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With 10 subsidiaries in the Midwest and more than 1.2 million square feet of inventory, fabrication and processing space, Chicago Tube & Iron (CT&I) is one of the largest steel service operations in the country.

Additionally, the company’s inventory of more than 30,000 line items is sourced from premier manufacturers around the world. Founded in 1914, the company notes it also has the experience and expertise to supplement its extensive product offering. “Our more than 90-year history of consecutive profitability has provided the necessary capital resources for growth, thus ensuring consistent reliable customer service,” the company says.

Based in Romeoville, Ill., CT&I is a leading distributor of steel tubing, bar, pipe, valves and fittings; it also fabricates pressure parts for the electric utility industry. In a recent conversation with Energy+Infrastructure, General Manager Gerry Osborne discussed the company’s strengths in quality, efficiency and technical skills.

Energy+Infrastructure: CT&I claims to have had more than 90 years of consecutive profitability. What do you attribute that to?
Gerry Osborne: It is because of our dedication to the markets we serve and the detailed focus we have on our operations. The management style here is one of precision. We focus intently on cost control, profit control and executing our business plan in a successful manner. We are lucky to have a lot of smart people working here who add tremendous value to our operation.

E+I: How do you achieve quality in your operation?
GO:Everything we do follows ASME boiler code, but we also have our own quality assurance program and manual that outlines guidelines for every action. We have detailed procedures and policies to support our quality and help our people do their best. We also follow our customers’ own specifications for quality in the design and manufacture of their products.

E+I:How do you maintain efficiency?
GO:We moved into a new plant in December 2008. To ensure it best met our needs, we designed it ourselves. We started designing it in summer 2007.

Compared to before, the new plant has a production area that is three times larger; we designed the production floor so the workflow is more efficient. We also improved material handling processes. Before, we had to do our painting outdoors, which was very problematic.

Not only did we have to drag all of the equipment outside of the building, we also had to expose it to the rain, dust and various airborne pollutants. In the new plant, we have an area for painting, and that part of the operation is much improved.

We also improved our welding capabilities by adding X-ray technology. Welding is one of our strategic skills, so we are constantly focused on improving it.

E+I: Have you been responding to any recent trends among your customers?
GO:This market is really thick in politics right now. Under the previous presidential administration, the government wanted to moderate some environmental regulations because the laws were too restrictive toward opening electrical power plants in the United States. The current administration has changed the focus and wants to reduce the use of fossil fuels – that affects our customers and us. If those fuels are restricted, we’re likely to see increased prices for electricity.

This will add more than $1 trillion to the cost of electricity generation. This will cause more U.S. manufacturers to leave the market and may lead to mandates for the ongoing renovations of individual homes. No one knows what will happen, so there is a major uncertainty in business planning.

E+I: What are your plans for growth?
GO:We have tripled our size in the last five years, which is tremendous. Before, we were turning away a lot of business because we didn’t have the capacity. Now, we can take advantage of what comes our way. It will be a challenge to maintain the level of growth that we’ve had in recent years, but we are positioned well.