SOURCE: Paragon Steel

June 16, 2009 15:04 ET

The Waiting Game: Paragon Steel Weighs in on When and How the Steel Industry Will Benefit From Infrastructure Spending

LONG BEACH, CA--(Marketwire - June 16, 2009) - Everyone knows that promises are only words, not guarantees. But when it comes to the current economic crisis and companies with strong ties to the drastically slow construction sector, many are hoping that words will soon lead to action -- and lots of it. Albeit cautiously optimistic, Paragon Steel, a Long Beach-based steel distribution, processing and fabrication company, is among them.

Here is just some of what state and federal government has promised so far in an effort to help end the recession, increase public transportation and improve America's aging infrastructure:

--  California Governor Arnold Schwarzenegger signed SB 1407 to provide $5
    billion in lease-revenue bonds to finance new construction and renovation
    projects of court facilities throughout the state.
--  U.S. Senator Barbara Boxer, who heads the Senate Committee on
    Environment and Public Works, said, "There are more than 3,000 ready-to-go
    highway projects worth an estimated $18 billion that could be under
    contract within 90 days."
--  The Obama Administration's American Recovery and Reinvestment Act of
    2009 provides approximately $50 billion to core infrastructure spending on
    bridges, roads, rail and other transportation projects.
    

Like other companies, Paragon Steel is eager to see what happens next -- how the money will be dispersed; what projects will take priority; and, of course, how it will impact the steel industry. "With the slowdown in the automotive industry, the steel industry will have excess capacity for its domestic producing mills," says Vice President and CFO Jim Stavis. "It is imperative that the infrastructure plans take shape to fill the void in order for the steel industry to remain viable. The question is when and where will the infrastructure projects take shape? There are many states vying for a limited, albeit large amount of dollars. Certainly there will be winners and losers in this high stakes affair."

Despite it all, Paragon Steel has weathered this economic storm better than most with ties to construction. The company expects business growth to resume and continue into the foreseeable future, thanks to projects like the approximately $16-million job through Flatiron Construction Corp., Fluor Corporation and Parsons Corporation to fabricate and install Exposition Light Rail Line transit stations along a route stretching from the University of Southern California to the Westside ending in Culver City. When the Expo Line opens in the summer of 2010, it will join the Metro Rail/Fixed Guideway network of 87.6 miles of route service in L.A. County. Additionally, Paragon Steel has provided steel for recent projects in industries like solar, hospitality and travel and tourism.

About Paragon Steel

Since 1998, Paragon Steel has built its reputation on providing a higher level of both quality and service that exceeds customers' expectations. It offers a full spectrum of products that range from carbon steel, aluminum and stainless, galvanized and hard to find alloys. In addition, Paragon Steel has a full line of processing capabilities and fabrication services that allow it to take a customer's project and build it according to their exact specifications. Paragon Steel is headquartered in Long Beach, California and has a second California location to serve customers locally and as far away as Northern California, Las Vegas, Arizona, Texas and Hawaii. Paragon Steel can be reached at (800) 388-8998 or on the Web at www.paragonsteel.com.

Contact Information

  • Media Contacts
    Christina Jorgensen
    818-772-9555, ext. 103
    Email Contact
    Lauren Astor
    818-772-9555, ext. 115
    Email Contact
    Drizen-Dohs Corporate Communications