Have you been thinking about adding pipe lining to your service offerings to diversify and increase your bottom line? Perhaps you’re trying to find a solution to a client’s cracked sewer drain without tearing up their lawn?

Whatever the reason may be, the pipe lining industry is growing, and the need for a nondestructive and time-efficient solution continues to increase with the failure of public and private pipe infrastructure. According to Global Water Intelligence, the global pipeline rehabilitation market in 2009 exceeded $8 billion and was expected to top $10 billion by last year. With the exponential growth of pipe rehabilitation, now is the time to add pipe lining to your company’s service offerings.

Where do you begin? Looking for the right CIPP lining manufacturer for your business can be a challenge. The number of manufacturers that have their own products and installation processes can be overwhelming. As you start your own research for a CIPP lining manufacturer consider these factors before you order any products.

What kind of pipe lining solutions do you want to provide?

There are many applications for CIPP lining, from large sewer mainlines to 2-inch drainlines. Which do you envision will fit best with your current services? Do you work with your local town or city with larger pipelines? Do you service more residential homes or commercial properties? Finding the right pipe lining product has everything to do with the market you would like to sell to.

If you want to tap into the CIPP lining industry regardless of the property type, consider a CIPP lining manufacturer that is considered a one-stop shop and can provide nonpressurized CIPP lining, pressurized epoxy barrier coating solutions, and other tools to help you effectively complete any job.

Licensing agreements and territories

After you’ve identified the type of pipe lining solution you would like to provide, start comparing the licensing agreements each manufacturer offers. Is there a set amount of product you need to order? Are they asking for a percentage off your bottom line? Do you buy your pipe lining product and tools on an as-needed basis? These are all questions to ask a sales representative. Another important factor to note is what other companies in your area are also using the same pipe lining product you plan on buying.

Pipe lining profits

At the end of the day, your business needs to make a profit and pipe lining is a lucrative business. With relatively low labor and material costs based on your CIPP lining manufacturer’s pricing, this can result in large gross profit margins. For example, Nu Flow Technologies’ CIPP lining for nonpressurized pipe systems will produce gross profit margins of $4,480 with 50 feet of liner. For pressurized epoxy coating solutions with 24 connections, an average gross profit margin is around $6,732. Before you start buying a pipe lining product, ask the manufacturer what the average gross profit margins are for its products.

Technician training

Even with the right product, tools and machinery, you’re not guaranteed CIPP lining success. A crucial factor for your pipe lining business is your technicians. CIPP lining is a specialized field and a certain amount of training needs to take place to ensure that the pipe lining solution is properly installed. During the vetting process of different manufacturers, ask about their training programs. Do they offer an initial beginner training after you buy their product and tools? Do they offer continual education for intermediate to advanced CIPP lining technicians? Pipe lining is not yet taught at any school, so having the ability to learn from the makers and installers of the product is huge.

Whatever your reasons are for pursuing CIPP lining as a service, be sure to do your own research. From understanding licensing agreements and territories to establishing what your average gross profit margins will be, you will be well informed about which CIPP lining manufacturer is the best for your company.

About the Author

Holly Neuhaus is a marketing coordinator for Nu Flow Technologies.