ERW Tube Buying in Ontario: The 7 Questions That Avoid Costly Mistakes

When sourcing ERW (Electric Resistance Welded) steel tube in Ontario, the wrong supplier choice can cascade into production delays, quality issues, and budget overruns. After working with hundreds of manufacturers across the GTA, we've identified seven critical questions that separate reliable suppliers from risky ones.

1. What's Your Current Production Capacity and Utilization?

Why it matters: A mill running at 95%+ capacity can't handle your urgent orders or volume spikes.

What to look for: Established mills should maintain 75-85% utilization, leaving room for expedited orders and seasonal demand. New mills often overstate their capacity before accounting for setup time, maintenance, and quality holds.

Red flag: Vague answers about capacity or reluctance to discuss current order backlog.

2. Can You Provide References from Similar Industries?

Why it matters: Different industries have vastly different requirements for tolerances, certifications, and delivery schedules.

What to look for: At least 3 references from companies in your industry or with similar applications. Ask about on-time delivery rates, quality consistency, and how the supplier handles problems.

Red flag: Only providing references from dissimilar industries or refusing to provide references at all.

3. What's Your First-Pass Yield (FPY) Rate?

Why it matters: Low FPY indicates process control issues that will affect your delivery schedules and costs.

What to look for: Established mills should achieve 95%+ FPY on standard products. Ask for data from the last 6 months, not just their "best" performance.

Red flag: FPY below 90% or inability to provide actual data.

4. How Do You Handle Material Traceability and MTRs?

Why it matters: Audit failures due to poor traceability can shut down your production and damage customer relationships.

What to look for: Digital MTR systems with lot-level traceability, automated data capture, and secure storage. Ask to see sample MTRs and their data retention policies.

Red flag: Manual MTR processes, incomplete traceability, or reluctance to discuss their quality systems.

5. What's Your Escalation Process for Urgent Orders?

Why it matters: Production emergencies happen. You need a clear path to expedited service when standard lead times won't work.

What to look for: Defined hot order procedures, dedicated production slots for expedites, clear pricing for rush orders, and after-hours contact information.

Red flag: No formal expedite process or unwillingness to commit to emergency response procedures.

6. What Backup Plans Do You Have for Equipment Failures?

Why it matters: Single points of failure in their production line become your supply chain risk.

What to look for: Redundant equipment for critical processes, maintenance partnerships, spare parts inventory, and alternative production arrangements with other mills.

Red flag: Single production lines with no backup plans or vague answers about contingency planning.

7. How Do You Handle Price Volatility and Raw Material Surcharges?

Why it matters: Steel prices fluctuate significantly. You need predictable pricing mechanisms for budget planning.

What to look for: Clear surcharge policies tied to published indices, advance notice of price changes, and options for price protection on longer-term contracts.

Red flag: Frequent unannounced price changes or surcharge policies that aren't tied to actual market conditions.

The Bottom Line

These seven questions will reveal more about a supplier's reliability than any sales presentation. The best suppliers welcome these questions because they're confident in their operations. The ones to avoid will deflect, provide vague answers, or claim their processes are "proprietary."

Remember: the cheapest quote often becomes the most expensive mistake. Focus on total cost of ownership, including the hidden costs of delays, quality issues, and supply chain disruptions.

Need help evaluating your current suppliers? Our team can review your supplier relationships against these criteria and identify potential risks before they impact your production.