CDA Member Q&A: Readiness to Supply Copper for Lead Service Line Replacement Initiatives

In response to the historic investments made by the Biden-Harris Administration in water infrastructure and lead pipe replacement, we recently conducted a comprehensive Q&A session with members of the Copper Development Association (CDA). Our session's primary focus was understanding CDA members' preparedness level to meet the growing demands associated with the lead service line replacement initiative, specifically, their capacity to leverage copper service lines as a viable solution. 

Throughout our discussion, we delved into various aspects, including the approach to addressing compliance inquiries, the support extended to water utilities, the impacts on domestic manufacturing, strategies to overcome challenges in supplying copper service lines, and the effort to educate customers about the far-reaching benefits of choosing copper in line with the national infrastructure goals set forth by the current administration. 

This dialogue aimed to shed light on how CDA members are actively contributing to the revitalization of water infrastructure and the creation of new domestic manufacturing jobs, as well as their role in realizing the objectives outlined by historical federal investments. 

The participating members included Devin Malone, President of Mueller Streamline, Enrique Leizorek, Executive Vice President of Standard Products and Operations, Cambridge-Lee Industries LLC, and Eric Pilas, Vice President of Sales and Marketing, Cerro Flow Products LLC. Each company is a notable player in the copper industry, contributing to the supply chain and manufacturing of copper products for various applications.

1. The requirement for Build America, Buy American (BABA) initiatives is American-made products for federally funded infrastructure projects. How often are you asked about compliance (or manufacturing location), and what type of support or documentation can you provide to support your 100% American-made copper tube?

• Pilas (Cerro Flow): Our customers routinely ask compliance questions regarding BABAA. Not only do we manufacture 100% of our copper tube in the USA, but over 70% of our raw materials are sourced from mines in the USA. Additionally, we have our revised BABAA document available on our site for easy access.  

• Malone (Mueller Streamline): We are not frequently asked about our product's compliance and attribute this to two main reasons. Firstly, many already assume that Mueller is an American-made product due to the brand's reputation in the marketplace. Secondly, we believe that the lack of stringent enforcement of the initiative is another factor contributing to the limited requests for compliance documentation. If we do receive requests for such information, we can provide our customers with a Build America, buy America certification sheet outlining the necessary requirements to certify that our products meet the standards.

• Leizorek (Cambridge-Lee Industries LLC): We have established long-standing relationships with our copper distributors, and our clients are well-acquainted with our domestically manufactured products. Our manufacturing facility is located in Redding, Pennsylvania, ensuring compliance with BABA. We possess the capability to provide certification upon customer request. Our certificate of conformance explicitly references the mandates of the Buy American Act and the requirements outlined in Title IX of the Infrastructure Investment and Jobs Act. This demonstrates our commitment to meeting the specified infrastructure and jobs requirements. All our products fully comply with these mandates. Customers can access these resources and documentation on our website; alternatively, we can readily supply them upon request.

2. How do you ensure water utilities customers are prepared to support Build America, Buy American (BABA) initiatives?

• Pilas (Cerro Flow): Notably, around 9 million service lines from water mains into homes are contaminated with harmful lead. This massive project is supported by government funding, which requires the use of products Made in the USA. As these funds are allocated, our role is to effectively communicate this message and ensure our distributor partners are informed about these promising opportunities.

• Malone (Mueller Streamline): We are working with the CDA to promote copper as the preferred piping system for replacement projects. This initiative supports the Build America, Buy American campaign, as all CDA members involved are domestic manufacturers. Our primary goal is to educate utilities on the benefits of choosing copper over other piping systems for their installations.

• Leizorek (Cambridge-Lee Industries LLC): We are dedicated to meeting our client’s product needs daily, striving to deliver on time and with the expected quality. Our production capacity has been ramped up, especially for products linked to the infrastructure initiative. While we offer a diverse range of products, not all are exclusively designated for this initiative. However, we are expanding our production of the specific products needed for the initiative. Given the endorsement of this project by the White House, we are prioritizing and ensuring that we meet the associated expectations.

3. With the increased focus on US-made products for water infrastructure improvements, what impact has this had on your company's manufacturing investments, technology, or jobs?

• Pilas (Cerro Flow): Cerro is responding to the surge in demand by consistently enhancing and modernizing our facility to boost capacity and efficiency without compromising our stringent quality standards. Concurrently, there has been a rise in demand for copper in various industries, such as Electric Vehicles, which has strained raw material supplies. Proactively, Cerro has secured contracts with major copper producers to fortify our position in the supply chain.

• Malone (Mueller Streamline): Mueller has placed significant focus on strategic investments in manufacturing Type K coils, which are used in replacing underground service lines. Additionally, we have made substantial investments exceeding $100 million in our domestic copper manufacturing capabilities over the past decade. Leading the industry in this regard, we have prioritized investments in our manufacturing facilities to enhance capacity and efficiency. These efforts aim to enable us to effectively handle the increased volume associated with the lead service line initiative.

• Leizorek (Cambridge-Lee Industries LLC): We are committed to continually investing in our production capacity to meet market demands. As a result, we are proactively recruiting new personnel with the necessary skills for the specific processes required by this product. We will also implement additional shifts within our current infrastructure to support these enhancements.

4. We hear about supply chain concerns and long lead times for specific materials or equipment needed for infrastructure projects. Does servicing/supplying customer copper service lines face any challenges with the increased demand?

• Pilas (Cerro Flow): Fortunately, Cerro is part of the Marmon Group / Berkshire Hathaway. Marmon has several companies that supply copper to a variety of industries and have a good pulse on the raw materials. Additionally, Cerro sources most of our raw materials domestically, and we manufacture in the USA. We are not constrained by tariffs, logistic delays at seaports, or in-land intermodal.
• Malone (Mueller Streamline): We have demonstrated sufficient capacity to meet the rising demand and are confident that there is industry-wide capacity to support the increased need for copper in the lead service line initiative. The main bottleneck may arise from labor availability on the utility side and how quickly they can deploy enough workers for these replacements. Copper manufacturers are prepared to manage the increased volume efficiently.
• Leizorek (Cambridge-Lee Industries LLC): This project is expected to unfold gradually over the next few years. We are confident in our capacity to meet demand. It is unrealistic to expect an immediate and simultaneous fulfillment of increased demand by all mills. However, with sufficient lead time and resources, we aim to effectively meet demand over the projected timeline of three to five years. This collaborative effort involves multiple domestic manufacturers, giving us confidence in collectively satisfying the demand.
  

5. What steps have you taken to ensure that water utilities customers are prepared to meet the increased demand for copper service lines as part of the lead service line replacement initiatives set by the White House and EPA?

• Pilas (Cerro Flow): Cerro has upgraded our operations to adopt LEAN and agile practices. We promote continuous improvement in every facet of the organization to enhance serviceability and optimize the overall customer experience. Additionally, our website features a comprehensive collection of "transparency" documents that endorse the sale of copper tube, including BABAA compliance, REACH, RoHS, and TSCA (Toxic Substances Control Act Compliance). With this information, owners, engineers, contractors, and distributors can trust that they have selected the ideal material solution for their needs.
• Malone (Mueller Streamline): We are proactively ensuring that utility customers are informed about the benefits of choosing copper over plastic or other materials for lead service line replacements, and we are prepared to meet their supply needs. Our focus is on educating them about the superiority of copper as a material choice and ensuring seamless supply to accommodate their requirements. Moreover, Mueller has strategically invested in our copper tube mill in Mississippi, including enhancements to manufacturing equipment, physical assets, and process flow. These improvements, such as optimizing plant layout and streamlining operations, are aimed at boosting the throughput of this product category.
• Leizorek (Cambridge-Lee Industries LLC): We have taken a proactive approach to initiatives like this, which demand more attention and resources. We are currently focusing on hiring new personnel who possess the required knowledge and skills to support this specific product and streamline associated processes with different skill sets. This investment in human resources reflects our commitment to improving production speed, efficiency, and output. We also understand that meeting this increased demand might require adjustments to our current production schedule, so we plan to add supplementary shifts to our existing infrastructure. Doing so allows us to utilize our facilities more efficiently and maximize production output without compromising product quality and safety. We believe these investments in our personnel and production capacity will be instrumental in meeting the increasing market demand, ultimately.

6. How are you working to educate and inform customers about the benefits and reliability of copper service lines in addressing lead pipe replacement and improving water infrastructure, in line with the Biden-Harris Administration's investments?

• Pilas (Cerro Flow): Cerro is proud to partner with the CDA in marketing initiatives and lobbying efforts.  Not only do we share market intelligence on the huge opportunity of lead service line replacements with our team members, but we also share these opportunities with our distributor partners and on a wider basis through our robust social media efforts.

• Malone (Mueller Streamline): We are working closely with the CDA to raise awareness about the advantages of copper piping systems over other alternatives. Through collaborations with local municipalities, trade schools, and other industry partners, we aim to educate the industry about the benefits of copper. In line with this, we are leveraging the extensive work done by the CDA, such as documents, tools, and literature, and sharing it with our sales organization. Our sales team is focused on providing this information to our customers to ensure they understand why copper is the preferred choice. This effort to drive the adoption of copper is a collective effort of the industry led by the CDA.

• Leizorek (Cambridge-Lee Industries LLC): We consistently direct individuals to publications and web pages for comprehensive information on the various benefits of using copper, especially to the CDA website. The extensive knowledge available online highlights why copper has emerged as a highly sought-after product in the current market landscape. This robust body of information, backed by substantial research, underscores copper's unparalleled reliability and attributes it as a superior material choice. In my view, this wealth of data is a key driver behind the initiative's inception.

7. Responding to the opportunities presented by the Build America, Buy American (BABA) initiative, how can communities and policymakers benefit from choosing copper service lines to support these national goals?

• Pilas (Cerro Flow): Copper is a proven, reliable, and durable product ideal for buried underground applications. In contrast, PFAS, also known as "forever chemicals," are human-made chemicals that are a cause for concern. On the other hand, copper is derived from a natural mineral, which we simply transform into a new shape of plumbing tube. Drinking water is one of the main sources of PFAS contamination, which is why using copper tubes should provide the public with peace of mind regarding safety.
• Malone (Mueller Streamline): Choosing copper for piping systems offers multiple advantages. In terms of lifecycle cost, copper's longevity and durability outweigh the higher upfront material cost, as it eliminates the need for frequent replacements. Moreover, copper's complete recyclability and its safety and reliability make it an attractive and sustainable choice. Supported by the CDA and their valuable research, copper stands out as a compelling option for infrastructure projects.
• Leizorek (Cambridge-Lee Industries LLC): Communities will undoubtedly reap the benefits of this initiative, particularly through the creation of a substantial number of new job opportunities, starting from the mills producing the materials down to the contractors involved in the installation process. However, the most significant advantage for these communities will be accessing cleaner and safer water within their homes. This achievement will not only benefit residents but will also be attributed to the policymakers, potentially becoming a pivotal aspect of their lasting legacy.