Last fall, Anaheim-based ECB Corp., better known as Omni Duct Systems, made a big operational shift.
The maker of air ducts for heating and cooling systems switched production to afternoons and overnight in a bid to gain more business from contractors looking for quick turnarounds.
“Our customers almost always want it tomorrow,” said Chris Short, vice president of operations and general manager.
The move came as sales were plummeting amid the recession.
Last year Omni Duct did nearly $40 million in sales, its most ever after acquiring an Arizona competitor.
But this year, the company expects to see its first ever drop in sales.
Convincing workers to work later wasn’t hard, Short said, when the alternative could be layoffs.
Earlier, the company cut about 30% of its workers as the construction industry spiraled. It now employs about 110 people in Anaheim with another 70 in other locations.
Manufacturing takes place from 2:30 p.m. to 2 a.m., with workers coming in at staggered times.
The company’s ducts are found at Angel Stadium of Anaheim, The Shops at Anaheim GardenWalk, Downtown Disney and Mariners Church in Irvine, among others.
For the most part, the ducts of galvanized sheet metal are behind the scenes, moving cool or hot air to people.
Some restaurants make them part of the decor, as at JT Schmid’s Restaurant & Brewery across from Honda Center in Anaheim.
Otherwise, “it’s not a sexy business like Microsoft or Apple,” Short said.
The 30-year-old company sells only to contractors. It has about 800 customers—from one-man shops to large contractors. About a fourth are local.
Like all California manufacturers, Omni Duct has to deal with strict air pollution rules and other tough business conditions.
About half of the manufacturing is done here because the fragile, lightweight air ducts are vulnerable to being crushed during transit. Other locations include Sacramento, Ontario, San Diego and Arizona.
In Anaheim, Omni Duct operates from a 70,000-square-foot building on 8 acres, where it keeps a ready stock of 10 miles of ducts.
It’s had the site since 1996, when it took it over from Atlanta-based paper goods maker Georgia Pacific LLC.
Omni Duct leases space to five companies that also sell to air and heating subcontractors. The company calls its headquarters and the other businesses the Anaheim HVAC Super Center.
Nearly all of Omni Duct’s products are custom-made.
“There’s no one size fits all in this business,” Short said. “We’re responsible for moving a certain amount of air per minute from one place to another. The lengths and thickness vary from project to project.”
The process starts by unwinding 9,000-pound spools of coiled steel.
The price of steel, bought from places such as California Steel Industries Inc. in Fontana, is one of the biggest factors in the business.
Lately it’s been priced at about 25 cents a pound, down from nearly 60 cents a couple years ago.
The steel is cut with a plasma cutter into rounded and rectangular shapes, with sizes from a few inches in diameter to a few feet.
Workers, Business
Workers mold the ducts into precise fits for the buildings they’re designed for.
About half of Omni Duct’s manufacturing jobs are considered skilled positions making products too complex for automation.
The other half is entry-level positions, such as forklift drivers.
It’s stayed free of unions since 1994, when the company replaced workers who went on strike and “never looked back,” Short said.
Since then there have been at least five attempts to unionize but they never gained steam, he said.
Most of Omni Duct’s competition comes from contractors that make their own ducts. They make up about 80% of the $400 million yearly market in California, according to Short.
Omni Duct is hoping to gain business from those contractors by convincing them to buy from the company instead.
Saving on production is one selling point. Equipment used to make the ducts can cost from $100,000 to $250,000, according to Short.
Being able to make the ducts overnight is another.
The company also is looking to grow by acquisition.
Omni Duct could buy another company before the year is over, Short said, if it can find favorable financing.
Ed Brumleu founded Omni Duct in 1982 after he mortgaged his house to buy the equipment from his former employer before it went out of business.
At the time, the industry was just adopting the heavy machines used to cut and mold ducts.
Brumleu retired in 1997 when the business was sold to son Bob Brumleu, who now is chief executive. Kyle Brumleu, Bob’s son, works in customer service as part of his grooming to one day take it over.
“We want to keep this a family business as long as possible,” Short said.
