American Piping Products lands $2 million supply contract with pipe fabricator

American Piping Products has won a $2 million contract as the exclusive pipe supplier to a national pipe fabricator. The pipe, sourced internationally by American Piping Products, will eventually make its way into the construction of a chemical plant after fabrication.

This contract is just another example of American Piping Products’ value prospect in the supply chain. From sourcing hard-to-find products from around the world to maintaining one of the largest inventories of carbon, chrome and alloy pipe, American Piping Products is able to support fabrication products with short lead times.

Executive Vice President of Sales Kevin Koehler said, “The fabrication industry has come to recognize us as a premier player in the pipe, valve and fitting industry.”

American Piping Products has vastly expanded its inventory and value-added services, allowing American Piping Products to customize, bevel and profile pipe across the pipe chart and specifications. The company’s growing international presence and ability to customize pipe has made it increasingly competitive on price.

“We’ll do the work, do the end preps they require,” Koehler said. “If they give us drawings, we have equipment to profile pipe, miter cut, and custom bevel. All of these capabilities save our customers on their labor overhead.”

In addition to increasing its product inventory and lowering its prices, American Piping Products now works on the financing end to help customers’ cash flow, a major factor in the pipe fabricator’s decision to source its pipe from American Piping Products.

Koehler said, “In many cases, we maintain inventory on hand for our customers. They draw the inventory as they need it. This helps our customers with their cash flow and reduces their WIP.”

The work has paid off for American Piping Products. The pipe distributor has nearly tripled its revenue from $63 million in 2009 to $185 million in 2012. The 19-year old company has made appearances in the Metal Center News Top 50 Pipe Distributors and Suppliers and the St. Louis Business Journal’s Top 150 St. Louis Private Companies for 2012.