With renewed vigor, the concrete pipe industry is fighting for market share against rival products, says 2003 American Concrete Pipe Association Chairman John Munro, president, Munro Concrete Products Ltd., Barrie, Ont. Munro assumed the chairmanship at ACPA's 95th annual convention in Bonita Springs, Fla., earlier this year. He succeeds Ray Rhees, central region president of Littleton, Colo.-based Oldcastle Precast, Inc., as chairman of the 96-year old pipe association (see “Safe At Home,” pp PC16-PC17, June 2002).

“I want ACPA to be more focused on one goal, and that is to sell more concrete pipe,” Munro emphasizes. “We want to be a vehicle to help our members do just that.”

Munro is working to make sure ACPA's activities are not so widespread that they distract from the fundamental goal. “For everything we do,” he affirms, “we must first ask, ‘How will this aid us in selling more pipe?’”

His approach in furthering that aim with other players at ACPA is multi-faceted. It includes:

• Facilitating a strategic review of all ACPA activities;
• Making ACPA's advertising more hard-hitting and aggressive;
• Reorganizing ACPA's office structure; and,
• Making ACPA more attractive to new members.

“We want to let people know how good a product concrete pipe is, on its own merits as well as in comparison to competing products,” Munro says. One means by which the association will disseminate and reinforce this message is hiring another marketing employee to complement recent increases in engineering staff.

REDEFINING FOCUS

The ongoing reorganization at ACPA began under 2002 Chairman Ray Rhees. Now complete, the ACPA Strategic Plan is being implemented. “It will continue through the next two chairmen after me, and is guided by our executive committee,” Munro reports.

The plan represents a consolidation and refocusing on the core issues of concrete pipe. “In the past we've tried to be all things to all people, and we can't do that now,” Munro says. “We found you can't address everyone's needs with one association. There may be a producer in Texas concerned with sulfate resistance, a producer in Iowa who's concerned about sanitary sewer loss, and a producer in Pennsylvania who wants us to have a big safety committee. We have limited resources, and to be effective we are having to narrow our scope and focus on what most needs to be accomplished.”

MEASURING MARKET SHARE

Furthermore, as the industry consolidates, membership needs to perceive value in belonging, and that value must be easily identified, he notes. One such benefit is measuring market share.

“Part of the value of ACPA lies in measuring market share,” Munro attests. “We have an ongoing program to measure how much market share concrete pipe has. We're determined to learn how to measure [the performance of] our initiatives, how to know we're effective in selling more pipe.”

Competitively, makers of high-density polypropylene pipe (HDPE) are trying to do more than play “me too,” he says. “I think what they're trying to say is that ‘we're better’,” Munro contends.

ACPA will get a better handle on this “he-said, she-said” sparring as its market-share survey reaches certain benchmarks. “The first part of the plan is to determine just what our market share is in target areas,” Munro explains. “This will put that ability into place. Developing that baseline is not an easy job.

“As some producers have reliable estimates of market share for their regions, ACPA is going to use these as test states to evaluate performance of advertising. Part of the challenge will be to compile statistics on all pipe used in a region based on engineering drawings, and what type of pipe was installed. It will take a number of years, but we'll establish a base,” he says. “As far as I know, in the entire pipe industry, there's never been a feel for it. We're trying to get a measurement of the total market.”

MEETING THE HDPE CHALLENGE

“One product is rigid, and one is flexible,” Munro explains, and that is a bonus for concrete pipe customers. “Comparing the materials, you get decided advantages with a piece of concrete pipe: the backfill, the structure, less risk. With a piece of high-density polyethylene (HDPE), you get installation sensitivity.”

Munro reports that in Ontario HDPE's share of the market is in the single digits. But, he knows that for some U.S. markets HDPE is a big threat. “This can be the result of marketing or the need to provide a consistently high-quality product to our customers,” Munro tells Concrete Products.

ACPA is addressing both issues by more aggressive marketing and providing members resources they can use to improve quality. “Our marketing group has changed from a philosophy in which we were reluctant to identify the deficiencies of the competing product, instead focusing on the attributes of concrete pipe, to our pointing out that HDPE pipe burns and can have significant failures,” Munro says.

“Our marketing has changed since I became chairman. It's the most aggressive the association has ever run. Until now, we have not told the whole story in terms that could be easily understood. But we're just telling the truth.”

Two house organs produced by ACPA — Concrete Pipe News and the “Newscast” newsletter — supplement the advertising program.

GOVERNMENT RELATIONS

ACPA's government relations function continues under reorganization in a capacity limited to specifications and engineering tasks. “There are bigger players, big lobby groups, involved in funding issues, and we let them take the lead,” Munro observes. “We want to make sure the specifications are fair and that the congressman from Ohio does not introduce legislation that will give competing products an unfair advantage.”

As for influencing sales through government relations, Munro asserts that demand for concrete pipe is inelastic, that is, demand cannot be created by lowering price or making more. Instead, it's sold as it's needed. “That's why concrete pipe needs to be positioned properly in the infrastructure specifications, and specified for being the superior product that it is,” he adds.

SUPPORTING SAFETY

While his prime emphasis is on marketing, Munro supports the enhanced safety emphasis promoted by his predecessor. “Safety must be is part of our normal business operation, not something separate,” he says. “Our ACPA awards program is effective and an ongoing effort. We recognize the impact that accidents have on productivity and product quality. Profitable enterprises that are well-run tend to be safe. You won't find an unsafe producer that is making good product or has high market penetration. It all melds together.”

And, for Munro, the emphasis is on quality of product, not quality assurance per se. “Quality, never mind the assurance, is one of the most important attributes of any product,” he affirms. “No one will want to buy any kind of pipe that's going to fail or not perform properly.”

Nonetheless, ACPA's Q-Cast (Quality Cast Certification Program) is a 124-point audit program conducted by independent consultants. “More and more of our members have become Q-Cast certified,” Munro reports. “Many large producer members have their own certification programs and may not need Q-Cast certification. They may already be making quality product.” In Ontario, he adds, there is prequalification system and all plants are certified. Consequently, Munro Concrete not a Q-Cast plant, but maintains comparable if not more rigorous certification.

AUTOMATION IMMINENT

Automation is ceaselessly changing the face of concrete pipe production, and successful pipe producers will embrace the change, Munro asserts. Not only will plant automation protect or boost market share versus HDPE pipe, he says, but it will help the industry produce more units, with more consistent quality, at a lower cost. And, that translates to increased sales.

“Usually, the lowest-cost product is the best product, when it's made by automation,” Munro observes. “That's because it can be duplicated endlessly on a sustained, repeatable basis.” Automation allows Munro Concrete Products to track every piece through production, store that production information, and issue serial numbers for post-sale (see companion report, pages 28-30).

“My own personal belief is that any member of ACPA who is not investing significantly to lower the price of its product and increase the quality will be at a disadvantage,” Munro concludes. “It can be the safest plant in the world, and we will have the best advertising, but if costs and quality aren't high, then we can't help very much.”

AMERICAN CONCRETE PIPE ASSOCIATION AT-A-GLANCE

As the American Concrete Pipe Association speaks on behalf of concrete pipe producers in matters affecting the industry's welfare, its members are also dedicated to environmental stewardship by producing quality concrete pipe, engineered to provide a lasting and economical solution to drainage and pollution problems.

ACPA was founded in 1907 by a small group of concrete farm-drain tile manufacturers as the Interstate Cement Tile Manufacturers Association in Ames, Iowa. The group served as a means to exchange ideas and establish high-quality, standardized products. In 1914, the organization was renamed the American Concrete Pipe Association.

Throughout the 20th century, as more people moved from farms to cities, increased demand for concrete sewer and drainage products revolutionized the industry. The introduction of the automobile and subsequent highway development extended the uses of concrete pipe storm drains and culverts.

There are currently over 400 plants operated by ACPA members in the United States and Canada. Over 40 countries are represented in the membership. ACPA's international headquarters are located in Irving, Texas.

ACPA president is John Duffy. More information can be obtained by contacting ACPA, 222 W. Las Colinas Blvd., Suite 641, Irving, TX 75039-5423; voice: (972) 506-7216; fax: (972) 506-7682, or visiting ACPA's web site: www.concrete-pipe.org/.

CHAIRMEN

2003

JOHN G. MUNRO, PRESIDENT
Munro Concrete Products Ltd. Barrie, Ontario

IMMEDIATE PAST CHAIRMAN

RAY RHEES, PRESIDENT
Central Division Oldcastle Precast Littleton, Colorado

INCOMING CHAIRMAN (2004)

DOUG MOHRMAN
Concrete Industries, Inc. Lincoln, Nebraska

TAKING OFF THE GLOVES

As part of the accelerated competitive marketing program spearheaded by ACPA 2003 Chairman John Munro, an aggressive new advertising campaign for concrete pipe is now appearing in trade and professional journals. One two-page, four-color ad shows four snapshots of corrugated metal and high-density polyethylene pipe (HDPE) failures under the headline “Avoid that sinking feeling. Specify precast concrete pipe.” Shown is the collapse of a church parking lot in Utah, a disruptive sinkhole in North Carolina, the cratering of the Trans-Alaska Highway in British Columbia, and a store parking lot in Maryland.

An even more alarming two-page, four-color ad shows HDPE pipe burning on a construction site in New Jersey, with post-fire photos of other HDPE installations in Arizona, Illinois and Texas. Urging readers to “Extinguish the burning issues. Specify precast concrete pipe,” the copy advises “this kind of nasty mess involving high-density polyethylene pipe products [is] far from an isolated incident.

“How can you douse concerns about flammability, job-site safety, even national security and potential sabotage?” the ad asks. “By specifying precast concrete pipe. It's strong, durable and made to last. Perhaps best of all, it's nonflammable. Even if fire should reach precast concrete pipe, damage is often minimal or nonexistent.”

Effectiveness of this advertising will be judged via ACPA's ongoing market survey (see main article). Both ads may be viewed in pdf format at www.concrete-pipe.org/advertising.htm