Construction Today - November 2017 - 126
Industrial | HEATEC
HEATEC BUILDS ON ITS BUSINESS BY OFFERING INNOVATIVE TECHNOLOGIES. BY TIM O'CONNOR
in Chattanooga, Tenn.
hen customers trust a
vendor, they look for ways to
expand that relationship. A
successful partnership soon
begs the question: "What else can you do
For 45 years, Heatec has been providing
the answer. The Chattanooga, Tenn.-based
company started in 1972 as a repairer and
servicer of asphalt heaters but soon began
designing and fabricating its own asphalt
storage tanks. It evolved again in the 1990s
when it developed a line of industrial heaters used in natural gas production, crude oil
processing and chemical manufacturing.
In the past 10 years, Heatec has even added
a line of water heaters used in concrete
production and food processing.
The diversity of its customers has helped
Heatec weather downturns in specific mar-
CONSTRUCTION-TODAY.COM NOVEMBER 2017
kets. When oil dropped below $30 a barrel
in 2016, investment across the oil and gas
industry slowed because companies were
wary to make large capital expenditures.
Equipment manufacturers such as Heatec
were among those businesses to see oil and
gas market sales decline during the slowdown. However, the sales of asphalt heaters
and storage tanks for the construction
industry enabled the company to offset that
dip and remain stable.
Sales to oil and gas customers has since
rebounded. With the price of oil climbing
back above $50 a barrel in the past year,
Heatec has seen a resurgence in demand
for its oil and gas heaters. The company has
been bolstered by increased activity around
oil shales and natural gas deposits. "We are
seeing it swing back absolutely," Clayton
says of the oil and gas market. "We are ex-
* Headquarters: Cha anooga, Tenn.
* Employees: 250
* Specia y: Heaters and torage tanks
"We're on call 24/7 to provide parts anywhere in e world
to our products and competitors'
products as well."
- John Clayton, vice president of manufacturing
periencing quite a bit of sales in Oklahoma
and the Dakotas where there are oil bands."
Each year, Heatec produces about 125 asphalt storage tanks, 100 asphalt production
heaters and 125 industrial heaters out of its
facility in Chattanooga, Tenn. Those products
are a mix of standard and custom designs.
In the industrial market - its chemical,
food and oil and gas customers - about 70
percent of heaters sold are custom. It's the