Third-generation leadership drives innovation and growth

BY MARY JO MARTIN

Editorial director

Back in 1928, when entrepreneur Clarence C. Mosack merged two Detroit-area plumbing products manufacturers into Consolidated Brass Company, he probably never imagined that 80 years later his “new” company would be run by three of his grandchildren. Known today as Conbraco Industries Inc., the company has survived and thrived over eight decades to become one of the world’s largest valve manufacturers, and one of the few that still manufactures the vast majority of its products in the U.S. Now a third generation of the Mosack family is leading Conbraco to new levels of growth, building on a history of hard work and innovation.

Innovation has always been a key to Conbraco’s success. During its early years, the company weathered a weak and sometimes turbulent economy by capturing new business with valves and flow control products in new materials, designs and sizes. Willingness to change led to consistent growth.

Fueled by this growth and the need to expand, Conbraco moved its entire operation to larger facilities in Matthews, N.C., in 1960. The company’s new capacity allowed Conbraco to implement advanced design, manufacturing and testing technologies. The company later added new manufacturing and foundry facilities in Pageland and Conway, S.C., making it one of the largest U.S. manufacturers in the valve industry.

In 1968, Conbraco introduced its Apollo® Series 70 ball valve to the commercial market.

This became, according to Conbraco, the most specified ball valve in the world. Apollo is now one of the most recognized brands in the valve industry.

Over the years, Conbraco has added to the Apollo line with products available in new materials and sizes and designed for new applications. Today, the Apollo Valves product line includes backflow preventers, pressure regulating valves, tempering valves, safety and relief valves, butterfly valves, and valve automation products, in addition to bronze, steel and alloy ball valves.

The customer base for Apollo Valves has grown to include industrial/mro end users, commercial/residential construction specifiers and plumbing contractors. Markets for Apollo’s commercial products include construction (commercial, industrial, institutional and residential plumbing), irrigation, fire protection and hvac. The company also makes marine valves and fittings for large custom yachts.

Industrial markets include the chemical industry, pulp and paper, petroleum, pharmaceutical, power generation, water utilities, hydrocarbon processing, oil and gas, food and beverage, and automotive manufacturing.

Conbraco’s three South Carolina manufacturing facilities total more than 800,000 square feet. These plants, which produce 98% of Conbraco products, are iso 9001-2000 registered. The company also has distribution facilities in Pageland, S.C., Reno, Nev., and Mississauga, Ont., that are able to get product into customers’ hands quickly.

Currently, about 1,200 people are employed by Conbraco. Three of them are members of the third generation of the Mosack family to lead the company -- president Glenn Mosack, executive vice president Cal Mosack and vice president-marketing Carole Mosack Lee.  They recently shared their thoughts about the company and the industry with  editorial director Mary Jo Martin.

MJM: Were you and your siblings always interested in the business?

Cal Mosack: My brother Glenn and my sister Carole and I were always interested in the business. Conbraco was, and still is, the family business. Our dad made sure we understood early on how important this business is to our family and the families of the people who work here.

Glenn Mosack: We all worked summers in the company when we were in school. I painted walls one summer; other years I worked in some of the assembly departments and in the production-control area.

Carole Mosack Lee: I don’t think any of us has ever really seriously considered working anywhere else. This is just too much a part of who we are.   

MJM: The past few years have been tumultuous for Conbraco as a company and the Mosacks as a family. Please describe some of the changes and challenges you have faced.

Glenn Mosack: Things were tough when the three of us took over in 2000. A cyclical downturn in the market and a substantial bank debt forced us to open the company to an outside investor in 2003. 

Cal Mosack: We led Conbraco in a number of initiatives that made the company stronger. We divested unprofitable product lines, implemented Lean Manufacturing, consolidated manufacturing operations, rationalized the work force, and made an important shift from a build-to-stock to build-to-order management approach.

Glenn Mosack: We changed the entire corporate culture to align our manufacturing with what our customers wanted.The changes that we made resulted in:

• Increased efficiency
• Reduced set-up times
• Reduced scrap
• Decreased lead times
• Dramatically increased fill rates and on-time deliveries
• Near total elimination of defective product returns
• Reduced inventory.

Our sales have increased by 30%. At the same time, we reduced our workforce by 25%. Doing more with less is our philosophy.

Cal Mosack: By 2006, the increased profitability of the company allowed us and our management team to buy out the investor and all other shareholders who wanted liquidity. We regained full control of the board. We now own 70% of the company, which is actually more than before the sale of stock in 2003.

MJM: Describe your philosophy on distribution and logistics? What types of efficiency strategies do you employ, and how does this improve your order fulfillment, accuracy and lead times, as well as communication with customers?

Cal Mosack: The goal of Apollo Valves is to have the shortest lead times and the highest fill rates in the valve industry and to set the standard with quality. The company is achieving that goal with demand-driven manufacturing, three strategically located distribution centers and a network of more than 2,000 representatives and distributors throughout North America and the world. This effort is supported by an advanced computer system that allows customers to check real time availability of completed inventory and parts, to place orders and pay bills electronically, to check order status and track shipments 24 hours a day.

MJM: How has Conbraco changed to stay ahead of or adapt to changes within the industry? For example, product development to meet customers’ needs and new standards, etc.?

Cal Mosack: Conbraco’s product management and product development teams, along with our channel partners, are constantly on alert for new product opportunities. Some examples of new products geared to the specific needs of customers include the 34hl mixing valve (first to meet asse 1069 standards), 83b/86b three-piece ball valves (fully rated class 600 in every size range), the 4sg Series backflow preventer (the shortest 6-inch double check in the industry) and the 77c Series ball valve (competitively priced American-made full-port bronze valve with a solid machined ball for better flow performance).

MJM: Talk about the tremendous efforts that go into r&d to develop and launch new products? How are these ideas generated and what type of process do they go through before being brought to market?

Glenn Mosack: Most of our new product initiatives start with an idea generated or discovered in the field to better serve a customer. The 87a/88a flanged ball valve is a good example. Customers told us they wanted an industrial valve with more standard features like a built-in locking device, an iso mounting pad for actuation, a vented ball, improved stem seals. We listened to what they said, and redesigned our flanged valve line to give them what they wanted.   

Cal Mosack: Our new flanged valves have been very successful for us because our redesign was driven by customer needs. It took a little time and a substantial investment in engineering, prototyping, testing and tooling, but when we finished we had a valve that was very appealing to the marketplace.

MJM: Can you discuss the reinvestment that you have made within the company and why this is so critical to your success?

Glenn Mosack: Conbraco has one of the highest levels of reinvestment in manufacturing equipment and technology in the valve industry. Management understands the importance of reinvesting in the company to keep our levels of efficiency, quality and customer satisfaction on the rise. The company has spent $3 to $4 million per year on plant and equipment upgrades for the past five years and a total of $80 million over the past 10 years.

MJM: Do you like to be hands-on with all aspects of the company and in building customer relationships? Please share information about some of your management team who play key roles?

Glenn Mosack: I think everyone would agree we’re pretty “hands-on” as a family, but we also realize that we can’t do it all on our own. Our management team includes some very strong individuals like Eric Miller, our cfo who has been with Conbraco for five years and has 26 years of experience in public accounting. Our director of engineering Ray Celleme has been with us for 11 years and has 34 years of experience in the valve industry. Our manufacturing and quality management team has a 25-year average tenure.

MJM: What types of programs do you have to hire, train and retain quality employees at all levels?

Carole Mosack Lee: Conbraco has provided incentives for safety, attendance and improvements in manufacturing processes for many years. We are very open to communications within the company. Every employee has an opportunity to make things better and be rewarded for the effort. We also offer excellent pay, benefits and training. As a result, our average employee has a tenure of more than 15 years with the company. 

MJM: What are some of your most exciting new product launches, and how are these further diversifying the Conbraco offering?

Cal Mosack: The 34hl mixing valve is one of the most exciting new products we’ve introduced recently. It’s the first valve to meet asse 1069 standards for use in multiple outlet applications. It controls water temperature to within 5° of set point with no dead zones, even in low flow situations. We have some great case histories showing how it solves outlet temperature control problems and improves safety and comfort.

Another product we’re very excited about is the Apollo® Pipe Master™ ball valve. It is a multi-connection valve that can be used with any combination of copper, pex, pvc cpvc, pe (poly) or steel pipe. It’s designed for residential or commercial retrofit or repair situations when the contractor doesn’t know what type of system he’ll be faced with. With Pipe Master valves, he’ll always have the right connection. It saves time and money. Plus it’s more versatile and less expensive than other multi-connection products.

MJM: Do you use factory salespeople or have independent manufacturers’ reps? What do you see as the benefits for the way you’ve chosen to go to market?

Cal Mosack: Conbraco’s internal sales and engineering staff supports a global network of independent reps and distributors. We consider them our partners in the field and they are an invaluable resource for us. They understand the areas they serve. They know their customers and their needs. They provide market intelligence, inventory support, logistics support, sales support, product training and they are usually our first line of customer service.

Glenn Mosack: They also provide input in product development and product improvements. Our channel partners play a major role in our success.

MJM: Does Conbraco provide formal training programs for its customers and reps? If so, do you like to bring people to your facilities or are they primarily done at customer locations by reps?

Carole Mosack Lee: We have training facilities at our headquarters for our reps and distributors. Our product managers participate with our channel partners in customer training events in the field.

MJM: Are you comfortable discussing your percentages of growth in recent years? What are some of your projections for the near term?

Cal Mosack: Ten years ago, we were growing with the market at about 2% per year. Since 2003, we’ve grown at close to double-digit rates and we’re continuing to grow faster than the market.

The company’s goals are to set new sales records this year and in 2008 and continue to grow unit sales. That’s the best indicator of market penetration.

MJM: Can you share with us any information going forward on your strategic long-range planning? What are the key focus areas of the plan?

Carole Mosack Lee: We’re going to continue to focus on markets where quality and performance matter and where supply chain disruptions are unacceptable. Apollo Valves will continue to be known for superior quality and customer satisfaction. We will continue to focus heavily on the end-user level. Our contractor emphasis is very important to our long-term success.

MJM: How does Conbraco stay competitive against the influx of import products?

Glenn Mosack: Some overseas manufacturers, particularly in the Far East, do have an advantage over U.S. manufacturers where labor cost is concerned. But labor is a relatively small portion of the cost of a valve. We have distinct advantages in time to market, consistent quality, customer support and transportation costs, plus we work very hard to stay ahead in efficiency. The more efficient we are, the more we take away any cost advantage for the imports.

When you have the finest state-of-the-art plants and equipment and you have the innovative abilities of the American worker, you can compete and continue to have a superior product to sell.

Cal Mosack: And we like to point out that piece price is just one component of the total cost of ownership. In most applications, better valves pay dividends in lower life-cycle cost. When it comes to total cost of ownership, Apollo Valves are very hard to beat. 

Our customers can buy Apollo with confidence, knowing full well that we stand behind any valve we ship. There is no uncertainty when buying Apollo.

MJM: What does it mean to you and your family to continue to make all your products at factories in the U.S.?

Glenn Mosack: Even though there has been a lot of press about the decline of manufacturing in America, it is still very important to the economy. In North Carolina, for example, manufacturing still makes up nearly 20% of our entire economic output. That makes it the single largest segment of our economy. And manufacturing jobs still pay better wages and offer better benefits than most other jobs.

Carole Mosack Lee: We have 1,200 families that depend on us every day.  A lot of our employees have been with us for many years. It’s extremely important to us to keep their jobs here. We have worked together as a team to make sure their jobs will be here for them.

Cal Mosack: Apollo Valves represent a real American-made choice for valve buyers. That means a great deal to us. It’s important to our customers. It’s important to our employees and our vendors, and to the whole economy.

MJM: What do you believe sets Conbraco apart from its competitors?

Cal Mosack: High standards for product quality, customer support and accountability. We’ll fill our customers’ orders more quickly with better products and almost no problems. And we do all that a very competitive price.

On the rare occasion when there is a problem, we make things right. We have tremendous relationships with our customers. It’s important to our customers and to us. We strive every day to build trust with our customers. They know they can count on us to serve their best interest.

MJM: What has been your greatest satisfaction at the helm of the company?

Glenn Mosack: We’ve made a lot of changes to the way we do things in the past few years, but my biggest satisfaction is all the things that haven’t changed.

We’re still family owned. We’re still have the best quality valves made in America. We still listen and take care of our customers. We’ve stuck to our values, and in the process we’ve made the company stronger.