SEAMAN CUTS COSTS BY $1 MILLION, BUT CAN NO LONGER AVOID PRICE HIKE

Posted by Kim Seaman on May 22, 2008

WOOSTER, Ohio - Seaman Corporation announced today that, although it has found ways to cut costs by over $1 million a year, it still will be forced to increase prices of all of its high performance fabric products by 7 percent effective Oct. 1, 2006.

"Seaman Corporation has implemented many initiatives to control our overall cost of doing business," said Alex S. Williamson, Vice President of Sales and Marketing. "We continue to invest in more efficient equipment, reduced our scrap rates, and have effectively controlled our labor costs. These initiatives have produced exceptional results, resulting in expense reductions of more than $1 million a year, that helped us absorb very significant hikes in supplier costs since our last industry-wide price increase in July 2005. Unfortunately, we cannot absorb a continuation of suppliers' pricing escalations without passing at least some of the cost on to our customers."

A strong global demand for a reduced supply of raw materials continues to drive prices, according to the Seaman Corporation announcement. Those increases, combined with the rising cost of energy and employee health care costs, result in the unavoidable pressure to increase prices for all products to all Seaman customers.

"The pressures are being felt by everyone in the industry, and none of us are really surprised," said Williamson. "Regretfully, the supply-demand trend in costing falls in line with previous industry forecasts offered by our suppliers and industry associations. A strong global economy has maintained the imbalance in supply and demand for chemical products, while crude oil is at all-time highs and natural gas remains at elevated levels."

Seaman products include a number of well-known brand names including ShelterRite® fabrics used for tarps, dock bumpers, fuel tanks and various architectural applications and structures. The company's XR® Technology geomembrane products are used for landfill liners, waste containment membranes, baffles and other highly challenging applications. FiberTite® brand products constitute the industry's more formidable roofing membrane solutions.

As part of the company's cost control efforts, over $20 million has been invested in highly efficient processes including separate hot melt coating lines and other equipment in Seaman plants in Wooster, Ohio, and Bristol, Tennessee. Although the primary goal of the investment was to assure Seaman Corporation's position as a quality leader, the capital programs also effectively reduced waste, increased productivity and controlled the cost of production manpower.

"For over 60 years, Seaman Corporation has been committed to providing customers with the highest quality products and services," said Williamson. "We will continue that position, while also striving to do it in the most cost-effective manner possible."

For information, contact Seaman Corporation at
330-262-1111 or toll-free 800-927-8578.
Seaman Corporation, 1000 Venture Blvd., Wooster, OH 44691. [email protected]

Topics: Corporate News