In Richmond, Virginia, two companies that make piping have combined their expertise to create an expanded joint venture by purchasing the former Quanex manufacturing facility in town. The two companies, Zekelman Industries and Maverick Pipe, are combining skills in PVC piping and steel piping to create a wider range of products, including PVC fencing. Their owners have expressed an interest in increasing domestic manufacturing capability of PVC and steel piping, explaining why they stepped in to purchase the closing Quanex plant.
Since purchasing the Quanex plant, the owners of Zekelman Industries and Maverick Pipe have invested some $20 million in new equipment to fit within a 300,000-square-foot manufacturing facility. After the upgrades are complete, the factory is expected to generate up to 100 million combined pounds of PVC piping and PVC fencing per year. Also of tremendous value to the Richmond-area economy is preserving the 143 jobs that would have been lost to the closing of the Quanex factory. When Quanex announced it was closing the Richmond facility and consolidating its output in other facilities in Illinois and Washington, the two other companies decided to capitalize on the talent base left behind.
PVC Pipe Market is a Major Construction Supplier
The PVC pipe industry is a growing market in the United States, with applications in landscaping and wastewater management in addition to traditional residential and commercial plumbing. Roughly 4 percent annual growth in the PVC market is expected over the next decade, especially as more homeowners and landowners become aware of the importance of tailored irrigation and wastewater management.
Commercially, there is a strong demand for new PVC pipe as older pipes, especially metal pipes, wear out from use. Many older water systems in the United States use metal pipes, which can suffer from corrosion and suffer from expensive leaks. In irrigation, using PVC piping to direct water is more efficient than using earthen canals, which are prone to leakage, water absorption, outside contamination, and evaporation. Therefore, while installing new PVC piping in commercial buildings and farms may be expensive up front, it can save thousands of dollars in the long run through increased efficiency.
Construction Market Likely to Expand in Upcoming Years
PVC piping is increasingly popular in construction, as it is easier to work with and suffers less corrosion than metal pipes. Additionally, the construction industry itself is expanding in the United States, bolstered by the Inflation Reduction Act of 2022 and its investment in new infrastructure. Business expansions in the United States are expected to continue in 2025 and beyond due to tariffs increasing the incentive to reshore manufacturing operations, which will require new facilities to be built.
New manufacturing facilities in the U.S. will require substantial amounts of both PVC and metal piping, which could prove to be a major payoff for the $20 million investment made by Zekelman Industries and Maverick Pipe. If the government provides tax credits and/or subsidies to domestic firms looking to reshore operations, this could boost demand for construction services even further by helping overcome higher construction costs in recent years.
Image credit: The Lane Report
