In our continuing Industry Forecast series, we talk with Peter Orler, Strategy Director, Viega, on topics such as the short-term economy, supply chain issues, and lessons learned over the course of the pandemic. Here is our exclusive Q & A with Viega. MH: We’ve all experienced supply chain shortages recently in one form or another Read more
supply chain
![](https://hydronicshub.com/wp-content/uploads/sites/2/2021/02/Uponor-UVU_Bridge_OremUT_PP-RCT_2020_003-200x113.jpg)
In our continuing Industry Forecast series, we talk with Peter Orler, Strategy Director, Viega, on topics such as the short-term economy, supply chain issues, and lessons learned over the course of the pandemic. Here is our exclusive Q & A with Viega.
![](https://hydronicshub.com/wp-content/uploads/sites/2/2022/03/Viega-Kansas-campus-610x343.jpg)
Viega Assembly, Warehousing and Distribution—McPherson, Kan.
MH: We’ve all experienced supply chain shortages recently in one form or another. Do you project a turnaround soon or within the next 6-12 months for certain materials that relate to your specific company?
Orler: We’ve started to see some recovery in raw material availability early in 2022, but we expect to see shortages continue to pop up over the medium term. Labor availability is a huge driver of this—even where raw materials are available, it’s difficult to staff a complete workforce to fill production lines. The situation has really forced us and other manufacturers to adapt and become more flexible with our operations.
![Peter Orler, Strategy Director, Viega, supply chain, 2022 economy, Viega, plumbing, HVAC, 2022 Industry Forecast](https://hydronicshub.com/wp-content/uploads/sites/2/2022/03/Viega-ILC-Eastview-A-610x407.jpg)
Viega Training Center, Broomfield, Colo.
MH: We are in the midst of some of the highest inflation rates since the early ’80s. Do you think that higher inflation becomes a “newer normal”? Explain.
Orler: Inflation may settle at higher rates than we’ve seen over the past two decades or so, but we don’t believe the current level of inflation represents a semi-permanent new normal. The economic situation over the past two years has been out of the ordinary for a number of reasons (e.g., COVID, supply chain disruptions, labor policies). In the past (e.g., late 70s) when we saw inflation reach these rates in the US, it has been for a period of 2-3 years before settling at a lower level. Monetary policy levers could bring it down faster as the Fed has signaled that quantitative easing will be phased out and interest rate increases are likely on the way.
MH: In general, how do you see the economy short-term? Give a few examples of how you draw that conclusion?
Orler: We focus mostly on commercial, multifamily, and institutional construction starts as our markets. 2021 saw a remarkable year-over-year increase (18% per Dodge) that brought us back to near 2019 levels. We’re seeing things even out to near normal (4% to 10% year-over-year increase in 2022 starts forecasted, depending on segment). Given our focus on pipes, valves, and fittings at Viega, we’re also paying particular attention to the impact of public investment funding on water infrastructure.
![Peter Orler, Strategy Director, Viega, supply chain, 2022 economy, Viega, plumbing, HVAC, 2022 Industry Forecast](https://hydronicshub.com/wp-content/uploads/sites/2/2022/03/propress_yellow_family_003_EDITED.jpg)
ProPress family
MH: Where are you seeing signs of positivity, if any?
Orler: We continue to see strong construction project volume, particularly focused in mid-size metropolitan areas. A few sectors stand out – healthcare starts have been impressive, warehousing and logistics facilities continue to grow as e-commerce demand remains high, and retail and office continue to work their way back from lows during the early part of the pandemic.
MH: How do you as manufacturers work with customers who are dealing with longer lead times and/or higher prices? Is it a matter of open lines of communication?
Orler: We’ve been as transparent as possible with our customers. One thing that we’ve found through this is that our customers care a lot more about reliability than speed. It’s been critical that, once we set an anticipated date and quantity, we deliver on that promise. Our customers have been understanding on both longer lead times and price increases as long as we clearly explain the drivers behind why it’s happening and deliver to what we promise.
MH: It seems that in today’s employment landscape, it’s hard to find good labor, whether it’s truck drivers, waiters at restaurants, etc. In our industry, how do we continue the fight to highlight the trades as a great career choice?
Orler: It starts early—we need to ensure that students know that the trades are a strong option for their future. Our plumbers and mechanical contractors solve complex problems, deliver excellent customer service, and leave their mark on their communities. We partner closely with a network of trade schools to help promote the trades as a career and ensure these benefits are well known. We then work with plumbers and contractors throughout their careers—from apprentice to master—to meet their professional goals and become models to the next generation for what’s possible in the trades.
MH: In spite of COVID, people must move on. How has your company evolved—or continued to march forward—over the past two years, and talk about any new initiatives, expansions, etc.
Orler: COVID has helped us rethink how we engage our customers. A prime example of this is how we train customers to use our products – early in the pandemic, we designed the concept for ViegaWorks sessions which are remote engagements led by one of our very talented technical consultants. This started as a way to be there for our customers even when we couldn’t be on-site, but it has evolved into a tool that we’ll continue to use to deliver remote support even as we engage with more customers in-person.
We’ve also evolved our approach to customer outreach. In the past, we were able to rely on our boots-on-the-ground to reach every job site and contractor in their area. As job sites closed off and engagement moved remote, we found that marketing and inside sales could be a valuable approach to make sure we’re reaching every customer that would benefit from Viega press technology even with job sites closed to us. We’ve ramped up our promotions, including working with RIDGID and Milwaukee to offer press tools to contractors to introduce them to pressing.
As we’ve started coming back to in-person engagements, we’ve really tried to maximize our touchpoints with our customers. We were excited to see everyone at AHR and took the occasion to launch our new Viega valve lines live and in-person.
![](https://hydronicshub.com/wp-content/uploads/sites/2/2021/04/Viega-ILC-Eastview-A-copy-200x133.jpg)
When I asked Sean Debnath, VP of Sales and Marketing, Viega, about the short-term economy earlier this year, he said, “The uptick in business that we all experienced gradually through Q3 and Q4 of 2020, seems to be continuing in to Q1 2021. But we choose not to take that trend for granted with all Read more
When I asked Sean Debnath, VP of Sales and Marketing, Viega, about the short-term economy earlier this year, he said, “The uptick in business that we all experienced gradually through Q3 and Q4 of 2020, seems to be continuing in to Q1 2021. But we choose not to take that trend for granted with all that is happening around us, and deal with it a month and a quarter at a time. Viega has taken steps with frequent testing and tracing to ensure we keep our factories and distribution centers running.”
Through all of this uncertainty and one month-at-a-time mentality, making the transition to a new CEO can be difficult enough. But through a pandemic? Mechanical Hub recently talked with Viega’s new CEO, Markus Brettschneider, about his vision for the company, and navigating through these uncertain times.
MH: How has Viega navigated through the pandemic and what does the path moving forward look like as we start to normalize?
Brettschneider: Since the beginning of the pandemic, the health and safety of our people has come first. We put into place regular testing and safety measures at the facilities where in-person work was required. Moving forward, health and safety will continue to be our focus. Our other big focus is our customers, and we have done all we can to keep production and distribution as normal as possible. With all of the challenges in the logistical side, it’s a tense period. But we haven’t shied away from spending money to keep things running smoothly. We hope in the coming months to get colleagues back to the office and find new ways of working in various setups. We very much look forward to meeting our customers once again face-to-face, while at the same time being very careful and keeping everyone safe. So far this year, the outlook is positive.
![Viega, Viega CEO Markus Brettschneider, Markus Brettschneider, PVF, supply chain, COVID-19, plumbing, piping, hydronics, HVAC](https://hydronicshub.com/wp-content/uploads/sites/2/2021/04/Viega-ILC-Eastview-A.jpg)
Viega’s interactive displays in Broomfield, Colo.
MH: Has the company learned anything during the pandemic that will be implemented more into the business plan (virtual trainings, less travel, etc.)
Brettschneider: I think we have learned that virtually, a lot is possible. There are even certain benefits when it comes to training as well as new ways of engaging with customers. It will be interesting to see how things like trade shows and other events evolve in the future, but in 2020 we reallocated most of those funds into other channels to make the most of what we could. We didn’t cut any funding. Instead, we trained our own people to be capable in this digital environment, and have excelled with virtual education and customer events. We know there have been changes in buying behavior in the past year, and we remain open to this ever-changing business landscape.
MH: What are some of your top initiatives for the company?
Brettschneider: Our biggest priorities right now are safety and supply to the customers. We’re looking at things like raw materials, logistics and the availability of workforce. We are continuously investing in our company footprint through automation, digitization and robotization. This is all important to help drive growth with our customers. We also know how important it is to invest in virtual and online marketing, as well as launch additional customer training activities.
![Viega, Viega CEO Markus Brettschneider, Markus Brettschneider, PVF, supply chain, COVID-19, plumbing, piping, hydronics, HVAC](https://hydronicshub.com/wp-content/uploads/sites/2/2021/04/Viega-ILC-Archway-View-F.jpg)
Viega’s Seminar Center in Broomfield, Colo., comes with a view.
MH: What has impressed you the most since joining the company?
Brettschneider: The people—our colleagues, the customers and the Viega family ownership. I’m extremely impressed with the products as well as the relationship we have with our customers and the opportunity to grow in our space. I’m also impressed with the commitment of the Viegener family to the company globally as well as its strong commitment to Viega LLC (the North American market) specifically. I’ve found the company is willing to constantly invest in order to grow the business, and the ownership’s passion and commitment is impressive.
MH: Explain Viega’s commitment to the supply chain and wholesale channels.
Brettschneider: We have proven our commitment to the supply chain, especially over the last few years . During that time, we grew the manufacturing and distribution presence in McPherson, Kansas, and we invested heavily in the workforce within the supply chain. We hired additional people to ensure our commitment in the U.S. is as strong as it always has been, and will continue. It’s important for us to invest for continual growth, and we know that our distribution and logistical centers are a key part of the business.
![Viega, Viega CEO Markus Brettschneider, Markus Brettschneider, PVF, supply chain, COVID-19, plumbing, piping, hydronics, HVAC](https://hydronicshub.com/wp-content/uploads/sites/2/2021/04/FB-IG-V1.jpg)
Training is paramount with Viega, and getting contractors back into the facilities, safely, is the goal.
A good example of our commitment was after the record cold snap in Texas and other southern states. We prioritized shipments and looked at unique ways to get products to the area that was so desperately in need of help. We are eager to work with our partners to drive growth, and are currently adding points of distribution throughout the U.S. We are a strong believer in wholesaler business and remain absolutely committed to our wholesaler distribution setup.
MH: What are some things you’ve learned throughout your career that will help you in your new position?
Brettschneider: Simply put, there is nothing more important than your own people and building great relationships with customers. Those ideas are central to a successful business.
MH: How do you see the short-term economy?
Brettschneider: Between the Covid relief package, some of the American population having more disposable income than ever, lower fixed-interest rates and potential infrastructure packages, we’re optimistic. We’ll see bumps here and there, I’m sure, because of the uncertainty of a global pandemic, but the fast-pace rollout of the Covid vaccination is giving us all a more positive outlook for the short-term U.S. economy.
![Viega, Viega CEO Markus Brettschneider, Markus Brettschneider, PVF, supply chain, COVID-19, plumbing, piping, hydronics, HVAC](https://hydronicshub.com/wp-content/uploads/sites/2/2021/04/Viega-McPherson-2019_-1676.jpg)
A McPherson, Kansas, facility.
MH: Provide an update of the McPherson locations — expansions, new innovations, etc.
Brettschneider: We have invested heavily in that location over the past few years, in both infrastructure and people. This year we are focused mostly on hiring people. It’s important to recognize we are investing not to just maintain, but to grow. Our plan has been to build for significant growth so that we are ready when there are sudden spikes in demand (such as the Texas cold snap). In terms of infrastructure, the expansion in logistics was completed early in 2020 and is fully operational. The new ProPress building is completed, with some machines in operation, while others will be arriving later this year (delayed due to Covid).