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Providing coverage of Alaska and northern Canada's oil and gas industry
March 2002

Vol. 7, No. 12 Week of March 24, 2002

PETROLEUM DIRECTORY: Made in Alaska: Arctic Wire Rope manufactures most of the products it sells

Onsite production gives Alaska businesses the freedom to customize orders without the expense of shipping from the Lower 48

Amy M. Armstrong

PNA Contributing Writer

If you need to lift it or rig it or secure it, look no further than Arctic Wire Rope and Supply Inc., which bills itself as Alaska’s largest and most complete rigging outfit. “It is our primary focus,” said Eric McCallum, founder and owner of the Anchorage-based company. “I tell my people we either make things to move things or make things to keep them from moving around.”

McCallum started making slings for lifting and rigging in 1983 when he was fired from another job.

“It was probably the best thing that ever happened to me,” he said.

Since then, the company has grown into a full-service wire rope and nylon sling manufacturing plant with 17 employees and sales topping $4.5 million last year.

Making it strong

The company also makes nylon slings that can lift more than 100,000 pounds.

“The breaking strength is at a half million pounds,” McCallum said, noting the company slings provide a five-to-one safety factor in lifting capacity. “We have our own test facility and we break our own finished product just to make sure it is safe for our customers.”

From bulk webbing materials, Arctic can make nylon slings from one- to-24 inches wide. Arctic also manufactures chain slings that go through the same stringent testing.

Government safety inspectors don’t require this testing. In fact, the Occupational Safety and Health Administration does not even regulate it. But insurance companies charge more if oil companies cannot prove their slings are certified, McCallum said.

Taking care of business

Customer service has been a mainstay for McCallum since he opened Arctic Wire Rope and Supply.

“My attitude has always been that if you take care of your customers and take care of your employees, then business will take care of itself,” he said.

His philosophy must be on track because several other distributors sell the products McCallum manufactures.

The company also holds three different certifications with the state-run Made in Alaska program, which promotes products made in-state with raw materials mostly from Alaska.

“We have a lot of our customers comment as to how surprised they are about the amount of work we do right here,” McCallum said. “It is a great advantage being able to put Alaskans to work.”

Diversified products keep business going

To avoid the cyclic nature of Alaska’s economy, McCallum relies on other markets for his company. In the winter, he sells tire chains for heavy duty equipment. The state of Alaska is his largest customer in that department, but he also sells to municipalities and to freight companies.

Arctic Wire Rope also supplies replacement crane lines, anchor and tie down chain, cargo nets, fish totes and surplus chain for all hoists up to 30-ton types of heavy equipment. The tie-down straps manufactured by Arctic are used by many of the major cargo freight companies doing business in Alaska.

McCallum identified a market unique to Alaska, as well.

“In Alaskan markets, none of them are large enough to live and die by,” McCallum said. “You have to spread your eggs around.”

Due to strong tidal action in Cook Inlet, ships docking at area manufacturing plants in Kenai need much stronger mooring lines than they would elsewhere.

Arctic Wire Rope supplies mooring lines for ships docking at Tesoro, Unocal and Agrium facilities, as well as for Coast Guard vessels stationed throughout Alaska, McCallum said.

“The ships do not take these mooring lines with them,” he said. “The life usage on them can vary but it is about two to four years. They send them up to us for repairs and we have a couple guys in our shop here who really know how to splice line.”

Company founder to retire

The knowledge of employees at Arctic makes McCallum comfortable with his pending retirement.

“I will be turning over the reins here in a few months,” he said. Kathi Stanfill, the new general manager and Mark Lamoureux, operations manager, will assume leadership of Arctic Wire Rope and Supply by summer.

McCallum doesn’t have any firm plans regarding his future.

“I am a bit young to be retiring,” he said. “Part of me would like to meld my business skills with my concern for the environment.

“I want to do something more focused on giving back and less on making money.”

McCallum believes his staff will continue to run the business as he set it up.

“I think it is going to be a smooth transition,” he said.

A complete listing of company products can be found at Arctic Wire Rope and Supply’s Web site: http://www.arcticwirerope.com






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