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November 2001

Vol. 6, No. 18 Week of November 25, 2001

PETROLEUM DIRECTORY: Arctic Insulation and Manufacturing: Rebuilt and growing

Big Lake company specializes in “nesting” together pipes and jackets with foam insulation

Lori Jo Oswald

PNA Contributing Writer

A year after Jim Protzman moved his business, Arctic Insulation and Manufacturing, from Anchorage to a huge new warehouse in Big Lake, the Miller Reach fire of 1996 burned it down. All of the company’s equipment and building space were lost.

But perhaps persistence should be Protzman’s middle name.

Within a few months, he had rented space and started building a new shop.

The company is now located at Mile 3.5 on South Big Lake Road, where it occupies 4 acres across from the Big Lake Fire Station. Arctic Insulation operates out of five specialty designed heated shop buildings with a total of 14,000 square feet of heated shop space and three cold storage buildings with another 20,000 square feet.

Villages are main source of company’s business

“If you can design it, we can build and insulate it,” is the company’s motto.

Arctic Insulation specializes in making insulated pipes for water and sewer projects. Protzman explains how the process works: “We buy the carrier pipe and the jacket. We nest it together and then inject insulation in between it.” This is all done in the Big Lake warehouse; then the pipes are delivered to the customers in the field for installation.

Most of its customers are or involve villages, such as Point Lay and Point Hope. Protzman lists North Slope villages, a state agency,Village Safe Water, and the federal Public Health Service among the company’s customers. As Protzman explains, “Whenever the villages want to get rid of their honey buckets, we will provide insulated pipe and all their underground and aboveground utilities. We provide everything from fire hydrants, manholes and insulated HDPE (high-density polyethylene water and sewer carrier pipes),” as well as installation of above and below ground storage tanks.

Protzman says that his company also offers fusion equipment rentals — the equipment that actually welds the pipe together. “We don’t put the pipe together; we rent it to them and they weld it together.” Although Arctic Insulation will field train the installers if needed, Protzman said that “most of the contractors we work with are already currently trained and have certified people.”

The company is always expanding into other areas when there is a need. Protzman said, “Since the fire, I picked up a line of sewage vacuum valves that are manufactured in Germany. A lot of the villages are going to vacuum systems. Also, since the fire, I’ve started doing custom fabrication of HDPE fittings.”

Company’s history begins and ends with Protzman

Protzman learned his trade in the urethane business beginning in 1978, when he worked for the Vertecs Corp. in Anchorage. Vertecs is a foam urethane insulation company based in Kirkland, Wash. At that time, it had an office in Anchorage.

Protzman first worked in the field, traveling to villages where he would spray foam insulation for various projects.

In 1983, he was moved into the office as the company’s estimator, and in 1987 he was promoted to branch manager.

In 1990, Protzman said, “I bought the Anchorage office out.” Vertecs had wanted him to move to San Diego to run an asbestos abatement program. “From 1987 to 1990 we had completed about $25 million of asbestos abatement from Anchorage offices and schools, such as schools,” Protzman said. He turned down the move and instead “made them an offer to buy the company out,” Protzman said. “I’m a third-generation Alaskan, so I didn’t have any desire to leave.” He purchased Vertecs’ equipment and changed the local company’s name to Arctic Insulation and Manufacturing.

In 1985, Protzman decided to move from the Anchorage location. “I only had about 2,000 square feet of space … and was running out of room for where I wanted to go and what I wanted to do (with the company),” he said. Because property was so much less expensive in the Valley, he purchased a 10,000 square foot building in Big Lake from the state of Alaska. Then came the fire.

Some businesses never recovered from the fire’s destruction. But Arctic Insulation not only survived, but flourished. Since 1996, the company’s business has increased about 300 percent. It now grosses between $3 million and $4 million annually.

Competition abounds

Protzman says all of his company’s jobs are obtained through the bidding process. “There’s a fair amount of competition” out there, he said; “we probably get more than our share.”

But he emphasizes that Arctic Insulation’s workmanship and service make the company uniquely qualified to handle the insulation needs of his clients. He takes pride in his company’s ability to meet deadlines and provide the customers with a product they are satisfied with.

“With the facility we have and the qualified dedicated employees,” he said, “we can turn out a lot of product. We also have a Seattle insulated pipe supplier that can help us make quick deliveries on orders (if we need them to).”

Other qualities that work in Arctic Insulation’s favor are the company’s “very competitive pricing,” Protzman said, and the fact that the company stands behind what it does. “We have always worked with the field contractor to ensure that when he gets started we can provide the supplies that he needs. We work weekends, overtime, whatever to make sure they get what they need. They may call on a Friday and need it on a plane Saturday morning; we’ll go the extra mile to do that.”

Present success and future plans

“We stay pretty busy,” Protzman said.

His business is one that doesn’t see much slow down in the winter. From the 11 warehouse and four office staff members (including Protzman) the company now has, the warehouse staff might drop to seven or eight employees in the winter.

In fact, Protzman has just purchased a new urethane truck so that the company can expand and do more area fieldwork, providing foam insulation spraying for residential customers. “Up here, it’s something that fills the void when it gets a little slow,” said Protzman, adding that he hasn’t owned a urethane truck for 15 years.

As for the company’s future, Protzman said, “We’re here for the long run. We have some really good people here. I still have employees who have worked for me since 1978.” He said he believes in taking care of his employees. “I pay them right, I treat them right, and I make sure that they know that they are part of the program and that their opinions are valued.” Every Friday, the staff members meet for what Protzman calls a “family lunch” meeting, where the employees are encouraged to discuss any topics of concern.

Protzman plans to continue his company’s growth and success. “We just hired a (second salesman). We want to keep growing. We continually look at new products to sell and manufacture. We are currently finishing up on building a self-contained bathroom that will attach to the outside of an existing house.”

It seems, when one hears Protzman’s business philosophy, that Arctic Insulation will indeed keep growing: “Keep it safe, build a good product and try to make money, in that order.”






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