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.
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.
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.
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.
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.