For 90 years, four generations of Fladers have operated Flader Plumbing & Heating Co. in Evanston, Ill., serving the suburbs from Chicago north to the Wisconsin border.
In March 1940, Fortune magazine featured the company as one of the nation's 15,000 neighborhood plumbing firms. Flader Plumbing has survived while many others have not remained in the founding family's hands.
Old in experience, Flader Plumbing still faces the growth issues confronting all independently owned small- and medium-sized companies: profitability, adhering to sound business practices, keeping up with new technologies, and adapting to change.
LOOKING BACK
The business dates to 1917, when it was established by Gottfried William "Fred" Flader, a farm boy from Sheboygan, Wis.
In its first year of business, Fred Flader Plumbing & Heating Co. generated revenues of $33,000 and earned an $11,000 profit. His family's business continues to provide service to the northern suburbs.
When Fred died in the early 1960s, his son Calvin took over. In 1976, Calvin's sons John and William (Bill) bought the business. John became president, and Bill vice president. Calvin Flader died in 1985.
"Our showroom and main office have been in this building since 1971," says Bill Flader. "We're located on one of Evanston's three major downtown shopping streets." Flader Plumbing opened additional warehouse locations to serve an expanding customer base and to save employees travel time when restocking their trucks. Each location has a fax machine and a two-way radio.
READY FOR INSPECTION
Evanston is a primarily residential city of about 75,000, where preservation of historic homes is a high priority. Helping to maintain these homes is a major source of business for Flader Plumbing.
"We repair and maintain our clients' homes, but we don't get involved in new construction, except to correct mistakes of the original plumbing contractor," says Flader.
Flader Plumbing was among the first local companies to get video inspection equipment. "We like to be one of the first to try new technologies," says Flader. "Our employees are equipped with the tools and knowledge to make their daily work easier and to do their job successfully. When our employees are more efficient, it's a win-win situation for us and for them."
Technicians inspect lines with RIDGID SeeSnake cameras. "We keep the cameras in our offices, and our repair staff takes them as needed," says Flader. "We have one camera for larger lines, and one for smaller lines. They both use the same monitor and recording devices."
The company uses the cameras to check flows on constructions sites, for proper installation of lines, and to locate blockages.
The firm also owns two RIDGID KJ200 jetters. "They are easy to move," says Flader. "They can be lifted as one piece, or the motor and hose can be moved separately. They are used for root removal and for two other unusual purposes - hosing our truck wheels, and removing latex-based graffiti painted on brick walls.
HISTORIC RESTORATION
Flader Plumbing also offers root-removal. Evanston is designated as a Tree City USA, and the roots of large trees often grow into pipes.
"We prefer to use chemical treatments whenever possible to remove roots," says Flader. "We use products manufactured by RootX Root Control Corp. We use chemicals about three times as much as we use our jetters. Roots are responsible for about 95 percent of our drain backups. All of our pipelines have to be carefully monitored for root growth and stoppage of solids movement."
The client base includes some work for restaurants and shopping malls, but the focus is residential. Before starting a job on a historic house or other structure, the company submits plans to the local preservation board and city agencies to secure permission. Any changes made are in keeping with the era of the house.
"We use directional boring to go under landscaping so that it is not disturbed," says Flader. "Many homes have big front porches, which require directional boring. No two houses are the same. We hire a subcontractor to do the actual boring, but we work closely with their equipment and employees. We provide the materials, supplies, and manpower to install the new pipes.
"We only work with landscaping when the building owner requests that we do. Then we work closely with the client's landscapers, or we recommend my son Tom Flader's company, TGF Enterprises, in Libertyville, Ill. Tom started his company in high school and now has a staff of 30 full-time employees."
MAINTAINING THE FLEET
The service fleet includes 14 vehicles, mostly Ford trucks. All the trucks are hand-washed weekly by a truck-cleaning company. Employees are responsible for keeping the interiors clean. Flader's younger son, Douglas, does the vehicle maintenance.
"Doug keeps a large chart to help remind him when to perform regular preventive maintenance, including emission testing, battery replacement, oil changes, and tire rotation," says Flader. The company trades in its trucks every five years.
"At night, all of our vehicles are housed in climate-controlled garages," Flader says. "Salt, snow, and rain don't stay on our trucks. When we sell them, we get better trade-in values. Our trucks get a lot of attention. They are fire-engine red, with reflective 3M Scotchlite letters."
Each employee gets a clean uniform daily. Employees who return to the office or a supply center during the day can change to a fresh uniform. Each truck carries drop cloths, personal protective gear, and shoe booties. Employees who do work on boilers carry respirators on their trucks.
"We have very little employee turnover," Flader says. "One employee, Leo Ferretti, started working for my grandfather and retired in 1996 after 41 years with us."
The firm holds monthly staff meetings. Sometimes manufacturer representatives come in to demonstrate new products. Other meetings are "open situation forums where employees bring in problems and we learn together to solve them," Flader says.
BUSINESS PRACTICES
Flader's wife, Joan, is responsible for the accounts receivable and payables. The firm plans to acquire new software that will integrate caller identification with customer-service data in the computer system. "One of our most serious concerns is developing a way to protect against the fraudulent use of credit cards," Flader says. "There is no insurance we can purchase to protect ourselves."
As in the small towns of yesteryear, customers still trust their neighborhood plumber. "Clients still give us their door keys - and now their security codes," Flader says. "That allows our employees to work on their houses or buildings while they are away. This is a service we have offered for decades, and the reason why it's especially important that we hire employees our clients can trust."
On the bottom of every service ticket, Flader technicians make personal recommendations based on what they found and what has changed since the last service call. For example, they may comment on the status of roots in the pipes and recommend how to fix the problem. "We send out reminders when it's time to clean pipes and take care of other maintenance problems," says Flader. "This helps to generate business."
For more than 90 years, Flader Plumbing & Heating has provided quality service to clients from an efficient family-run hometown company. The firm's employees know their clients and, more important, the buildings in the communities they serve.