Chicago Faucets:
Flexibility and Functionality Keys to Success
Chicago Faucets has been America’s leading manufacturer of commercial faucets for more than 100 years. With manufacturing, research and development facilities located solely in the United States, products are made with an unwavering commitment to quality backed by know-how and determination that is uniquely American.
The company’s foundry, manufacturing, assembly and distribution facilities are located within a 350-mile radius of the Des Plaines-Ill. corporate office. This provides unparalleled control of product quality and an ability to effectively deliver products to any point in the United States. Since A.C. Brown founded the company in 1901, Chicago Faucets changed the world of plumbing forever with more than 50 patents, the most significant being the Quaturn cartridge. Patented in 1913, this remarkable cartridge is still interchangeable with any Quaturn in existence and is truly the standard of reliability, durability and value in the commercial faucet industry. In 2002, the Geberit Group acquired Chicago Faucets.
The following is an exclusive Q&A with John Fitzgerald, director of marketing, The Chicago Faucet Company.
PE: What is your core business?
Fitzgerald: Chicago Faucets designs and manufactures high quality faucets, fixtures and components for commercial and institutional applications.
PE: How has Chicago Faucets weathered this recessive economy?
Fitzgerald: Like many other manufacturers, the current economy has played havoc with business. However, Chicago Faucets has distinct advantages over other manufacturers in dealing with that havoc. First, our products are made within a controlled geography. This gives us unprecedented capability to control the quality and delivery of our product. Second, we continually prepare for “what lies ahead.” We are constantly gathering data, analyzing it — including social and economic trends — and then determining what we need to do to stay one step ahead.
Our corporate management philosophy allowed us to enter this current economic phase in a strong financial position. As a result, we have been in a position to make investments that we believe will put us in a position to grow out of this economy.
Chicago Faucets operates around many core principles that have helped the company weather the storm — two of which stand out that would interest Plumbing Engineer readers. First, the company’s products are designed around flexibility — that is, parts that are interchangeable within the entire product line. This means a distributor — the company aggressively supports two-step distribution — need only carry a handful of SKUs to satisfy the customer. The focus at Chicago Faucets is production cost and manufacturability.
A second core principle is functionality. The company’s faucet designs ensure appropriateness for getting the “job done right.” The reliability and integrity of our products is time-proven, and with the largest installed base of commercial faucets in the country. Management understands that they have a distinct advantage of knowing what works, and what doesn’t.
Finally, sustainability is a core value. While the green movement is relatively new, Chicago Faucets has been green since their founding. The interchangeability of parts saves resources and caters to present and future needs. The focus on users of products empowers the company by providing ongoing feedback — giving an emotional connection with customers, which translates into loyalty.
PE: Any shifts in the business model or philosophy to combat the economy?
Fitzgerald: Our business model works quite well. Good design, properly integrated into an organization like Chicago Faucets, offers a perspective that looks very deliberately and objectively at that company’s products and services. Through a variety of inputs, it ensures that every angle is covered and every possibility considered. Therefore, being continually aware of what we can offer customers allows us to maintain relationships, trust and loyalty. When the economy recovers, it will be those companies that have paid attention to their customers, thought carefully about their offerings and prepared intelligently for a changing future that will succeed.
If anything, we have become more aggressive in new product development and enhancing customer service programs. We believe that our new product advancements and constant improvements in customer support programs will put us in a position for significant growth in the years ahead.
PE: How are you addressing the lead-free topic?
Fitzgerald: As in the case of NSF 61, we have strived to be out in front of our industry. In 2010, new laws regarding lead content in plumbing products that deliver water for human consumption will take effect in California and Vermont. Once again, Chicago Faucets is leading the way to respond to these new low lead initiatives with ECAST™.
We introduced ECAST in October 2008, a full 14 months prior to the law being enacted. We have continued to expand the products that meet this new standard with a goal of offering the most expansive line of lead-free compliant commercial faucets.
PE: Any new product offerings?
Fitzgerald: Actually, there’s quite a bit of new product news from Chicago Faucets. We continue to expand our line of electronic faucets. Our experience with HyTronic™ reinforces our position that the HyTronic line is the most reliable electronic faucet on the market. We have recently expanded this line with the E-Tronic™ 40; a lavatory faucet that we believe can bring our advanced electronic design to a broader range of installations such as gas stations, public restrooms, restaurants and small offices.
We also have introduced a new single handle lavatory faucet — the 420-CP — that we believe also will expand Chicago Faucets quality to a wider range of commercial installations. We’ve introduced antimicrobial handles that can be used to quickly retrofit existing Chicago Faucets installations; and we’ve introduced new thermostatic point-of-use mixing valves that are an ideal addition to our electronic faucets or any installation where the control of water temperature is essential or dictated by code. We also have introduced a complete line of new tub and shower mixing valves.
PE: Where are the products manufactured?
Fitzgerald: First of all, it is important to point out that 95% of our products — over 1,700 items — meet the “Buy American Act” requirements. That is an important distinction for many of our customers, especially for government installations, that demand Amercan-made products. We are able to meet this requirement with manufacturing, research and development facilities located in the United States.
We conduct product research, development and testing in Des Plaines, Illinois. Foundry, manufacturing and plating takes place in Milwaukee. We manufacture components and assemblies in Elyria, Ohio. We handle assembly and distribution in Michigan City, Indiana.
PE: Can you talk briefly about R&D and your durability testing of products?
Fitzgerald: We have a product testing lab in our Des Plaines facility that is constantly subjecting new and existing products to rigorous cycle and durability standards. We truly have a global research and development team for our products — our product engineers from our Des Plaines facility, as well as the parent office in Jona, Switzerland. Our goal is to consistently produce products that exceed all industry cycle and durability standards.
Excellence in sanitary technology. Worldwide. That’s the Geberit Group’s focus, and that’s why Geberit sets trends in sanitary technology. Geberit’s activities are based on a global approach — not just a specific region. That thinking is one of the reasons they purchased Chicago Faucets — it fit their strategy. For example, investment in research and development (R&D) was almost $20 million. R&D of the whole range of products is made centrally by Geberit International AG. As such, Geberit carries out applied research and development in the entire field of sanitary technology, as well as in related areas. Highly qualified engineers and specialists apply their knowledge and experience to fundamental sanitary technology research and the development of new products. Our research activity allows us to continuously introduce new and innovative products to the market, which thereby satisfy the requirements of our customers.
PE: Can you describe your priority ship program?
Fitzgerald: A good example of our continued investment to support to our customers is CFNow! This program assures our customers that orders for some of our most popular products will ship within five days. We have continued to expand the products offered in this program and recently introduced CFNow! Express that provides next-day shipment.
PE: How big of a role does customer service play in the end game for Chicago Faucets?
Fitzgerald: Customer service is the most important role for our company. If you don’t listen to your customers, who should you listen to? Many companies practice VOC (Voice of the Customer), but they often only want to hear what they want their customers saying. Listening, really listening, is difficult, because what you hear isn’t all good. Chicago Faucets’ success stems from taking all that information and translating it into products and service meaningful to our customers. That takes a serious commitment from the top of the corporation downward. It’s evident here. Combined with extremely well experienced customer service personnel and sales representatives, our goal is to lead the industry in this area.
PE: Look into your crystal ball and tell me where you see Chicago Faucets in five years?
Fitzgerald: Following the lead of our founder, A.C. Brown, I see our company continuing to advance faucet design with a focus on new technologies and water conservation. While I believe that we will see continued growth in the United States, I believe that our company’s reach will expand to new emerging economies across the globe.
Chicago Faucets will maintain its leadership position in the commercial faucet industry. Our development of new ideas isn’t focused adding more features to new or existing products — we focus on adding customer benefits. We believe in continually working with our customers and markets and determining their needs. Performance, reliability and durability have governed us for more than 100 years, and I can’t see anything changing these in the future. If anything, the future will re-emphasize the need for these basic tenants of manufacturing.