Guests: Alan Sallee Jr of Mid South Aluminum

Host: Randy Chaffee

Producer / Director / Co-Host: Wes Wyatt

Episode Summary:

Alan shares that Mid South Aluminum, a division of Kripke Enterprises, has specialized in painted aluminum coil for building construction and transportation markets since 1993. Operating from Toledo, Ohio, headquarters with Jackson, Tennessee, coil division, MidSouth maintains over 15 million pounds of inventory across multiple paint line locations nationwide, shipping to every U.S. state except Alaska. Alan reveals aluminum's 30% price increase since January 2025, driven by the Midwest premium skyrocketing to $1.18 (typically $0.20-$0.28) after the bombings at facilities in the UAE and Bahrain eliminated 9% of global supply, compounded by tariff impacts. Despite volatility, MidSouth posted 120% of its budget in Q1 2025 through a relationship-first approach, consignment programs, just-in-time delivery, and flexible stocking solutions, helping customers manage cash flow amid credit limit constraints. Alan credits his father, Alan Sallee Sr., for teaching him the business, emphasizing a "we do what we say" service philosophy and providing solutions rather than transactional selling.

Key Takeaways:

• Aluminum dominates coastal construction due to salt air corrosion resistance: metal roofing panels, soffit/fascia, trim coil wrapping wood, screen frames, gutters/downspouts, ridge vents—coastal areas demand aluminum over steel for longevity.
• Midwest premium explosion signals market crisis: historically $0.20-$0.28, now $1.18 (up 350% since January 2025) after Middle East facility bombings eliminated 9% global supply—correction depends on war resolution and tariff policy.
• Stocking programs solve cash-flow crunch: with aluminum prices up 30% year-over-year, credit limits cut customers' buying from 3-4 truckloads to 2-3. MidSouth paints and holds inventory until needed, absorbing carrying costs.
• Relationships trump specs in commodity markets: all suppliers use the same paint vendors with no proprietary advantage—differentiation comes through solutions (consignment, delivery flexibility, problem-solving), not product claims.
• One-and-done 40-year warranties reshape demand cycles: homeowners buying aluminum roofs today won't replace them in our lifetime—the COVID-era demand spike robbed future sales, requiring realistic forecasting rather than chasing unsustainable growth.

Resources and Links:

Alan Sallee Jr:

https://www.linkedin.com/in/alan-sallee-jr-1ba06a33/

Mid South Aluminum:

https://midsouthalum.com/

Randy Chaffee:

https://www.linkedin.com/in/randychaffee/

https://www.facebook.com/therandychaffee

https://www.sourceonemarketingllc.com

https://www.buildingwins.live

Wes Wyatt:

https://www.weswyatt.com

https://www.linkedin.com/in/weswyatt/

https://www.facebook.com/wesawyatt/