-2024
https://marketing.steelandtube.co.nz/shareholder-newsletter-june-2024#intro
https://marketing.steelandtube.co.nz/shareholder-newsletter-june-2024#rodex
https://marketing.steelandtube.co.nz/shareholder-newsletter-june-2024#project-strong
https://marketing.steelandtube.co.nz/shareholder-newsletter-june-2024#webshop
https://marketing.steelandtube.co.nz/shareholder-newsletter-june-2024#hamilton
https://marketing.steelandtube.co.nz/shareholder-newsletter-june-2024#sam
https://marketing.steelandtube.co.nz/shareholder-newsletter-june-2024#case-study