Walworth focuses on U.S./Canada in 2010 global expansion

BY MORRIS R. BESCHLOSS
PVF and economic analyst emeritus

Walworth, Crane, Lunk­en­heimer, Powell! When first entering the valve industry 53 years ago, I quickly became aware that the flourishing flow control sector had four significant full-line valve companies that were recognized as the leading lights, coveted by the nation’s outstanding plumbing-heating-cooling-pipe-valve-fitting distributors.

In those days, the top distributors aligned themselves with one of these four titans. Only domestic valves were allowed to occupy this lofty position, and competing lines were out-of-bounds for the dominant industrial distributors, who commanded the end user, original equipment manufacturer and specification markets.

Remarkably, all four of these in­dustry giants were founded by rugged individualists/inventors around the middle of the 19th century. Their subsequent growth made their names household brand identities with distributors and the secondary markets alike.

But in light of the dizzying transition that has affected our $25 billion fluid power industry — such as the massive incursion by foreign lines, the expansion into ball and butterfly, and a variety of specialty valves, plus mechanization and automation — only Crane and Powell of the original quartet still occupy a significant major distribution posture currently in the U.S.
However, this could change dramatically this year, as Walworth is solidifying plans to reenter the U.S. and adjacent Canadian markets, big time. In many ways, Walworth has what it takes to reestablish the overwhelmingly powerful position it had enjoyed in the U.S. until the late 1970s.

Started as a partnership between innovators J. J. Walworth and Joseph Nason in the Boston area in 1842, the new company quickly became the pioneering juggernaut for this emerging new industrial sector. Other historical valve industry names such as Nathaniel Jenkins, John Chapman, Daniel Stillson (of Stillson Wrench fame) and H.G. Ludlow, all sprang from the bosom of the Walworth pioneering firmament.

While closely held and directed by such Twentieth Century valve chief executives as Harold Brown, whom I had the privilege of knowing personally, Walworth continued its product development leadership, as well as its market penetration and brand-name luster.

However, in the mid-1970s, the company, after over 130 years of independence, was sold to Inter­national Utilities, which also attempted to develop a national chain of pipe-valve-fitting independent distributors, under the umbrella of IU Distribution Services.

This experiment turned sour and was disbanded by the late 1970s. With newly-named IU International deciding to rid itself of non-core business sectors, Walworth, which had lost momentum, was sold to Mexico’s Pepe Lanzagorta.

Although financial difficulties eventually forced Lanzagorta into bankruptcy, the Mexican entrepreneur had been able to develop Walworth into the overpowering valve factor in Mexico. It is now owned by the Waisburd banking family. Jacobo Waisburd, vice president-operations, is in charge of the Walworth organization worldwide. During the past seven years since the Waisburds acquired Walworth, the broad-based valve manufacturer also extended its foreign market reach and strengthened a foothold in the U.S. through such outstanding distribution entities as Sunbelt, AIV, Industrial Valco, along with several others. Those who I have talked to recently attest to the superb quality and the depth and breadth of the Walworth line. Official industry standards are said to be met by all aspects of the expansive Walworth offerings.

According to current observers, Walworth not only features the broadest industrial valve line fielded by any global manufacturer, but it carries a wide variety of material in types and sizes not equated by any other single source.

Walworth’s manufacturing operations, which are totally owned and managed by the Waisburds, are located in Mexico and China. Its finished goods inventory, plus warehouse/office management operations, both in Mexico City and the U.S., carry a minimum balance of $50 million. This is scheduled to increase as Walworth broadens its reach all over the world, especially in the U.S. and Canada. The Mexican facility alone employs 500 personnel, who are responsible for the bulk of the company’s extensive offerings. Walworth’s TWC Service Center in Houston is prepared to offer total support for Walworth’s extended activity in the U.S. and Canada.

Jacobo Waisburd, with whom I had an extensive conversation about Walworth’s future, is deeply committed to reestablishing the powerful position Walworth once enjoyed in the U.S. Through Waisburd’s aegis, Walworth has instigated a new advertising/promotional campaign to ensure that the valve-using public is made aware that Walworth is on the comeback track in the U.S. and Can­ada. Waisburd is especially encouraged by the fact that Walworth listings can still be found in hundreds of nationwide specifications.

Details of Walworth’s expanded product/marketing approach in North America will become apparent in the pages of The Wholesaler as they occur.

For more detailed information on Walworth, visit their website at www.walworthmx.com, or call 800/697-1842.