Welding & Gases Today | Q1 2024 by Welding & Gases Today

The Official Publication of the Gases and Welding Distributors Association

INDUSTRY

FORECAST SMC PREVIEW

SUPPLIER PROFILE

MEMBER PROFILE

GAWDA NEWS

Lead witth Purpose, Serve with Heart

Kaplan Industries

Noble Gas Solutions

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First Quarter 2024

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Contents

First Quarter • Winter 2024 • Volume 24, No. 1

DEPARTMENTS

PAGE

06 PRESIDENT’S VIEW ead with Purpose, L Serve with Heart BY GARY HALTER

10 DIRECTOR’S DESK Hitting the Ground Running in 2024 BY JOHN OSPINA

12 EDITOR’S NOTE

I Feel Like I’ve Seen This Movie Before BY STEVE GUGLIELMO

GAWDA CONSULTANTS 16

Looking Ahead to the Year in Regulatory Compliance BY STEVE GUGLIELMO, TOM BADSTUBNER, MARILYN DEMPSEY, MICHAEL DODD AND RICK SCHWEITZER

Life Lessons

Unified Carrier Registration

Staying Upright Slips, trips and falls are the number cause of worker injuries

BY MARILYN DEMPSEY

BY MICHAEL DODD

BY PAUL BERNIER

ITR First-Quarter Outlook Inflation is Abating for Now But Will Come Back BY BRIAN BEAULIEU

2024 INDUSTRY FORECAST

Distributor Forecast

Supplier Forecast

AWS FORECAST AWS Embraces USA: Understand, Simplify and Automate By Robert Roth

MEMBER PROFILES 38

Noble Gas Solutions New Structure, Same Family Values

By Rich Gottwald

BY STEVE GUGLIELMO

Kaplan Industries A True Family Success Story BY TIM HUDSON

2 • First Quarter 2024

CGA FORECAST CO2 Solutions: Bridging the Gap Between Environmental Concerns and Essential Uses

U.S. Reshoring & Industrial Gas Opportunities

Searching for Continuity Amid Disruptions

By Art Anderson

By Ken Thompson

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Contents

First Quarter • Winter 2024 • Volume 24, No. 1

THE TEAM EXECUTIVE EDITOR

John Ospina jospina@gawda.org PUBLISHER

Bill Brod billb@gawdamedia.com EDITOR IN CHIEF

Steve Guglielmo steveg@gawdamedia.com CONTRIBUTING EDITORS

Natasha Alexis nalexis@gawda.org Andrea Levy alevy@gawda.org CREATIVE DIRECTOR

Robin Barnes robinb@gawdamedia.com VICE PRESIDENT, SALES

Tim Hudson timh@gawdamedia.com

FEATURES

Meet Your 2024 GAWDA Board of Directors

GAWDA Members Run Their Brains in Paradise

Generative AI: What’s All the Fuss About?

90 95 97

BY STEVE GUGLIELMO

2023 ANNUAL CONVENTION RECAP

BY DAMIAN RADCLIFFE

Search Engine Trends for the Gases and Welding Industry Two Objectives Distributors Should Focus on for 2024 BY MIKE MARKS

Unify Your Sales and Marketing Teams to Close More Deals in 2024 The importance of collaboration in the modern B2B World BY DEVON E. HOFFMAN

100

Sales and Marketing or Marketing and Sales?

102

The Customer Experience Continues to Change

104

Overcoming Adversity and Becoming Resilient

BY JOHN TAPLEY

BY ART WASKEY

BY ANNABEL CHOTZEN

RELATIONSHIP MANAGERS

NEWS ROUNDUP

Hannah Gray hannahg@gawdamedia.com Lesli Mitchell leslim@gawdamedia.com RESEARCH & DEVELOPMENT COORDINATOR

Athena Cossette athenac@gawdamedia.com

106

2024 GAWDA Spring Management Conference Preview

115

New Products

108

Industry News

118

New Members

113

Mergers & Acquisitions

2024 Industry Events

114

120

Advertisers Index

Welding & Gases Today (USPS 22-975) is published quarterly: Winter, Spring, Summer and Fall, with additional publications in Spring and Summer. • Non-member subscription rate is $195 per year. • GAWDA members (key contacts and branch locations) receive the magazine as part of their dues. • GAWDA members can order additional yearly subscriptions (4 issues) for $40. • Welding & Gases Today is published by Data Key Holdings, LLC on behalf of the Gases and Welding Distributors Association. • Periodicals postage paid at Ft. Lauderdale, FL, and at additional mailing offices (ISSN 1558-5344). • Editorial correspondence should be sent to Editors, c/o editor@gawdamedia.com. Advertising correspondence and materials should be sent to William Brod, Data Key Holdings, LLC, 19 Albany St., Suite 2E Cazenovia, NY 13035; telephone (315) 445-2347, fax (315) 422-1721. • Postmaster: Send address changes to Welding & Gases Today, Gases and Welding Distributors Association, One Oakwood Blvd, Suite 195, Hollywood, FL 33020 • Welding & Gases Today is the official journal of the Gases and Welding Distributors Association (GAWDA) and carries news and announcements concerning GAWDA. • It is not responsible for contents or opinions other than association activities. • Contents are copyright ©2024 Data Key Holdings, LLC. • All rights reserved. • Nothing may be reproduced in whole or in part without written permission of the publisher. • Questions and comments can be sent via e-mail to Editors, c/o editorial@gawdamedia.com. • Data Key Holdings, LLC reserves the right to print portions of or all of any correspondence mailed to the editors without liability on its part and no such correspondence will be returned. • Visit Welding & Gases Today Online at www.GAWDAmedia. org. Statement of Ownership Publication Title Welding & Gases Today. Publication number 22-975. Filing date 09/2023. Issue frequency quarterly + 2 special issues. # of issues published annually: 6. Subscription price part of member dues. Mailing address of known office of publication and headquarters: One Oakwood Boulevard, Suite 195, Hollywood, FL 33020. Headquarters address same. Publisher: William Brod, Data Key Communications, 9 Albany St., Suite 2E Cazenovia, NY 13035. Editor: John C. Ospina, GAWDA Executive Director, One Oakwood Boulevard, Suite 195, Hollywood, FL 33020. Editor in Chief: Steve Guglielmo Data Key Holdings, LLC, 9 Albany St., Suite 2E Cazenovia, NY 13035. Owner: GAWDA, One Oakwood Boulevard, Suite 195, Hollywood, FL 33020. Average net press run 1803/1875. Outside county paid/requested mail subscriptions 1850/1875. In-county paid/ requested mail subscriptions 0/0. Sales through dealers and carriers 0/0. Requested copies by other mail classes 0/0. Total paid and or requested circulation 1775/1803. Outside county nonrequested copies 0/0. In-county nonrequested copies 0/0. Nonrequested copies distributed through USPS by other classes 0/0. Nonrequested copies distributed outside the mail 150/400. Total nonrequested distribution 150/400. Total distribution 1850/1875. Copies not distributed 100/100. Total 1950/1975. Percent paid and/or requested circulation 97.5/96.2.

4 • First Quarter 2024

552-16FW 552-16FW 552-16FW

750-10 750-10 750-10

PRESIDENTS

View

Lead with Purpose

H Gary Halter is GAWDA’s 2023-2024 President as well as President of Indiana Oxygen Company. He can be reached at 317-808-4060 or by email at garyhalter@ indianaoxygen.com

6 • First Quarter 2024

APPY NEW YEAR GAWDA Members! I hope Santa was good to all of you, as I am sure you were all very nice in 2023. As I have been thinking about writing this article, the three things that have been going through my mind are: even with all of the challenges we are facing, we are blessed to live in the United States of America; we are blessed to have been given the opportunity to work in this outstanding industry; and I am grateful for the positive results and prosperity we have experienced in 2023, as we are preparing for the challenges of 2024. The theme that was introduced on the final day of the outstanding Annual Convention in Maui, “Leading with Purpose, Serving with Heart,” was created with the intention of addressing some of the key challenges we are facing within our industry, according to our GAWDA Surveys. Before I address the specific challenges, below are four pillars of success that are key in both building a positive, results-oriented culture, along with dealing with adversity. Those pillars are Teamwork, Chemistry, Humility, and Gratitude. All of us on the GAWDA Team are looking forward to 2024 and the Spring Management Conference in San Antonio, as well as the Annual Convention in Phoenix. We are all focused on making our industry the best in can be by addressing the challenges facing us, including: • Industry consolidation • Winning the war on talent

• Managing the knowledge drain • Embracing Artificial Intelligence • Doubling down on our already strong com-

pany cultures. As we are still working on the plan for the Annual Convention, we have a very strong agenda prepared for you for the Spring Management Conference in San Antonio that will also include some fun! The theme for the President’s Welcome Reception will be “A Little Bit Country, a Little Bit Rock ‘n Roll.” And, as always, that theme will be accompanied by some good music and even better company. We encourage attendees to wear their favorite band or concert t-shirt, dress up as your favorite musician and, maybe, the opportunity to do some of your own singing and show off your musical talents will present itself! This year we will have six education sessions that will address the challenges listed above. Those sessions are: • Industrial Gases Supply Updates • Leadership: Be Human. The Success of Your Team Depends on it! • Creating “stickness” in your company culture • Artificial Intelligence and Cybersecurity • Economically Speaking • forLabor Market Update and Creating Effective Talent & Compensation Strategies • Kickin’ Gas – a discussion of best practices continued on page 8

LEADERS IN INNOVATION At Lincoln Electric, we maintain a commitment to innovation in everything we do. From the new Ranger® Air 260MPX™, to the Sprinter™ 180Si, we are driven to deliver new products that make your customers’ welding experience easier, more productive, more efficient – in a word, better. As the world leader in the engineering, design and manufacture of advanced arc welding equipment and solutions, we are proud to offer a full lineup of innovative products, backed with the expertise and support you can trust.

PRESIDENTS

View

There will also be four very strong keynote speakers who will cover important topics such as: Leading as a Force for Good, Artificial Intelligence, Industry Leadership Tips from ITW/Miller Electric, and an author and public speaker named Adrian Gostick who co-wrote a National Best-Selling Book called Leading with Gratitude. To conclude, thank you for reading this! All of us associated with GAWDA and our outstanding industry are looking forward to seeing you in San Antonio, so don’t forget to register! One last comment around the 4 pillars as we head into 2024: • If we truly care about each other and put others before ourselves, we create teamwork. • If we demonstrate an, “I’ve got your back” mentality – the team has chemistry • If we recognize our limitations and continue to learn, we create a company with humility and continuous improvement mindset • If we express “over the top thanks” to everyone in our path – we create a culture of gratitude • And, finally, while we do the above let’s have some fun! Be thinking about your concert t-shirt and musical outfit, in the meantime! HAPPY NEW YEAR.

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DIRECTORS Desk

Hitting the Ground Running in 2024

W John Ospina is GAWDA’s executive director. He can be reached at GAWDA Headquarters in Hollywood, FL, via telephone at 844-251-3219 or via email at jospina@gawda.org.

10 • First Quarter 2024

ith the holidays behind us, GAWDA has hit the ground running. Our membership renewal early bird period ended December 31 and more than 90% of our members have renewed so far. We’re quickly closing in on the last few non-renewed members, so, if you haven’t renewed, please do so as soon as possible so that your access to GAWDA services is not impacted. We have a great year lined up beginning with the Spring Management Conference in San Antonio, TX. We have nine education session presenters covering topics like AI, Cyber Security, Gas Trends, Leadership, Employee Retention, Talent, and Compensation Strategies. Our Contact Booth Program features over 135 booths and Tabletops. During the general sessions, there are also five main stage speakers you won’t want to miss. We will also be announcing the names of the 15 recipients of this year’s scholarship program. You can read more about the speaker line up, our education session topics, Contact Booth Program and receptions in the SMC Preview on page 106 or online at GAWDA.org The Regional meeting schedule starts with our newest addition to the program. The Southeast Regional Meeting is scheduled to take place in Marietta, GA. After looking at all the locations of the upcoming regional meetings, it was clear that the Southeast was not being represented, so it was quickly added to the schedule. Within two

weeks of opening registration, nearly 100 members registered for this event. This was a good sign that surrounding members were eager to have a regional meeting back in their area. This event is shaping up to be a great success, so don’t miss the opportunity to participate. For more information about this and other regional meetings visit our web site at www.gawda.org/events. In mid-January, GAWDA put out a call for volunteers to join the new Technology Committee. Within days we had nearly two dozen volunteers. The primary objective of the Technology Committee is to drive innovation in the Gases and Welding industry. The committee will evaluate emerging technologies, and provide guidance on capabilities, limitations, security considerations and best practices to encourage the enhancement of our member's technological capabilities. This committee will play a crucial role in helping provide actionable information that will ensure all our members remain at the forefront of industry trends. As the year progresses, we will continue to advise you on industry trends, add additional webinars and programming on relevant topics and partner with sister associations to bring you the most up to date industry information. Remember to visit our website, read through the GAWDA Connection (our biweekly newsletter) and keep an eye out for GAWDA alerts to stay abreast of all the current offerings and information. As always, thank you for your support of GAWDA and our industry.

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EDITORS Note

I Feel Like I’ve Seen This Movie Before

H Steve Guglielmo is GAWDA Media’s Editor-in-Chief. He has more than a decade of experience working with industrial associations. He can be reached at steveg@gawdamedia.com.

12 • First Quarter 2024

ave you ever been watching a movie or a TV show and had the weirdest feeling that you’ve already seen it? You don’t remember the exact plot, but you can’t shake the feeling that it all feels too familiar? If you’re a fan of the Matrix, it’s like when the Black Cat walks by. Déjà vu. When I was putting together the Forecast for this year’s issue, I had that exact feeling. Sure, some of the details are a little bit different. Maybe I’m not watching the same exact movie. But it all feels very familiar. And maybe I’m becoming cynical when I get older. But it clicked for me when I was reading Robby Smith’s (American Industrial Gases, LLC) response. “We stay focused on what we do well and the type of customer we want. We do not try to be everything to everyone, and we especially do not listen to any talking heads on TV in the Mainstream Media.” It’s not a new idea, but the 24-hour news cycle has fundamentally changed the way we consume and process news. Rather than simply reporting what happened, now we have to fill the time and the airwaves by speculating on what it means. Or speculating on something that hasn’t happened yet and what that will mean. It’s overwhelming, if you allow it to be. And when that happens, every event, no matter how big or consequential, can become the most important, groundbreaking, transformative thing that can happen. I’m old enough to remember when last election was “The Most Important Election of Our Lives”™. But now, four years later, this election, between the same two people no less, is “The Most Important Election of Our Lives.” And that’s just

one example. We were supposed to all be meeting in the Metaverse by now. Hitting closer to home, I remember when magazines and newspapers across the country dumped their entire editorial staffs because of the great “pivot to video.” It feels like we’re there again. The labor shortage, supply chain issues, election concerns, force majeures, transformative technology. Many GAWDA members are decades or even centuries old. They’ve seen it before. These aren’t new issues. And we aren’t even talking about them in new ways. We’re just talking more about them. But for all the doom and gloom and horse race coverage on the news, GAWDA members, both distributors and suppliers, expect 2024 to be a year of growth. Interestingly, some attached those projections with a caveat about the election results. And a fair number of members expect the industry to be down, while their company grows, but overall, there is an expectation for growth. And I truly believe that is, in large part, because we have seen these issues before. We know how to deal with them. Many, if not most, GAWDA members were around before the Internet became as ubiquitous as it is today. Nearly all were around when not having a Facebook or Twitter (now X) account meant certain death. We will adapt to AI the same way. And ten years from now, there will be something new that will be the biggest most important thing ever. I think 2024 is going to be a big year for GAWDA and our members. And I think that will be doubly so if we can take a page out of Robby’s book and “stay focused on what we do well…and especially not listen to the talking heads on TV in the Mainstream Media.”

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GAWDA CONSULTANTS Roundtable

Looking Ahead to the Year in Regulatory Compliance GAWDA’s Consultants recap the end of 2023 and look ahead to 2024. BY TOM BADSTUBNER, MARILYN DEMPSEY, MICHAEL DODD, RICK SCHWEITZER, AND STEVE GUGLIELMO

he GAWDA Consultant Program is a GAWDA member benefit that is included as part of your member dues to the association. It is consistently rated as one of the most valuable member benefits that GAWDA provides. Between the four of them GAWDA’s consultants bring more than 100 years of industry-specific experience to the association. With this being the first issue of 2024, we look back on lessons learned from last year and what we expect to see from a regulatory standpoint for the industry in 2024. GAWDA’s Consultants discussed the bevy of new legislation and proposed legislation and how it will impact members this year. Thank you to Tom Badstubner, GAWDA’s FDA and Medical Gases Consultant, Marilyn Dempsey, DHS, EPA and OSHA Consultant, Mike Dodd, DOT Consultant, and Rick Schweitzer, Government Affairs and Human Resources Consultant, for lending their time and expertise to discuss these important topics. The following is a lightly edited transcript of that conversation.

WGT: This is our first issue of 2024. Our 4th Quarter Issue of Welding & Gases Today came out in October before the Annual Convention. Is there anything that has happened between the fourth quarter and now with the different agencies that members need to be updated on? TOM BADSTUBNER: It's not really a change, as far as the FDA is concerned, but we are seeing more activity recently. We are seeing unusually persistent activity where the FDA is following up on earlier inspections, especially inspections that had some issues. This follow up activity is something they haven't really done in many years. The FDA is alive and well, is the best way I can say it. They’re ramping up their inspection activity slowly.

WGT: Do you think that's more of a return to normalcy after COVID or is there something else driving that activity? TOM BADSTUBNER: I think that's exactly what it is.

16 • First Quarter 2024

GAWDA CONSULTANTS Roundtable

The FDA nearly stopped all domestic, face-to-face inspections during the pandemic.

WGT: Is there any particular area of focus or emphasis that is emerging? Any patterns? TOM BADSTUBNER: This won't apply to all GAWDA members, but those members with gas chromatographs and medical gases should make sure their systems are compliant with the latest data integrity guidance from the FDA. We've published some information about that a few times over the past few years. If a member has any questions about their GC running in a conforming manner, they should reach out to me. I can give them the sample SOPs and the forms that will significantly help with FDA compliance.

WGT: Marylin, anything for OSHA or Homeland? MARILYN DEMPSEY: Homeland Security is really quiet because they still have not received funding for CFAST, the Chemical Facility Anti-Terrorism Standard. They just ask that we keep our chemicals safe. There's no regulation anymore, but it is in our best interest, as good citizens, to make sure that our chemicals are kept safe and that we keep track of them. Specifically, Zone A and Zone B products that should be kept under lock and key, from cradle to grave. Another thing that happened that was very interesting, was a meeting of the Small Business Labor Safety Round Table, in late October. During this meeting, the National Labor Relations Board’s (NLRB) General Counsel, Jennifer Abruzzo, and the Assistant Secretary for OSHA, Douglas Parker, talked about how they're going to get a Memo of Understanding between the NLRB and OSHA. They want to have, "Historic interagency coordination by enabling the NLRB and OSHA to closely collaborate by more broadly sharing information." They want to share injury and inspection data - that made me sit up and take notice. The NLRB is not necessarily “for small business,” correct me if I'm wrong Rick. RICK SCHWEITZER: No, it's not. It has a very different area of jurisdiction than OSHA. OSHA has jurisdiction over workplace safety and protection for employees. NLRB has jurisdiction over unfair labor practices. That could involve safety issues, but it's primarily economic issues of labor-management relations.

MARILYN DEMPSEY: They’re going to conduct cross training for staff at each agency, so they know how each other speak, partnering on investigative efforts, within the agency’s authority, and enforcing anti-retaliation provisions. This is going to be a very big topic in 2024. They’re doing it quietly, by putting this memorandum out.

WGT: This may not be relevant, but since you brought up the Secretary of Homeland Security, Rick, the Secretary of Homeland Security has been in the news recently as potentially being impeached. Were that to be successful, what would it mean for the agency? RICK SCHWEITZER: Nothing. First of all, the House Republicans want to bring impeachment proceedings against the Secretary for, failure to secure the Southern border with Mexico. Even if they could get a partisan vote to impeach him in the House, he would never be convicted in the Senate. I think that's highly, highly unlikely. It would allow the House Republicans, perhaps, a lot of talking points and perhaps even get them on the nightly news, although I doubt that. I don't think it would have any real-world implications, because I don't think the Senate would ever convict him. And, frankly, even if the Senate did convict him, the agency would continue to operate as it has and the next person in line or the new Secretary would have the authority to act or not act as he or she sees fit under the direction of the President. It's not like it's going to change the policies of the administration with regards to immigration.

WGT: So, it wouldn't be anything that would affect GAWDA members? RICK SCHWEITZER: No, I don't think so.

WGT: Marylin, you talked about how the NLRB and OSHA are being affected. Are there any new trends like Tom is seeing with the FDA with OSHA? Any increase in site visits, anything of note? MARILYN DEMPSEY: Among our members there hasn't been an increase in site visits. However, OSHA is proposing a “worker walk around” rule, which would allow a third-party to come in and represent the employee. Both the employer and First Quarter 2024 • 17

GAWDA CONSULTANTS Roundtable

an employee representative can accompany the inspector. And, if you have a union shop, it’s usually the shop steward. What they're trying to do with the worker walk around is to allow someone from the union shop, not necessarily employed by the employer under inspection. This person would come in and be part of the inspector’s attendees. They likely don’t know the business and they may say things that would make the employer look bad in the eyes of the inspector. OSHA has not shown how this rule would improve the safety aspect of this inspection and there have been comments submitted against this rule. RICK SCHWEITZER: They have to do a cost-benefit analysis and show that the benefits outweigh the cost. And then, they also have to do a small business impact analysis too, to show if this has any impact on small entities.

WGT: If it were to happen, what would be the impact on GAWDA members in your opinion? MARILYN DEMPSEY: Then anyone that has a union shop is open to have their shop steward ask someone from the

18 • First Quarter 2024

union hall to come in and walk through the inspection. And they can comment throughout the walk.

WGT: Rick, I know there have been a lot of problems in Washington happening, but as they pertain to GAWDA members, is there anything worth worrying about? RICK SCHWEITZER: Following on Marylin's comments, I'm seeing a couple of different areas where the Biden Administration is trying to pursue labor’s agenda and the environmental agenda, as well. Obviously, the NLRB and OSHA MOU are part of the labor agenda, and the OSHA walk around is as well. I'm seeing things like an attempt to override the preemption of meal and rest break rules applied to truck drivers in California and Washington and potentially other states. The Department of Transportation now has before it a petition to waive the Trump Administration Preemption Determination that those states could not impose meal and rest break rules on top of the driver hours of service rules in California and in Washington and 18 other states that have these kinds of rules.

GAWDA CONSULTANTS Roundtable

That's something that the DOT is going to consider in the next few months. We're also looking at potential changes to the eligibility for overtime rules in the Department of Labor. They want to increase the threshold salary to about $56,000, which would add 3.6 million employees to the eligibility roles for overtime under the Fair Labor Standards Act. That's a proposed rule now that will probably be made a final rule this year. Then, we have the Federal Trades Commission’s proposed rule to ban or severely limit noncompete agreements and the FTC has indicated that, if this goes through as a final rule, it will affect 3-4 million additional workers who would then no longer be subject to non-compete agreements with their employers when they leave that employment. They would be free to pursue whatever jobs or positions, even competing jobs in the marketplace. Those are the Administration’s labor agenda, in addition to what Marylin came up with. On the environmental side, we've got things like the California Air Resources Board has its Advanced Clean Fleets Rule and Advanced Clean Trucks Rule, which require certain larger companies operating in California to begin buying zero emission vehicles starting January 1st, 2024. And by 2036, you will be required to have made a complete transition to zero emission vehicles, which either means electric or hydrogen-based vehicles or maybe some other alternatives, but it certainly does not include gasoline or diesel. This is being challenged in court now by the California Trucking Associations, but it has been adopted in California already. It's in effect, and a number of other states, perhaps as many as two dozen, are looking at this and in the process of adopting similar requirements. It goes beyond just the trucks used to deliver products. There's also environmental reporting that you have to do now, in California and perhaps elsewhere, on all of the carbon that you use, both in your processes and your vendors upstream and customers downstream. There are underway some very significant, cumbersome reporting processes, and we'll be talking more about them in the next year. These are all part of the effort to decarbonize the economy which means getting rid of any fossil fuels in the economy using very aggressive timelines..

WGT: Two follow up questions there: 1. The rules that you've laid out that the Biden administration is looking to change, the overtime and rest rules; are those things that those agencies can do unilaterally, or do they have to be through legislation?

RICK SCHWEITZER: Well, all of the agencies have enabling legislation, which is a directive from Congress to say that “you have to regulate in this area.” OSHA, for instance, has the Occupational Safety and Health Act, which has the General Duty Clause, which states that an employer has a general duty to protect its workers from unsafe work conditions. And then there are other specific provisions in that act that say that OSHA must regulate in this particular area or in this manner. The question, for all of these acts, is whether or not the agency has specific authority from Congress to impose the type of regulation it is proposing. This has become an issue for this Supreme Court and for other Federal Courts, much more so in the past several years. For example, the Supreme Court has resurrected the Major Questions Doctrine, which says that when there is a regulatory issue that poses a major political or economic question, there must be specific authority from Congress to grant the agency the power to undertake that action. It cannot be just a general grant of authority that says, “OSHA, you have to regulate worker safety.” The Supreme Court has never defined what constitutes a major question. There's no bright line saying, “It's $100 million or $200 million worth of impact on the regulated community.” There is some distinction, but there has to be some specific grant of authority in those cases that are deemed to be “major questions.” continued on next page

First Quarter 2024 • 19

GAWDA CONSULTANTS Roundtable

WGT: The second question I had: A major theme of our conversations since we've been doing these the last few years is Marylin will say some variation of the phrase, "They've got a help wanted sign out and they're looking to add employees." I know that we're constantly in a state of budget battles in Congress, but is the money available for these agencies to add employees or is that something that has kind of stalled out? RICK SCHWEITZER: You know, I haven't seen a tremendous increase in funding for regulatory enforcement staff in the agencies. I can't speak for the FDA, but places like DOT and the Department of Labor have not substantially increased their enforcement staff. The IRS got 87,000 new employees in the Inflation Reduction Act, but now the Republicans are fighting back on that, as well, and I'm not sure those employees will actually be hired. What I have seen is a great deal of money allocated for things like environmental projects such as wind farms, and green energy startups. These are federal grants and loans, billions of dollars, to promote green energy. How that money is being allocated and who is overseeing whether the money is being spent properly or efficiently are all unanswered questions. Just like when Congress appropriated relief funding during COVID,., we know GAO has gone back and uncovered hundreds of billions of dollars’ worth of fraud and mismanagement. I'm afraid the same type of thing is going to happen with all of these green energy programs. MARILYN DEMPSEY: On the EPA website, on their homepage, they have two years of historic progress. Which means they've awarded more than $16 billion in “bipartisan infrastructure law for funding that are strengthening infrastructure, making communities more resilient to climate change and protecting human health and the environment.” RICK SCHWEITZER: Some of that is just highway funding and that's all good. Generally, highway funding is pretty bipartisan. Although calling that bill a “bipartisan infrastructure bill” is a bit of a misnomer. But yeah, that's an example of what I'm talking about. If you go across the agencies EPA, OSHA and grants to things like green energy programs you're looking at hundreds of billions of dollars.

WGT: Mike, from the DOT perspective is there any new news, new trends, anything you've seen? MIKE DODD: I wish I could say yes. Things have been really quiet. The existing things are the same, nothing new is coming down. 20 • First Quarter 2024

WGT: The other big thing that has happened since Convention is we had the Consultant Safety Seminar at WELDCOA. Before we jump into new business, can you tell me about that? TOM BADSTUBNER: This was another in our series of Professional Compliance Seminars. This combination seminar/webinar focused on basic compliance training. The FDA session focused on current manufacturing practices for foods and drugs. We have another seminar series focusing on audit excellence, but this was a series about basic compliance training. We have three Professional Compliance Seminars scheduled next year. One in the spring (Chart – Theodore AL), one in the summer (Chart – New Prague, MN), and one in the fall (Weldcoa – Aurora, IL) and the dates will be announced shortly.

WGT: Is there anything early in the new year, or early February that GAWDA members have to be aware of from a timing perspective? Are there any forms they need to have filled out or anything compliance wise? TOM BADSTUBNER: I’d like to let everybody know that on October 25th that Governor Hochul from New York signed a bill that Mark Haun, and others, had been working on for years. Mark’s hard work over the years, as well as other distributors in New York, and even majors in New York, contributed to the bill finally becoming a law. The benefit of this activism is that now the supervisor training requirements are consistent in New York with the federal training requirements. New York used to have a different standard for how much training was required and how much college was necessary and now we simply follow the federal requirements. This should simplify compliance in New York while keeping the medical gas distribution safe. And so, I heartly congratulate Mark and all others who worked for so many years making this happen. It really highlights that we can make a difference. In fact, we must make a difference. RICK SCHWEITZER: This is a big deal and Mark has done a tremendous amount of work on this over several years and he was successful. TOM BADSTUBNER: The message is that GAWDA members can make a difference in our states and our communities. This is not the first time that we've had activism by GAWDA members and been successful. It's not quick, but it can absolutely happen. We have some more cases going on right now. There are inspectors in Florida that have been citing GAWDA members

GAWDA CONSULTANTS Roundtable

and majors with unusually restrictive interpretations of regulations. It becomes very difficult to comply with those requirements. So, we have formed a working group where we are evaluating how we can best influence Florida to have reasonable inspections and reasonable interpretations of the regulations. It's very early on, and if we can take a look at the success we had in New York it might take a while before we're able to make a difference in Florida, but it's our responsibility to try to make things more consistent. We have a similar thing going on in Arizona, where certain inspectors are not only requiring licenses to be on shipping papers, but specifying the location of where the license information is printed. This is not reflected in the regulations. So, we're having some struggles there and we may end up having a work group for Arizona as well. And other states, like Illinois, have requirements, even for medical gas companies, to have humidity monitors in their warehouses. Humidity monitors are completely appropriate for pills, and we don't argue with it. But for medical gases it's inappropriate. What most GAWDA members have done in the past, is to simply get a humidity

monitor just to pass the inspection. We have opportunities to make a difference, and I congratulate Mark Haun and I encourage others where they see regulations and enforcements that don't make sense to just speak up and we can band together and make a difference.

WGT: Any last pressing items to end on? MARILYN DEMPSEY: First quarter is always OSHA 300A series, which must be completed by February 1, and EPA SARA Tier II reports are due March 15. TOM BADSTUBNER: It's a great time to look over your records and to make sure your calibrations and your trainings are up to date. And take the opportunity to purge your medical gas records which are older than your record retention policy allows.

Decarbonization Solutions for the Full Supply Chain

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First Quarter 2024 • 21

GAWDA CONSULTANTS Safety Alert

Life Lessons BY MARILYN R. DEMPSEY, GAWDA DHS/EPA/OSHA CONSULTANT

The following is an excerpt from the GAWDA Safety Organizer, a monthly bulletin sent to GAWDA members. For more information on the GAWDA Safety Organizer, or to read past issues, visit the GAWDA.org Members-Only Section.

Marilyn R. Dempsey, Safety Dragons Workplace Consultants, LLC 940-999-8466 marilyn@safetydragons. com.

22 • First Quarter 2024

essons learned is a new section of the GAWDA Safety Organizer that details lessons from fellow GAWDA members’ incidents, accidents and injuries. Information is sanitized to keep the member’s identity anonymous, unless the member company chooses to share their identity. Battery operated devices are everywhere and the welding industry is not immune, with battery operated welders becoming more popular. But these battery-operated devices come with risks including overheating, fires, and other problems. Lithium-ion batteries are the most common portable energy storage source and comprise the majority of product safety recalls and complaints. The Consumer Product Safety Commission has recorded more than 25,000 instances of fires involving 400 types of devices over the past decade. In New York City alone, between 2021 and 2023, there has been a significant increase of lithium-ion battery device fires (1,500%), injuries (686%) and deaths (2,675%). To address the hazards of Lithium-Ion (LION) battery fires the Fire Safety Research Institute launched the

TAKE C.H.A.R.G.E CAMPAIGN: C - Choose certified products H - Handle with care A - Always be aware of warning signs R - Recycle batteries and appliances properly G - Get out quickly if there is a fire E - Educate others about battery safety.

OTHER FACTORS TO KEEP IN MIND: Common Failures - With a two-to-five-year life span, lithium-ion batteries can malfunction based on the construction of the battery pack, how it is discharged, and how it is handled. Lithium-ion batteries can fail or overheat releasing toxic gases that are hard to extinguish.

CHARGING SAFETY: •

• •

Lithium-ion batteries require two steps: constant current followed by constant voltage charging Do not charge lithium-ion batteries below 32 degrees Under normal circumstances, lithium-ion batteries stop charging when full, thus leaving them on a charger constantly should be safe but not recommended.

STORAGE SAFETY: • Lithium-ion batteries should be stored on racking outside in cool, well ventilated, dry

n ut nt.

g s pe

org

The best way to be safe is to prevent a < lithium-ion battery fire from starting. 1,159 1,140 114 Take these important actions now. Total Injuries

C H A R G E

Total Fatalities

214

GAWDA CONSULTANTS Total Injuries

Total Fatalities

Safety Alert

Research provided by UL Solutions: https://www.ul.com/insights/lithium-ion-battery-incident-reporting

Choose certified products.

storage areas New technologies Handle with care. • Lithium-ion batteries should be present new risks. kept from heat sources including batteries can go into direct sunlight oralert ignition sources Always stay forLithium-ion warning signs. thermal runaway undetected and • Store batteries in low humidity result in a fire. Not just any fire, facilities keeping them ventilated a fire that emits flames, smoke Recycle devices batteries and toxic properly. gases that can cause an through natural or and mechanical explosion and spread throughout means a house, apartment, or storefront. • Batteries should be kept in a state Get out quickly if there’s a fire. of 50% to 60% charge—overcharging can be damaging to the unit • If storing Educate others on safe practices. lithium-ion batteries for a year or longer, make sure it has a Fire moves fast. 50%+ charge From the first warning • Lithium-ion batteries are subject signs of smoke or hissing to aging meaning they can lose noises, you may have less capacity and fail after a number of than one minute to escape a fire.Learn more at years. batteryfiresafety.org

FIRE AWARENESS:

Take C.H.A.R.G.E. of Battery Safety. The best way to be safe is to prevent a lithium-ion battery fire from starting. Take these important actions now.

C H A R G E

Choose certified products. Handle with care. Always stay alert for warning signs. Recycle devices and batteries properly. Get out quickly if there’s a fire. Educate others on safe practices.

• Lithium-ion batteries can overheat Learn more at batteryfiresafety.org when charging © 2023 Underwriters Laboratories Inc. • Lithium-ion batteries can ignite spontaneously • Behavior such as improper charging or physical damage put users in danger of combustion • This type of battery is extremely EVERYTHING YOU NEED TO SUCCEED: TW Bulk/Micro Bulk Tanks, Dura Bulk Delivery Trucks hard to extinguish using considerScorpion Mobile Units, Vaporizers, Manifold & Assemblies ably more water than conventional fires Exclusive provider for • Toxic gases including hydrogen cyanide are released during such lithium-ion fires.

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DISPOSAL: • Lithium-ion batteries should be taken to separate recycling or hazardous waste points for disposal • Do not dispose of lithium-ion batteries in household waste as they may ignite when discarded with flammable or plastic trash. If you have any questions about these topics, how to subscribe to the CGA program or any OSHA, EPA or DHS questions please contact me.

Bolivar, OH | Conroe, TX | Ph: 1-330-874-4009 First Quarter 2024 • 23

GAWDA CONSULTANTS Safety Alert

Unified Carrier Registration BY MICHAEL DODD, GAWDA DOT CONSULTANT

GAWDA DOT & Safety Consultant Michael Dodd is president of MLD Safety Associates in Poplar Bluff, MO. Members can reach him at 573-718-2887 and at MLDSafety@hotmail. com.

veryone operating Commercial Motor Vehicles (CMVs) (power units only) in interstate commerce must register and pay a fee based on the number of CMVs operated in interstate commerce. Vehicles used solely in intrastate commerce are exempted from the registration and fees. Please remember that you only pay for the powered commercial motor vehicles, not trailers.

DEFINITION OF INTERSTATE COMMERCE Interstate commerce is the general term for transacting or transportation of products, services, or money across state borders. Put simply, if you transport and deliver any products that you sell and they come from outside of your state, then you are involved in interstate commerce even if you don’t leave the state while making your deliveries.

WHERE DO YOU REGISTER? This link is found on the UCR website, and you can use it to determine if you need to register or not. https://plan.ucr.gov/ registration-compliance-helper/ The UCR Board of Directors has established a National UCR System at https://www.ucr.gov/. All UCR registrants may use this online system, regardless of base state, and it is the recommended method to register.

WHAT VEHICLES ARE CONSIDERED COMMERCIAL MOTOR VEHICLES FOR PURPOSES OF THE UCR FEES? The number of commercial motor vehicles for purposes of determining a carrier’s UCR fees 24 • First Quarter 2024

is the number of commercial motor vehicles that are power units and not towed vehicles such as trailers that the carrier reported in the most recent Form MCS-150 it filed with FMCSA or the total number of commercial motor vehicles that are power units it owned or operated under longterm lease for the twelve-month period ending on June 30 immediately prior to the beginning of the UCR Agreement registration year for which the fees are being determined. A commercial motor vehicle is one that is operated in commerce and has a GVW or GVWR of at least 10,001 pounds or, in the case of a passenger vehicle, is one built to carry more than 10 persons, including the driver. It also includes a vehicle that transports hazardous materials in a quantity that requires placarding. It does not include, for this purpose, a vehicle that operates wholly in intrastate commerce. Remember, it is all about the product travel, not the vehicle travel.

UCR RECORDKEEPING • UCR registrants are required to preserve the UCR records upon which the annual applications and renewals are based for three (3) years from the due date or filing date, whichever is later, plus any time period included as a result of State decisions or inquiries. • • The three (3) year period is the current calendar year and the prior two (2) calendar years. • Records may be kept on paper, microfilm, microfiche, or other computerized or condensed record storage system as required by the Base State. If you have any questions about whether you are still in the program or not, please contact me.

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HUMAN

Resources

Staying Upright Slips, trips and falls are the number one cause of worker injuries. BY PAUL BERNIER, ASP

A Paul Bernier, ASP, is the Safety Products Manager at General Air Service & Supply. He has worked in the welding and gas industry since 1996. Also, Paul is Vice President of Southern Colorado ASSP (American Society of Safety Professionals) Chapter. Paul can be reached at 719-761-7076 or pbernier@generalair.com

26 • First Quarter 2024

ccording to OSHA, the most common work-related injuries are from slips, trips, and falls. Statistics show that more than 25% of all injuries across all industries are caused by slips, trips, and falls. Also, falls are the second leading cause of death across all industries and leading cause of death in construction. In 2020, 805 workers died in falls, while 211,640 were injured badly enough to miss work. Most people assume that deaths from falls only happen from heights. However, in 2020, 136 workers died in falls from the same level.

TRIPS: What is the definition of a trip? A trip is when your foot or lower leg hits an object, and your upper body continues moving, which results in loss of balance. Since most people walk with their feet just half an inch off the ground, there are hazards everywhere that could cause a trip. OSHA’s trip hazard definition is any change in floor level that is a quarter inch or more, or at any joint or crack. Obvious examples of this would be electrical cords or wires, poorly lit areas, and clutter in walkways. Here is an OSHA fatalities report from the last few years, showing worker deaths from trips. You can see that deaths can happen just from simple trips.

DATE

CITY

STATE

HAZARD DESCRIPTION - TRIPS

8/22/2022

San Perlita

8/11/2021

Bloomington

7/23/2021

Ellsworth

5/19/2021

Brook Park

3/3/2021

Jersey City

5/16/2020

East Moline

1/31/2020

Hanover

9/22/2019

Buena Park

7/27/2019

Hillsborough

Worker died after tripping and falling

6/10/2019

Bloomington

Worker died after tripping and falling in office

4/6/2019

Pacific Grove

3/27/2019

Elizabeth

3/23/2019

Antioch

2/26/2019

Sandston

Craig Adams (49) suffered fatal injury after tripping and striking truck. Worker fatally injured in fall after tripping on pallet. Worker tripped and suffered fatal injury when striking the floor. Worker suffered fatal injury after tripping and falling. Worker fatally injured when tripping over pallet. Worker died from injury suffered after tripping and falling. Worker suffered fatal injury after tripping and falling Worker died after tripping on curb and striking head

Worker died from injuries after tripping and falling Worker fatally injured when tripping over hand cart Worker died from injuries after tripping on store display. Worker fatally injured after tripping on pallet

HUMAN

Resources SLIPS: The definition of a slip is simply the loss of balance when there is too little friction between the foot and the floor. Examples of slip hazards include surfaces that are wet with water or oils; floors with dust or other debris that may become

slippery on a smooth floor; freshly waxed or washed surfaces; and ice- and snow-covered surfaces. Here is another OSHA fatalities report, showing worker deaths resulting from slips in the last few years.

DATE

CITY

STATE

HAZARD DESCRIPTION - SLIPS

2/15/2021

Corpus Christi

Worker slipped on ice and suffered fatal injury

1/26/2021

Lovelock

Worker suffered fatal injury when slipping on ice

12/7/2020

La Vergne

Worker suffered fatal injury slipping on floor

8/10/2020

Tigard

Worker suffered fatal injury when slipping on ground

12/19/2019

Petoskey

Warker suffered fatal injury slipping on ice

10/11/2019

Waco

Worker fatally injured after slipping in puddle

6/22/2019

Galt

Worker died after slipping and striking head on ground

3/31/2019

Gallipolis

Worker died after slipping and falling on floor

1/30/2019

Salt Lake City

Worker died from injuries after slipping and falling on ice

Setting the standard for cylinder storage & handling equipment.

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First Quarter 2024 • 27

HUMAN

Resources It is the employer’s responsibility to address these hazards, inform and train employees, and protect them from injury. There is a hierarchy of controls in place in the safety world that should be followed which entail: • Elimination (ex.: bringing a pipe down to floor level to be welded instead of at height.) • Substitution (ex.: using wireless tools.) • Engineering (ex.: installing anti-slip flooring.) • Administrative (ex.: changing the distances or frequency of walking near a hazard.) • PPE (ex.: Personal protective equipment such as appropriate footwear.) As you can see, PPE, or personal protective equipment, is the last line of defense, but is often the only option. When PPE is used to prevent injury, the employer must protect the workers by providing the safety equipment and training the worker on how to use it properly. The PPE available that can prevent slips, trips, and falls is abundant and differs by hazard. Here are some common items that are most often purchased for each type of hazard:

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28 • First Quarter 2024

HUMAN

Resources SLIPS: • Work boots or shoes with good soles or ice grip attachments. • Absorbent pads for any spills. • Handrails. • Proper signage. • Non-skid pads.

TRIPS: • Handrails. • Signs. • Good lighting. • Floor striping showing walk areas. • Cable covers.

FALLS:

When it comes to falls on the same level, the types of PPE mentioned above will help prevent many injuries. But when it comes to falls from a higher level, the employer must have a fall protection plan in place with the proper fall protection PPE and guards. They must also provide training for all workers involved. In my previous article, “Eliminate the Number One Cause of Death in Construction…Falls!” from the second quarter issue of Welding & Gases Today, fall protection from heights was the subject and included much more detail of the proper PPE needed. However, more and more shops are utilizing manlifts with proper railings to help prevent falls, and most of these manlifts still must have fall arrest equipment or restraints. In this case they would follow the manufacturers’ recommendations. As always, it is important to offer your customers these safety products and training if possible. At General Air, we have grown our safety business by working with our customers, conducting training, and providing PPE products. Our customers all need and use these products, and if you are not supplying them, who are they buying them from?

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First Quarter 2024 • 29

3/8/2023 7:05:41 AM

Ask Your

GAWDA BOARD

Meet Your 2024 GAWDA Board of Directors

ollowing another wildly successful year in 2023, GAWDA heads into 2024 for a year that will be marked by “Leading with Purpose and Serving with Heart.” As President Gary Halter takes the helm for his year as President, we asked our Board of Directors to share their favorite quotes, taking a page out of Gary’s book. 2024 also marks an election year for the country, which always has the potential to change the industry and the economy. The GAWDA Board of Directors set the tone for the membership throughout the year. Our volunteer leaders are on the front lines of the industry and can take the issues facing our industry and help to craft an effective strategy for the association. Members of the Board of Directors are here to serve the membership. The next few pages provide an opportunity to get to know this year’s volunteer board. We thank the 2023-2024 GAWDA Board for their help in putting this together and for their service on the Board. We asked the 2023-2024 GAWDA Board of Directors two questions: one get to know you question and one forward-looking question about our industry. These were their answers. 30 • First Quarter 2024

What is your favorite quote (business or fun) that you try to live your life by?

2024 is a Presidential Election Year. What is your “Campaign Pitch” to the GAWDA Membership as a member of the Board of Directors?

Ask Your

GAWDA BOARD PRESIDENT

GARY HALTER Indiana Oxygen Company s GAWDA Members know, A I have a few favorite quotes. I have listed them below: “Attitudes are contagious. Is yours worth catching?” “Get comfortable being uncomfortable. The comfort zone is a trap. Your potential lies outside of it.” And then my favorite business quote is, “The customer does not come first. The employee comes first. If you take care of the employees, they will take care of the customer.” I also love, “Shout praise, whisper criticism.” My campaign slogan closely resembles my theme for this year, and it is simply: Lead with purpose, serve with heart. A thoughtful and strategic approach to leadership while understanding the importance of genuine and empathetic service to others. continued on next page

SHARPER THAN EVER HIGHER CUT RATE

LONGER LIFE

COOLER CUT

SCAN FOR MORE INFORMATION

First Quarter 2024 • 31

Ask Your

GAWDA BOARD • “Assume good intent.” I always try

PRESIDENT-ELECT

ERIC WOOD

FIRST VICE PRESIDENT ALLISON EARLBECK

O.E. Meyer Company

Earlbeck Gases & Technologies

“If you tell the truth, you don’t have to remember anything.” As a member of the board of directors, we’re thrilled to enter 2024 with very strong momentum. The commitments and time given by the membership, volunteers, and GAWDA staff are visible today in the content provided and the engagement offered to the membership. Attendance numbers at our Annual Conventions and SMC’s over the recent years show that it is working! Our board and the GAWDA staff will continue to work hard, so that each of you and your companies feel that GAWDA is making you and your organizations better. As you’re reading this, please consider how you can contribute to the organization, and how you or your businesses can help develop the next generation of GAWDA volunteers and leaders.

“Joy is not made to be a crumb.” – Mary Oliver Do you sometimes feel like a lonely island in the vast ocean of wholesale distribution? Desperate for a lifeboat in the form of support, resources, and a friendly community? Well, we've got a cruise ship for you! It's called GAWDA. So, are you ready to dive in and make some waves in the wholesale distribution industry? Come aboard the GAWDA ship, where it's always smooth sailing!

Visit www.gawda.org for more information and to sign up to become a GAWDA volunteer.

32 • First Quarter 2024

to see the best in people because it’s easy (and getting easier) to be a cynic in some ways. • “Be curious, not judgmental.” – Ted Lasso (Originally Walt Whitman.) I think this captures the spirit of “Assume good intent” but also encourages questioning and deeper understanding before making a judgement or taking a stance. This certainly helps the cynic in me. Lean in. GAWDA is a member-run organization, and the organization can only benefit from the different views and experiences the people within this organization have and are willing to bring to the table. From my short time on the EC and my earlier time on the Board, I’ve learned how open this organization is to all the views and opinions of its members. The world is changing faster than most of us can keep up and we all bring different world views and experiences to the table. If we keep them to ourselves no one else can benefit from what you’ve learned. Whether those are victories or battle scars, it’s all valuable and can help push this organization forward.

SECOND VICE PRESIDENT KEVIN FALCONER Minneapolis Oxygen My first instinct was a Jack Handy quote, “Walk a mile in someone else’s shoes. Then, you’ll be a mile away and have their shoes.” But that didn’t seem in the spirit of the question, so I do have a couple of quotes that I try to remember and lean on. One is more of a mantra I tried to lean on in difficult personal times. Another is a quote I'd heard in a show in past years that's reinforced that manta in some of the same ways but also broadened its meaning for me.

FIRST PAST PRESIDENT

ROBERT ANDERS Holston Gases, Inc.

“There’s a difference between interest and commitment. When you’re interested in something, you do it only when it’s convenient. When you are committed to something,

Ask Your

GAWDA BOARD you accept no excuses, only results.” Ken Blanchard “Ask not what your Association can do for you, ask what you can do for Association!” (a twist on famous John F. Kennedy quote – probably fly right over the head of anyone under 50!)

The biggest year for elections worldwide: India, Indonesia, UK and the USA. Supply chain bottlenecks are mostly in the rearview mirror, with some hiccups in the Suez Canal. So, my Campaign Pitch for 2024 is “Don’t try, DO IT!”

VICE PRESIDENT

RAFAEL ARVELO Equigas, Inc.

“Complacency is the worst enemy of success.” Every day, you have to be hungry. Every day, you have to learn something new. Every day, you have to be grateful for the simple things that are always in front of you. And, of course, every day you must have FUN. Life is short, enjoy every single moment! Constantly, I tell my team “Don’t try, DO IT!!!” In the office, we never say, “I’m going to try,” because you are already accepting the probability that it is not going to happen. We always say, “When I do this…” Manifest what you want! So, when I say 2024 is going to be a great year, it is because it is going to be a great year! Optimistic? Always! In every crisis there is an opportunity. However, the signs are written everywhere for 2024: Reshoring. All the manufactures coming back from China to the USA is not over. Falling inflation and lower interest rates. If the current administration wants to get re-elected, they must strengthen this economy. First Quarter 2024 • 33

Ask Your

GAWDA BOARD

VICE PRESIDENT

The Lincoln Electric Company

I learned my favorite quote over 40 years ago, when I was a young man serving in the military. “Assumption is the origin of all screwups.” That’s not quite how we said it, but close enough to get the idea. It seems that almost every time we make a major error, it goes back to someone who assumed something had been done. I’m sure we don’t have an employee that has not heard that saying numerous times. This was a much tougher question to answer. When I think about what makes a good leader in our organization, I can think of several traits. The person should be a good communicator with excellent public speaking skills. They need to be attentive during long meetings and provide their expertise when required. It is also important that they have the necessary computer skills and have a grasp on technology to lead us into the future. Future leadership should also have the necessary social skills to participate in various social settings. When I review my skills, I realize that I’m pretty good at the last skill trait, but pretty weak on the others. I need to try harder.

Oxarc, Inc.

ALBERT CASTILLO “None of us is as smart as all of us.” – Ken Blanchard We live in the greatest country in the world, and we earn a living in one of the greatest industries in it. Together, we will continue to build a better country and world!

VICE PRESIDENT

BRAD DUNN CK Supply

Two quotes from Excellent Advice for Living by Kevin Kelly, a recently published book I keep close by that I think are especially impactful to daily life. “Don’t measure your life with someone else’s ruler.” And, “Don’t wait for the storm to pass; dance in the rain.” When it comes to business and investing, any quote by Warren Buffett or the late Charlie Munger is sage advice. Many Hands Make Light Work! The more people that can individually pour into the organization, the greater the impact we can make. Share your talents and your passion with our membership – we want you! 34 • First Quarter 2024

JOHN HILL

JASON KIRBY

I have two favorite quotes. The first is from Chesty Puller, USMC. “Pain is weakness leaving the body.” The second is from Lance Armstrong, “Pain is temporary, quitting lasts forever.” Both of these quotes have resonated with me throughout the years. I believe they are both addressing the importance of being mentally strong and choosing to win. Often times, our own worst enemy is our brain. The Gases and Welding Distributors Association is here to help you and your company grow to the next level. We have industry experts in Safety and Compliance ready and willing to help you implement or improve your current programs. We have legal experts ready to assist you with creating or expanding your Product Supply Agreements. We have insurance companies that know our industry on standby to assist you with sleeping easy at night, by ensuring your company, your assets, and your people are properly covered. Lastly, and I would say quite possibly the most valuable resource available to our members, is our fellow member companies. Every company I engage with in this industry that is a GAWDA member is ready and willing to assist other companies navigate through unchartered territories. That is what makes the GAWDA membership worth it.

VICE PRESIDENT

NICOLE KISSLER Norco

“People are the key” – a phrase and belief shared by my grandfather, Larry Kissler. People are the reason we do what we do. From family, to our Norco Employee Owners, our customers, our vendor partners, to those in our communities. Serving others and working purposefully for and with people, is how I want to live my life. I love being a part of GAWDA because of the relationships I have been able to establish and build on with the great people of our industry. People are the key. I’ve avoided politics as best I can for most of my career, for obvious reasons! But, if I had to make a Campaign Pitch, it would probably look something like this: It is an honor to get to serve on the Board of an organization that supports the economic vitality of distributors of industrial gases and welding equipment and supplies. My Grandfather, Larry Kissler, who bought Norco and grew the business, was an unapologetic champion of the free market system, in which we get to vote with our dollars. We’ve been members of GAWDA for decades and look forward to the many years ahead. A bright future lies ahead for those willing to put in the work and for those that surround themselves with the right people. GAWDA is an organization that supports and does just that. We pride ourselves on planning for opportunity, and being a member of this organization, which encourages that tactic! continued on next page

First Quarter 2024 • 35

Ask Your

GAWDA BOARD

VICE PRESIDENT

WILL ROBERTS

Roberts Oxygen Company “KISS. Keep It Simple, Stupid!” “Vote for Roberts, he’s the gas man!”

VICE PRESIDENT

SCOTT RUMMANS Linde, Inc.

In an industry that often has processes and ways of doing things that go back decades, I have found this quote, from Albert Einstein, to be a solid guide when working in Linde: "We cannot solve our problems with the same

thinking we used when we created them." This is especially true in today’s environment where new digital resources, AI and automated processes are opening the door to so much positive change that benefits our customers and employees. My pitch to the GAWDA membership and the non-member gas & welding distributors would be this – becoming a member puts you at the heart of a great organization that offers critical networking opportunities, insight into industry trends, and contact with companies of all sizes with unique abilities to help owners succeed. As a current board member, I have seen, firsthand, the tools and resources available to organizations in the form of GAWDA Media, industry events and supplier guides that can help every distributor, even those as large as Linde, be more successful. Come join the GAWDA family today!

VICE PRESIDENT

LIZ STANDLEY

ILMO Products Company “The way to get started is to quit talking and begin doing.” – Walt Disney Membership in GAWDA can benefit your business in so many ways. The best way to see those benefits is to jump in and get involved. The connections and relationships you build will be invaluable.

36 • First Quarter 2024

MANUFACTURER’S REPRESENTATIVE

INDIVIDUAL

SUPPLIER

DISTRIBUTOR

Member Benefit Chart

PROFESSIONAL CONSULTANT SUPPORT DHS, EPA, and OSHA (Marilyn Dempsey) DOT (Michael Dodd) FDA and Medical Gases (Thomas Badstubner) Government Affairs & Human Resources (Richard P. Schweitzer, Esq.) Consultant-Driven Live Monthly Safety Webinars

EVENTS AND MEETINGS GAWDA Annual Convention (AC) with Networking 360 GAWDA Spring Management Conference (SMC) w/Educational Sessions Contact Booths at AC/SMC Hospitality Opportunities at AC/SMC GAWDA Regional Meetings Sponsorship Opportunities at AC/SMC/Regional Meetings Educational Offerings - Live, Virtual, & Archived

RESOURCES Quarterly Economic Analysis & Forecast Copy of Buyers Guide Listing in Buyers Guide Copy of Member Directory SOP, Safety, Reference Materials (Members Only Archive) Job Posting Opportunities CGA Safety Documents GAWDA Scholarships & Grant Opportunities Discount Business Services

KNOWLEDGEABLE COMMUNICATIONS Quarterly Welding & Gases Today Subscription Twice-Monthly GAWDA Connection Monthly Safety Bulletin Advertising in GAWDA Media, GAWDA TV, & Podcasts * (one copy) To learn more about the benefits of joining the Gases and Welding Distributors Association, please contact Andrea Levy, Director, Member Services and Programs, 954-367-7728, ext. 260, alevy@gawda.org.

GAWDA DISTRIBUTOR

Member Profile

NEW STRUCTURE, Same Family Values Noble Gas Solutions continues to operate on the same core values it has for 84 years, by adding tremendous value to its new corporate owner. BY STEVE GUGLIELMO

n May 2022, Air Water America acquired Noble Gas Solutions Inc. The acquisition was a surprise to many in the industry, as Noble marked the first distributor acquisition that Air Water had ever done in the Americas. Noble Gas Solutions had also been a family owned 38 • First Quarter 2024

and operated distributorship for more than 80 years. However, any thought that the independent spirit and familial culture that Noble had built for more than eight decades would disappear under new ownership dissipated immediately. With the transaction came a transition in the CEO role, as former owner

and CEO J. David Mahoney retired and Colleen Kohler was named the new CEO. Upon completion of the deal, Kohler said, “Noble Gas Solutions will run day-to-day operations as it has been for over the last 80 years. With the acquisition, we expect to continue growing and maintaining our reputation for excellent customer service, competitive pricing, and a solid commitment to quality products and value-added solutions, all backed by the same by an expanded knowledgeable team. We now have access to additional resources to allow us to better serve our customers and expand our product offerings including advanced gases, applications, and solutions technology. That is the one of the main reasons this acquisition fit Noble so well.” Now, nearly two years since the acquisition announcement, Kohler proves that those words were not simply lip-service.

GAWDA DISTRIBUTOR Member Profile

DAVE MAHONEY Albany Welding Supply August 1977

COLLEEN KOHLER CEO 2023

“The reason Air Water was attractive to Dave [Mahoney] was how they expressed how they would treat Noble’s people, the culture, and the organization,” Kohler says. “As a parent company, they are there to support us if we need anything. They have been a great resource in that respect. I do still run Noble the same way I did previously, in the day-to-day. We still have the same employees and the same management structure. They have not told us to change anything in that respect and we have had our best year ever this past year, overachieving our goals. It has been the best-case scenario for us because we have not lost any employees but now, we have access to a larger organization with new partners with Air Water being our parent company.” Air Water continues to enhance Noble’s skills by offering trainings and promoting continuous professional development for its employees.

80 YEAR JOURNEY So, why was Air Water interested in Noble Gas Solutions to begin with? The company was founded in 1940, by Robert Mahony (no relation to Dave and Colleen) as Albany Welding Supply Company. In 1976, J. David Mahoney joined the company as a sales representative. Dave quickly climbed the ranks of the distributorship, being named Executive Vice President & General Manager in 1980 and President in 1985. In 1986, Dave purchased the company and rebranded from Albany Welding Supply Company to AWESCO. During this time, AWESCO was working closely with many semiconductor and medical organizations in the Albany area, who came to depend on AWESCO as a trusted partner for more than simply their welding supply needs. In 2010, the company rebranded again to reflect their product offering more accurately, becoming Noble Gas Solutions.

“A few years ago, a biopharma startup opened in Rensselaer County, right across the Hudson River from our headquarters,” Kohler says. “We formed a great relationship with them and supported their tremendous growth. As they grew, we grew.. Between that relationship and the semiconductor industry booming in our area, we quickly found the need to have our own specialty gas lab. Today, we have fully automated ISO-certified specialty gas lab. Having strong customer partners has pushed Noble to grow by servicing the biopharma and semiconductor specialty gas needs.” That growth process has expanded beyond the product mix, as well. While the company has expanded beyond solely hard goods and evolved into a onestop-shop for its customers, it has also expanded its geographical footprint. That expansion has only accelerated in recent years. In 1996, the company opened its second location in Kingston, NY. Then, First Quarter 2024 • 39

GAWDA DISTRIBUTOR

Member Profile

in 2021, the company opened its third location in Glens Falls, NY. At that time, Dave Mahoney said, “The investment we made was not just into the physical facility, but into the Glens Falls and North Country community and we are honored to be able to bring our products and services to even more people who need it. We are a local company and want to see the community benefit from our expansion.” That local commitment was reaffirmed in 2023, when the company expanded to Utica, NY to open its fourth branch. “Noble has experienced significant growth in the past five years,” Kohler says. “We have doubled in size with our retail locations, and in revenue.” 40 • First Quarter 2024

A FAMILY CULTURE Though the company has continued to grow, it always does so strategically and in service of its core values. Those values have allowed the company to flourish for more than 80 years, and they were vital to maintain even after the acquisition. “We strive every day to provide the best service we can to our customers,” Kohler says. “At the end of the day, we sell a commodity. So, we must try to think of outside-the-box solutions for our customers. Some customers will come to us and ask for a certain product. But we like to ask a lot of questions. ‘Why do you need that product? Is there something better that we could provide you with that may work better? Is there a different solution

to the problem than you were originally thinking about?’ I feel like that is an effective way for us to gain market share and gain business. We have become a trusted resource to our customers. We know what we’re talking about, and we can provide value because of that.” And through the company’s recent expansion further from the Albany area, into Utica, Noble has had to live up to that reputation. “It’s been really exciting, because we’ve been in the Albany market for a long time,” she says. “We know the players here. Going into a brand-new market to scratch start and have these initial conversations is invigorating. They don’t know what we are about, they don’t know what we can provide. Consumers of our products have been using the same supplier for many years. We can provide them with a different offering or a unique perspective than what they're used to receiving.” She continues, “We don’t have a huge level of bureaucracy to get through for decisions to get made. We get decisions made quickly and effectively for our customers. And again, we are solutions oriented. We are not price based. We have strong partnerships. Our employees understand the importance of really listening to our customers, understanding their issues, and making sure that we can help the customers in any way that we can.” Today, though the company has expanded to four locations, it still has just under 50 employees. “We have a very lean and efficient workforce,” says Kohler. “We have doubled in size, but only hired less than 10 employees. We pride ourselves as a rewarding and fun place to work. We work hard to provide real work-life balance. We have flexible hours for our employees, where possible. If modified work hours don’t affect their performance and it makes them more productive, we are all for it.”

GAWDA DISTRIBUTOR Member Profile

GAWDA. It is exciting. Noble has always been very collaborative, and team driven. And now, Noble is part of a bigger team. This has allowed us to have even more engagement within GAWDA and with our fellow GAWDA members.”

GOING FORWARD

COLLABORATIVE SOLUTIONS You cannot tell the story of Noble Gas Solutions without the story of GAWDA. The Mahoney family has become synonymous with the organization. J. David Mahoney served as the GAWDA (NWSA) President in 1999-2000. His wife, Donna Mahoney, was instrumental in establishing GAWDA Gives Back, a charity that continues doing good for local communities to this day and has raised more than $2 million for local organizations since its inception. And Colleen Kohler served on the GAWDA Board of Directors until 2023 and continues to work as a vital part of the organization’s Member Services Committee. “GAWDA membership, workshops

and meetings have been so important to the growth of Noble,” says Kohler. “Having grown up in the industry and having known Abydee Butler Moore, Nicole Kissler, and Allison Earlbeck as teens to now knowing their children is quite outstanding. Having those personal relationships and important distributor network makes it easy to call those people and ask them questions. ‘What is working in your area? What is not working?” GAWDA has become invaluable for Noble.” She continues, “Being a part of Air Water America, it is not just us on our own island in upstate NY as Noble Gas Solutions. Noble employees see their fellow Air Water America companies at

Noble Gas Solutions has thrived for more than 80 years due to its collaborative culture and willingness to expand its horizons to meet its customers’ needs. And its recent acquisition has super charged that ability, providing a network of companies and a large corporate backer to help turn those ideas into reality. It shows little sign of slowing down as it continues its march to 100 years. “We’ve always been a goal-driven organization,” says Kohler. “Dave would set conservative goals and then the executive team would have our pie in the sky goals that we worked toward. My goal, right now, is to be the premier distributor in New York State. We have grown so much in the last four years. I feel that, for us, the sky is the limit. We are determined not to slow down. If we have access, desire, and opportunity, we’re going to take it.” First Quarter 2024 • 41

GAWDA SUPPLIER

Member Profile

A True Family Success Story –

Kaplan Industries

n September 19, 2023, I visited Kaplan Industries at their 16-acre, Harrison, Ohio, campus. The Kaplan’s, who originally operated in New Jersey, moved operations to Harrison in 2003. The company, started by Morris Kaplan in 1959, is now led by second- and third-generation family members - CEO Dean Kaplan and President Rita (brother and sister) and Vice President Paige Kaplan Taylor (Dean’s daughter). During my short visit, it became obvious how the company has been able to sustain its impressive growth by supplying gas distributors with cylinders and cylinder accessories essential to their businesses. Attention to detail and relationships with vendors and customers are at the forefront of every decision made by Kaplan. Today, more than ever, relationships, customer service and quality products are paramount to any company’s success. Kaplan checks each of those boxes through hard work and systems implemented throughout their more than 60-year company history. My visit began with Bud Allen, (who was VP at the time and retired at the end of 2023) scooping me from the Kentucky CVG airport. We made the 30-minute drive over to Kilby Road 42 • First Quarter 2024

to the sprawling Kaplan campus, where I got my first glimpse into just how big the Kaplan’s operation is. The headquarters are home to approximately 75 employees, many of whom report to the facility on a daily basis to handle on-site operations. These staff members include executives, administrators, warehouse, production, drivers, inside sales, hydrocarbon fillers and maintenance staff. The remaining staff, including Bud, Jim Johnston EVP, Beau Papinga, Global Sales Director, regional sales and legacy New Jersey employees work remotely. Throughout the day, I was able to capture video interviews with different members of the Kaplan team including the Kaplan family. I want to send out a huge thank you to Dean and Rita, who generally insist on being low key, and who, after some convincing from Paige, agreed to tell firsthand stories about the business and how they got to where they are today. The interviews revealed lots of lessons about business and the importance of loyalty to employees and customers alike. Scan the QR Code to view the entire family interview. While on-site, we were able to capture other interviews, including sit-downs with Vice President of Operations, Chris Zenner, Bud, Beau, Jim and Paige. A unique video tour of the

GAWDA SUPPLIER Member Profile

full Kaplan campus was narrated by Jim and Chris and can be seen by scanning the QR Code. And while I loved my tour of the facility and getting to see the campus, my favorite part of the trip came later that night when the Kaplan’s, along with some of their key executives arranged dinner near downtown Cincinnati at the best steakhouse in Ohio (and possibly the world) - The Precinct by Jeff Ruby. Paige’s husband, Jordan, and his staff treated us like royalty. Literally, a custom menu featuring the GAWDA logo prominent at the top, was prepared for our visit. With amazing food and even better company, the night was full of stories, laughs and genuine conversations. Many GAWDA members likely have had similar experiences over the years with the Kaplan’s. Memorable experiences like that will stick with you for a lifetime. I am grateful to Kaplan Industries for this experience. There were so many details about the visit that made it special. Individual sacrifices like Beau and Jim taking time away from their family to be there. Dean, Rita, Paige and Jordan for the special dinner and hospitality throughout the trip. Thank you to Bud for coordinating, chauffeuring, and taking time away from his family to help make this happen.

First Quarter 2024 • 43

GAWDA MEMBERS RUN THEIR BRAINS IN PARADISE

by the Numbers

1,152 Total Attendees

277 Distributor Attendees 354 Supplier Attendees xhibitors at the 124 EContact Booth Program

44 • First Quarter 2024

AWDA put an exclamation point on an incredible year with a record-setting Annual Convention in Maui. Somehow, the association continues to raise the bar year after year, and this year's Convention was no different, as more than 1,100 attendees gathered to "Run Their Brain" in the island paradise. The Convention featured four unique keynote speakers, each discussing a different aspect of what helps make GAWDA members the best-of-the-best in the gases and welding industry. And, of course, the Convention is the can't-miss networking event of the year, with the return of the Networking 360 Program to go along with a display of the latest and greatest technology at the world-famous Contact Booth Program. Thank you to all who made the long journey to attend this year's Convention for making this such a successful event.

GAWDA'S BOARD AND VOLUNTEER COMMITTEES MEET AHEAD OF THE AC The GAWDA Executive Committee, Board of Directors, and Committee chairs arrived early for a full day of planning meetings ahead of the official start of this year's Annual Convention. The Board and Committees continue to work relentlessly on behalf of GAWDA members to ensure that you receive the maximum benefit and value for your GAWDA membership. This meeting saw John Tapley named as the co-chair of the Member Services Committee, while Liz Letke was named co-chair of the industry's insurance committee. Click the QR Codes Below to see interviews with both John and Liz.

First Quarter 2024 • 45

2023 ANNUAL CONVENTION

CONVENTION KICKS OFF WITH NEWCOMERS AND PRESIDENT'S WELCOME RECEPTIONS The Annual Convention officially kicked off with the Newcomers Reception, which was held at 4:00 at the breathtakingly beautiful reflection pool, and the President's Welcome Reception, right next door on the Chapel Lawn as GAWDA President Robert Anders and his wife, Missy, welcomed the more than 1,100 GAWDA members in attendance to Maui. As sun set over the island paradise, GAWDA members were able to mix and mingle and enjoy drinks and hors d'oeuvres next to the Pacific Ocean. The only thing surpassing the scenery was the company, as GAWDA members didn't waste the opportunity to network and reminisce.

46 • First Quarter 2024

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2023 ANNUAL CONVENTION

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BUSINESS OF CONVENTION BEGINS WITH FULL DAY OF NETWORKING Following a wildly successful welcome, the business of the 2023 GAWDA Annual Convention kicked off with the return of the Networking 360 event. The event featured 150 GAWDA members (100 suppliers and 50 distributors) meeting in a "speed dating" format, as members met in 5-minute sessions. The event took place in the Haleakala Pre-Function area, just outside the Ballroom, as members were able to soak up some of the beautiful Hawaiian sunshine while meeting new potential partners. Then, the networking kept on rolling right into the Contact Booth Program, which took place from 9:00 a.m. - 12:00 p.m. in the Haleakala Ballroom. Nearly 600 people attended the event, which has become the can't miss networking opportunity of the entire year in the gases and welding industry. They had the opportunity to walk the show floor to see all the amazing exhibitors in attendance and discuss the latest and greatest innovations that our industry has to offer. continued on next page

First Quarter 2024 • 47

2023 ANNUAL CONVENTION

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OPENING GENERAL BUSINESS SESSION AN EMOTIONAL AFFAIR The first general session of this year's Convention packed an emotional punch. First, it saw GAWDA President Robert Anders take the stage to recount all that has been accomplished during this past year. He reflected on the goals that he set out when he first took the stage in San Diego and beamed with pride when recounting all that GAWDA and our industry has achieved since then. But before that, Robert acknowledged the unbelievable tragedy that Maui suffered in August. He then welcomed Zeke Kalua, executive assistant to the mayor’s office, to the stage, who gave a heartfelt thank you to the entire assembly for coming to the Convention and for the economic impact they would make on the entire island of Maui. Robert then welcomed his wife Missy and middle-son Kyle to the stage to discuss the recipient of the 2023 GAWDA Gives Back Award, the Malama Family Recovery Center. Missy discussed how the charity was near and dear to the family's heart before turning the mic over to Kyle who gave an incredibly raw and powerful speech about his own history with substance abuse and how he was able to escape to the other side of the darkness. When he was finished, there wasn't a dry eye in the house. Then, representatives from the Malama Family Recovery center came to the stage for the presentation of the GAWDA Gives Back Award. And GAWDA Members outdid themselves this year, raising more than $325,000 for the charity, leaving the representatives nearly speechless. The Center's Program Director gave an effusive speech thanking members for their generosity and gave a traditional Hawaiian thank you to the assembled crowd. 48 • First Quarter 2024

Robert then introduced GAWDA Finally, GAWDA acknowledged the Industry Partnering Committee co-chairs smash success of the first-ever GAWDA Justin Johnson and Terry Scanlan. Justin MBA Program and announced that it will and Terry introduced a new initiative that be returning in the first quarter of 2024. will be debuted at the 2024 SMC in San Thank you to all who participated in the Antonio, the GAWDA "Best in Show" GAWDA MBA. award, which will be judged by members The session concluded with general of the IPC on several criteria for booths session presentations from Annabel Chotduring the Contact Booth Program. zen and Galen Emanuele. Annabel's "Put Then, Robert acknowledged the recip- Your Dreams to Work" was an inspiring ients of the Women of Gases & Welding and uplifting presentation focused on scholarship award: Clarissa Brawn and helping people become more effective, Mallory Davanzo. Thank you to all of the efficient, productive, and happier in their incredible sponsors who made this schol- work and personal lives, while Galen arship to the University of Innovative Dis- discussed the tenets of improv, honed tribution possible. through his work on "Whose Line is it Anyway?" and how the "Yes, and?" core tenet of improv can be used in business.

2023 ANNUAL CONVENTION

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BUSINESS OF CONVENTION CONCLUDES WITH THANK YOU'S AND THE CHANGING OF THE GUARD The Closing General Business Session kicked off with the Industry Keynote presentation, as Linde CEO Sanjiv Lamba addressed the crowd. He discussed the historic evolution that Linde has gone through over the past 144 years, including the recent merger with Praxair and acquisition of nexAir. He then shared some of the exciting initiatives that Linde has in the process as well as his perspective on the impending energy transition. Lamba was followed by a presentation from Will Bowen, the world authority on complaining. Will talked about how complainers are "energy vampires" and discussed strategies for dealing with people who complain, as well as strategies for recognizing why we complain and how we can stop doing it, and he did it all with his signature humorous and relatable style. After Will's presentation, GAWDA Past President Bob Ewing took the stage to introduce Laura Brumsey with the CGA, who presented this year's 2022 GAWDA Distributor Safety Award Winners. This year's winners are: • 100,000 or Fewer Employee Hours Core Industrial Gases • More than 100,000 Employee Exposure Hours - Mid South Welding Supply Then, Bob Ranc from WEMCO took the stage to present the WEMCO Award of Excellence. Congratulations to General Air for winning this year's Excellence in Welding Award for the Distributor Category. Bob also announced that next year's WEMCO and RWMA Annual Meeting will precede GAWDA's SMC in San Antonio at the Grand Hyatt San Antonio River Walk from April 19-21, 2024. He encouraged GAWDA's Supplier Members to come to San Antonio early to participate in the Annual Meeting. And finally, Robert Anders took the stage to introduce this year's President Award of Excellence recipient, Terry Hall. Terry became just the 10th Recipient of GAWDA's highest First Quarter 2024 • 49

2023 ANNUAL CONVENTION award, in recognition of all his work throughout his long and storied career at Messer. Then, Bob Ewing and Natasha recognized some of GAWDA's Board and Committee Members for their time and service. Thank you to Liz Standley, Colleen Kohler, Linda Smith, Abydee Butler Moore, and Bob Ewing for everything you have done for both GAWDA and the industry at large. You have poured your heart and soul into the association, and we are all better off for it. Thank you for your service. It was then that the slate of officers that were presented on Tuesday were ratified. Congratulations to new Board Members Albert Castillo and Nicole Kissler, and this year's "Mr. X" Kevin Falconer, who will be president of the association in 2026. With the slate ratified, Gary Halter officially became the 2023-24 GAWDA President. Following a video testimonial from some of his closest industry confidants, Gary was ushered to the stage by GAWDA's Past Presidents in attendance. He was then introduced by Wally Brant, Bob VanKirk, and his better half, Kathy Halter, and was presented with his president's pin, president's plaque, and president's banner. Gary then called Robert back up to the stage to present him with a token of his appreciation for the service he has shown to GAWDA and for the mentorship he has shown to Gary. He got Robert a putter with a head cover from his alma mater, Furman University, as well as a bag tag with two of Robert's favorite bible quotes and a Furman-themed putter grip. Robert, on behalf of all of us at GAWDA, FU All the Time! With all of the pomp and circumstance out of the way, Gary was able to share his vision for his presidency with the assembled members. Intertwined with humor, supporting video, and gratitude, it was the perfect exclamation point for the business portion of the Convention.

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2023 ANNUAL CONVENTION

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OTHER CONVENTION EVENTS In addition to the GAWDA events that were open to all attendees, there were other networking events that took place throughout the week. The Young Professionals Committee, rather than hold a traditional committee meeting, invited Galen Emanuele to give a presentation Sunday focusing on the importance of being able to give and receive constructive feedback and the importance of "creating a culture of feedback." The YP Committee also partnered with the Women of Gases & Welding Committee to host a three-hour boat excursion networking event aboard the Calypso, a 65-foot powered catamaran. The event gave members time to enjoy a delicious meal and some cold beverages, explore the incredible craft, listen to great island-style music, network with colleagues and friends and watch the beautiful island scenery. GAWDA's Past Presidents in attendance also gathered for the annual Past President's lunch. In addition to the opportunity to catch up and reminisce, the Past Presidents got to hear from GAWDA's Executive Committee about all that is going on in the association. We thank all of the Past Presidents who were in attendance and thank you for your service to our organization and the industry. Finally, throughout the week, many of GAWDA's suppliers held networking hospitalities and customer appreciation events. Thank you to all our GAWDA Suppliers who hosted these wonderful events.

continued on next page

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2023 ANNUAL CONVENTION

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CONVENTION CLOSES WITH "BLOWOUT PARTY" OVER A YEAR IN THE MAKING

The Convention concluded Wednesday evening with an unforgettable President's Farewell Gala. It was the "blowout party" that Robert promised when he took the stage in San Diego, complete with majestic views of the ocean and mountains, dinner, dancing, and a fire-dancing show. Thank you to all GAWDA members who attended and made this a night to remember!

52 • First Quarter 2024

& Supply Chain

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2023 ANNUAL CONVENTION

THANK YOU

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TO THE ANNUAL CONVENTION SPONSORS

P L AT I N U M P L U S

P L AT I N U M

Aesir Logistics

& Supply Chain

INC.

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First Quarter 2024 • 53

2024

54 • First Quarter 2024

INDUSTRY FORECAST

2024

GAWDA Distributors Object to Calls for Economic Instability, Project Robust Growth Across the Board Standing athwart negative headlines and consumer sentiment, GAWDA distributors expect a big year. BY STEVE GUGLIELMO

ach year, the first Quarter Issue of Welding & Gases Today is our Annual Economic Forecast Issue. We speak with GAWDA Distributors, Suppliers (page 64), sister organizations like the American Welding Society (page 70) and Compressed Gas Association (page 72) and combine them with the quarterly ITR Economic Forecast (page 77) to paint as complete a picture of the economic outlook of the industry as we possibly can. One of the biggest lessons I’ve learned from years speaking with Brian and Alan Beaulieu is to tune out the media when it comes to the economy. And that goes double in an election year. Even if they don’t mean to, the 24-hour news cycle treats every story as a political one and makes every election into horse-race coverage. And, like it or not, “if it bleeds, it leads” didn’t become a well-known axiom on accident.

This year is no different. GAWDA Members across the board are projecting robust growth. In all market segments, in all geographies, across product lines, nearly 100% of respondents expect to see growth this year. And nearly everybody expects that growth to be significant. But, when asked about the state of the industry as a whole, it’s much murkier. While not nearly the dire picture that the media projects, respondents went from nearly 100% growth when asked about their company to only 65% saying the overall industry would be up in 2024 (25% say it would be level, 10% say it will be down). Time will tell. The following are responses from GAWDA Distributors broken down by geographic regions. Thank you to all who participated.

EAST

n 2023, the Eastern Region projected the highest growth in the country, combining to project 9.43% growth for the year. This year, it has tempered those expectations, but only slightly, coming in at 7.83% projected growth. That makes it the second least optimistic region. In 2021 and 2022, the East was the least optimistic region in the country, before its one-year stint as the highest projection.

Will Roberts, President

ROBERTS OXYGEN

If Roberts Oxygen is able to achieve its 10% growth goal in 2024, it will be based on these three factors, according to President Will Roberts: 1. “How our customers react to the projected recession First Quarter 2024 • 55

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INDUSTRY FORECAST

. Our ability to acquire product in a timely manner and in the quantities our customer’s desire . Our ability to continue to attract and retain great

employees.”. The company notes that, though COVID and the resulting supply chain issues have made it more challenging to keep a well-stocked store, it is still a goal of the company to keep its retail stores well-stocked so that customers can always find what they’re looking for. Says Roberts, “We cover a relatively large area from Pennsylvania/New Jersey down to Florida, so we have a nice mix of research, health care, government contracts, manufacturing, food services, and beer/cannabis customers. One ongoing opportunity for the southeast U.S. is the continued population growth in the market and the increased demand that growth brings. We are always looking to expand our footprint into neighboring markets where we see a demand for excellent service. Expansion helps us capture new customers and provide new career opportunities for our employees.” Roberts entered the Florida market in 2014 with the purchase of Gas Products & Service in Orlando and now operates six locations serving the market, with expectations to continue to grow significantly in Florida and the surrounding southern markets.

John Larsen, Vice President WEST PENN LACO

“There is a lot less uncertainty than at this time last year. We were pleasantly surprised by how 2023 turned out,” says West Penn Laco Vice President John Larsen. “The slowdown in the economy that was predicted never occurred, supply chain issues eased, and sales were better than expected. We expect this trend to continue into 2024.” The company expects its sales to grow 5-7% this year. Says Larsen, “Our customer base is pretty diverse, and this is reflective of the region we serve. Our manufacturing customers and those tied to federal spending (road construction, defense contractors) were busy in 2023 and we expect them to continue in 2024. The only minor disruption is a consolidation in certain business segments. We have seen more family businesses exit by selling to corporations or to private equity firms that are more likely to have national contracts in place.” Part of the company’s success in 2023 was due to expanding the products and services that it offers to its customers. To 56 • First Quarter 2024

GAWDA Members across the board are projecting robust growth. In all market segments, in all geographies, across product lines, nearly 100% of respondents expect to see growth this year. continue that success, West Penn Laco will continue to promote new products, including welding automation, in 2024.

Evan Bennear, President DALE OXYGEN

A combination of new business generation and maintaining its existing customer base will drive Dale Oxygen to expected double digit growth in 2024, according to President Evan Bennear. In Pennsylvania, where Dale has four branches, the metal fabrication business is dominant. To continue to service that industry, Dale will add new hires in 2024 in order to expand its welding automation and advanced fabrication offerings. The company will continue to “look to expand geographically every year in ways that benefit the entire organization,” Bennear says.

Louis Centofanti, President COMMERCIAL MISCELLANEOUS SALES, LLC

Rising interest rates combined with general Election Year skittishness lead Commercial Miscellaneous Sales to expect a level to slightly down year in 2024. Since COVID, the company has vastly expanded its inventory, doubling its stock levels of most items since. Company President Louis Centofanti does note that the company is looking to increase its bulk gas storage in 2024, which will allow the company to grow in that area. He also notes that the company “continues to slowly expand our geographic radius from our location.” Overall, as the company continues its march to its 20th anniversary in 2026, the company has a cautious but guarded optimism for an uncertain year.

INDUSTRY FORECAST Lloyd Robinson, President AWISCO

A strong overall economy combined with expected price increases will lead to a 4% growth in 2024 for AWISCO. “AWISCO has embarked on a true e-commerce platform to help our customers do business with us in a better way,” says President Lloyd Robinson. Robinson also points to the Infrastructure Bill as a driving force in 2024. “Construction is the dominant industry in our area and the jobs that are starting now from the Infrastructure Bill should help us greatly in 2024.” He continues, “AWISCO is always looking to expand, either through acquisition or by expanding our product offering to our existing customers. For 2024, we are really trying to increase our automation and process improvement offerings.” The annual AWISCO trade show will take place on May 8, 2024. The trade show attracts nearly 1,000 customers to the company’s Maspeth location to see the latest and greatest products that AWISCO offers.

2024 SOUTH

ast year, the Southern Region of the country was the second most optimistic, expecting 7.57% growth. This year, the region is by far the most optimistic, nearly doubling last year’s projects with an expectation of 13.63% growth in 2024.

Allen Jezouit, VP Product Management MERITUS GAS PARTNERS

Continued growth and acquisition will lead to another prosperous year for Meritus Gas Partners and its family of distributors. Vice President of Product Management Allen Jezouit anticipates a more than 20% growth for the partnership in 2024, even amidst an overall level year for the industry. Part of that growth will

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come from adding new lines of business to its distributors’ existing operations, like residential propane. “We are operating in multiple regions, so we are looking at national economic drivers and we see a flat year in 2024 as the best-case scenario," he says. "We will continue to grow through acquisitions, by best practice sharing across our partners and by entering the spec gases business across all markets we serve." Jezouit specifically points to Southern California and the DFW metroplex as growth markets for Meritus, following the company's recent acquisitions in those geographies. He concludes, "Election years are rough, and this one may be the roughest in a long time." Still, the company sees sunny days ahead in 2024.

Jenny McCall, President/ COO WESCO

WESCO has spent the years since COVID adjusting to the “new normal” that the pandemic created. "A big factor is finding good employees that want to work. Since the pandemic, it has been very challenging. Employees are crucial for the success of our business," says President/COO Jenny McCall. "WESCO learned to adjust our strategies to align with the current environment. We position ourselves with the ongoing transformation in the industry. We also remained current and flexible in our approach.” The company expects to see 10% growth in 2024. “Our area is well diversified but if we had to pick a 'dominant,' it would be the Shipbuilding industry. Many Government contracts have been awarded so we expect 2024 to be prosperous,” McCall says. The company will unveil its new location with an open house in Spring 2024, which will help contribute to that expected growth in the new year. But, like every year, the company’s success or failure will come down to how it cares for its customers. “We are always looking for growth opportunities. Taking care of the customer is our number one priority, no matter what their needs may be.”

more closely at its stocking levels to better deal with remaining supply shortages. And though oil & gas companies typically take a “wait and see” approach during election years, Hill still expects to see a 7% growth in 2024.

Robby Smith, President AMERICAN INDUSTRIAL GASES, LLC

According to American Industrial Gases, LLC President Robby Smith, “We stay focused on what we do well and the type of customer we want. We do not try to be everything to everyone, and we especially do not listen to any talking head(s) on TV in the Mainstream Media.” By focusing on its core competencies, the company expects to see growth of 15-20% in 2024. The company has plans to expand in the new year, which will also contribute to that growth. He does note that, “Inflationary pressures caused by the government create an opportunity to raise prices and capture the inflation plus additional margin.” All roads lead to growth for AIG in 2024.

CENTRAL

raditionally, the Central Region has been the region with the highest rate of respondents to the survey. As a result, it tends to be in the middle of the pack, as far as projections, due to it being less impacted by outliers skewing the average. However, last year, the region was, by more than 2%, the least optimistic in the country, expecting only 5.83% growth. This year, it remains the least optimistic, however it shows how far the baseline has moved, as it projects a 7.5% overall growth in 2024, just slightly trailing the East Coast’s 7.83% projection.

Jeremy Ramage, CEO

WRIGHT BROTHERS INC.

John Hill, President

WILLARD C. STARCHER Improvements to the supply chain over the past several years will have the largest immediate impact on Willard C. Starcher in 2024, according to President John Hill. The company is looking much 58 • First Quarter 2024

Labor and Legislation will have the biggest impact on manufacturing, notes Wright Brothers Inc. CEO Jeremy Ramage. Still, the company projects 10% growth for the company and an overall growth of the industry in 2024. "The changing CO2 legislation will definitely impact our region," he

INDUSTRY FORECAST

2024

says. "The Midwest continues to be strong in food, beverage and industrial manufacturing. It’s interesting that, despite the uncertainty surrounding CO2 sources, we continue to see steady investments and growth in those markets. We also anticipate an increase in opportunities with Hydrogen and Helium. As a result, over the past few years, we’ve put an emphasis on positioning ourselves to be ready for growth involving those gases.”

Troy Elmer, President

MISSISSIPPI WELDERS SUPPLY CO., INC.

Troy Elmer, who took over as President of MWSCO on October 1, 2023, anticipates an 8-10% growth in top line sales for the distributor in 2024. "Vendor price increases will again play a large role. Although these have slowed, we are still seeing consistent price increases from a large section of our suppliers," Elmer says. "We are also seeing a continued focus on

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automation and customers planning to get more done with fewer workers on the floor." The company recently opened a new location in the Fox Valley area of Wisconsin. Says Elmer, “We are seeing good growth in this area and are very excited to watch this location grow.” He continues, “We will expand our business based on opportunities. We are constantly looking for the next location or product line that will improve the service level to a region or our existing customer base.” Concludes Elmer, “We have never been a ‘just in time’ inventory type of company. We focus on having the products on hand that our customers need. It takes more planning and forward thinking now, but lead times are improving. Agriculture and food processing are large segments of our customer base. General metal fabrication is also a large segment. There are still suppliers struggling with certain products but it's a much smaller problem than it was a year ago. We do see opportunities with dry ice production in our region.”

Scott Bell, President

AMERICAN GASES CORP. American Gases Corp. projects a 7% increase in sales in 2024, though cautions that, as others have noted, that is driven by a precarious work force. American Gases Corp. used the pandemic to rid itself of its unprofitable business and built around its profitable assets. President Scott Bell notes that helium will be a potential growth driver for the company this year, in an environment where he expects the overall industry to grow as well.

Brad Dunn, EVP CK SUPPLY, INC.

CK Supply, Inc. conservatively expects to see sales growth of 8% in 2024, according to EVP Brad Dunn. Dunn notes that while there is uncertainty in the economy, CK Supply benefits from a diversified portfolio of customers and most of the feedback indicating a solid pipeline of business activity for 2024. The company has noted an improvement in hiring activity as well as several internal promotions and has budgeted a historically large capex primarily attributed to trucks, cylinders, bulk tanks and CO2 reclamation equipment.

60 • First Quarter 2024

Kevin Falconer, President MINNEAPOLIS OXYGEN COMPANY

An increase in offerings, both products and services, to its end users will be the primary growth drivers in a projected 8-10% increase for Minneapolis Oxygen Company in 2024. The company expects to unveil new product launches surrounding automation this year. Says President Kevin Falconer, “This makes us a more well-rounded distributor for our customers.” The company is also putting an increased emphasis on having more “specialists” on its staff. Combined with its emphasis on automation, the company has also begun producing its own LIN/LOX/LAR, which have been growth drivers for MO2. Falconer concludes that, through COVID, “We've become closer to key vendors/ suppliers, both primary and secondary. We've increased the use of secondary suppliers when we can as well. We've engaged in new hiring, training and review practices to keep our employees engaged.”

Josh Davidhizar, CFO INDIANA OXYGEN

A new business pipeline and price increases, combined with the general health of its existing customer base, all add up to a projected 7.0% growth for Indiana Oxygen Company in 2024, according to CFO Josh Davidhizar. The company continues to fashion itself as a “solutions provider” for its customers, as opposed to simply an order taker. Though the company doesn’t have any set plans to increase its product or service offerings this year, “We are constantly evaluating how we can improve our customer service and the products we offer.” IOC concludes, “Our goal is to remain flexible in order to provide the value-added guidance and resources our customers have come to expect from Indiana Oxygen.”

Brad Davis, Vice President CENTRAL OHIO WELDING, INC.

“I expect our sales to increase by about 5%, mainly because of the strength of the regional economy. We have a significant amount of large construction projects

INDUSTRY FORECAST locally, and those are fueling regional growth,” says Central Ohio Welding, Inc. Vice President Brad Davis. “The biggest single factor affecting our projections is the ability for our customers to find qualified applicants for the open positions that they have. In Central Ohio, there are an excess of manufacturing jobs and a lack of qualified applicants. This has been slowing the growth potential of the area for the last few years. Secondly, the increase in interest rates slowed down our sales of equipment that wasn't related to automation. Further changes to rates could either help or hurt 2024 sales.” He continues, “When interest rates were very low, it was relatively easy to plan for a very aggressive growth strategy. With the cost of borrowing now much higher, we are more selectively choosing the places we want to pursue further market share.” The company continues in its search for unique vendors and different product lines that will add value to its customers. “We know that we will never have the buying or pricing power of larger companies, so we try to show different things,” Davis says. “We have expanded into other parts of Ohio where we feel that our ESOP culture and technical abilities would bring something different to the

2024

customer base. Going forward, we are looking for customers where we think our skill set and ideas would make a good partnership. For the large local construction projects that we have in the area, we are going to be offering several justin-time mobile solutions to serve the contractor base.” The company is planning to host an event about welding pipe at its Columbus facility in Fall 2024.

Joe Winkle, Partner WELDSTAR

A continued growth in market share will be a contributor to an expected 3% growth for Weldstar in 2024, according to Partner Joe Winkle. In recent years, the company has increased its personnel and its product lines, and has continued investing in capital equipment, all of which will continue to bear fruit in 2024. However, Winkle noted that the political landscape in Illi-

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nois provides a difficult headwind for companies to operate in. “Disruptions, taxes and the government driving people and companies out of Illinois,” are all negative disruptors in the area. Still, Weldstar continues to fill the expansion it has had in place in recent years and expects to see growth this year.

WEST

n 2023, the West was the second most optimistic region of the country, expecting to see growth of 7.57%. This year, the region is still the second most optimistic, but that projection has exploded to an expected 9.33%.

Amber Chisamore, President FOUR CORNERS WELDING & GAS SUPPLY

“We are expecting our sales team to be incredibly aggressive to overcome any economic downturns,” says Four Corners Welding & Gas Supply President Amber Chisamore, who projects a 15% growth for the company, even amidst a projected level year for the industry as a whole. “Employee turnover has been a critical factor and has forced us to change training timelines in order to meet customer needs," Chisamore notes. "Our area is still very depressed after losing major economic contributors.” However, Four Corners expects to see an additional product line in 2024 with the possibility of a new location, which will help contribute to its growth forecast.

Jason Kirby, Executive Vice President OXARC LLC/MERITUS GAS PARTNERS

The four biggest factors that will determine growth for OXARC, LLC in 2024 are: The Economy Inflation Interest Rates Election Year Add it all up, and you’ve got a projection of 8% growth for OXARC against a level industry, according to EVP Jason Kirby. “We are providing new gas delivery options to our customers like Argon and Nitrogen Micro Bulk. We are working on our B-to-C services, and lastly, we continue to expand into new

. . . .

62 • First Quarter 2024

markets through scratch starts or through acquisitions,” says Kirby. “Agriculture is our largest industry. This market is always stable, as everyone needs to eat. It's the other market segments like high tech manufacturing, electronics, metal fabrication, and construction that are impacted by the economy, interest rates, and inflation.” Kirby notes that OXARC is continually looking for potential partners that will help the company enter into new cities, states or markets. As others have noted, the Presidential Election has the potential to have companies tighten the purse strings, especially in the second half of the year.

Stacy Lewis Hayes, CEO VERN LEWIS WELDING SUPPLY, INC.

Stacy Lewis Hayes, CEO of Vern Lewis Welding Supply, Inc., expects to see growth of 5% in 2024. However, she notes the possibility of continued inflation or even a possible recession as things that could hinder that projection. Still, “we have upped our game in marketing, online presence, and social media,” she notes. “We are also making sure we have good stock selection for purchases.” One unexpected disruptor that Vern Lewis has had to deal with is the demise of the “home hobbyist.” “People don’t have extra money for hobbies...they are paying for gas, rent and groceries. The most dominant industry we have here in Arizona is fabrication and housing. They should continue to increase.” Though she is optimistic about growth, Hayes notes that, “We are hesitant to expand until we see what this economy is going to do.” The company has recently expanded into hydrotesting, and are actively looking into getting into spec gases, both of which would help drive growth for Vern Lewis.

Tim Van Linge, CFO WESTAIR GASES & EQUIPMENT

In the face of a softening economy, WestAir Gases & Equipment expects to see 10% growth in 2024, according to CFO Tim Van Linge. This growth will be primarily driven by “opportunities in the Hydrogen space with the continued government push for clean energy sources.” WestAir also anticipates investments in several new geographic areas this year, which will help contribute to those growth expectations.

INDUSTRY FORECAST Darren Bradley, President

SPECTRUM GAS PRODUCTS Spectrum Gas Products has made a concerted effort, in recent years, to increase its inventory levels, especially on high volume items, as well as bringing on additional staff. Those changes, combined with Spectrum’s excellent service and product availability, will help contribute to a 12% growth in 2024, according to President Darren Bradley. The company has expanded its coverage area by 25% over the last couple of years. That additional staff has come at a cost, however. “Cost of staffing has increased significantly over the last couple of years, especially with drivers and fillers. We have increased our starting wages by almost 30%,” Bradley notes. The company will look to open an additional location, but Bradley notes that, “Commercial property is limited and still very expensive. An additional location will allow for better distribution in this congested region. Will also increase our filling capabilities.”

2024 Jim Kissler, Chairman NORCO

Price increases, productivity increases, and technology will all help contribute to an expected 8.58% growth for Norco in 2024, according to Chairman Jim Kissler. However, Kissler cautions that interest rates, labor costs, and the overall state of the economy could impact those projections. Still, through organic growth and planned acquisitions, combined with the recent new markets and geographies that Norco has entered in recent years, 2024 should be a year of growth. Kissler notes that positive results in the Presidential election have the potential to supercharge that growth in the back half of the year.

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ike the GAWDA distributors, GAWDA’s supplier respondents are also going into 2024 with expectations of growth, though tempered with warnings about outside influences like continued supply chain issues, labor challenges, and the looming threat of geopolitical forces that could dampen what should be a robust year of growth. The following are responses from GAWDA suppliers across North America about their expectations for 2024. We thank all of the suppliers who participated in this year’s forecast. Be sure to check out the GAWDA Online Buyer’s Guide (buyersguide.gawdamedia.com or download the GAWDA Buyer’s Guide App from the App or Google Play Store) to learn more about each of these suppliers.

Hector Villarreal, President WELDCOA

“The mega trend of companies reshoring back on U.S. soil is a major gain for our industry,” says Weldcoa President Hector Villarreal. “The government’s efforts to reshore chip manufacturing will be a boon for our industry. It’s also been great to see distributors become suppliers of cobots to the manufacturing sector.” Those trends will be primary contributors to an expected 5-10% growth in 2024 for Weldcoa. “We expect sales to continue to rise, but not as aggressively as they did in 2023,” Villarreal says. “The biggest hamper to our growth is finding the talent that we need,” he says, echoing a common issue from around the industry. He concludes, “The domestic oil industry continues to increase its output. The U.S.’s rise as a global energy supplier in petroleum and natural gas is a big plus for our industry.”

64 • First Quarter 2024

“The domestic oil industry continues to increase its output. The U.S.’s rise as a global energy supplier in petroleum and natural gas is a big plus for our industry.” Joe Krall, VP of Sales SELECT-ARC, INC.

“We see continued growth for our flux cored, metal cored and solid wire products with our distributors,” says SelectArc, Inc. Vice President of Sales Joe Krall, who expects to see sales growth of 7-10% in 2024. “We continue to develop new products to expand our brand portfolio with our customers.” He continues, “Distributors with experienced technical salespeople will have the biggest opportunities for growth in 2024. Inventory management is important to make sure of timely and reliable availability of products is important. Bringing in younger people and giving them the opportunity to work with and alongside an experienced individual is important.” As will become a theme throughout this forecast, Krall points to the difficulty in finding production workers, especially second and third shift workers, as a disruptor for the industry. Still, he sees a successful year for Select-Arc and its customers. “We will continue to add automated equipment to offset the challenges of hiring and retaining production workers on our second and third shifts. We continue to grow our stainless solid wire, flux cored and metal cored product portfolio for our customers. We are one of the few manufacturers who produce stainless flux cored and metal cored wire in the USA. Our technical support

INDUSTRY FORECAST

2024

BY STEVE GUGLIELMO

for our products and the fact that our owner has been manufacturing cored wires since the early 1970s and is still committed to making sure we manufacture to his high-quality standards make us bullish on the future.”

Jimmy Walker, President SAF-T-CART

Growth in market share and expected large construction projects will be the biggest drivers of an expected 8% growth for Saf-T-Cart in 2024, according to President Jimmy Walker. Walker expects GAWDA distributors to see possible growth in the new year as well, saying, “Onshoring, construction projects, and fueling will help to increase sales.” He expands that large construction projects and fueling of vehicles will be growth drivers for the industry, “Hydrogen and natural gas will continue to play an important part in this country’s energy supply. Being gas suppliers, our industry should be the leaders in this field.” The company is in an expansion position, having acquired an additional 40,000 sq. ft. warehouse and has plans to add 15,000 sq. ft. of production in the first quarter of the year.

Paul Kinsella, President EXOCOR

"Next year should give every business the ability to operate in a more stable marketplace after the disruptions that we have witnessed the last 3-4 years with supply, costs and COVID," says Exocor President Paul Kinsella, who projects a growth of 5-10% for the company in 2024. "Besides being 100% committed to your external customers, there is a great opportunity to

do a deeper dive into their organization, examine the culture, and be clear to all what your vision is. At Exocor, ours is clear and simple, 'to be the best employer to work for, and the best supplier to work with.'" The company continues to expand its geographical footprint across the USA while maintaining coast to coast coverage in Canada. “With more stocking locations in the southern part of the USA and additional sales/technical people in the field helping our distributors, we see this level of service helping our growth,” says Kinsella. “We are adding additional products to our Executive Filler Metal line, giving our distributor partners the ability to easily source their needs from Exocor.” He concludes that, “Our approach is not that we only grow when our customers grow, but that we need to help our customers grow. Overcoming a market slowdown and growing can only happen if we focus on providing the best customer experience and helping our distributor partners differentiate themselves in the eyes of their customers. If we provide excellent products and an easy way for our distributors to conduct business, they will grow and so will we.”

Ed Sarky, VP of Sales ANTHONY CARTS

Anthony Carts expects to maintain its steady growth in 2024. “Last year, we made upgrades to our product offering that will continue to pay dividends this year" says Ed Sarky, VP of Sales. "Products like Construction Grade Design (CGD) MCR racks, new truck pallets, cradle/manifolds, liquid dewar carts, and our newly designed firewall option for cylinder cages. Robotics and AI driven machines have been installed to make our shipping times even quicker than before, once again, aiming to lessen the burden on our distributor partners." continued on next page

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INDUSTRY FORECAST Mark Jenny, Compressed Gas Equipment Product Manager RAY MURRAY, INC.

Jeff Holyoak, Vice President – Sales & Strategy TOMCO2 SYSTEMS

Even amidst an expected down year for the CO2 industry at large, TOMCO2 Systems expects to see growth of 5-10% in 2024, according to Vice President of Sales & Strategy Jeff Holyoak. The biggest opportunities that TOMCO expects to capitalize on are their regional focus and service over supply philosophies. “GAWDA members are in prime position to take market share from those who don't focus on customer centric initiatives. In dry ice, focus should be on CO2 Efficiency and Recovery.” A key focus for TOMCO2 in 2024 will be in new product development in dry ice production and CO2 Recovery, which Holyoak expects will be the primary driver of sales growth. He concludes, “In down economies there will always be winners and losers. The winners, and thus the growth members, will focus on providing the best product and best service and not just surviving the downturn.”

Rafael Arvelo, President & CEO EQUIGAS, INC.

2024 will be a year of opportunities for EQUIGAS, as it will be offering new products, new brands, new lines of business all from its new, larger warehouse, which allows the company to have more products in stock. All of those contributors add up to an expected 20% growth, according to President & CEO Rafael Arvelo. "EQUIGAS' expectation is to keep growing at the same pace we have been growing since we've been open," Arvelo says. "EQUIGAS is all about taking care of our customers, showing them that we care and that they matter to us, plus we answer the phone, and we ship the same day!" He concludes, “We just expanded in December by moving to a new building that is 3.5x larger than the previous one. However, we are going for more, and more good news will be shared soon!” 66 • First Quarter 2024

The addition of new product lines and new products in existing lines will help drive 5-8% growth for Ray Murray, Inc. in 2024, says Compressed Gas Equipment Product Manager Mark Jenny. The company sees the energy sector as an area of opportunity for the new year, but as others have noted, inflation, shipping costs and lagging consumer confidence could depress what would otherwise be a strong year. Jenny also points to the ongoing de-carbonization efforts throughout the country as an outside factor that could negatively impact the industry. However, in what is projected to be a level year for the industry, Jenny is confident that Ray Murray’s new products will still lead to a positive year in 2024.

Lexi McDermott, Welding Channel Specialist DYNABRADE

Dynabrade Welding Channel Specialist Lexi McDermott anticipates a 10% growth across the industries that Dynabrade services in 2024. “Dynabrade has recently acquired Manth Manufacturing and Global Abrasives. Each company allows Dynabrade to improve the quality of our offering while keeping the pricing reasonable for our customers,” says McDermott. “With the resources we have announced for our welding distribution in 2024 we anticipate a continued increase in sales.” In addition to its new products, Dynabrade will unveil a new Vocational program that it is excited about. “In 2024, Dynabrade is launching a new Vocational Education Program for high schools, colleges and union programs designed to benefit the next generation of the trades. The educational pricing will be available through authorized Dynabrade Distribution.” She concludes, “Dynabrade is constantly working on and releasing new tools. This year we have multiple new kits and tools being released. With numerous in the pipeline to begin development on this year. Everyone is aware of the concern of the decline of the economy this upcoming year. While this may affect certain aspects of Dynabrade’s business, we believe that we implement enough positive opportunity for our distribution to continue our growth.”

INDUSTRY FORECAST Philip Moroco, President

AMERICAN CAP COMPANY, LLC American Cap Company expects to see a sales increase of 10% in 2024, with most of that growth concentrated in the second half of the year after a relatively flat first half, according to President Philip Moroco. The biggest factors impacting that growth projection are materials and logistics costs, capital expenditures and shifts in worldwide manufacturing. However, Moroco points to macro-economic trends like geopolitics and continued industry consolidation as things that could hamper that growth. He notes, “American Cap Company is a member of the PTR Group of companies. Our GAWDA customers have full access to the product lines and core manufacturing competencies of these operations. PTR Group has a global presence and will continue to expand its footprint to service the needs of its customers worldwide to help them reach their business objectives. You can learn more about the PTR Group at www. ptrgroup-mfg.com or contact your American Cap Company account manager.”

2024 Mike Arcieri, Vice President of Sales WELDSHIP

Weldship expects to see an overall sales increase of 8-10% in 2024, according to Vice President of Sales Mike Arcieri. One of the biggest contributors to that growth will be the company’s ability to plan ahead and order anticipated materials to enable a smooth manufacturing operation that will make Weldship’s products available as demand increases. Says Arcieri, “This will allow us to be better positioned to supply our customers with tube trailers, ASME ground storage, and ISO Containers in a timely fashion rather than to wait to order materials once we receive orders. Weldship has an existing fleet of 1000+ tube trailers, ISO containers and ground storage equipment, etc. that can be made available quickly for purchase or short or long term leases opportunities.” He continues, “We are always looking at ways to expand our business in many areas, including manufacturing and retesting/servicing our own equipment fleet as well as our customers. We understand that the number of newly manufactured tube trailers increases the overall population, and those trailers need to be tested every 5-10 years. We look to better

Brittany Fichter, Sales Representative SUPERFLASH COMPRESSED GAS EQUIPMENT

SuperFlash Compressed Gas Equipment recently added a spec gas line to its product offering, as well as a new line of Gas Control Units. Those two additions will help strongly contribute to an expected 10-20% growth in 2024, according to Brittany Fichter. “Our spec gas line and line of gas control units offer customers a more complete offering while still giving the quality and technical expertise that SuperFlash is known for,” she says. Fichter also points to the potential for more government projects as another growth driver for 2024. Overall, though she expects the industry to be level, Fichter expects growth not only for SuperFlash but also its distributors and customers.

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INDUSTRY FORECAST

position ourselves to be able to better service our own lease fleet as well as our customers who depend on us to optimize the value of their gas storage equipment."

John Lutz, Vice President of Sales KERRIDGE COMMERCIAL SYSTEMS

John Lutz, Vice President of Sales for Kerridge Commercial Systems, expects sales to increase by 30% in 2024, and for good reason. “The biggest factor [in our growth] is going to be companies in the gases and welding industry having a chance to see how our software performs in the industry.” Lutz explains that Kerridge is new to the industry and is looking to add GAWDA customers. “The most opportunity I see is moving many of the folks in this industry into up-to-date back-end technology," says Lutz. "Many of the software companies in this space use out of date technology which will prevent future growth down the line. Our electric proof of delivery will allow gas and welding companies complete control over their delivery process. K8 offers full control over your rebate strategy. The powerful rebate capabilities will give you complete flexibility when managing and customizing different agreements through your ERP solution. Keep on top of financial performance with comprehensive control and analysis purchase rebates and Special Price Agreements (SPAs) Powerful customer rebates tracking, which also impacts margin, ensures that you retain tight control over profit margins at all times.”

John Kaylor, President

ABICOR BINZEL USA, INC. "While we see 2024 will be a challenging year, a combination of new products and market share growth in multiple product categories will be the biggest contributors to an expected 5% growth in 2024," says Abicor Binzel USA, Inc. President John Kaylor. He continues, "Barring a global event, we feel the U.S. economy will be stronger towards the latter half of the year. The welder shortage will continue to plague our industry,” Kaylor says. “New automation solutions with a low-cost entrance point and ease of use can be quickly implemented.” Abicor sees automation and weld fume mitigation as major opportunities this year and will be releasing new products to better serve those markets. 68 • First Quarter 2024

Steve Scecchitano, President AESIR LOGISTICS

2024 projects to be a substantial growth year for Aesir Logistics, according to President Steve Scecchitano, who projects a 25% growth for the company. “We expect our sales to be up in the industry, as our organization is relatively new and we are still in our initial growth phase,” he says. “We still believe there is a COVID effect in place, where many manufacturers and suppliers have too much inventory on hand and overall supply chains are still normalizing.” The company is exploring expansion in the Midwest region and will also add $2.5 million in trucks & trailer assets, which will aid in growth for the logistics supplier.

Matt Cable, President

BUG-O SYSTEMS

Increased levels of training with BUGO’s distributor network and demand in the market for methods to increase productivity will help contribute to an anticipated 5% growth in 2024, says BUG-O Systems President Matt Cable. “I expect sales to be up in 2024, based on the needs in the market for increased productivity with an ever-increasing shortage in welders,” Cable says. Overall, 2024 should be a year of growth across the industry, Cable expects. One of the biggest opportunities for distributors in the new year is how the rapid growth of AI technology can have a positive impact in processes and can be best utilized to streamline your business.

Tom Kairys, VP Sales and Marketing CP INDUSTRIES

CP Industries expects industry-wide growth in 2024, including an anticipated 15-20% growth for the company, according to VP Sales and Marketing Tom Kairys. Those growth projections come with the caveat that disruptors like supply chain issues, capacity management and employee retention and difficulty recruiting talent could impede that growth. However, the company expects to see hydrogen, CNG and helium storage and distribution demand as key drivers for commercial growth at CPI in the new year. “The

INDUSTRY FORECAST biggest opportunity I see is continued M&A and consolidation in the gas marketplace could provide new business opportunities with dissatisfied end user customers," says Kairys.

models will have on-board computers for data logging, remote monitoring and controls plus interface with the newest high powered fiber laser for materials processing.”

Sal Calandra, President B&R Compliance Associates “The additional associates that joined B&R the past two years are demonstrating their expertise when interacting with customers and that leads to opportunities for growth,” says B&R Compliance Associates President Sal Calandra, who forecasts 20-25% growth in 2024. “We have also added systems and processes that help distributors be more efficient, while improving compliance. The activities that distributors undertake continue to evolve and become more complex. That complexity often requires additional support from regulatory, operational, or compliance experts.” Calandra expects that the CO2 supply chain will continue to be challenging in 2024 and that the industry will start seeing non-traditional sources of CO2 enter the marketplace. He concludes, “B&R Compliance Associates can provide the knowledge and in-depth experience you need, whether you need to develop a safety or GMP compliance program, review or assess your current capabilities, or seek a professional resource partner to support your existing programs. We provide access to a wealth of knowledge and expertise you need at a fraction of the cost. We’re ready to work with your business, tackle your challenges, and make an immediate impact.”

David W. Bell, President

WITT GAS CONTROLS LP

WITT Gas Controls expects to see a level year in 2024, according to President David W. Bell. But with growth of 55% in 2023, repeating those sales will be an impressive feat. The company is especially focused on distributor growth for 2024 and sees new opportunities in the energy/hydrogen sectors. Bell notes that supply chain issues persist for certain products and that things outside the industry, like politics, inflation and the cost of goods will depress some growth potential this year. Still, good things are ahead for WITT. “We plan to add more staff in 2024, maybe up to 20% of current levels,” says Bell. “A new product launched in the end of 2023 will carry over into 2024, gas mixer assemblies for laser assist gas cutting. The newest

2024 Art Anderson, Managing Principal AH ANDERSON CONSULTING LLC

In a projected down year for the industry as a whole, AH Anderson Consulting LLC Managing Principal Art Anderson expects to see level to slightly above level sales in 2024. The biggest factors that Anderson sees impacting the industry this year are: Product availability of gases like CO2, Helium, Argon, Rare gases, & select spec gases, as well as regional constraints on LIN/LOX/LAR. Eng Market Growth - performance of industrials (manufacturing, oil & gas, metal fab, etc.) and Consumer markets (electronics, Food & Bev, Healthcare, etc.) Macroeconomic factors - inflation, interest rates which impact cost and availability of capital Overseas markets - performance of China and EU U.S. Government - policies, reshoring investments, funding for energy transition. “During the Fall Conference circuit with business leaders and owners, there was a sense of caution about 2024,” Anderson says. “This was partly due to the macro trends/forecasts, but also based on customer feedback/activity levels.”

. . . . .

Chris Granger, Chief Operating Officer BAYOTECH

“We expect sales to be up, as the demand for hydrogen and hydrogen transportation and storage increases,” says Chris Granger, Chief Operating Officer for Bayotech. The company expects aggressive growth, as it projects an 80-90% increase in 2024. "BayoTech will have two new locations coming online in 2024 as well as new product offerings," Granger says. "These additions will put BayoTech in a unique position to offer customers a reliable, and affordable hydrogen supply as well as transportation and storage equipment that improves their overall efficiency." He concludes by saying, “One of the largest disruptors to the hydrogen economy would be the introduction of the three pillars to the 45V hydrogen tax incentive.” First Quarter 2024 • 69

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INDUSTRY FORECAST

AWS Embraces USA

Understand, Simplify and Automate. BY ROBERT ROTH, AWS INTERIM EXECUTIVE DIRECTOR AND CEO

A Robert Roth became AWS Interim Executive Director and CEO in April 2023. An AWS Life Member, Roth previously served as President, Vice President and 10 years on the board of directors. He retired as President of RoMan Manufacturing in January 2023 after 37 years.

70 • First Quarter 2024

fter experiencing retired life for 90 days, I accepted the role of AWS Interim Executive Director and CEO for three key reasons. First, I wanted to strengthen our heritage of community engagement. We must give to the industry we love if we want it to prosper, and I see that love in the volunteer efforts of our AWS members. I hope that setting the bar high for myself inspires service in others. Second, AWS has a broad and strong foundation with its employees, member network, finances, publications, conferences and events including FABTECH, certifications, educational courses, codes and standards. What we do is great. Now I want to influence how we deliver it to improve the AWS experience; this is the third reason. My family company, RoMan Manufacturing, is a long-time practitioner of the Toyota Production System, and I’m bringing that mindset here to improve our business processes.

GO USA I am fan of the acronym USA: Understand, Simplify and Automate. Instead of siloed management, we now have cross-functional project management teams to document our processes and map workflow to better understand how AWS delivers value. We can then simplify processes and test how we deliver products and services, looking through the lens of our member customers. For AWS, Automate especially means focusing on a better digital experience at hundreds of touchpoints, and our website is the nucleus. The updated aws.org site, launched in October, offers more seamless navigation and quick links that make it easier to find content. As you browse through the site, I’d especially like to point out the new Certification Management section and the Online QuikCheck tool. Developed in response to member requests, this is the fastest way to verify AWS Certification credentials. In 2024, we will improve the searchability of research

INDUSTRY FORECAST

2024 Visit www.aws.org to view course offerings.

papers going back to 1970. For the hundreds of volunteers on our codes and standards committees, we will add editing tools so they can more readily collaborate.

EDUCATION Distributors are an important part of the AWS community, and we value their insights into our performance and how they need to utilize our services. The best way we can leverage each other’s strengths is through more interaction, and, to that end, I would encourage distributors to serve on AWS committees, support their local AWS section, and participate in AWS events. The recent Welding Automation Expo & Conference (where I delivered a keynote speech that touched on the USA theme), is a perfect example. The presentation given by MATHESON welding engineer Joe Wallace on how to effectively sell welding automation would have made the trip worth it for any distributor, as would the presentations on evaluating ROI and implementing cobots. With about 145 people in attendance, the interaction between participants drove up the energy and value of attending. For connecting with your peers and staying up to date on the latest trends and technologies in 2024, visit our Conferences & Events page and mark your calendars. Note that the Welding Summit runs from August 7-9 in Texas and FABTECH runs from October 15-17 in Orlando. I would be remiss if I didn’t point out that AWS educational opportunities cover an entire career arc. We all know the challenge of training the generation of younger people coming behind us, which is why AWS offers many courses that cover the fundamentals of welding and the business of welding, making them well-suited for new distributor hires or those who want

to advance their careers. Courses such as Welding Sales Representative, Lean Management, Safety in Welding, Certified Welding Supervisor and the Productivity Solutions Bundle all enable distributor personnel to add more value in their customer conversations. You ask your customers what their pain points are, but an even better approach is to use your advanced knowledge to figure out the questions they should be asking, but are not.

ECONOMIC THOUGHTS Using education to add value is a timeless topic, but I see it becoming more important in 2024. One of the leading indicators for the manufacturing sector’s health is the Purchasing Manager’s Index (PMI). A PMI below 50 indicates contraction, and the PMI has been below 50 since November 2022. Understanding where your customers are in relation to the PMI cycle is crucial. I would suggest that distributors pay close attention to the customer’s inventory levels and production plans. As much as possible, develop several relationships within an organization so you can triangulate data from multiple sources. On a bright note, interest rates seem to have stabilized, but higher rates make it more challenging to justify capital expenditures after an era of nearly free money. Distributors need to be smarter and show manufacturers how they are productivity enhancers, and that goes back to education. The other part of that equation is that educational experiences also connect you with more people. Broadening your problem-solving network is always a good thing, and there’s no better place to do that than through AWS.

First Quarter 2024 • 71

CGA FOR GAWDA

Update

CO2 Solutions Coalition Bridging the Gap Between Environmental Concerns and Essential Uses

BY: RICH GOTTWALD, PRESIDENT AND CEO, COMPRESSED GAS ASSOCIATION

Richard Gottwald is President and CEO of the Compressed Gas Association (CGA). He can be reached at 703788-2748 or rgottwald@ cganet.com.

As you may already know, the Compressed Gas Association (CGA), is an association made up of more than 160 companies worldwide, from multinational corporations to family-owned businesses. Compressed gases provide the invisible ingredient in millions of products used in everyday life. Together, our members supply products to industries that account for nearly 30% of the U.S. gross domestic product. Every job our industry creates generates 2.3 additional jobs elsewhere in the economy. Just this past year, we embarked on an important mission to protect a gas that we all interact with in one way or another, every day, Carbon Dioxide.

CO2: A GREENHOUSE GAS According to the U.S. EPA, CO2 is the primary greenhouse gas emitted through human activities, representing 79% of total emissions, followed by methane (11%), nitrous oxide (7%) and fluo72 • First Quarter 2024

rinated gases (3%). Greenhouse gases trap heat in the atmosphere, which scientists say leads to global warming. The main human activity that emits CO2 is the combustion of fossil fuels (coal, natural gas, and oil) for energy and transportation. Certain industrial processes and land-use changes also emit CO2. However, Carbon Dioxide is also a very important and critical ingredient in many industries. Today, use of CO2 in North America for critical applications amounts to approximately 0.23% of the total industrial CO2 emissions.

ESSENTIAL APPLICATIONS In addition to our biological need for carbon dioxide, CO2 has many beneficial uses in today’s society. Here are just a few: • Carbon dioxide, either as a gas, liquid, or solid (dry ice), is often used to preserve or freeze foods. Liquid carbon dioxide or dry ice is used to quickly freeze foods. Quickly

CGA FOR GAWDA Update

freezing foods preserves their color and texture by limiting the formation of ice particles which can affect these qualities. • Carbon dioxide gas is used to preserve packaged foods and fruits by displacing oxygen in packaging. • Carbon dioxide is used throughout the meat and poultry industry in such applications as animal stunning and to keep meat cool during blending. • Dry ice is often used in many medical applications such as flash freezing biological samples, removing growths, providing refrigeration for vaccines and other cooled medications during transportation. • Carbon dioxide is used to create enhanced growing atmospheres in green houses and similar growing environments. The enhanced atmosphere promotes better, faster growth with higher product yields. • Carbon dioxide is used in water and wastewater treatment to control pH. • Dry ice is used across many industries to clean surfaces and increase sanitation without introducing environmental toxins that are produced using other cleaning materials. Importantly, because there are few, if any, alternatives for CO2 in many of these applications, and because the amount CO2 used is minimal in comparison to that being emitted by transportation, electrical generation, and industrial processes, it is ESSENTIAL to maintain CO2 availability for these uses.

THE CO2 SOLUTIONS COALITION In the Summer of 2023, CGA launched the CO2 Solutions Coalition to defend and support reliable carbon

dioxide supply for these essential applications. The coalition’s membership includes the Compressed Gas Association (CGA), American Beverage Association (ABA), the Gases and Welding Distributors Association (GAWDA), and the International Beverage Distributors Association (IBDEA). The coalition also has participation from more than 10 other industry groups representing the end users of CO2. Our long-term goal for the coalition is to establish policies that protect and encourage evolution of the market for suppliers and users of CO2, including opportunities to build value into lifecycle analysis and tax policy recognizing the key use of this product for critical industries. In order to reach our goal, we will need to: Educate This campaign will seek to connect CO2 Solutions Coalition members with decision-makers in Congress, Federal Agencies, and influential third parties to educate on, and build champions for, the critical and beneficial uses of CO2 in consumer products. Recognizing the immediate impact forthcoming Treasury Department guidance on implementation of the expanded 45Q tax credit may have for this industry, our initial outreach will target influencing this guidance. Advocate Seek congressional action to address CO2 markets, including carbon capture policy. This may include working with current sponsors of carbon capture-related legislation to advocate for changes to the bills as introduced, working with Hill allies to increase support for existing proposals, or seeking introduction

of new legislation that reflects the Coalition’s needs.

LEGISLATIVE AND REGULATORY PRIORITIES The coalition places paramount importance on informing Members of Congress about the vital role of CO2. This involves a strategic approach to ensure a nuanced understanding of the implications associated with the 45Q tax credit, which has the potential to redirect market priorities toward CO2 sequestration, potentially overshadowing its utilization. To this end, the coalition is working with the US Treasury and has met with 15+ members of Congress in the last half of 2023 and plans to continue meetings to educate lawmakers on the importance of CO2. Other priorities include: • Seeking Guidance on the "80/20 Rule" • Establishing Practical Procedures and Streamlined Process for Lifecycle Analysis (LCA) See our letter to Treasury seeking guidance on the 80/20 rule and LCAs by visiting https://bit.ly/cga-q1gawdamag. By addressing these priorities, the CO2 Solutions Coalition aims to contribute to a regulatory landscape that promotes the responsible utilization of CO2. We are proud to be working with GAWDA on this important issue and we will continue to prioritize and defend the reliable supply of CO2. You can learn more about the Coalition at CO2 Solutions.org. If you’d like to get involved, we are always looking for members who can tell us about CO2 shortages and the impacts they have on your business.

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U.S. Reshoring & Industrial Gas Opportunities BY ART ANDERSON, AH ANDERSON CONSULTING

or decades, companies across industries would seek out manufacturing possibilities around the world – taking advantage of less expensive labor, cheaper rents, and relaxed regulations. However, over the last 10 years or so, the tide has begun to turn, and companies are gradually bringing back more of their manufacturing operations to the U.S. There are several reasons driving this shift including the shrinking delta in labor costs between U.S. vs. overseas locations, rising transportation costs, IP theft, and several others. But severe supply chain disruptions during the pandemic, which resulted in shortages of supplies coming from overseas, mostly due to Chinese factories closing, opening, and then closing again as COVID-19 outbreaks were happening everywhere, exposed risk as an important component in the decision on where to manufacture. More recently, it has been the rising geopolitical tensions/activities that threaten sunk investments in those countries (i.e., Russia/Ukraine, China/Taiwan, etc.) that are now accelerating this strategy shift. The trend has been further bolstered by legislative actions that are encouraging investment and offering incentives for operating facilities in the U.S., which is also happening in countries/regions around the world including the EU, Japan, China, etc. This is all good news for the manufacturing sector in the U.S. for the foreseeable future, and the industrial gas industry is positioned to benefit 74 • First Quarter 2024

Manufacturing Job Announcements per Yr (Reshoring + FDI) 2010 2012 2014 2016 2019 2021 2022 2023F

5,770 49,929 95,670 110,848 100,487 244,739 363,406 406,214

Source - Reshoring Initiative 2023Q1 Report from this shift. This article will take a deeper dive into these trends called “reshoring,” its drivers, company examples thus far, and the outlook and opportunities for companies in the industrial gas industry.

TRENDS Let’s start off by defining what is “reshoring.” It is the practice of bringing manufacturing and services back to the U.S. from overseas. But, in the broadest sense, it also includes new sourcing of raw materials and parts in the U.S., expanding oper-

Business

TRENDS

ations in America vs. overseas, and foreign direct investment in American manufacturing. All these categories are potentially good news for the U.S. economy. The concept of reshoring has been around for some time, but the Reshoring Institute, whose mission is to bring good, well-paying manufacturing jobs back to the United States, started measuring this phenomena in 2010 and has been tracking a slow but gradual increase in facilities and jobs coming back to the U.S. as shown in the chart. The forecast by the end of 2023 is anticipated to be more than 400,000 jobs. The drivers of this trend, as discussed before, have gradually shifted from being purely economic (total cost of ownership) to incorporating factors such as the risks of long global supply chains, order fulfillment times and geopolitical risk. The Russia/ Ukraine conflict is a perfect example of a completely unforecasted event that had significant impact to industries around the world. It continues to impact the supply/demand of the global Rare Gases industry (i.e., Krypton, Xenon, Neon) which is critical to many of our customers. And, more specifically, the top-3 players in our industry (Linde, Air Liquide and Air Products) had combined assets in Russia valuing over $1 Billion and have either had them frozen, divested, or are in the process of divestment, significantly impairing business performance. The most recent drivers have been regulatory with new funding and tax incentives now available through the CHIPS and Science Act, the Inflation Reduction Act and the Build Back Better Infrastructure Act, which provide positive economic choices for U.S. manufacturers interested in reshoring operations.

will play a significant role during the construction and ongoing operations/maintenance phases of these facilities. Pharmaceutical production is also seeing a rebound, especially after the pandemic exposed major risks in that supply chain. Plastics manufacturing is experiencing a return to American manufacturing, particularly products that require a rapid customer response time. Other industries such as aluminum and steel are seeing plants erected across the southern U.S., including Novelis in Bay Minette, Alabama, US Steel in Osceola, Arkansas, Nucor in Brandenburg, Kentucky (Nucor). These industries are fueling orders for air compressors that will be cranked out at an Ingersoll Rand plant in Buffalo, New York that had been shuttered for years. Again, this is all great news for the Industrial Gas industry and the Independent Distributor segment will get its fair share from these industries and its supplier base.

OPPORTUNITIES

NEXT STEPS

The signing of the CHIPS and Science Act in August 2022 is but one example driving the momentum around reshoring. This legislation is set to direct $280 billion of spending in the next ten years for R&D workforce development and tax credits for chip production. Intel is already building two factories outside Phoenix, AZ and announced a greenfield factory near Colombus, Ohio. Taiwan Semiconductor Manufacturing (TSMC), the largest chip foundry in the world is constructing one in AZ. Micron announced in October 2022 that it plans to spend up to $100 billion constructing four semiconductor fabrication plants outside Syracuse, NY. The fabs would employ 9,000 people and create 40,000 spinoff jobs. Several other companies will benefit including Global Foundries, Texas Instruments, ON Semiconductor, Analog Devices, Microchip, KLA Corp., Applied Materials and Lam Research, among others. The Major industrial gas players may/will secure the long-term gas supplies for many of these projects, but Independent Distributors

To best take advantage of the opportunities offered by reshoring there are a few steps that Independent Distributors can proactively take. In many respects it is Business development 101, with a few twists: • Local/Regional Economic Development – Many of the larger reshoring opportunities are being developed and negotiated at the State or even Federal levels. But many opportunities engage through a regional/local economic development organization. Participation on one of the committees, Advisory Board or as an annual sponsor provides “early access” to prospective companies doing their due diligence regarding new locations. As an example, the Lehigh Economic Development Corporation (LVEDC) markets the economic assets of the Lehigh Valley, a two-county region in eastern Pennsylvania, located 60 minutes from Philadelphia, 90 minutes from New York City, and within a one-day drive of one-third

in the 1980s, 1990s and 2000s, offshoring was the name of the game in manufacturing. As with most things in life, times change and there is now a discernable shift to “reshoring” of manufacturing operations from overseas locations.

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of the U.S. population. Over the last decade, LVEDC has contributed to making this region the #2 ranked midsized market in the US with manufacturing being the largest component of its GDP. • Trickle Down Affect – Just because you may not be targeted or selected as the primary supplier for one of these large semiconductor fabs, steel mills, or automotive parts plants, they all have several suppliers who can use your products/services during the construction and ongoing phases of the projects. So, knowing the tier two and three suppliers, and general/mechanical contractors (who are often locally/regionally based) are potential avenues to secure sizable pieces of the business. • Strategy – Pursuing these opportunities may be viewed as the territory of the Majors, but Independent Distributors can play a role especially if they have an advantage in local/regional infrastructure. As with any significant opportunity strategy is the first step. You must determine if your pursuit is aligned with your company’s business strategy (i.e., targeted end-markets, aligns with strengths

and core competencies, and leverages local infrastructure). But then do your homework on the realistic opportunities available at the Tier 1, 2 and 3 supplier levels, the amount of investment in people and infrastructure (if needed), and determine what makes sense for your business. More often than not an external advisor may be able to assist in this analysis, especially if it is an end-market or technology with which you have limited knowledge or experience. In closing, in the 1980s, 1990s and 2000s, offshoring was the name of the game in manufacturing. As with most things in life, times change and there is now a discernable shift to “reshoring” of manufacturing operations from overseas locations. AI (artificial intelligence) may be the biggest tech trend of 2023, but U.S. reshoring is shaping up to be the biggest market trend of this entire decade. It is great news for the manufacturing sector in the US and is expected to bolster industrial production output in 2024 and beyond. In addition, this bodes well for the entire industrial gas industry since our performance and growth is significantly tied to this sector.

RELAX.

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76 • First Quarter 2024

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THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™