Lock Joint Tube is a leading steel tube manufacturer

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After acquiring Lock Joint Tube in 1991, the Lerman family transformed the company into a leading steel tube manufacturer that today generates revenues of more than $150 million a year.

Throughout the years, Lock Joint Tube has worked tirelessly to expand its market segments, producing both mechanical and structural-grade steel tubing for varied industries. “Lock Joint Tube services fabricators as well as original equipment manufacturers with different sizes and many unique special shapes of steel tubing used in diverse industries,” it says.

The South Bend, Ind.-based firm provides components for exercise equipment, ATVs, office and school furniture, truck trailers and the automotive industry, as well as for store fixtures and the healthcare market. Lock Joint Tube has two manufacturing facilities in South Bend as well as one each in Temple, Texas, and Chattanooga, Tenn.

Lock Joint Tube was founded in 1919 by the Woodka family, who were neighbors of the Lerman family. In 1948 the Lerman family founded Steel Warehouse Co. Inc., which continues as a successful part of Lerman Enterprises today.

“[Lock Joint Tube] under the previous ownership did well throughout its history, but they struggled the last few years,” President Ted Lerman says. “We ended up buying the company in a bankruptcy in 1991.”

Immediately, the Lerman group invested in inventory and equipment to improve efficiencies and quality. Under the former ownership, “The problem wasn’t the reputation, but the issue was production,” Lerman says. “They didn’t have the money to invest.

“We were able to double the size of the business immediately, from $25 million to $50 million,” he adds. “Our biggest investment was capital equipment and inventory.

“We are excellent is staying up to date in technological advances and we’re always looking for ways to be more efficient,” he adds. “[Plant Manager Dave DiTommaso is] making sure supervisors keep everyone accountable.”

The company also strived to implement a cooperative atmosphere instead of a combative atmosphere, Lerman says. “For example, after the bankruptcy, we negotiated with em­ployees so we could best serve the customer but we didn’t touch the wage structure,” he notes. “We want the workers to make a good living and we want them to know that we’re in it for the long haul.”

Value Adding
The marketplace has changed substantially since his family acquired Lock Joint Tube, Lerman says. For example, many of the final products are now produced overseas and imported to the United States, so the amount of tube required for domestic production has decreased. “We got hurt in 2002 and 2003 when [de­mand] went away, but some has come back,” he notes.

The low dollar value and the price of shipping products were factors in the comeback, Lerman notes. However, the company believes focusing on value-added products will keep customers from going overseas. For example, all three of its plant locations have tube laser capabilities, which allow them to meet increased specifications and requirements, Lerman says.

“We really try to stay true to our core competencies,” he says. “We’re always trying to improve and do a better job.

“We’re hoping to grow our business by continuing to give customers a superior quality product, delivered on time,” he adds. “We’re making incremental investments to improve quality, reliability and efficiency.” Lerman views his executive staff as outstanding and fully supportive of this vision.