Human relations is at the core of their business
BY MARY JO MARTIN
Editorial director
In just 12 years, C&C Valve has expanded from a limited line of cast iron butterfly valves and very little working capital to offering a full line of quality, competitively priced pipe, valves and fittings for the upstream (drilling and exploration), midstream (gas gathering, compressor stations, metering, etc.), and downstream markets (refineries and petrochemical plants), along with transportation, HVAC, shipbuilding and other industries.
In addition to their 50,000-square-foot headquarters in Houston, C&C also has a 16,000-square-foot sister operation in Edmonton, Alberta, and has consigned inventory in 20 locations in 11 states. Co-founder Dale Lutz proudly noted that C&C has grown from just two employees to now having “25 of the best people in the industry,” including a very highly skilled outside sales team that spends much of their time calling on end users and engineers.
C&C also is represented by 12 manufacturers’ rep firms. “We use both our outside sales team and a great group of manufacturers’ reps strategically located throughout the U.S.,” said Lutz. “Most of our reps have inventory that we consign to them. We believe having inventory close to the activity is a great tool and also makes it very convenient for our customers. We also have an inside sales staff whose responsibilities are divided by product and geographic area of the country.”
Currently, C&C has a broad customer base with approximately 300 active accounts — most of which have one or two locations and are owner operated. But, they also do business with most of the major distributors as well. C&C adopted the policy to sell through distribution when it was originally founded, and continues to remain loyal to its distributor base.
“The wholesalers are the ones who have the day-to-day contact with the users,” explained Lutz. “They are the ones who can make you or break you. If you have a close relationship with your wholesalers then you are going to get the necessary feedback on your products, such as pricing and performance. And, this is where you get the ideas for new product development. Communication with our distributor base is key to our mutual success.”
Building a reputation
Lutz and K.C. Chin formed C&C in 1999, becoming incorporated in early 2000. After getting his start with J.B. Smith in 1986 selling high-pressure pipe fittings, Lutz went on to manage sales for a major manufacturer of oilfield products. Meanwhile, Chin has introduced many well-known Korean manufactures such as TY Cast Steel Valves, KUKA Valve, Cofsco Forge. Chin has been a great ambassador for many Korean factories.
“Both Chin and I are very hands on, and here almost everyday,” Lutz noted. “We see every order that comes through. We even take sales calls. Our style would best be described by saying ‘Hire the best people you can, give them the tools they need to do their job and get out of the way.’ From a customer stand point, our goal is to provide quality products and stand behind them, offer competitive prices, and ship orders the same day. Customer satisfaction is our number one goal.”
Originally their product line consisted of 2" through 6" wafer and lug type cast iron butterfly valves. Maverick International in Beaumont, Texas, was C&C’s very first customer and they still do business together today. C&C now carries products ranging from 1/4" threaded ball valves through 30" pipe line valves, 2" through 54" butterfly valves, 1" through 12" hammer unions with pressures ranging from 1000 to 15,000 psi, in addition to needle valves, bolted sleeve couplings, expansion joints, actuators, grooved valves and couplings, swage nipples, bull plugs, red iron, high pressure plug valves, and swivel joints
Over the years, C&C has developed exclusive marketing arrangements with its major suppliers in the U.S., South Korea and China.
“We have worked with these suppliers to engineer and develop a product offering of the highest quality,” Lutz commented. “Our suppliers meet the applicable U.S. standards required by the oil and gas market in North America. All of our sources meet ISO 9001 and are licensed by API. Products are designed to meet the requirements of the NACE standard MR-0175.
“We have built our reputation on hammer unions and butterfly valves. However, throughout our history we have continued to introduce new products. Depending on the market sector, C&C is known for many different products. These include our FORCE API 6D trunnion and floating ball valves, API 6D swing check valves, threaded ball and check valves in carbon steel and ductile iron, needle valves, flanged gate valves, bolted sleeve couplings, a complete
line of 15,000 PSI Flow Line products, and our newest offering which is a non-freeze tank valve.”
C&C recently re-invested in its business with the purchase of a Hydro Static test stand. This allows the company to test all of its flanged ball valves in Houston prior to being shipped to a customer. A similar acquisition is being made for the Edmonton location, and it should be operational by presstime.
Similar to most industry companies, C&C has experienced a general slowdown in business over the last few years, but foresees improving market conditions in 2010 and beyond.
“The slowdown hit us hard in early 2009,” Lutz said. “Beginning in February, sales fell overnight by 50% and the decline continued through May. But by the time the fourth quarter hit, we began to see demand pick up and that trend has continued through the first quarter of 2010. Going forward through the rest of this year I believe we will see a slow down beginning in the third quarter, but overall demand will be stronger than what we saw in last year. However, we remain optimistic about continued steadying of oil and gas prices and steady growth for our industry.”
Lutz is convinced that no matter how much business changes over the years, it still all comes down to human relations.
“It’s simple,” he said. “If a customer doesn’t like you, it doesn’t matter what you’re selling. They will not support you long term. If you take care of your customers’ needs and service their business they will support you, but you can never take them for granted. We always keep in mind that our customers do have many other choices. We have also kept the philosophy of ‘Right Product, Right Price, Right Now,’ and it has proven very successful for us.
“We see a lot of potential for growth as many of our competitors are gobbled up by M&A. So much is often lost in these transactions. We plan to continue to introduce new products and services — making C&C a more appealing option for new customers.”
Visit www.candcvalve.com.