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The lack of a trained workforce remains a persistent challenge for most industries. Heater Specialists (HSI) faced the same challenge, made more difficult by strong sales and intense competition for skilled workers across FCC equipment, vessels, columns, towers and fired heaters. With workforce shortages and capacity constraints, how does a company meet client requirements?
HSI found a quick and successful solution through the acquisition of ParFab Industries. While an acquisition may not be the right business decision for every organization, it can offer immediate revenue growth, address workforce shortages and enable a focus on specialized client solutions.
For HSI, the benefits of this acquisition were overwhelmingly positive. ParFab Industries was a direct competitor in the fabrication of structural steel for fired heaters, as well as in the refractory and coatings divisions. The acquisition afforded HSI the opportunity to tactically relocate its structural steel fabrication activities to the newly acquired ParFab facility in Inola, Oklahoma. This positioned the new HSI Tulsa headquarters to expand its fabrication capacity for FCC equipment, vessels, columns and towers, while eliminating the resource competition that had previously limited throughput. Both facilities feature state-of-the-art refractory and coatings departments, enabling projects to be completed from start to finish at a single location.
Leveraging existing capacities and capabilities while expanding one’s solutions library is critical for an acquisition. The process of identifying potential growth assets should be strategic and focused on complimentary business segments. The organization’s ability to quickly respond to an opportunity that meets the business’ needs cannot be overstated. Have a plan, engage with a team of acquisition professionals and be committed. The company stakeholders will be excited to support the intrinsic values an acquisition provides.
When the opportunity to acquire ParFab Industries became known, HSI was able to react quickly and start the negotiations. A strong financial position gives an organization the flexibility to seize opportunities and is crucial for a successful growth-by-acquisition strategy.
HSI’s acquisition of ParFab Industries was a major move toward addressing production challenges, boosting its skilled workforce to over 250 full-time employees. The acquisition also doubled the company’s physical footprint, adding over 100 acres and an additional 170,000 square feet of covered shop space. With the increase in workforce and capacity, HSI has been able to add new customers, provide critical and on-time fabrication solutions and expand its specialty vessel fabrication and refractory services.
Heater Specialists would like to showcase its capabilities through a tour of its facilities or an on-site Lunch and Learn. Interested parties can schedule their preferred meeting to learn how Heater Specialists can support manufacturing solutions.
For more information, visit hsibuilt.com.
