In recent weeks, we have seen competitors lead times grow to astronomical durations.  Customers - machine builders and end users - have reported quoted lead times of 16, 18, even 30 weeks!

A global steel supply shortage, spurred by a graphite electrode shortage, has tightened supply.  The tightened

Apex Lead Times Remain Unchanged

supply has brought Just-in-time / Lean manufacturers to a standstill.

Electric arc furnaces use the graphite electrodes to convert massive amounts of electricity into the heat necessary for melting scrap steel to molten phase.  Graphite is the only material able to withstand the intense heat  required (3000°C).  See this link for more information on the process.

The shortage is a result of production capacity going off line, and competition from lithium ion battery manufacturers for the raw material, needle coke.  The implementation stricter emissions standards in China has forced the closure of 200,000 mt of electrode capacity and another 200,000 mt of worldwide capacity was shut down due to downward price pressure.  With China bringing 56 new arc furnaces on line this year, the demand for graphite electrodes has soared.  More info here.
Apex Dynamics has been able to weather the storm and minimize the impact of the steel shortage on all product lead times.  Again, the advantages of the tried and true batch / manufacture to stock method become apparent.  Not only are there the benefits of high availability, quick delivery, and cost reduction from quantities of scale, there is drastically lower sensitivity to  raw material supply and cost fluctuations.  The con to build to stock manufacturing lies in the up front cost or investment required.  Lean manufacturers are not willing to make the investment because the investment will tie up a large amount of liquidity, which will change the valuation of the institution.  Tying up money in inventory is especially bad for publicly traded entities.

With over 40 different product series, Apex Dynamics has a plug-and-play replacement for the majority of servo gearbox manufacturers.  Our high quality high performance products, industry shaping lead times,  highly competitive cost structure, and excellence in support and customer service have made Apex Dynamics the industry benchmark that it is today.

For help right now with a competitive interchange, contact our sales and applications team at 631-244-9040 or by email -  sales@apexdynamicsusa.com