Diversifying Supports Elkhart Steel’s Growth

By Stowe, Gene

In 1979, when Walter “Bus” Miller started Elkhart Steel Service, Inc. as an independent company, the operation that had been the steel warehousing division of Elkhart Bridge & Iron was on the verge of facing industry changes.

The family anticipated a decline in the demand by some steelusing companies in St. Joseph County that since have gone out of business or greatly reduced operations, says Brad Miller, Walter Miller’s son who joined the business in 1980.

It began catering more to the RV industry in Elkhart County and diversified by adding a roll forming operation in the 1990s, first with angles and channels in 1990, then with hat sections in the mid- 1990s.

“Things were ratcheting down,” Miller recalls. “We kind of shifted our focus over to that. The margins and steel warehousing are just not there. We’re kind of what they call a general warehouse – beams, channels, angles, plates, sheets, bars. We also have a roll forming operation.

“Between the RVs and the cargo trailers, that’s about 50 percent of my business.”

The other half of the business is mostly a large number of smaller customers.

“It’s also some interesting accounts,” Miller says, such as one significant customer in Kalama zoo who builds snowplow blades. “We provide some parts for him.”

While rising gas prices slowed down the RV industry somewhat in 2006, Miller expects demand will keep the industry going. Baby boomers who have waited years to own an RV are not likely to be deterred by gas prices in the long run.

“It’s fairly steady,” he says. “It’s a little slow right now, but I think the demographics are helping out.”

The business is growing. It has 35 employees at its Elkhart location and eight at Lape Steel in Benton Harbor, which the conipam acquired in 1997.

“The employment has been pretty steady,” Miller says.

Elkhart Steel added 7,500 square feet to the Elkhart location in recent years and bought more land. The location now has 55,000 square feet, including 40,000 for warehouse and I 15,000 for the roll forming operation.

Customers seemed to have accepted the higher prices for the product.

“Almost three years ago, the price of steel practically doubled Miller says, “It’s quite a change.

Steel that was selling for 18 to 20 cents a pound between 2000 and 2002 now sells for 41 or 42 cents a pound.

For more information on Elkhart Steel Service, see the company’s Web site at www.elkhartsteel.com.

Copyright South Bend Tribune Corporation Jan 08, 2007

(c) 2007 Tribune Business Weekly. Provided by ProQuest Information and Learning. All rights Reserved.