Making crucial connections across the US with high-tech automation, Custom Pipe celebrates its 50th anniversary
Since its founding in California in 1975, Custom Pipe and Fabrication Inc. has become a prominent player in the manufacturing sector, supplying equipment for the pump and waterworks industries. Custom Pipe President, Greg Wood, explains the business has slowly worked its way across the countryside over the past 50 years and that it essentially ‘connects water.’
“Either we connect water for agriculture by bringing it out of the ground for crops, or we create connections for water treatment plants or sewer treatment plants. Basically, we have two different product areas revolving around the theme of water and connections.
“In terms of our products, we manufacture steel column pipe, tube and shaft for the vertical turbine pump industry – everything other than the pump motor itself. In terms of the ‘fabrication’ part of our name, we thread connections, using precision measurements and quality output to ensure we get the water out of the ground.
“Our second product area is in waterworks and for that we use ductile pipe. We cut and fabricate pieces, thread the pipe and connect the flanges and interconnection fittings. Custom Pipe plays an integral role in the vertical turbine pump marketplace because without the column pipe, the tube and shaft, there is no structure for the water to move through. On the waterworks side, we make parts to order, but for distributors only. We don’t sell to individual plumbers or construction outfits completing a home project – it’s a different business model. In distribution, we supply in volume and meet customer requirements. There are only a handful of fabricators that can cover the whole of the United States, and we are one of less than five that can do that, which is highly exciting.”
Enhancing efficiency
Custom Pipe now has over 400 employees, with 12 different locations across eight US states, demonstrating exponential growth and development as it hits its 50-year milestone. Greg notes one of the key factors for this growth has been the company’s acquisitions: “From 2015, we completed three acquisitions – situated in New Mexico, Florida and Nebraska, these acquisitions have all been themed around geographic expansion. It’s very expensive to ship pipe across the US, so having locations closer to our customer base means we’re able to save some freight costs. Furthermore, having a physical presence and being able to ship within a 24-hour window is crucial – if you have a hole in the ground with a water leak, you need a pipe in there as soon as possible.”
Another catalyst for its rapid development has been recent technological advancements, including the purchase of a robot, which Greg describes as ‘incredible.’ He goes on to explain why Custom Pipe introduced automation: “Over 50 years, a company goes through various levels of technology or manufacturing capability; when I entered Custom Pipe five years ago, we were still using 70-year-old pieces of equipment for threading. I knew we had to shake things up for efficiency, so we automated a robot to make bearings. That robot can work 24/7 and the fact that it’s there in the background making parts makes the process more streamlined. However, the biggest impact was the introduction of our new CNC threading machines – what used to be a 30-minute operation now takes less than six minutes. These machines are computer-driven and much more fascinating for younger employees who want to be involved in programming. Plus, it makes everything faster. This is a big innovation for us, and we’ve incorporated it across all our waterworks fabrication locations.”
Custom Pipe’s multiple sites mean the company has implemented an infrastructure to maintain synergy between locations and ensure operational efficiency, involving large-scale recruitment and opening three Centers of Excellence, where volume manufacturing is carried out, with its smaller locations acting as distribution facilities.
Greg also attributes strong relationships to Custom Pipe’s longevity, including those with its customers, suppliers and employees. “Earlier this year, I visited two of our major suppliers in Korea. We’ve been dealing with these companies for over 40 years, and the relationships are still as good as they were generations ago. We’re committed to them. 
“We also have a significant number of long-term employees. You can’t do this without that trusted employee base; people who are passionate about the work and who focus on the quality. They have a lot of inherent product knowledge that we’ve been able to pass on through the years. And my goal is to make sure it’s in place for another 50.” He adds: “We’re really investing in our people to make working in an industrial manufacturing company more fun, because it’s not a sexy job!”
One-stop shop
Future plans for the company rely heavily on a three-year strategy, which begins with completing a nationwide footprint. “We aim to become a one-stop shop for our customers depending on their location. We’re also concentrating on the variation of our product line – we’ve been heavily focused on the pump industry, but now we’ve got our waterworks group growing and my goal is to have that equal diversification.
“One of the crucial cycles we deal with in the US is the agriculture market – farmers plant the crops, they grow, then it’s harvest time before a six-month dormant period. This is where our waterworks can help ride it out and level out the year, for us and our customers. I believe that’s a dynamic unique to this industry.”
Custom Pipe looks set to continue its focus on geographic expansion as it plans more locations throughout the Midwest and on the East Coast, with a vision to move up the Mid-Atlantic to the Northeast and keep its products close to its distribution customers.
“We have a great ownership team, and the environment they’ve created has driven this long-term success for us,” summarizes Greg. “Without that, it would be a completely different business. And that foundation has set us up for our longevity for many years to come.”