Hard Work and a Family Focus Pay Off for DHSteel
Raw Materials/Parts
By Fernie Grace Tiflis   
Wednesday, 14 March 2007
smc DHSteel says it is driven toward what the market asks for, but it vows to remain a local builder.
DHSteel says it is driven toward what the market asks for, but it vows to remain a local builder.
A key to a successful business is to remain industrious, according to steel fabrication veteran Don Herbe Sr. “If you get a job, [you must] work hard on it and get it done right,” he says. Herbe served as the general manager and vice president of operations for structural steel manufacturer and erector Erie Steel Products for 50 years prior to establishing his own company, DHSteel Products LLC, in 2006. Herbe is 72 years old, and serves as the president of his company.

With the same business structure in mind, Herbe and his three sons acquired 100 percent of Erie Steel’s assets. His timing was good. “We [entered] into business at a very good time,” says partner and Vice President of Sales Jeff Herbe. “[Last year] was a good year for us and a good year for the general contractors. For several years, Erie, Pa., took a hit due to businesses leaving. But there has been a push to bring more businesses into Erie, and it has allowed for more construction.

“We see a stable market into 2008,” he continues. “Erie’s always been known as a manufacturing city, but we seem to have lost that and we’ve seen more [projects] that attract tourism such as casinos and convention centers [that] come to town. There has also been more of a local push to bring companies into the area, both of which creates more jobs, enhances the economy and ultimately creates a need for new construction, which [in turn] helps our business.”

Don Herbe says he has seen more fluctuations in the market in the past few years than he did while working for Erie Steel. “When I first got in the business, the [market] was more steady,” he recalls. “Now, the jobs are more complex – [they are] designed more for aesthetics. Years ago, appearance was not a critical part of a [project]. I see this trend continuing because everyone wants to be fancier and they want their [buildings to] look more monumental.”

DHSteel says it is open to changes and works with engineers, architects and designers as the market evolves. However, despite the calls to work out-of-state, Jeff Herbe says, DHSteel wants to stay close to home. “We make it a point to acquire [work] within our local area,” he explains. “We’re one of the few companies who does fabrication, erection and detailing all out of one location. Our competitors either do one or the other or they subcontract it. Some [companies] are so large that they forget the local contractors. We are positioned to serve the small contractors’ needs, as well as new construction projects.”

Staying Lean
An ongoing challenge for DHSteel is dealing with fluctuating steel prices. “We’re always trying to prepare for what’s [going to happen] down the road,” Herbe explains. “We don’t sit there and use the term ‘lean manufacturing’; we just try to be smart.”

He explains the company keeps a close eye on inventory. “We don’t go crazy and overbuy steel,” Herbe notes. “It is cheaper to buy in bulk, but you want to turn it around quickly. We try to minimize our scrap. The key to that is to review all your needs and know when to buy material cut to length for a particular project and when to buy stock length and cut yourself.”

A Family Operation
Other partners in the company are Vice President of Operations and General Manager Don Herbe Jr., who oversees DHSteel’s day-to-day operations, and Dave Herbe, CFO, who manages the in-house accounting department. A family oriented company, it takes ethics to heart. “We have a strong sense of morality,” Jeff Herbe notes. “We don’t chase every job out there – we try to build strong, long-lasting relationships. It’s very important to have a good reputation and good business sense, and this starts from the top-down.”

DHSteel says it plans to remain a local builder. “We want to focus on local projects,” Herbe states. “We don’t want to change the direction we’re going, which is to be the preferred supplier for our industry within Erie and the surrounding tri-state area – eastern Ohio, western New York and northwestern Pennsylvania.

“We’re driven toward what the economy asks for, whether it is new construction, industrial repair, small additions or pre-engineered metal buildings. We’re flexible and capable to serve whattever projects the economy allows for. We will continue to stay ahead in the industry to service our customers the best we can.”

Herbe credits the company’s success to his father. “The main reason why our business has been successful is because of our dad,” he says. “It is because of his knowledge and reputation that we have enjoyed the early success we have had. I truly believe we have the most skilled, efficient employees, but without a doubt, the best in the business is our president, Don Herbe Sr.”
 
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