Paragon Steel Completes V20 “The Venue”

By Jim Stavis

     Nine months in construction and with no expense spared, a new combination high-end nightclub and restaurant debuted at “The Pike” in Long Beach last month.
     And know that this is not your ordinary nightclub. First of all, it is quite large, accommodating 2,000 guests. And secondly, it is the swanky new hot spot on the water in Long Beach at Queensway Bay.
The truth is the modern dance “club” has come a long way since the disco days of Saturday Night Fever and John Travolta. And this is one to experience.
     The first thing that you see is a 10-foot-tall television screen with two 8-foot screens pumping out virtual reality and digital entertainment. Two scantily clad go-go dancers wildly shake atop platforms above the dance floor.
     Meanwhile, a 186,000-watt sound system pulsates the crowd. In the middle stands a 50-foot bar with several bartenders ready to serve your favorite drink. Keep walking and you will see the “Aqua Lounge” (a place to people watch) and a VIP tunnel (a place to meet and greet).
     Paragon Steel was contracted by the general contractor, Wheelihan Construction to build the interior stainless steel bar rails that follow the contour of the stage ramps and walkways, and structural supports throughout the club.
     With all the sensory stimulation it may be hard to fully notice all the detailed steel work, but it is a job that we are quite proud of. Due to an expedited schedule, the club was originally slated to open in April (before the Long Beach Grand Prix). The actual opening occurred in the beginning of June.
     V2O “The Venue” is open to the public on Friday and Saturday nights. The rest of the time it can be reserved by private parties and for corporate gatherings. Already such notables as Playboy, Hustler, Maxim and Steven Speilberg have lined up to book parties.

Market Observations: Get Ready for More Price Hikes

By Andy Peters

     Just when it seemed that steel pricing was calming down, we are seeing another storm on the horizon. To the dismay of those customers who have had to contend with a year of price increases and product shortages, there is more bad news to come.
     Even though the panic buying has ended and the producing mills have caught up with their order backlog, there are factors occurring that will keep prices from falling.
First off is that the general economy is still strong. Secondly, with mill consolidation, there are fewer producers of steel today and imports have not really come back strong into the marketplace. Thirdly is that China's huge appetite for steel has taken its toll. This creates a higher production cost and keeps many items in short supply.
     In the late spring and early summer months, China had backed out of the U.S. scrap market, which allowed prices to stabilize. The mills, however, did not lower their prices, but actually raised them while eliminating the scrap surcharges they had been adding. Now that scrap is short again, the mills will begin adding a surcharge on to their higher priced steel. The net effect of this will be significant as it filters into the marketplace.
     At press time we are being told that the scrap surcharge will go up $90/ ton in August, but we are not certain how much of that increase will be passed along. We recommend building in a cushion for higher steel costs.
     We know many customers were unprepared for the increases that occurred this year and lost money as a consequence. For the manufacturing sector, we recommend buying as much as you can handle before the price increases take effect. There are distributors that have lower cost inventories. Buy it while it lasts.