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Steel City is out of business

16K views 50 replies 19 participants last post by  Mike  
#1 ·
It may be old news, but this is the first I have heard of it. This is a post from someone on another woodworking forum...

Just saw in a woodworker’s Journal survey they were doing that as of 3 31 2015 Steel City has shut it’s doors. understood some in Canadian outfit was moving everything up there but it kinda sounded like it was not going back into production any time soon if ever. I feel for those that have their products as it didn’t say that any support for the products was being offered by the manufacturer guess they are just passing any thing back to the dealers to handle. hope it isn’t true but when someone like woodworker’s journal says it I’m afraid it must be.

wish all the luck possible to those who have any of their equipment.
 
#2 ·
Yeah, on the other forum there was a spirited discussion about this. What is still puzzling to me is the lack of any indication on the web site. Someone thinking of buying a steel city tool might go their web site and it looks like all is well with the company. I'd be pretty mad if I bought one and then discovered the company was already out of business. I know the retailers have been pretty quiet about the bankruptcy. On Amazon listings, there is nothing about it and a spot check of them shows the 2 year warranty listed.
 
#3 ·
I touched on this when I opened the thread on the helical planer a few weeks ago. I was waiting on SC to come out with the newer version of the 40300 when they closed the doors.

The announcement that I saw, didn't have any information, only that as of March 31 they were closed and that the warranties would still be handled through SC. So, they are not leaving recent customers high and dry.

You would think that they would at least take down their website and make a formal announcement. However, I have seen nothing other than a few comments here and there on some of the forums. Not even the "Woodworking Guru's" who blog all over the internet, have said a word.

Why would Amazon even acknowledge the situation and get stuck with stock on hand? Really makes you want to trust them, doesn't it?

SC closing up is really a shame. they had some nice products that were reasonably priced.

Bill
 
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#5 ·
Probably true! However, you would think that this news would be all over the woodworking sites; blogs, vendors, forums...nada, nyet, nine, nothing! No one is officially acknowledging anything is different.

I know this can happen with any vendor, but usually there is some rumor ahead of time that alerts you to the pending change. Nothing came out until a couple of day into April when I came across the announcement.

I can't remember where I came across it, only that I was searching for info on the 403XX planer that was due out in the middle of March looking for an update...that was the first week of April.

I'm sure, that, eventually, you'll see SC products on sale at reduced prices. The question is, who would buy any knowing that you may not be able to get parts for whatever you buy!

Bill
 
#8 ·
Not just that, Gary; Government regulations, ie massive amounts of paperwork and redtape have smothered small business. Not the least of the problems are Workers Comp and your EPA ...both business killers.
(I say Workers Comp because of they're huge burden costwise on business; not because of their duty to protect the worker. You can't add 5% t0 10+% to payroll costs without having a huge impact.)
 
#17 ·
As an update. I stopped into Utter Guys in Sanford, Florida today. They are a Steel City retailer. The clerk and I were talking about SC going out of business. He told me, that, SC didn't even notify their retailers that they are out of business. He shook his head that they still have the website up and appear to be doing business as usual. He can not even order things like belts for the SC sanders. If his customers want anything they have to order directly from the SC Customer Service.

When it happened his boss (owner) couldn't get any info from SC. The only way he found out what was going on was to talk to the other SC retailers across the country to piece things together. The clerk mentioned that they were moving the operations to Canada.

I am not familiar with the Axiom company name, are they Canadian?

Bill
 
#19 ·
Dan,

After I posted I went searching and found that SC and Axiom (CNC carving machines) had announced a collaboration back in September of 2014. But nothing on the web beyond that information.

So, it is anybody's guess as to what is really going on.

Bill
 
#20 ·
An article appeared in Fine Woodworking magazine, April 2015 stated that Steel City had ceased operations.
Further that some "industry professionals" including some Steel City "veterans" had founded the Axiom Tool Group.

Further the article adds, "Steel City recommends tool owners seeking product support to contact the distributor where they purchased their tool for service, and to call the Steel City technical support line for replacement parts."


Other reports found on the internet date back to summer/fall 2014 echoing the same thing.

Oddly, there is a Facebook page titled Axiom Tool Group, but has no content.

I'm not a Steel City tool owner - found they were pretty expensive when they first came out. In my area, the only retailer that carried any of their products was one Home Hardware store. My local (and only - not counting Home Depot or Lowes) woodworking/tool dealer who carries every other brand under the sun, never carried any Steel City products.
 
#27 ·
Yup, Bill, that is a rerun. I noticed the same thing this weekend and then I realized it too was a rerun from last year.

By the way, where in SW PA? I'm originally from Bradford.

Bill
 
#36 ·
Steel City is still honoring the warranties and providing customer service. However, that will probably last only two or three years, then what do you do for parts!

Retailers can't even get parts...you have to go through customer service if you want anything.

Who in their right mind would buy a SC tool right now. The prices haven't come down and they are essentially obsolete.
 
#37 ·
Well since Dan mentioned Workers Comp I'll tell you a tale of government biting their own hand. I retired from the USPS and even though it is "independent" our government used that to their advantage and the USPS as a cash cow. At the end of the fiscal year every federal agency handles their workers comp bill as a simple paperwork transaction. The USPS has to write a check to pay the US Treasury for the full amount they paid out to cover postal service claims. They are also required to "pre-fund" their retiree cost and their insurance. All of that adds up to about $5 billion per year (which is more than the actual cost). So our beloved government robs from their own house. There is no appetite in Congress to let the agency fail so guess where it will end up if it does go bankrupt. Right back as another federal agency. With that kind of logic it is no wonder that our business' can't compete. Sad (and stupid).
 
#38 ·
Steel City was purchased by a Canadian firm and all operations went up there. The website, although may be functional, should not be using the old address. Axiom Tool Group was formed as the parent company of both Axiom Precision (still operating in the states) and Steel City. Since the demise of SC, I have no idea what the Canadian firm is offering as to warranty on the inventory they purchased.

I do know that the factory that made the original spiral style planers (that SC chose no longer to sell) is now selling direct here in the states under their own Cutech Tool label.

Former SC employee,
M
 
#40 ·
There are two kinds of bankruptcy, one is completely out of business--shut down. The other is for restructuring of debt and the business. Bankruptcies are usually kept very quiet. Also, bankruptcy is one avenue for management (and key workers) to abandon an existing business and reform it elsewhere under a different name. Stiffs the suppliers in many cases, and I've seen it that the suppliers go to bankruptcy court and get pennies on the dollars for the stuff they provided to the company, but were never paid for. I was a business writer for 5 years and learned that bankruptcy was just another business tool for some managers.

I also agree that many small companies have the very best of employees. A local firm that makes aircraft parts of organic plastics hires and trains people who don't look like good employees on paper. They learn to do things the right way, get paid well as they improve their skills, and the owner values them so much he finances their cars, helps with down payments on their houses. The loyalty and good productivity is well earned.

Unfortunately, there is another side to all the regulations, which is that many small business people build their brand, then plan to sell out to a conglomerate that has more wherewithal to comply with regs, or the money to move the company and jobs overseas. But the mostly left wing politicians don't care much about that because they are in fat city with the bribes (contributions) they've collected from the lobbyists. They get away with this the way magicians do it, by diverting our attention with emotional side issues. Funny how many conservatives have no issue with gay marriage (for example) but they are set up to be the bad guys. And through all the brouhaha, no one has paid any attention to all the legislative favors the House and Senate and White House have handed out to "supporters"--you know, the ones who paid the bribes.

I've thought for awhile about how to stop this and the only thing I've come up would be a universal rule that any legislator must recuse themselves from voting on any issue or item which materially affects the financial interests of any contributor who has given more than $2,000. That is a wave I'd love to see wash over American politics.

Hope I haven't stepped too far over the religion/politics line. But that is what this thread has been about.
 
#43 ·
@schnewj

Good news Bubba, you can get the thickness planer you wanted. :)

Cutech Tool LLC planers and jointers

My Steel City 14" Deluxe band saw has been trouble free and any parts except the granite table are available under other names.

I will be reviewing the Cutech jointer as soon as it arrives; supposed to ship Monday. Very interesting design.
 

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#45 ·
They're just a little late. I settled on a DW735. Not helical but seems to do a good job for what I need for now.
 
#48 ·
Scott 101,

I may be able to help you, but can you please answer a few basic questions to start?

1) What model of 20" SC planer do you have? They sold several different models over the years.
2) Are you the original owner or purchase it used?
3) And as Mike asked, is it plugged into an appropriate circuit?

There can be several reasons, or maybe just a simple oversight, for what you are experiencing. I'm sure if we work through this, we'll find a resolution. I'll also email you.

Sincerely,
A different Mike
 
#49 ·
Don't despair quite yet. There is not too many items that can not be bought from 3rd party vendors. Many times when a company folds it opens a door for smaller companies to make parts whenever they see a decent market opportunity. Also in many cases a company will close the doors to correct a bad debt to asset ratio and resurface in some form after they get things corrected. Someone mentioned part of the assets going to Canada. That has happened to several small aircraft companies and they are alive and well across our northern border. We can thank our ignorant politicians and onerous regulatory agencies for that. Having spent 37 years working for such an agency I fully understand the harm caused by regulatory actions driven by politics. I'd like to send all of the scoundrels into retirement and start over.