In-Depth Coverage:
In-Depth
Coverage:
Pages
11-15
Pages 11-15
Inside this Edition
Inside this Edition
Drilling
Drilling
D
own
Down
VOL. 28
VOL. 28
June 2012
June 2012
NO. 22
NO. 22
Trumbull 100 makes an
Trumbull impression’
100 makes an
‘enduring
...3
‘enduring impression’ . . . 3
How hard can it be? His
How hardiscan
it be?
business
picking
upHis
...7
business is picking up . . . 7
Engaging customers
inEngaging
a digital customers
age . . . . . . ..22
in a digital age . . . . . . ..22
In Search of: Outfitting
In Search
of: .Outfi
the
outdoors
. . .tting
. . . . 59
the outdoors . . . . . . . . 59
$2.50
ISSN 1047-8582
$2.50
ISSN 1047-8582
Labor Unions Win, Lose with Shale
One union protests at
One union protests at
pipeline site, another
pipeline site, another
has plenty of work.
has plenty of work.
BY DAN O’BRIEN
BY DAN O’BRIEN
usiness agents of the Laborers
usiness agents
of theofLaborers
International
Union
North
International
of North
America’s
OhioUnion
districts
cry
America’s
districts cry
foul. They
chargeOhio
that Chesapeake
foul. They
that oil
Chesapeake
Energy
Corp.,charge
the major
and gas
Energy Corp.,
major
gas
leaseholder
andthe
driller
in oil
theand
Utica
leaseholder
and
driller
in the Utica
shale
in eastern
Ohio,
is snubbing
the
shale
in easterninOhio,
the
local
workforce
favor is
ofsnubbing
out-of-state
local workforce
in favor
ofown.
out-of-state
contractors
that hire
their
contractors
Not so fast.that hire their own.
Notbusiness
so fast. manager for Local
The
business
manager
for Local
396 The
of the
Plumbers
& Pipefitters
396 ofreports
the Plumbers
& Pipefitters
union
that his membership
reports
thatofhis
membership
isunion
so busy
because
shale
explorais sothat
busy
shale exploration
it’s because
called inofmembers
from
tion that
in members
from
other
localsit’s– called
even from
out-of-state
other locals
even from
out-of-state
districts
– to –satisfy
demand
in the
districts – to satisfy demand in the
industry.
industry.
Such is the dichotomy playing out
Suchas
is Big
the dichotomy
playing
in Ohio
Energy moves
intoout
a
in Ohio
Big some
Energypredict
movescould
into a
shale
playasthat
shale
play that At
some
last
generations.
the predict
heart ofcould
the
last generations. At the heart of the
BB
issue is the degree these large energy
issue is the degree
these
large
corporations
will hire
from
the energy
local
corporations
will so
hire
thescale
local
labor
pool. Doing
onfrom
a large
labor deliver
pool. Doing
so on a punch
large scale
would
the economic
all
would
deliver
theneeds.
economic punch all
agree
this
region
agree
needs.
“It’s this
beenregion
heaven
for some of our
“It’s been heaven
someTaylor,
of our
membership,”
reportsfor
Butch
membership,”
reports
Butch
Taylor,
business
manager
at Local
396 of
the
business manager
at Localrepresents
396 of the
plumbers
union, which
plumbers
union, which
represents
300
active members
in the Mahoning
300 active
members
in the300
Mahoning
Valley.
“We’ve
got another
workValley.
got another
300 working
full “We’ve
time above
and beyond
our
ing full time above
andAtbeyond
our
membership,”
he says.
different
membership,”
he says.
At different
points,
the number
of workers
full
points,
the number
of workers
and
part time
has reached
as many full
as
andabove
part time
has reached
600
the local’
s roster.as many as
600
the local’
roster.delivered
Butabove
the shale
rushshasn’t
But the
shale rush
the same
prosperity
tohasn’t
other delivered
unions,
the same prosperity
to other
unions,
especially
the Laborers,
officials
of
especially
the Laborers, officials of
that
union contend.
that
contend.
“I union
have about
210 members on
“I right
have now,”
aboutsays
210Clint
members
on
layoff
Powell,
layoff right
now,”ofsays
Clint Powell,
business
manager
Laborers
Local
business
manager ofwhose
Laborers
Local
809
in Steubenville,
district
809 in Columbiana
Steubenville,
whose“Chesadistrict
includes
County.
includes
County.
“Chesapeake
likesColumbiana
to pull the wool
over
your
peake
likes
to pull
wool
over and
your
eyes.
They
might
hirethe
three
people
eyes.say
They
might
hire three
people and
then
they’re
hiring
local.”
then
say they’re
hiring
local.”
In recent
weeks,
Local
809 has
In recentSee
weeks,
Localpage
809 11
has
UNIONS,
See UNIONS, page 11
Butch Taylor, business manager for Plumbers & Pipefitters Local 396, says demand
Butch to
Taylor,
business
manager
for Plumbers
396, plus
saysanother
demand
related
the shale
industry
is so great
that all of&hisPipefi
300 tters
activeLocal
members,
related
the shale
is so great
that all of
hisworking
300 active
members,
300
or sotofrom
otherindustry
locals across
the country,
are
in the
region. plus another
300 or so from other locals across the country, are working in the region.
PHD’s
PHD’s Growth
Growth ‘Hangs’
‘Hangs’ on
on Its
Its Products
Products
Pipe hanging devices give Columbiana
Pipe hanging devices give Columbiana
manufacturer its name.
manufacturer its name.
company its name – 600 types in all, each varying
company
its nameand
– 600
all, each
varying
size
and purpose
thattypes
totalin3,000
individual
size and
and
thatsupports,
total 3,000
individual
parts.
Wallpurpose
brackets,
pipe
struts,
straps
parts.
Wall guides
brackets,
supports,
struts,
straps
and
clamps,
andpipe
slides
make up
the PHD
BY JEREMY LYDIC
and clamps,
guides itand
slides make
PHD
catalogue
of products
manufactures
forup
thethe
plumbBY years
JEREMYold,
LYDIC
catalogue
of products
it manufactures
forSome
the plumbince he was 16
Jonathon Corvino
ing,
mechanical
and electrical
industries.
85%
ince
he hands-on
was 16 years
old,Manufacturing
Jonathon Corvino
mechanical
industries.
has
been
at PHD
Inc.
ofing,
PHD’
s productand
lineelectrical
is turned
out at itsSome
shop85%
in
has been
hands-on
at PHD
of PHD’s product
linepurchased
is turned and
out at
its shop in
where
in 2003
he started
onManufacturing
the shop floor Inc.
by
Columbiana,
the rest
repackaged,
where
2003 he machines.
started on Now
the shop
floor by Corvino
Columbiana,
cleaning
the instamping
a national
says. the rest purchased and repackaged,
cleaning
the stamping
machines.
a national
Corvino
says.
sales
manager,
Corvino has
watchedNow
the company
In 1972,
Corvino’s father, Joseph – today presisalesand
manager,
Corvino
hasthat
watched
company
Corvino’–sand
father,
today PHD
presigrow
he doesn’t
foresee
growththe
slowing
in
dentIn
of1972,
the company
twoJoseph
others –opened
grow
andahead.
he doesn’t foresee that growth slowing in indent
of the
company
and two
othersprimarily
opened PHD
the
years
Berlin
Center.
They–made
supports
for
the
years
ahead.
in Berlin
Center.
Theyindustry,
made supports
for
The
many
pipe hangers and devices pressed
the
hanging
sprinkler
Corvinoprimarily
says. Five
manyinpipe
hangers
pressed
the hanging sprinkler industry,See
Corvino
says. Five
and The
stamped
the PHD
plantand
aredevices
what gave
the
PHD, page
20
and stamped in the PHD plant are what gave the
See PHD, page 20
Jonathon Corvino, national sales manager, and Deann Davis, director of human resources, discuss an order.
Jonathon Corvino, national sales manager, and Deann Davis, director of human resources, discuss an order.
SS
20
JUNE 2012
The Business Journal
PHD: Columbiana Manufacturer’s Growth ‘Hangs’ on its Products
From Page 1
with strut accessories another 15%. Pipe hangers
remain the company’s bread and butter, making up
years later, the company moved to Columbiana at
half of its business.
44018 Columbiana-Waterford Road where it quickly
The Denver airport project was also PHD’s first
outgrew the 36,000-square-foot building. So the
with a stocking representative outside of the area.
company expanded the main building to 132,000
Since then, PHD has established 21 warehouses
square feet to housing the plant’s rolling and stampacross the United States and hired 23 stocking reping presses, maintenance department and some
resentatives who supply product to their customers.
limited inventory. It’s one of five buildings that take
These satellite stocking sites were critical to PHD
up eight acres on the 16-acre PHD campus.
maintaining a steady flow
PHD stores its invenof business during the
tory in the four other
buildings, one of which Sales held steady in 2008 and 2009. As Great Recession, he says.
“When the economy
is half-filled with raw the economy recovers, orders are too with
materials. On average, sales increasing 15% annually in the last took a downturn, logic
tells you that a lot of
PHD brings in about 850
companies were cutting
tons of raw materials an- two years, Corvino notes.
staff, cutting cost dollars
nually – spending some
and inventory,” Corvino says. “It was a big push
$8.5 million for raw materials last year, he says.
for us having that access to the local inventory for
Corvino attributes much of the growth at PHD
various distributors across the country.”
to its role in the construction of the Denver InThe satellite warehouses allowed PHD customers
ternational Airport in 1989. While the company
in other states to cut back on their inventory, but still
manufactured only pipe hangers at the time, it had
have nearby access to an adequate supply of materito develop new products to meet the special needs
als they can pull from daily, Corvino explains. The
of that project, he says.
company still did business with “job site direct-type
“Getting the job meant that we had to supply the
shipments” right out of the factory, which made up
full line of product,” Corvino says. “We then devel60% of the company’s business before 2007. When
oped tooling and such, and that was really the launch
the economy took a downturn, however, the volume
of the company in the direction that we took.”
of those direct shipments shrank, making up 40% of
Products developed for the airport were eventuthe company’s business with a majority of sales comally added to PHD’s permanent line. So much so
ing out of the stocking locations. During that time,
that the company had to split its full line into two
he says, the PHD customer base actually increased.
categories: pipe hangers and devices, and strut prod“More people who were happy with the factory
ucts and accessories. Struts make up 35% of sales,
direct-type shipments and had cut inventory started
utilizing our stocks and gave us some opportunities that we didn’t have in the past,” Corvino says.
“Now, with the economy coming back, these guys
are happy with us because we were there for them
during the downturn and took care of them. So, in
turn, we are seeing that sizeable increase in business
now that their business is coming back.”
Sales held steady in 2008 and 2009. As the economy recovers, orders are too with sales increasing
15% annually in the last two years, Corvino notes.
The company has hired more workers since 2009,
today employing 100, up from 80, says its director
of human resources, Deann Davis. An increasing
product line sparked the need for more employees,
which in turn required more maintenance personnel to keep up with the shop equipment, Davis
says. Thus, the company couldn’t afford to lose any
employees during the recession.
“Our response to that was to reduce hours for
our employees,” Davis says. “We did not want to lay
anyone off. We wanted everyone to be able to keep
their health insurance, keep their 401(k)s. We have
a good workforce here and we wanted to hold on to
the good workforce that we had.”
And PHD is hiring again, looking for six press
operators and maintenance personnel, Davis says.
Ideal candidates have some mechanical ability and
can read blueprints, she says.
With momentum returning, PHD is increasing
its presence in the sprinkler-system market, Corvino says. It’s also developing a line of products
CONTINUES NEXT PAGE
Bobbie Lester uses a roll former used to make steel
struts. Struts and accessories are half of PHD’s business.
Steve Vorkavich displays clevis hangers, used to hang
pipe and tubing. PHD offers up to 3,000 individual parts.
Mike Palm uses a stamp press to make band hangers
for a sprinkler system.
The Business Journal
JUNE 2012
21
Jerry DeSarro lifts finished struts for storage. PHD manufactures 85% of its products. The rest are purchased and repackaged.
specific to the seismic construction industry, such
as bracing and struts built to withstand earthquakes,
which Corvino says will be an important part in the
company’s growth.
In February 2011, PHD formed a partnership with
ISAT Seismic Bracing of La Mirada, Calif., to deliver
seismic bracing products. In a prepared statement
following the announcement, ISAT Vice President
Jim Massey said PHD products and assemblies,
combined with ISAT engineered seismic restraint
systems, would meet the demanding standards of
the market.
“In today’s world of evolved building codes, careful selection and appropriate application engineering
is essential,” Massey said. “A fundamentally different approach is needed – one that includes the use
of support hardware and seismic bracing products
in conjunction with comprehensive design guidelines, calculations, layouts and an engineer’s seal on
project drawings. This is what ISAT contributes that
enables PHD to deliver real solutions to contractors
who utilize their products.”
Corvino says PHD is also considering ways to
tap into the energy market, particularly in designing
struts and other devices for the solar market.
“We’ve seen a lot of our competition start gearing
up toward the solar side of it,” Corvino says. “Nothing is firm that we’re pursuing, but it is an area that
we see upcoming where there might be some room
for growth for us.”
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