Welding & Gases Today | Q1 2023 by Welding & Gases Today

The Official Publication of the Gases and Welding Distributors Association

BUSINESS FORECAST GAWDA NEWS

MEMBER PROFILE

SUPPLIER PROFILE

SMC PREVIEW

Meet the 2023 Board of Directors

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contents First Quarter • Winter 2023 • Volume 23, No. 1

DEPARTMENTS 06

COVER STORIES

PRESIDENT’S VIEW Control Your Own Destiny in 2023 BY ROBERT ANDERS

DIRECTOR’S DESK Programming That Continues to Resonate with Members and Keep Employees Engaged BY JOHN OSPINA

EDITOR’S NOTE Crossing the Birdge BY STEVE GUGLIELMO

COMMITTEE CORNER GAWDA Committee Chairs Give an Update to Membership

GAWDA CONSULTANTS 12 Recapping 2022 and

Looking Ahead to 2023

BY STEVE GUGLIELMO, TOM BADSTUBNER, MARILYN DEMPSEY, MICHAEL DODD AND RICK SCHWEITZER

58 68

Qualifying a New Driver igh Heating Costs H and Doors Open for Ventilation? BY PAUL BERNIER

CONSIDER THE DISRUPTORS WHEN FORECASTING BY KEN THOMPSON

SUPPLIER FORECAST

BY STEVE GUGLIELMO

BY MICHAEL DODD

DISTRIBUTOR FORECAST BY STEVE GUGLIELMO

EPA SARA Tier II BY MARILYN DEMPSEY

BUSINESS FORECAST

INTERVIEW WITH ITR ECONOMICS BY STEVE GUGLIELMO AND BRIAN BEAULIEU

AWS FORECAST BY GARY KONARSKA

CGA FORECAST BY RICH GOTTWALD

ITR OUTLOOK U.S. Total Industrial Production Forecast Revision BY BRIAN BEAULIEU

MEMBER PROFILES 38

MAINE OXYACETYLENE SUPPLY COMPANY New Family, Same Family Values BY STEVE GUGLIELMO

2 • First Quarter 2023

ANTHONY WELDED PRODUCTS America’s First Choice for Handling Cylinders for 65 Years BY TIM HUDSON

contents First Quarter • Winter 2023 • Volume 23, 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

FEATURES 26 44 54 100

Andrea Levy alevy@gawda.org

104

CREATIVE DIRECTOR

106

Make 2023 the Year of Fearless Five Ways Distributors Can Use Customer Data BY BRIAN BLUFF

109

MOQs (Minimum Order Quantities) are a Game Changer Analytics-based policies & price breaks change everything BY RANDY MACLEAN

112

Mindsets for Managing a Slowdown BY MIKE MARKS

NEWS ROUNDUP 56

RESEARCH & DEVELOPMENT COORDINATOR

Athena Cossette athenac@gawdamedia.com

The Guide to Success for the New Digital Sales Team

BY JOHN TAPLEY

RELATIONSHIP MANAGERS

Lesli Mitchell leslim@gawdamedia.com

Pre-Gaming a Sales Call A manager’s coaching guide

BY ART WASKEY

VICE PRESIDENT, SALES

Hannah Gray hannahg@gawdamedia.com

Building Bridges for Future Leaders in Distribution

BY JAY SPIELVOGEL

102

Tim Hudson timh@gawdamedia.com

Building a Bridge for Future Leaders 2022 Annual Convention Recap BY DIRK BEVERIDGE

Natasha Alexis nalexis@gawda.org

Robin Barnes robinb@gawdamedia.com

Meet Your 2023 GAWDA Board of Directors BY STEVE GUGLIELMO

2023 GAWDA Spring Management Conference Preview

125

Welcome New Members!

126

Advertisers Index

114

Industry News

127

2023 Calendar

120

Mergers & Acquisitions

128

The Last Word

122

New Offerings

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 editorial@gawdamedia.com • Advertising correspondence and materials should be sent to William Brod, Data Key Holdings, LLC., 9 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 ©2023 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 all or 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.com.

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PRESIDENT’S VIEW

Control Your Own Destiny in 2023 BY ROBERT ANDERS

Robert Anders is GAWDA’s 2023 President as well as President and CEO of Holston Gases. He can be reached at 865-573-1917 as well as robert.anders@ holstongases.com

6 • First Quarter 2023

s we head into 2023, we are bombarded daily with economic forecasts ranging from slow growth to financial Armageddon. We have “experts” drowning us with statistics and metrics that the average business person really doesn’t understand – I know that my eyes gloss over after the first few graphs. Most of the time, they are esoteric, confusing, and overly broad. More importantly, no national statistic or metric can accurately reflect what YOUR financial future looks like – that outcome depends primarily on you and your actions. Post-COVID, the majority of GAWDA members that I have talked to have been performing very well financially, in spite of the constant drumbeat of negativity coming from the “experts.” Most everyone commented that they could actually expand if they could get more people, supplies, and services – yet the rising tide didn’t float all boats. I talked to companies in our industry that were struggling and were looking for an exit strategy. Why were some companies – in the same geographic area – booming, while others struggling financially? Did the challenges of the post-COVID era (inflation, supply chain struggles, worker shortages) just affect these unfortunate folks or was it their decisions over time that determined their situation? We have more than 350 GAWDA member companies that have been in business for over 25 years representing all sizes and geographic segments of our industry. During that time, we

have had four “official” recessions and several economic slowdowns. When the rest of the country was losing their “financial minds” how did they weather the storm and come out stronger on the other side? They adjusted as needed but never changed the focus they had on THEIR customers and THEIR employees. They kept it LOCAL. What if we have a slowdown or even a full blown recession in 2023? Does that necessarily mean that you are headed for hard times? I am reminded of Warren Buffets’ quote, “Only when the tide goes out do you discover who’s been swimming naked.” Are you naked, wearing a speedo, or do you have on one of those bathing suits from the early 1900’s that has belts and suspenders? How you handle economic adversity is based more on your culture, discipline, and focus than the outside headwinds you face. Leadership is needed more now than ever. You need to be the calm, confident voice that your people hear, not the talking heads that have no skin in YOUR game. The top performing companies adapt to the ever-changing business landscape without forfeiting their culture or deviating from their long-term financial goals. Stay focused on YOUR PEOPLE, YOUR CUSTOMERS, and YOUR LOCAL MARKET and you will be able to navigate whatever business environment you are faced with. Finally, don’t allow the financial prognosticators to overly influence your decision making process – listen to their advice but control your own destiny day by day.

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DIRECTOR’S DESK

Programming That Continues to Resonate with Members and Keep Employees Engaged BY JOHN OSPINA

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.

8 • First Quarter 2023

orkforce recruitment and retention continues to be a challenge for many employers. Unemployment is at an all-time low of 3.4%. There are currently 1.9 jobs available for every unemployed person. This shortage of workers makes holding on to current employees more important than ever. While having a competitive salary is important, studies have shown that money alone is not enough to retain employees. Today’s employees value having a strong belief in the organizations mission, higher job satisfaction, a greater sense of appreciation, and an environment that supports collaboration with peers. These factors are all ranked higher than monetary incentives. The one positive thing that COVID reminded us of, is that we are an essential business that provides essential products that support almost everything we touch in a wide variety of industries. That mission is something we’re all proud of. So, how do we continue to build on the other value propositions that keep employees engaged? By continuing to invest in their training and education and allowing them to engage with peer groups both virtually and in person. Many of you already do this by taking advantage of the benefits GAWDA provides and the continual changes we make to provide a better member experience each year. This years SMC will be in Philadelphia and has over 16 presenters between the main stage and in the educational breakout sessions. The Contact Booth Program will end with a reception to help keep the networking momentum going. Peer groups like the WGW and the Young Professionals also have activities planned during the SMC. You can see more information on this event beginning on page (56).

Our Annual Convention will be held this year in Maui, Hawaii, at the Grand Wailea. We will see the return of the Reverse Contact Booth Program (aka the GAWDA 360 program) prior to the traditional Contact Booth Program. Last year, we had over 150 attendees take part in the 360 program and surveys showed that it was wildly popular. Keep an eye out for more information on this and other programs during the Annual Convention in the near future. Our consultants continue to add value through their monthly webinar, their individual interactions with members and their yearly safety seminars. Read more on how they help members stay informed and engaged starting on page (12). Our member-driven committees continue to provide value in many areas of our association. Participation in these committees is a great way to develop peer support groups that can be invaluable in your employee’s career. Learn more about these groups beginning on page (32). Our webinars also continue to be a great way to support employee education. There are both free and fee-based webinars. One particular webinar series this year has attracted over 125 attendees right out of the gate. Our GAWDA Master Business Academy (aka GAWDA MBA) is a 10-week series that has a mix of self-paced learning and instructor led webinars. Members who have expressed interest in taking the program but were not able to participate this first time around will be able to participate in future offerings. You can get more information about this program at https://www.gawda.org/gawda-mba/. These are just a few examples of how GAWDA provides programing to help members be more informed and keep employees engaged. As always thank you for your continued support of our industry and association.

FROM THE EDITOR

Crossing the Bridge BY STEVE GUGLIELMO

I 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.

10 • First Quarter 2023

love the 1st Quarter issue of the year. Not only is it a clean slate and an opportunity to reset, but speaking with GAWDA members about their expectations for the new year and hearing about the trends and disruptors that will shape our industry is so interesting. It sets the stage for the year and informs the editorial decisions that we will make at GAWDA Media. The 1st Quarter issue is also an opportunity to put a bow on the previous year. As we put together the Convention Recap, which you can read on pages 44-53, it was great to relive those memories again. Every year GAWDA manages to top itself from the previous year. This year, as we were working on the Convention Recap and the forecasts simultaneously, a realization hit me. I was speaking with Maine Oxy for their Member Profile (page 38) and we were discussing how the company had survived for more than 90 years and is closing in its 100th Anniversary. And to put that in perspective, we were talking about all of the world events that the company had seen and endured. Over the course of 100 years, the company has seen World Wars, the advent of space travel, the internet, the Great Depression and multiple Great Recessions. However, when I was reading Dirk Beveridge’s column (page 54) where he discussed the “Silver Tsunami,” it clicked for me. Though nearly all of our GAWDA member companies have witnessed and survived Recessions before, including the Great Recession in the early 2000’s, many of today’s leaders have not. Or, if they were in the business, they weren’t yet in leadership roles.

Many economists, including our own economists with ITR Economics, are forecasting a slight recession, or at least a softening economy for the second half of this year. And ITR has been steadfast in their prediction that we will experience a Recession to rival the Great Depression in the early 2030s. With so many experienced leaders transitioning out of the President and CEO roles in their company, and millennials in their 30s and early 40s stepping into those positions, many will experience a recession for the first time. And the decisions that they make will determine whether or not the companies continue to grow and thrive past those recessions. Which is why last year’s theme of “Building a Bridge for Future Generations” is so resonant. And it’s why GAWDA’s MBA program, which launched this year, comes at the perfect time. You can never be 100% prepared to deal with business disruptions like these. But you can be as prepared as possible. And by utilizing the tools that GAWDA provides and leaning on the advice of those who have gone through these times before, I’m confident that this next generation of GAWDA leaders, like those before them, will come through the coming economic turbulence better than ever. So, here’s to another great year, GAWDA! I can’t wait to see what it has in store for all of us.

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CONSULTANTS ROUNDTABLE

CONSULTANT ROUNDTABLE

Recapping 2022 and Looking Ahead to 2023 GAWDA’s consultants discuss what GAWDA members can expect in 2023. BY TOM BADSTUBNER, MARILYN DEMPSEY, MIKE 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 2023, we look back on lessons learned from last year and what we expect to see from a regulatory standpoint for the industry in 2023. GAWDA’s Consultants discussed the bevy of new legislation 12 • First Quarter 2023

and proposed legislation and how it will impact members this year, as well as preview their Professional Compliance Seminar that will take place in March of 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.

WELDING & GASES TODAY: I wanted to start off the article by discussing the seminar that took place in October at Weldcoa. Tell me about that experience and how excited you are to do it again at Chart in March. TOM BADSTUBNER: Yes, March 21-23, 2023, we will be at Chart in Theodore, AL. We had 53 total attendees at the Fall 2022 Professional Compliance Seminar at Weldcoa. One-third of the attendees were in-person, and the rest were virtual attendees. We really liked this format of in-person plus virtual.

It is clearly a better experience to be in-person. But there are some people who just cannot travel. And so, this, I think, really does give people an opportunity in all different situations to get good compliance training. The people of Weldcoa were awesome hosts. MIKE DODD: I want to add onto Tom’s comments. It was great to have the in-person contact again. For us, it makes the teaching so much easier when we have that eye contact and interaction with the classroom people. Also, I know not everyone can come in person, but those that do get have a lot of interaction with the other members. They get to talk about all facets of their jobs and business during the breaks and mealtimes. WGT: Will the March Seminar also be in-person with a virtual component? TOM: Yes. It will be virtual and in-person. The dual format was very successful. Registration is open now, so visit GAWDA.org today to register. MARILYN: To see the interaction between the members was amazing. They definitely shared ideas and contacts that they wouldn’t have if they weren’t attending in person. With the virtual option, you can keep your workday fluid, but there is nothing that beats that in-person experience. And now that I'm in my third year with GAWDA, I was able to sit back and really observe the interaction and how people learn from each other. The interaction leads to more questions and discussion. TOM: And besides that, think about Michelle up at Maine Oxy. She's a brand new, highly professional, very skilled HR professional, but she had no gas industry networking. And so, she shows up and all of a sudden she has 18 people to network with from all across the country First Quarter 2023 • 13

CONSULTANTS ROUNDTABLE who have exactly the same issues as they see up in Maine. And so, she accelerates her transition. MARILYN: And she isn't the only one who came into the industry in a safety position without being in our industry prior to that. Over the past few years, we've had several new safety and compliance people. They attend this seminar and leave with so many tools, not just from the consultants but also from other attendees. WGT: Looking back at last year, did you see a tangible growth in engagement among the membership with the consultants? MARILYN: My numbers have gone up. From 30-40 contacts per month to 300+ per month. It's great to see that people are getting the message that compliance is attainable. They might be new to the industry or the position, or they have a better context but still have some remaining questions. So, they call me up and if I don’t have the answer then I do a little bit of digging or call the agency directly. From these calls, I’ve developed relationships with OSHA/ EPA/DHS representatives – to the point where I now have their direct numbers. And not only is the number of contacts increasing, but members are now starting to look at me as a more common resource. And during COVID, Rick, you had the same experience, right? Before, he was "the lawyer" but during COVID you became more human. RICK SCHWEITZER: I've also seen a steady growth in my contacts with members, including hearing from companies that I have never talked to before. Getting repeat contacts from members who have multiple questions. And, like with Marilyn, they are realizing that this is a free resource. It 14 • First Quarter 2023

has been, I think, gratifying to see that members are picking up on the campaign that we have had.

bringing them information that they want to know more about, in addition to the new items that they might not be aware of.

WGT: How much do you think that the monthly Safety meetings contribute to that approachability? Whereas before they might not have known you on a personal level.

WGT: Any common issues that emerged during 2022 or misconceptions that you've had to address more than once? Any last topics you want to address before we put a bow on 2022 and move onto 2023?

MARILYN: I started right when COVID began. So, I can't gauge it before that, but those meetings allowed people an opportunity to get to know me, to understand where I was coming from and that I give clear, concise business-oriented information about how to be compliant or how to respond to a citation. RICK: I have found that when I talk about certain things during those consultant meetings that it will immediately generate questions. I talked about hiring people with criminal backgrounds recently and I got three emails that afternoon from people who had that situation, and they just wanted some guidance. TOM: Same with the FDA compliance. I recently discussed the mandatory FDA annual records review, and I got two immediate follow-up questions from members. WGT: It seems like the Safety Meetings are as important for spurring discussion as they are to answering existing questions. Is that fair to say? RICK: Yeah, you don't know what you don't know. MIKE: I would really like to see more questions from the participants during our Wednesday Safety Meetings. I would also love to have some suggestions from members on topics to talk about on future calls. We want to make sure we are

MARILYN: The OSHA 2022 violation top ten came out. And, again, hazard communications was number two. Fall protection was number one, but hazard communication was number two and the first thing that they wrote on there was not having a written haz-com program. I know that OSHA doesn't come around very often, but it is very easy to create the program, train your people on it and review the program annually. Done. RICK: Not to toot our own horns, but I've noticed that among the four of us consultants, we've really increased our instances of working together and referring each other to members. I know that Mike and Marilyn refer lots of questions to me and I do the same thing to them. Mike made a point on our call the other day that you don't have to know exactly who the "expert" is on a particular area. Just call one of the consultants and we will point you in the right direction. I think that is really helpful and it's good for all of us to hear each other speak and to learn what the other ones know. MIKE: Tom and I have sent member questions back and forth for years. Many times, a member will ask us a question because they have worked with us for years and feel comfortable with us. But it may be a question that is not our area of expertise, and we will send it along to the one that does cover it. Rick and I bounce DOT items and member questions off each other many times. Together, we

CONSULTANTS ROUNDTABLE have been known to answer a member’s question together. Many times, one of us will have points to add that the other didn’t think of or remember to say. For years I answered the OSHA and EPA questions, but now I forward those on to Marilyn. The members will get a great detailed answer and that is our goal as consultants. WGT: How often do you find that you get questions that you've never seen before? TOM: I got a first-time question just the other day. RICK: I did too. Mike and I both said, "We've never heard of this before." So, every few months, I would say. MARILYN: Especially with the increase in the cannabis/extraction businesses and the new regulations we've seen.

TOM: Marilyn, you and I had an interesting one in the last couple of weeks about this pesticide and sterilizing gas mixture. It had been probably 20 years since I fielded a question about ethylene oxide and carbon dioxide mixtures. And I really was not sure that I knew the regulations anymore. And it was refreshing to have a question that we really had to research to find the answers. MARILYN: I had never dealt with ethylene oxide and so it was very interesting; even my EPA contact was challenged so referred me to another agent. It was a big, fun learning curve. MIKE: I have been in the industry for 49 years now and I still get new questions or a new twist on an old subject. We love them because we love new challenges. Please, members, keep asking those questions and we will keep giving you answers. It is what we do.

Choose wisely.

WGT: Is there anything for the beginning of the year that has to be filled out and finished or just a mindset that you want the members to be in at the beginning of the year? TOM: From a medical gas perspective, it's a good time to make sure that your training is up-to-date, and your calibrations are all up-to-date. These are frequent violations from the FDA and the first of the year is just a great time to make sure that your training and calibration plans are still working. RICK: If you take trucks into Canada, starting the first of the year, you have to have an electronic logging device on your trucks, under Canadian rules. Obviously, you've had to have them in the U.S. for several years now, but the Canadian rules are different in that you have to get them approved and

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CONSULTANTS ROUNDTABLE

A lot of U.S. trucks are not going to be allowed to go across the border. Get with your vendor immediately about that.

certified by a third-party entity that is certified by the government. In the U.S., the vendor can just self-certify that my ELD complies with the U.S. DOT regulations. In Canada, you have to have a third-party certify it for you. Which means that, in the U.S., we have 600-700 certified devices. In Canada, I think the number is 55. So, a lot of U.S. trucks are not going to be allowed to go across the border. And you need to get with your vendor immediately about that. MARILYN: I wrote about the OSHA 300A in the December issue of the Safety Organizer. OSHA 300A series starts the compliance year and then right on the heels of that is EPA SARA TIER II. The big confusion for people concerning OSHA 300A is the method of recording. If you have 10 or more employees, you have to fill it out on paper. If you have 20 or more employees and you operate under certain NAICS code, then you must file electronically, as well as posting a paper copy. The confusion with EPA SARA TIER II is the magic number of 10,000 pounds. People forget that they must file a SARA TIER II whenever they have a product over 10,000 pounds, even if it is an inert product like Nitrogen or Carbon Dioxide, while extremely hazardous materials often have a lower threshold. More information is included in the January Safety Organizer. 16 • First Quarter 2023

WGT: Rick, the Q4 Issue of Welding & Gases Today came out before the mid-term elections. Anything of particular note arise from those results? RICK: Well, I think given that we are going to have a divided Congress with the Republicans taking over the House, I don't expect to see any major legislation getting passed in the next two years. They'll pass the spending bills. They have to do a five-year farm authorization bill and there might be something in that that impacts GAWDA members, but it's hard to say until you see it. But, other than that, I don't expect to see much from Congress. It's the agencies where there is going to continue to be lots of activity. Lots of new requirements. DOT has several rulemakings that will affect GAWDA members—increases in hazmat registration fees, use of electronic shipping papers, mandated speed limiters on trucks, and perhaps allowing testing of hair samples for drug use. EPA has also been firing out new regulations to promote the administration’s de-carbonization initiative. The administration is also pursuing its pro-labor union initiative. President Biden took a lot of heat from labor interests because he was accused of siding with the railroads during the railroad strike. So, it continues to be a pro-labor, pro-environmental justice, and anti-fossil fuels environment.

MARILYN: When you say pro-labor, it doesn't mean jobs. It means unions. RICK: Yes, pro-union labor, not pro worker. And that's why the administration is taking on the gig economy. They want everybody to be considered an employee, because only employees are eligible for collective bargaining votes and recognition votes. If you're an independent contractor, you can't join a union. WGT: With regard to the split Congress, something we haven't had to worry about in the past few years is any kind of shutdown, especially as it relates to the debt ceiling. For anybody that does government contracts, is there anything that they can do in the event of a shutdown? RICK: I'm not sure there is anything that you can do but sit back and hope that the train doesn't crash. Government shutdowns are more theater than anything else. And we are going to be facing another vote on the debt ceiling this year. The Republicans will try to make the Democrats take embarrassing votes and vice versa, but eventually they always end up with some kind of a settlement to keep the government running. So, worst-case scenario, you might have a couple of days where things are in a grey area, but I don't expect to see any long-term shutdowns.

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SAFETY ALERT

January 2023

SAFETY TOPIC

Safety Meetings are important!

They: get your employees actively involved encourage safety awareness help identify problems before they become accidents motivate employees to follow proper safety procedures

EPA SARA Tier II

We are happy to provide you with a monthly topic for your agenda.

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

ROUTE TO: 

General Manager



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

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

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

Date of Meeting _______

January 2023 EPA SARA Tier II

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

The following is an excerpt from the GAWDA Safetyis required to be filed by any company that has a hazardous Every March 1, an EPA Tier II form The inventory form must be reported as Organizer, bulletinthe sentthreshold to GAWDA members. materiala monthly at or above quantityFor as listedlisted on the Consolidated listpage of lists or State at a on EPA the State information of the more information on the GAWDA Safety Organizer, or to read quantity greater than 10,000 lbs. TheSection. intent of the Reporting Tier II form is to provide information about the past issues, visit the GAWDA.org Members-Only Requirements.

potential hazards at your worksite to emergency responders: State Emergency Response In addition to the products at your facility, you Commission, Local Emergency Planning Commission and your local Fire department. very March 1, an EPA Tier II form is must also consider bulk products stored at your required to be filed by any company that customer locations. For example: has a hazardous material at or above Bulk storage tanks/trailers at customer lothe threshold quantity as listed on the cations owned by your company: You have an EPA Consolidated list of lists or at a quantity obligation, under EPCRA 312, to notify the greater than 10,000 lbs. The intent of the Tier II of DISTRIBUTORS their obligation to report under GASES customer AND WELDING ASSOCIATION form is to provideOne information aboutSuite the potential SARA TierP(954)367-7728 II for any hazardous material that is Oakwood Blvd., 195, Hollywood, FL 33020 F(954)367-7790 hazards at your worksite to emergency responders: at or above the reporting threshold. Notification State Emergency Response Commission, Local must be sent by February 15, in a letter stating the Emergency Planning Commission and your local chemical(s) that require SARA Tier II reporting Fire department. and where to find the appropriate forms.

E 18 • First Quarter 2023

CONSULTANTS

SAFETY ALERT

• You are NOT obligated to notify the customer if they own the bulk tank...but it is good customer service. • You are NOT obligated to file IF there is language in the contract that states the customer is responsible to comply with all EPCRA obligations. Also, hospitals are exempt from the reporting and your notification requirement (EPCRA 311 and 40 CFR 370.2 and 355.2 allow the exclusion of any “hazardous chemical” that is used for research, medical facility or hospital if they have a technically qualified direct supervisor.) SARA Tier II Reporting DUE MARCH 1 Remember, 10,000 lbs. is the threshold for any product NOT listed on the list of lists! The most recent version of Tier2 Submit, links to state Tier II reporting requirements and contact information, and Tier I and II forms and instructions may be found at: www. epa.gov/epcra For questions regarding SARA Tier II, you can ask on the EPA FAQ page or contact me.

Every March 1, an EPA Tier II form is required to be filed by any company that has a hazardous material at or above the threshold quantity as listed on the EPA Consolidated list of lists or at a quantity greater than 10,000 lbs.

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First Quarter 2023 • 19

CONSULTANTS

SAFETY ALERT

Qualifying a New Driver BY MICHAEL DODD, GAWDA DOT 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.

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.

hat are the things that I need to do to hire a driver? How fast can I put a new driver on the road? What items do I need to have in my hands before letting a driver go out on the road? What should I look for on the motor violation records when deciding to hire a driver? What minimums should I have for hiring a driver? These are some of the questions that I get when someone is trying to put on a new driver. The following guidance assumes that you want a driver for loads requiring placards.

MUST HAVE ITEMS BEFORE LETTING A PERSON DRIVE 1. DOT employment application 2. CDL with hazmat endorsement (if you have a tank(s) bolted to the vehicle with more than 119 gals of capacity, then you need a cargo tank endorsement) 3. Current medical card certification (either a medical card or an MVR showing current medical certification) 4. Medical examiner certification where you have checked the National Registry of Medical Examiners to check that the driver used a certified examiner.) 5. A negative pre-employment drug test 6. Clearinghouse Full Query with no prohibitions 7. Road test form and certificate (391.31(g)), or CDL license or certificate accepted in lieu of road test (391.33), • A CDL is acceptable. • Doubles/triples or cargo tankers must have a 20 • First Quarter 2023

road test certification for the specific vehicle within the previous 3 years.

ITEMS THAT YOU MUST HAVE WITHIN 30 DAYS 1. Motor vehicle record from states (391.23), • Must be obtained within 30 days of employment. • Must be for the prior 3 years. • Please note that the regulations require this within 30 days, but I suggest that you have this and review it prior to letting the driver drive your vehicles. 2. Previous employer information (391.23), • Must be obtained within 30 days of employment. • Must be for the prior 3 years. • The information must be verification of employment, any DOT accidents (or any other accidents that the previous employer may want to provide), and the drug and alcohol test results/violations. (The drug and alcohol inquiries from previous employers will be phased out by 1-6-2023. This is being replaced by the Clearinghouse Full Query as it adds 3 years of data to the database.)

ITEMS NEEDED LATER DOWN THE ROAD 1. Annual review of driving record (391.25), • Must be done at least annually. • Must keep a copy of the state inquiry results in the file. • The motor carrier must consider the driver’s accident record and any evidence that the driver has violated laws governing the operation of motor vehicles, and must give great weight to violations, such as speeding,

reckless driving, and operating while under the influence of alcohol or drugs, that indicate that the driver has exhibited a disregard for the safety of the public. 2. List of violations (391.27) (part of the above annual review), • The driver shall provide a list of driving violations for the previous 12 months. The driver shall sign this list. • If the driver has already provided this information as required by 383.31, then they do not have to repeat the information. 383.31 requires that drivers notify their carrier within 30 days of any vehicle violations, other than parking tickets, of which they have been convicted. The notification must be in writing and contain the 7 items listed in 383.31. 3. Medical examination kept current, or MVR as required kept current. 4. Medical Examiner’s Certification kept current. 5. Annual limited or full query from the Clearinghouse

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SUGGESTED ITEMS FOR THE DQ FILE • Not required, but highly suggested is to have a copy of their current driver’s license in the file.

DRIVER ELIGIBILITY REQUIREMENTS • In the February Safety Organizer, I will have some suggestions to consider for driver eligibility requirements. The suggestions will have some minimum requirements and some items that would possibly disqualify a driver from being considered for a driver’s position. Feel free to contact me on any of these items if you have questions. Michael Dodd GAWDA DOT Consultant P.O. Box 93, Poplar Bluff, MO 63902 (573) 718-2887 Email: MLDSafety@hotmail.com

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BEST PRACTICES

High Heating Costs and Doors Open for Ventilation? BY PAUL BERNIER, ASP

W Paul Bernier, ASP, is the Safety Manager for Southern Colorado at General Air Service & Supply. He has worked in the safety industry since 1996.

e all understand that when welding outdoors or in well-ventilated areas, the fumes created usually dissipate and are eliminated. But what about working indoors during the winter? With rising energy costs, weld shops need to conserve heat in the building, while keeping employees safe from weld fumes. Mitigation systems can be expensive, but proper ventilation is a necessity for the safety and comfort of the work environment. Fortunately, as a distributor, we can supply our customers with everything needed for PRODUCT. Weld fumes introduce carcinogenic toxins to the lungs. Depending on what material is being welded, the coatings present on the material, and inert gases in the fumes, there are numerous hazardous substances present in the fume that can cause respiratory system damage, cancer, or even death.

WHAT’S IN A WELD FUME? • Metals such as aluminum, Antimony, Arsenic, Beryllium, Cadmium, Chromium, Cobalt, Copper, Iron, Lead, Manganese, Molybdenum, Nickle, Silver, Titanium, Vanadium, and Zinc. • Gases used in shielding such as Argon, Helium, and Carbon Dioxide. • Gases created by welding such as Carbon Monoxide, Manganese Oxide, Ozone, Carbon Dioxide, Nitric Oxide, Lead Oxide, and many more. All the above materials pose serious health threats both to the immediate livelihood of the person exposed (asphyxiation) and from long-term exposure to the elements (organ failure, cancer). Additionally, OSHA standards regulate the 24 • First Quarter 2023

amount of Chromium permissible in a work environment and requires employers to provide respiratory protection in areas exceeding the threshold. During cold months with doors closed, respiratory protection and proper ventilation are more important than ever.

OSHA STANDARD ON CHROMIUM 1910.1026 - Chromium (VI): Permissible exposure limit (PEL)- The employer shall ensure that no employee is exposed to an airborne concentration of chromium (VI) in excess of 5 micrograms per cubic meter of air (5 µg/m3), calculated as an 8-hour time-weighted average (TWA). There are two important factors to address when considering respiratory protection for workers: the plume created in front of the welder and the fumes that build in the shop as a result. The plume created at the arc has high concentrations of toxins and must be mitigated to maintain safety. I’m sure you’ve seen examples of the weld plume going right through a welder’s shield and out the top. This is incredibly dangerous for the welder. The smoke plume should be directed away from him or her as much as possible, which can be achieved with the help of a Source Capture Unit. While Source Capture Units help to clean the air by capturing most of the smoke, they do not eliminate the inhaled plume or ambient fumes created in the area completely. To wholly protect all workers, these units should be used in conjunction with P100 respirators that fit under a welding hood, which provides excellent protection. The next level of protection offered beyond the P100 are the individual PAPR (powered air purifying respirator) helmet systems.

There are two important

BEST PRACTICES

factors to address when considering respiratory protection for workers: the plume created in front of the welder and the fumes that build in the shop as a result.

Example of an under the hood personal respirator

Source Capture Units, P100 Respirators, and PAPR Systems are excellent options to protect the welder from breathing hazardous fumes where the work is taking place, but with doors closed in the winter, these fumes will still be present in the building and affect all those not equipped with the above-mentioned PPE. Ceiling Air Cleaning Units are a great way to help clean the air in the building without the need to open doors or vents, keeping your heat indoors. These units circulate the air around the area, filtering out the hazards. There are several options available to help keep weld shops free of hazardous fumes for any price range. While the more elaborate systems offer more complete protection, just providing workers with proper PPE can help prevent serious health issues. With increased energy costs the ROI may be quicker than expected, and the equipment can be purchased through most major welding manufacturers. You will also benefit from repeat sales of filters and parts for the solutions mentioned. As always, if you’re not discussing these products with your customers, they are probably buying from someone else. Lastly, please note that all workers must pass a respiratory medical evaluation before they are allowed to be fit tested to ensure proper fit. There are two types of fit testing, qualitative and quantitative. For our customers, we do the qualitative test for their employees as a free service, in return for their continued safety business. First Quarter 2023 • 25

MEET YOUR BOARD

Meet Your 2023 GAWDA Board of Directors

fter another record-setting year in 2022, GAWDA looks to carry its momentum into 2023. President Robert Anders laid out his vision for the year from the stage at the Annual Convention in San Diego. He vowed to “live every day with intentionality” and challenged those in attendance to do the same. The GAWDA Board of Directors sets 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 2022-2023 GAWDA Board for their help in putting this together and for their service on the Board. We asked the 2022-2023 GAWDA Board of Directors two questions: one get to know you question and one forward-looking question about our industry. These were their answers. What are you most excited about for GAWDA in 2023 and why? What do you feel will have the biggest impact on our industry or be the biggest industry disruptor in the next five years?

26 • First Quarter 2023

PRESIDENT

ROBERT ANDERS

Holston Gases, Inc. 1. As President this year, I am extremely excited about the SMC and AC. We are working very hard to put together meetings that people will want to attend. I am also excited to introduce the GAWDA MBA program to our customer offering. I hope we, as an industry, choose to invest in the future of our young talent by signing them up for this program 2. Industry disruptors aren’t necessarily bad. Companies that can thread the needle of adapting to an ever-changing business landscape while not straying from their core business strategies will thrive in a “disrupted” market environment. Others will be focused inwardly instead of on their customers which will create opportunities.

PRESIDENT-ELECT

GARY HALTER

Indiana Oxygen Company 1. For me, it is about learning from Bob Ewing (GAWDA’s 2022 President) and Robert Anders (our current President) about becoming an excellent contributor to GAWDA as the President for 2024. I am also looking forward to the SMC in Philadelphia; there is

MEET YOUR BOARD so much history about our wonderful country in Philly, plus I can gather more swag from my favorite movie series, ROCKY I, II, III and IV. And, of course, the obvious, spending almost a week at the GAWDA AC in Hawaii. Can’t wait! 2. I believe the biggest impact on our industry, overall, will be the state or our economy, specifically inflation, along with the Russian/Ukrainian war. With that said, the Silver Tsunami and filling the gaps left by industry talent and heroes could be the major industry disruptor. More than that, though, is finding the talent to replace those leaving our industry and, most importantly, being patient with them and investing in them over the long term to become industry leaders for our future.

FIRST VICE PRESIDENT

ERIC WOOD

O.E. Meyer Company 1. I am most excited about the engagement, the enthusiasm, and the opportunities that exist within and for our young professionals within the GAWDA organization. Like our respective businesses, these are the next generation of volunteers whose time and energy will continue the successes previously achieved. 2. I feel the biggest threat and disruptor to our industry continues to be decarbonization and the elimination of fossil fuels.

SECOND VICE PRESIDENT ALLISON EARLBECK Earlbeck Gases & Technologies 1. The GAWDA MBA program is sure to be a huge benefit to our members. With the coming wave of retirements from our industry experts, and younger and younger employees joining the ranks, many of us have been struggling to find the best way to invest in our team's development. The GAWDA MBA program will provide a solution to the biggest issue I believe our industry is facing - the need to get our high potential young professionals engaged and ready to move up within our teams. 2. The sale of Nitrogen currently makes up 29% of the industrial gas market. If dependability and technology related to onsite nitrogen generation increases, there is potential for disruption in our industry. We have not yet seen the tipping point for demand due to issues with reliability, but this could change in coming years with more development. This could be a huge threat to nitrogen distributors’ asset investment, but it could also be an opportunity, as well. It is a product to watch in the coming years.

FIRST PAST PRESIDENT

BOB EWING

Red Ball Oxygen Company 1. I am very excited for our SMC in Philadelphia, especially the great lineup of industry speakers. Returning to Hawaii for the Annual Convention will be a blast. Our young professionals have asked for more management training and the GAWDA MBA program is a really cool way to address that. This is a great example of how our association listens to members and works hard to incorporate their feedback into programming. Lots to look forward to this year! 2. Workforce! We will have to re-think everything in terms of how we attract talent, and keep that talent engaged and motivated. This task will be complicated immensely by the “silver tsunami.” We are losing a lot of experience and talent to retirement. A large percentage of our member companies are experiencing transitions at every level from plant floor to C-suite. This will drive more consolidation, but those that remain committed to independence will have well-prepared leaders ready to step up. Our association will be more important than ever as we come alongside these new leaders and help them get up to speed quickly.

SECOND PAST PRESIDENT

ABYDEE BUTLER MOORE Butler Gas Products

1. I am most excited for the National meetings lineup and for our Sales Workshop enhancement to the Seven Springs Regional. Robert Anders made a phenomenal selection of his National meetings this year with Philadelphia in the spring and Maui in the fall. This geographic diversity will capture distributors from across the country, and I anticipate Philadelphia will break all recent SMC attendance numbers! At the Seven Springs Regional this year, June 7th and 8th, GAWDA’s very own Jay Spielvogel is teaching a half day sales workshop to open the event. He will bring industry-specific take-home content designed for Distributor and Supplier sales professionals. 2. The biggest impact on our industry in the next five years…Allison Earlbeck as GAWDA President! With many industry initiatives on the horizon including hydrogen, decarbonization, and harmonization of global safety standards, a significant opportunity staring us in the face is the technical development of our young and emerging professionals. As our industry’s subject matter experts retire, we must close the gap First Quarter 2023 • 27

MEET YOUR BOARD with business-savvy and technically-sound rising talent. Allie not only has this demographic and succession perspective firsthand, she is deeply passionate about the trades and technical education. There are the right leaders at the right time, and Allison Earlbeck will be an industry game changer in 2026.

VICE PRESIDENT

RAFAEL ARVELO

Equigas, Inc. 1. 2023 is going to be another excellent year for the gas industry. What is there not to be excited about for GAWDA in 2023? We have regional meetings that bring us excellent opportunities to connect with the people from each of those regions. Our Spring Management Conference will take place in the beautiful city of Philadelphia. Let’s see if the Eagles can keep their ranking in 2023! The Annual Convention in the paradise island of Maui. And, in addition to those live events, we have access to amazing benefits including: • Access to the most knowledgeable consultants • Safety seminars and bulletins • The GAWDA Connection e-newsletter and Welding & Gases Today magazine • CGA Access, Safety and Compliance Webinars • The Women of Gases and Welding Educational Grant Program, the new GAWDA MBA program, and the University of Innovative Distribution are all excellent opportunities for members. 2. In my opinion, some of the most imminent opportunities for our industry in the next five years are: • Reshoring will have a huge positive impact for the next 5 years • Semiconductors are another positive driver in the USA • Hydrogen distribution will bring great opportunities to gas distributors for another ten years. This will also bring high demand on the equipment side. On the other hand, some of the biggest disruptors I expect to see are: • The Fed should maintain a healthy interest rate between 5-7%. Above that will impact economic growth. • Inflation is forecasted to be 2.7% in 2023. Above 3.5% will have a negative impact on growth. To learn more about GAWDA's Board of Directors, visit gawda.org. 28 • First Quarter 2023

VICE PRESIDENT

BRAD DUNN

CK Supply 1. Short Answer: All of It! Long Answer: I have been fortunate enough to attend GAWDA events since an early age. I am grateful and excited about the opportunity to formally get involved in some of the hard work that happens behind the scenes on behalf of the GAWDA organization and its members. I always enjoy meeting new members and look forward to making new connections in 2023. If we haven’t met, please reach out through email, or find me at the next event! 2. It remains an exciting time for our industry and business leaders with plenty of opportunities and challenges. Outside of keeping an eye on our day-to-day business, I am trying to stay connected to new industry players and emerging technology as it relates to CO2, Helium, and Hydrogen.

VICE PRESIDENT

JOHN HILL

Willard C. Starcher, Inc. 1. I’m excited about attending the Annual Convention in Hawaii. My last trip there was in 1980, while stationed in Korea. I’m also very happy to have the compliance seminars being held in person rather than over a computer. You miss out on a lot when you cannot interact with the other people attending. 2. The planned elimination of fossil fuels will have a severe disruption of our industry if fully implemented. It will affect both our sales and costs of operation.

VICE PRESIDENT

JASON KIRBY Oxarc, Inc.

1. I always look forward to the SMC and the Annual Convention. The meetings provide me with the opportunity to sit down with our vendor partners and fellow distributors to discuss what’s new as far as technology/products and discuss how their business is performing and what are they seeing/experiencing. I am excited about the GAWDA MBA Program. We have experienced several retirements with long term key managers, and we are in the process of training the new managers. I believe the GAWDA MBA program will assist us in providing the training we need to help them be more productive and successful in their new roles.

MEET YOUR BOARD 2. CO2 will have a major impact on the industry in the coming years. With the FM’s, surcharges, no less than four price increases in less than 8 months and starting off 2023 with another significant price increase, CO2 is and will continue to be what keeps me up at night.

VICE PRESIDENT

COLLEEN KOHLER

Noble Gas Solutions 1. I am excited to continue to serve on the GAWDA Board of Directors in 2023. We have a diverse group, which brings innovative ideas to the table. I am honored to serve with such a talented group of professionals these past few years. I am also looking forward to our Annual Convention in Maui! My husband and I got married at the Grand Wailea, so we are excited to return with our children. Many of my favorite childhood memories were made at the Grand Wailea during GAWDA Conventions with my father. Our family will continue that tradition this year. As always, Noble will continue to benefit from GAWDA safety seminars. We have embedded GAWDA safety trainings as part of our daily business practice. The MBA program is also a great way to “build the bench” in our industry and give back. Noble plans to contribute to this fund as well. 2. Like many other industries, the gas and welding world is ever changing. Over the past few years, we experienced labor shortages, product shortages, skyrocketing fuel prices, etc. Noble tried to focus on the positive from these

challenging times by learning to adapt in different ways. Introducing second shifts and sourcing product through multiple vendors have been a couple ways that we have navigated through these hard times. Being a good employer by cultivating a true partnership with our employees, actively listening, and responding to their unique needs has been a contributing factor to maintain loyalty and growth. In turn, our employees work hard and strive to do what’s best for our customers. Customer service, providing value added solutions and leveraging our relationships within our industry has been crucial to our growth and our customer’s growth. Our customers trust that Noble will make every effort to take care of their business needs. Because of these examples, Noble has thrived despite these hard times. I feel confident that if Noble can nearly double in size over these past four years, we can succeed through most industry disruptors. Our industry has experienced consolidation, retirements, and inflation for many years and, as an industry, we will continue to persevere and succeed because of the great people we work alongside within our GAWDA organization.

VICE PRESIDENT

WILL ROBERTS

Roberts Oxygen Company 1. Every year I look forward to the SMC and the Annual Convention and learning what's new with our peers in the industry. For 2023 specifically, I'm interested in seeing how the GAWDA

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MEET YOUR BOARD MBA program works and how we may use it to help develop our future leaders. 2. I think CO2 will have an oversized impact on the industry in 2023. There were significant supply chain issues in 2022 and demand continues to grow. It will be interesting to see how the increased demand collides with the new tax credits for sequestration and mineralization, as well as companies generally looking to clean up their processes and reduce CO2 emissions.

VICE PRESIDENT

SCOTT RUMMANS Linde, Inc.

1. I am most excited about the Spring Management Conference in April. After a tough winter in the Midwest, it is a really great opportunity to see friends and colleagues right after the weather breaks for spring. Moreover, it will be my first in-person Board Meeting, and I am eager to spend time with the members and other industry leaders in Philadelphia at a critical time in our industry. 2. Innovation will be the most significant disruptor over the next 5-years. Between new products, packages and applications for gases and materials, the new opportunities for gas distributors will be robust. Led by innovations in the digital space, process automation and sustainability, companies in our industry will be able to provide new types of value to customers and new benefits to our employees. In addition, challenges are likely to arise as members look to capitalize and adapt to those same innovations and trends.

VICE PRESIDENT

LINDA SMITH

Chemweld, Inc. 1. I am most excited about planning the new Southeastern regional meeting along with co-regional chairs Britt Lovin (Andy Oxy) and Rafael Arvelo (Equigas.) We are planning to hold the first meeting in Marietta, GA in March 2024. 2023 will be spent planning and marketing this new regional meeting. 2. I think the biggest impact on our industry in the next five years will be two-fold. First, we have a mass exodus of boomers retiring out of our industry. They take with them over 40 years of knowledge, expertise, and a work ethic like no other. We are not only talking about upper-level management, but industry consultants, skilled trades people, warehouse personnel, and drivers. The good news is technology is making 30 • First Quarter 2023

huge advances in artificial intelligence that will help shore up many labor-intensive processes. I would never wish for autonomous machines to replace people who need these jobs, however the labor shortage in some areas has been crippling to our industry. The future of AI in manufacturing and production is very promising. Smart machines to weld, cut, test, pick orders, and even transport goods will help immensely to fill in the gaps caused by labor shortages. Hopefully, AI will also create an opportunity for displaced workers to be trained to operate and service these machines which may boost them into higher paying jobs.

VICE PRESIDENT

LIZ STANDLEY

ILMO Products Company 1. I’m excited to see all of the hard work the different GAWDA committees pay off during the in-person events. We have an extremely engaged group of volunteers who are working hard to bring benefits to all GAWDA members. It’s an exciting time to be a GAWDA board member. 2. I think there is a lot of uncertainty on the not-toodistant horizon. But one of the biggest disruptions for the gas industry will be the continued volatility in the CO2 market. With climate change being top of mind, the government is incentivizing CO2 sequestration, which will drive up prices in a market that is already stretched thin. CO2 is a vital building block of the economy, though most people don’t realize it. I think there is an opportunity for a lot of innovation in how we manufacture, sell, use, and recapture CO2 while also taking a responsible position in the roll CO2 plays in climate change. It will take a lot of investment from so many different players, including many GAWDA members. It will be fascinating to see where the market goes.

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. First Quarter 2023 • 31

COMMITTEE CORNER

Committee Corner

s part of its continued push to help GAWDA members get the most out of their membership dues in the association and stay on the front lines of emerging industry trends and hot-button issues, GAWDA has several volunteer committees devoted to specific areas of the industry. The volunteer committees include: Government Affairs, Human Resources, Industry Partnering, Insurance Tr ustees, Leadership Development, Member Services, Safety, Women of Gases and Welding, and Young Professionals. This feature in Welding & Gases Today will update readers on the latest news and events from each committee. We thank all the committee chairs for their help and input as well as their service to the association and its members.

If you are interested in enhancing your GAWDA experience and joining a committee, visit gawda.org/ about/committees to fill out a GAWDA volunteer form today.

32 • First Quarter 2023

GOVERNMENT AFFAIRS COMMITTEE

•

Co-Chair Chuck Beal, American Welding & Gas

•

Co-Chair Rick Schweitzer, GAWDA Legal Counsel

•

The GAWDA Government Affairs Committee provided updates on several outstanding legislative issues and continues to work on its primary priorities. • In 2022 Congress failed to pass legislation to eliminate the duplicate background checks requirements and fees for a driver to obtain a TWIC and a CDL Hazardous Materials

•

Endorsement. GAWDA has met with House Republican staff in the new Congress to promote consideration of this legislation. DOT/PHMSA has proposed substantial increases to the annual hazmat registration fees for shippers and carriers of hazardous materials. GAWDA is working with allied associations to keep any fee increases to a minimum (no more than $500 for small businesses). The Federal Trade Commission has issued a proposed rule to invalidate all non-compete agreements for employees, outside of acquisitions. GAWDA is working with NAW in considering comments to the proposal. OSHA is preparing a proposed rule on heat illness and injury prevention standards for workers. On June 30, 2022, the U.S. Supreme Court ruled that the Environmental Protection Agency may not impose its Clean Power Project rules on greenhouse gas emissions from coal and natural gas plants without specific authorization from Congress. The Court held that “major questions” of great political and economic impact

COMMITTEE CORNER may not be addressed by the agency unless Congress has clearly granted such authority, especially when Congress itself has considered but declined to pass such provisions. This ruling is expected to call into question many regulatory schemes established under vague or general enabling statutes. • Congress passed and the President signed into law the Inflation Reduction Act, which reimposes taxes on sales and imports of hydrocarbon fuels. This affects the sale of acetylene and other products. • On July 11, 2022, DOT/PHMSA published a Request for Information (RFI) on the potential use of electronic communication as an alternative to current physical documentation. The RFI sought input as to the benefits and problems with permitting hazardous materials documentation to be provided/transmitted electronically instead of in a physical form. The RFI is considering use of electronic forms of shipping papers, emergency response information, and special permits, approvals, and registrations. PHMSA is expected to hold a public meeting on this effort early this year.

Current GAWDA Government Affairs Priorities: 1. Preserve the DOT’s preemption of state law meal and rest break requirements for drivers of vehicles carrying placarded amounts of hazardous materials. 2. Support implementation of a pilot program to allow 18-20-year-old individuals to drive commercial motor vehicles in interstate commerce after completing a strict training and apprenticeship program. 3. Support a DOT rulemaking to allow use of electronic shipping papers for hazardous materials transportation by highway mode. 4. Work with NAW and other business groups to oppose passage of legislation limiting the use of independent contractors . 5. Continue to provide current information to member companies on changes in federal and state laws and court decisions, including protection of workers from COVID-19, use of marijuana in the workplace, and OSHA requirements.

INDUSTRY PARTNERING COMMITTEE

Co-Chair Justin Johnson, Keen Compressed Gas

Co-Chair Terry Scanlan, Messer The Industry Partnering Committee continues in its mission to provide a proactive forum for suppliers and distributors dedicated to the continual improvement of the

welding supply/equipment and gas distribution industry; to communicate to our membership ideas regarding operational, marketing and systems approaches to improve the quality of service to our customer base and; to serve as a vehicle to facilitate communication and understanding between suppliers and distributors leading to improved profitability for both parties. At the 2022 Annual Convention in San Diego, the IPC hosted its first-ever Networking 360 program. The event was a massive success, with 105 supplier member companies and 53 distributor member companies participating. The feedback was overwhelmingly positive, with a consistent message that the event should be held again. The IPC plans to host the Networking 360 event at this year’s Annual Convention in Hawaii and will discuss ways to continue to improve the program. Thank you to all who helped plan the event and who participated. In addition, the IP Committee continues to work on several key initiatives including the continued support and promotion of the AWS/WEMCO Excellence in Welding Award, as well as how best to promote engagement amongst smaller supplier and distributor companies.

First Quarter 2023 • 33

COMMITTEE CORNER INSURANCE TRUSTEES COMMITTEE

Co-Chair Dan Kipka, Oxygen Service Company

The Insurance Trustees Committee continues to recruit new members to join the committee, with a list of prospective committee members being actively developed. If you are interested in joining this committee, visit gawda.org/about/ committees to fill out the GAWDA volunteer form. The committee recently met with its CPA from Grossman Yanak and Ford to review the association’s financial statements and other tax and financial documents. The committee continues to actively brainstorm on how best to compete with standard issue insurance programs and on better ways to sell our program, as well as any possible changes to the plan.

If you are interested in joining the Insurance Trustees Committee, visit Co-Chair Brian McLaughlin, GAWDA Group Life Insurance Consultant

gawda.org/about/committees to fill out the GAWDA volunteer form.

MEMBER SERVICES COMMITTEE

Co-Chair Rick Young, Cryostar Distribution North America

Co-Chair Ben Black, Butler Gas Products The Member Services Committee continues to place a heavy emphasis on growing its recently instituted subcommittees. The MSC will add a third subcommittee, the “Program Benefits” 34 • First Quarter 2023

subcommittee, which will be chaired by Emily Harrell. The purpose of the subcommittee is to brainstorm and develop programs that would benefit GAWDA members, which would then be introduced to the board for consideration and implementation. The Program Benefits subcommittee will be in addition to the MSC’s two existing subcommittees: Engagement, chaired by John Tapley, and Lead Generation (formerly known as Growing Membership), which will be chaired by Matt Cavalier and whose purpose will be to provide sales leads to GAWDA. The Committee recently welcomed in new members Jake Williams, Lance Carson, Luke Balderson, and John Scordato. 2023 Initiative developments • Life Insurance, 401K and Health for GAWDA members ` Will Cray / Horton Group to develop • Utilize CGA activities/programs to benefit GAWDA members ` Add to Program Benefits subcommittee ` How to leverage CGA Benefits? Discuss the benefits of the training modules and e-learning. • Create success stories about GAWDA members

COMMITTEE CORNER SAFETY COMMITTEE

Co-Chair Jim Herring, SafTCart

Co-Chair Bill Woods, American Welding & Gas The Safety Committee continues to meet monthly for approximately 30 minutes maximum to discuss the work of the four subcommittees. The subcommittee format works well in that all members are involved, and all members will lead a subcommittee, thus 100% participation. As reported to the Executive Board in October, the Safety Committee is committed to aiding the membership in preventing accidents by publishing benchmark documents. Following our face-to-face meeting in San Diego, it was the consensus of the committee to add pictograms to the existing documents. Most employees have little time to read three pages of safety directives, but everyone has time to view a poster which simply spells out the intent of the safety practice. To date, four new pictograms have been created and added to four best practices—all available on the GAWDA website under members only documents.

WOMEN OF GASES AND WELDING COMMITTEE

Co-Chair Judy Miller, WESCO Gas & Welding Supply

Co-Chair Sue Reiter, Air Products & Chemicals

The Women of Gases and Welding (WGW ) committee continues work toward our mission objectives through personal and professional development as well as educational and networking opportunities. The committee hosted a very successful Wine Tasting Event during the 2022 Annual Convention in San Diego. The event was sold out and received rave reviews from participants. The committee also announced the recipients of its first-ever WGW Educational Grant during the Convention. Congratulations to the inaugural recipients of the grant, Linsey Rosenberry, Melissa Oyler, Lisa Blackketter-Royal, and Angela Radebaugh. continued on next page

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COMMITTEE CORNER WGW Winter 2023 Virtual Event The committee will build on the success of its first ever Virtual Event by hosting a second free one-hour virtual event in late Winter. The theme for the event will be “Strategies to Overcome Bias in the Workplace” and will be open to both male and female attendees. WGW 2023 SMC “Meet & Greet” Event The WGW will host a “Meet & Greet” event during the Spring Management Conference in Philadelphia. The 1 ½ hour event will be a free event for all female GAWDA members. It

will take place on Saturday, May 6th from 3:00 – 4:30 p.m. The goal is to provide an introductory network experience before the SMC events begin so it is easier for female GAWDA members to connect and build relationships within the GAWDA community. WGW 2023 GAWDA Annual Meeting Event in Hawaii The WGW is actively working on planning an event for the Annual Convention in Maui in October. The Committee is researching multiple venues and ideas and will have more to report as we get closer to the AC.

YOUNG PROFESSIONALS COMMITTEE

Co-Chair Andy Riordan, American Welding & Gas

Co-Chair Cody Patrick, Nikkiso The Young Professionals Committee had a very successful Young Professionals event in San Diego at the Annual Convention! With nearly double the attendance as usual events, the YP members really turned out for the technical leadership development seminar with General Frost followed by a scavenger hunt to a local bar in the Gaslamp District. It told us one thing: YP’s want training and are highly competitive! This theme will be reiterated more than once throughout the 2023 year. Since meeting in person at the Annual in San Diego, our two subcommittees have held one meeting each. We have created a GAWDA YP Microsoft TEAMS folder that all members have access to with cleaned up rosters, meeting notes, and relevant content for each respective subcommittee (Network & Event Planning; Outreach, Education & Development). 36 • First Quarter 2023

• Established cadence of YP and YP subcommittee meetings ` Quarterly virtual meetings as an entire committee ` 9 monthly subcommittee meetings excluding the SMC month, Annual month, and December due to the holidays. • Established subcommittee attendance requirements: ` Attend at least one in-person event ` Attend at least 6 of the 9 remote subcommittee meetings annually Networking & Event Planning Subcommittee Recap • Met virtually as a group to discuss hosting events outside of just the Annual to reach Young Professionals in the industry at a more local level. ` Currently planning an in-person event for the SMC. Visit the SMC website for more details. ` Exploring the opportunity to include some type of YP opportunity at 1-2 regional meetings this summer • Met virtually as a group to discuss strategic initiatives ` Contacting new/current members to GAWDA to gain access to their YP members to drive engagement ` Create scripts/targets and how to approach these members ` Establishing an official GAWDA Young Professionals logo ` Established a special task force to set this up and drive creative content ` Creating GAWDA YP LinkedIn Showcase Page Scan the QR Code to the right to view the AC 2022 photos from the Young Professionals and Women of Gases and Welding events.

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New Family, Same Family Values How Maine Oxy continues its march towards 100 years BY STEVE GUGLIELMO

aine O xy-Acet y lene Supply Company was established in 1929 in Auburn, Maine, by Joseph W. Albiston. Originally named Maine Gas Service, the company has always been dedicated to providing quality products at competitive prices. For three generations, the Albiston family operated Maine Gas (renamed Maine Oxy-Acetylene Supply Company or Maine Oxy for short in 1935) as an independent distributor built on the foundations of being family-owned and operated. Through its nearly a century of existence, the company has been front38 • First Quarter 2023

and-center for some of the world’s most defining events. And, on a smaller scale, the company has been a part of some of our industry’s most important events too. J.W. Albiston was a charter member of the NWSA and Maine Oxy was one of the 12 distributors present at the inaugural NWSA charter meeting in Dayton, Ohio, at the Hotel Van Cleve on November 13, 1945. Though the company and the industry have undergone a massive transformation in the 78 years since that meeting, both GAWDA and Maine Oxy continue to serve the same mission that they were founded on.

MILESTONE MOMENTS Though it continues to operate on the same founding tenets that J.W. instilled in the company in 1929, Maine Oxy has seen robust growth over the past 94 years. Today, Maine Oxy has more than 200 employees in its 18 branches throughout New England. In 1993, Maine Oxy established its SpecAir division. The SpecAir gas manufacturing laboratory, located in Auburn, Maine, is the largest independent specialty gas laboratory in New England and is also an ISO/IEC 17025:2005 accredited laboratory and production facility. SpecAir has also introduced

MEMBER PROFILE

Kelly Gentry

Jason Gentry

Today, it operates 18 branches throughout New England serving states including: Maine, Vermont, Rhode Island, New York, New Hampshire, Connecticut, Massachusetts and its newest location in Orlando, Florida. Through it all, the company has continually adapted to the changing customer and technology needs of its customers. Former President and CEO Dan Guerin said, during the company’s 90th Anniversary celebration in 2019, “Technology has been the biggest change from when we started. Not just for us but for all businesses. That’s why we’re always looking for ways to improve what we do, which helps save time and money for us, as well as for our valued customers.”

A NEW ERA FOR MAINE OXY

William Gentry

the Enviro-Cyl line of environmentally friendly refillable products, leading the industry in replacing disposable calibration gas cylinders with refillables. The company also has expanded its welder rental and services division, now renting MIG, TIG, Stick, plasma and portable gas and diesel welder generators. In October 2012, the Albiston family sold the business to JWK Trust and Dan Guerin. During this time, Maine Oxy executed multiple acquisitions and expansions. The company expanded into New Hampshire by acquiring Twin States Welding Supply in Lebanon, NH. It continued its southern expansion by moving into Connecticut, with the acquisition of Industrial Welding Supply. In 2016, Maine Oxy acquired Lynox Welding Supply in Northern Maine.

October 2022 marked the dawn of a new era for Maine Oxy. Dan Guerin, who had operated as Maine Oxy’s President and CEO since buying the company in October 2012, officially retired on October 1, 2022, and sold his shares to the Gentry Family. Succeeding Guerin as President is William Gentry. Kelly Gentry oversees Human Resources, Productivity, and Safety. Jason Gentry will oversee the company’s real estate group and assist in the Finance department. Chris Campbell will continue in his role as CFO, while adding additional leadership responsibility. “The Albistons operated Maine Oxy for three generations with a family atmosphere,” Kelly Gentry says. “We definitely want to continue to foster that locally owned and family-operated feel. It's important for us to foster open communication and collaboration. Really emphasizing employee empowerment and continuing that family-owned atmosphere and culture that had been in place from the beginning was very important to the individuals in this area.”

In addition to the change of the company’s executive leadership, Larry Bates retired after 35 years as Operations Manager, succeeded by Wendy Rosado, and George Lyon retired as head of Engineering and Bulk Installation after more than 30 years, replaced by Lawrence Grant. All of these changes position Maine Oxy for its next phase of growth as it closes in on its 100-year anniversary. “We wanted to ensure a proper transition,” says Kelly Gentry. “When these leaders of the company began to consider retiring, we sat down to figure out what the moving pieces were and how we could strategically hire both from within the industry and from outside the industry. This allowed us to bring a new perspective in but also to retain that industry knowledge.” She continued, “We strategically hired at least 90 days before critical outgoing people retired to ensure a smooth transition. And we were transparent with our employees and our customers. We wanted to make them aware of the transition and provide them time to meet the new person and build those relationships. It allowed the incoming employees to learn the processes so we could continue to collaborate and grow.”

COMPANY CULTURE With this transition has come the opportunity to reevaluate the company’s entire brand identity. Maine Oxy will be debuting a new website early this year and as part of that new identity comes a new Mission Statement which reads: “Maine Oxy provides a reliable supply of essential molecules and materials to ensure businesses of all sizes can successfully function and thrive.” With more than 90 years of experience and expertise in the industry, Maine Oxy has become a relied on and trusted partner to its customers. Its long-standing First Quarter 2023 • 39

MEMBER PROFILE

partnerships with some of the biggest suppliers in the industry, including Messer, Linde, Lincoln Electric, Miller, Hypertherm, and ESAB, give customers peace of mind when working with Maine Oxy. "Having been around for more than 90 years, it gives our customers and our potential job candidates a sense of comfort knowing that we’ve been around for as long as we have and we’re still growing. That’s definitely been a way for us to set ourselves apart from other companies that we compete with in the New England area.” And its devotion to remaining independent and family-owned also sets Maine Oxy apart from other companies in the market. Says Gentry, “As everyone knows, through consolidation, the number of independents has decreased throughout the years. That has created opportunities for our company to grow in our market.” She notes that customer demand has 40 • First Quarter 2023

also driven growth and innovation, as well. “We have noticed that our customers expect products to add a better value today, in addition to providing technical expertise,” says Gentry. “We have invested in a productivity program and began globally sourcing our products, as well. As we continue to grow through our productivity program, it allows us to grow our profitability and reinvest and grow the company.”

we could have never achieved what we have today.” Though the family is different, the company still operates on those same family-values that has made it successful for the past 93 years. And it appears to be well-suited to operate that way through its 100th anniversary and beyond.

THE MARCH TO 100 Maine-Oxy will turn 100 in 2029. Between now and then, the company will continue to grow and expand. “We’re so excited to continue to grow our company. To work together as a team and see what the future holds together,” says Gentry. “We want to continue to foster on-hand training and continue to see our employees grow their careers at Maine Oxy. We love to promote from within and help current employees grow in their careers. Without our employees,

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Anthony Welded Products America’s First Choice for Handling Cylinders for 65 Years BY TIM HUDSON

hortly after the 2022 Annual Convention in San Diego in October, I was fortunate to spend some time getting to know the family behind the company/brand Anthony Welded Products, the oldest, still in business, national manufacturer of cylinder and medical cylinder carts as well as many other steel products. Their company history started in 1958 when Anthony Salvucci started what is now known as Anthony Welded Products. During the days I spent with the Salvucci family, I was able to visit with a total of five of the current family members who are involved with the company, both in the strategic planning and some day-to-day operations. Frank and Elsie, third-generation owners and business partners, are brother and sister. Their kids, Jillian (Elsie) and Nick and Joey (Frank) are the fourth-generation of the family to be working in the business. Frank and Elsie are the co-owners. Frank is heavily involved in the day-to-day operations of Anthony Welded Products, while Elsie works in a more strategic role. In addition to her work with Anthony, Elsie also oversees their real estate properties, which is also a partnership for the two of them. They have both residential and commercial real estate throughout different parts of California and Texas. Jillian runs the operations for Anthony at the headquarters located in Simi Valley. There, they handle administration, accounting, and customer service. Joey and Nick work together overseeing operations of their manufacturing facilities in Delano, CA and Pearland, TX. They also oversee purchasing, sales and marketing, and support customer service when needed. 42 • First Quarter 2023

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MEMBER PROFILE

There are also two other Salvuccis’ who are in California exploring their own careers - Mickenzie, owner of Francis & Frances, a flower shop in San Francisco, and Sam who is a nightlife manager near the Gaslamp district in San Diego. There is also a 5th generation, who I was also able to meet - baby Theodora ( Jillian and Bill). She’s still too young to earn her keep but she has certainly established her spot in the family as a clear favorite. The Salvuccis’ were all extremely generous during my stay in California, I felt like part of the family. Unforgettable memories like holding a mattress and box spring to the top of a Mercedes while we moved Joey’s stuff from Sam’s in downtown San Diego to his newly renovated studio apartment. Or eating French Toast at Elsie’s ranch located just down the hill from the Reagan Library while celebrating birthdays for both Frank and Elsie – sibling birthdays separated by only a few days. Both Frank and Elsie welcomed me into their respective homes offering me a taste of California beach and country living. During my short stay with them they really made me feel like part of their terrific family and it is clear why their family business is now entering its 65th year as strong as ever. With strong commitment from their family, coupled with great values applied to life and business, it is no wonder why this family has built a successful business in such a great industry. Check out www.gawdamedia.com for a complete photo gallery of my visit to Anthony Welded Products. I’m thankful to have forged great relationships like this one during my time serving as the advertising manager for GAWDA Media since 2015. Keep an eye out in Welding and Gases Today 2nd Quarter issue for my visit with another great family business, Cryoworks, where I’ll feature a similar write up covering my wonderful visit with them. First Quarter 2023 • 43

Convention by the Numbers 912 Total Attendees 244 Distributor Attendees 397 Supplier Attendees 141 Exhibitors at the Contact Booth Program

44 • First Quarter 2023

2022 Annual Convention Recap

GAWDA's 2022 Annual Convention in San Diego, California, marked a fitting end for a fantastic year for the Association. Discussing the incredibly timely and relevant topic of "Building a Bridge for Future Leaders," 2022’s Convention had something for everyone. A record-setting number of attendees turned out to hear from four unique and diverse keynote speakers, learn about the latest and greatest technology our industry has to offer in the Contact Booth Program, meet new and potential prospects during the all-new Networking 360 Program, and, of course, experience the industry-best networking that GAWDA national meetings are known for. Thank you to all who attended for continuing to raise the bar on this annual event.

NEWS FROM GAWDA

GAWDA’S BOARD, COMMITTEES, AND REGIONAL CHAIRS KICK OFF CONVENTION The GAWDA Executive Committee, Board of Directors, Volunteer Committees, and Regional Meeting chairs arrived early for a full day of planning meetings ahead of the official start of the Annual Convention.The Board continues to work relentlessly on behalf of GAWDA members to ensure that you receive the maximum benefit and value for your GAWDA membership. GAWDA's Committees are made up of 100% volunteers who work in all different areas of the industry and on different aspects of GAWDA's membership. On Wednesday, GAWDA's Government Affairs, Safety, Industry

Partnering, Insurance Trustees, Member Services, Young Professionals, Women of Gases and Welding Committees, and

Regional Chairs, all met to discuss their agenda and goals for 2023.

CONVENTION COMMENCES WITH NEWCOMERS RECEPTION AND PRESIDENT’S WELCOME RECEPTION

The Annual Convention officially kicked off with the Newcomers Reception, which was held next to the South Pool. 2022 GAWDA President Bob Ewing welcomed attendees to the event, which gave new GAWDA members an opportunity to network with seasoned industry veterans before the full group headed over to the President's Welcome Reception. The Newcomers Reception was a perfect tone-setter for the Conference, as members came together to network and new attendees got to mingle in a more intimate setting. First Quarter 2023 • 45

NEWS FROM GAWDA Directly following the Newcomers Reception, the President's Welcome Reception was held at the beautiful Marina Terrace, next to the breathtaking San Diego Marina. The President's Welcome Reception served as a picture-perfect kick-off for the Convention. With live music, great hors d'oeuvres, beautiful scenery and even better company, the Welcome Reception was a welcome opportunity for members to once again come together for a great week of fun, learning and networking.

GETTING DOWN TO BUSINESS The Opening General Business Session kicked off with a beautiful rendition of our National Anthem from four-time San Diego Music Award winner Whitney Shay followed by GAWDA Second Past President Brad Peterson leading the assembled crowd in our Pledge of Allegiance. After that, the “Since We Last Met” video played, updating GAWDA Members on the myriad world and industry events that have taken place since we last gathered together in Indianapolis for the Spring Management Conference. For the first time, GAWDA’s Women of Gases and Welding Committee announced a scholarship to send recipients to the University of Innovative Distribution. Originally conceived as a scholarship for two women, the overwhelming generosity of GAWDA Members allowed the WGW to pick four recipients for the inaugural scholarship. Congratulations to the following recipients: • Linsey Rosenberry - ILMO Products • Melissa Oyler - Ratermann Manufacturing • Lisa Blackketter-Royal Analgesic Services, Inc. • Angela Radebaugh - American Welding & Gas. 46 • First Quarter 2023

NEWS FROM GAWDA Following the WGW Scholarship information, Bob Ewing was joined on stage by his beautiful wife, Lauren, and GAWDA Executive Director John Ospina for the presentation of this year’s GAWDA Gives Back. Now in its 22nd year, GAWDA Gives Back each year rewards a charity local to the Annual Convention with a generous donation. This year’s recipient, Alzheimer’s San Diego, was especially poignant, as Bob and Lauren lost a family member to Alzheimer’s. Alzheimer’s San Diego President/CEO Eugenia Welch took the stage to accept this year’s incredible donation of nearly $180,000. Thank you to all GAWDA Members who donated. Then, Abydee Butler Moore introduced the 2022-2023 slate of GAWDA officers, including “Mr. X” which actually turned out to be “Mrs. X” second Vice President and 2026 President-Elect Allison Earlbeck. Abydee also introduced this year’s new slate of Board Members: Brad Dunn, John Hill, Jason Kirby, Liz Standley, and Scott Rummans. Congratulations to all new GAWDA Board Members! We look forward to working closely with you.

Welcome Mrs. X…. Allison Earlbeck from Earlbeck Gases & Technologies is now the Second Vice President and will become the GAWDA President following Robert Anders, Gary Halter, and Eric Wood.

continued on next page

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NEWS FROM GAWDA The first General Session presenter of the day was Dr. Michaela Bucchianeri. Michaela is a clinical psychologist, researcher, and educator dedicated to leveraging the power of words to transform our individual and collective wellness. She presented on the topic of mental health and work-life balance. Featuring interviews with GAWDA members throughout the presentation, Michaela discussed the concept of bringing mental health issues and awareness into the light

and opening the lines of communication with ourselves and our employees to ensure that everybody is getting the help that they need and living a sustainable and healthy lifestyle. The final General Session presentation of the day was given by Chart Industries President/CEO Jill Evanko. Jill discussed her journey to becoming Chart's CEO, her own experience with "Building a Bridge," as well as her operating philosophy since being appointed

CEO in 2018. She discussed the idea that she doesn't want to be remembered as a great "female CEO," but rather as, simply, a "Great CEO." She touched on important industry trends, including Chart's focus on the "Nexus of Clean" and how we can make these lofty future aspirations into a reality. Following her incredibly informational presentation was a Q&A with audience members.

FRIDAY FEATURES DEBUTS OF NETWORKING 360 EVENT AND RETURN OF CONTACT BOOTH PROGRAM Friday morning kicked off with GAWDA's first-ever Networking 360 event. The event, which began at 8:00 a.m., featured 105 supplier member companies, who had the opportunity to spend 5-minute sessions with the 53 distributor member companies who attended the event. Nearly 300 people participated with one member remarking that, "I would pay my entire dues for the year, just to attend this event." 48 • First Quarter 2023

Thank you to everyone who participated for making this such a success, and thank you, especially, to the Industry Partnering Committee for making this vision into a reality. We look forward producing this event at future GAWDA events going forward. Members who attended the Networking 360 event were able to roll the networking right into the Contact Booth Program, which took place from 9:00 a.m. - 12:00 p.m. in the Marriott

Grand 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 the 141 exhibitors in attendance and discuss the latest and greatest innovations that our industry has to offer. We thank all the GAWDA members who attended.

NEWS FROM GAWDA

CONVENTION WRAPS UP WITH TWO INSIGHTFUL PRESENTATIONS AND THE CHANGING OF THE GUARD Saturday's first General Session speaker was the founder of UnleashWD, host of the "We Supply America Tour," and champion of the "noble cause of distribution," Dirk Beveridge. Dirk spoke passionately about the importance of the independent distributor. He emotionally made the case that independent distributors are the engine driving American success. He then cautioned that within the next 3-7 years, all of our businesses would have to deal with what Bob Ewing calls the "Silver Tsunami." He then brought up Jim and Nicole Kissler and Jim and Allison Earlbeck to discuss the way that Norco and Earlbeck have successfully bridged the generational divide and ensured that their businesses, and, by extension, their customers, will continue to thrive going forward. Thank you to Dirk, Jim, Nicole, Jim, and Allison for this wonderful and insightful presentation. Following a brief break, Major General Malcolm Frost took the stage. General Frost has more than 34 years of leadership experience in both the U.S. Army and in business. Since transitioning from the Army, General Frost provides executive leadership consulting and training to corporate America. He discussed his career in the military and how it successfully built him into the leader he is today. He discussed lessons learned from the Army and how they can be applied to our world. He used a military term, "VUCA" (Volatility, Uncertainty, Complexity, Ambiguity), and explained that VUCA is the New Normal. And in the military, the way to address VUCA is with VUCA Prime (Vision, Understanding, Clarity, Agility.) He then gave some awe-inspiring real-world examples of that thinking, as well as what

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NEWS FROM GAWDA

he calls the "Leader's Intent," which were used to solve literal life-or-death problems. Following the two amazing General Sessions, GAWDA First Past President Abydee Butler Moore took the stage to introduce GAWDA's Partner organizations in the CGA and WEMCO. CGA representatives Rich Craig and Laura Brumsey took the stage to recognize their CGA & GAWDA Distributor Safety Awards: • 100,000 or Fewer Employee Exposure Hours – Badger Welding Supplies, Inc. • More than 100,000 Employee Exposure Hours – Industrial Source Then, Bob Ranc took the stage on behalf of the AWS, AWS Foundation, and WEMCO to award the WEMCO Excellence in Welding Distributor Award. This year's winner is Welder's Supply Company (WELSCO). Congratulations to Badger Welding Supplies, Inc., Industrial Source, and WELSCO on winning these prestigious awards. Finally, Abydee recognized several outgoing GAWDA Committee Members 50 • First Quarter 2023

and Board Members. Thank you to the following GAWDA members for your outstanding service to the association. You have each left GAWDA in a better place than you found it and we are all grateful for your time and commitment. • Rafael Arvelo, Outgoing MSC Committee Chair • Jimmy Walker, Jr., Outgoing Insurance Trustees Committee Chair • Brad Armstrong, Outgoing Board Member • Josh Haun, Outgoing Board Member

Brad Peterson, Outgoing Executive Committee Member • Bob Ewing, Outgoing GAWDA President Finally, Holston's Bill Baxter and Missy Anders took the stage to officially introduce GAWDA's 2022-23 President Robert Anders. Bill spoke eloquently about Robert's long and distinguished history with Holston. "Holston Gases is the company it is today, because of Robert Anders. Other than my parents and my family, Robert has made a greater positive personal influence on my life than anybody. All of us at Holston are •

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so proud that Robert has been granted this opportunity to serve as GAWDA President. It's like having your head coach be named the head coach of the All-Star Game,” Baxter said. Then, Robert's wife of 37 years, Missy, took the stage to introduce a touching video tribute of Robert and the type of man, husband, and father he is. Finally, Robert was escorted to the stage by the GAWDA Past Presidents in attendance to the tune of Tennessee-staple "Rocky Top." Once on stage, Robert was presented his President's Pin, Plaque, and Banner by Bill, Missy and John. He then called now GAWDA First Past President Bob Ewing back to the stage to present him with a special gift. As a collector of rare bibles, Robert presented Bob with an 1839 King James bible that was printed at Oxford. Then, Robert took the stage to lay out his vision for the next 365 days of his presidency. He told a poignant story about

a team-building exercise that Holston does involving demarcating time using marbles. The marbles, which he then passed out to those in attendance, are an important reminder to each of us to live our lives with intentionality. What is done is done, but we have control over what comes next. Robert approaches his life that way and intends to approach his term as GAWDA President that way. He notes that GAWDA is in an excellent place as an organization, thanks to the stewardship of his predecessors, as well as the amazing staff at GAWDA HQ. He said that things "aren't broke, and I don't intend to break them." But he did note that in the unfortunate event of an unexpected disaster, that GAWDA would be willing and able to quickly address it and continue to move the association forward. He concluded by challenging everybody in attendance to attack the next "trip around sun" and to live their lives with intentionality.

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NEWS FROM GAWDA

CONVENTION CONCLUDES WITH INCREDIBLE FAREWELL GALA The Convention concluded Saturday evening with an unforgettable President's Farewell Gala aboard the world-famous USS Midway. GAWDA Members had the opportunity to tour the decommissioned World War II Aircraft Carrier before convening on the flight deck for an evening of food, drinking and dancing against the backdrop of the beautiful San Diego Marina. Thank you to all GAWDA members who attended and made this a night to remember!

52 • First Quarter 2023

NEWS FROM GAWDA

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 Women of Gases & Welding Committee held its annual networking event at the San Pasqual Winery in Seaport Village. Nearly 90 participants were treated to wine, sparkling wine, and craft beer tasting to go along with a catered luncheon. A great-time was had by all who attended. GAWDA's Young Professionals Committee gathered together for lunch and an incredibly informative twohour presentation from Major General Malcolm Frost on leadership and this year's theme of "Building a Bridge for Future Leaders." Following his presentation, the Young Professionals in attendance split into six teams, each named after a different armed forces division, for a scavenger race through the hotel and around San Diego. The team had to work together to pass quizzes based on General Frost's presentation and decipher clues, each pointing to the next location. Each team received two "challenge coins" for each successful stop made, with the winning teams receiving a gold, silver, and bronze challenge coin, respectively. The afternoon concluded with a party on the rooftop of Rustic Root. A great time was had by all who attended! Following the General Session on Thursday morning, 14 of GAWDA's Past Presidents gathered together 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.Thank you to all our GAWDA Suppliers who hosted these wonderful events.

View more photos from the 2022 AC at gawdamedia.com

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First Quarter 2023 • 53

SALES & MARKETING

Building Bridges for Future Leaders in Distribution BY DIRK BEVERIDGE

R Dirk Beveridge is the founder of UnleashWD, Executive Producer at We Supply America, President of the Beveridge Consulting Group and Champion for the noble calling of distribution for over 36 years.

54 • First Quarter 2023

ecently, I attended the GAWDA Annual Convention in San Diego. I was fortunate to hear Bob Ewing, President at Red Ball Oxygen Co., and Past President of GAWDA, speak on the real crisis confronting independent, family and employee-owned distribution businesses — what has been coined as the “Silver Tsunami.” As baby boomers reach retirement age, we are seeing what economists predicted years ago — a profound and disruptive force on our country’s workforce. As evident in the dwindling labor pool, our industries face an uncertain future without this institutional knowledge. Bob addressed this and more to a room of over 900 attendees and he had a clear and decisive message: To build the bridge between leaders transitioning out of the business to leaders who will create distribution’s future, we must do the following: • Embrace Discomfort: Learning requires us to question the status quo and be comfortable in new strategies. • Embrace a growth mindset: Trust that those with talent and ambition are capable of rapid growth. • Clarify expectations: Emerging leaders need to know there is a plan that includes them and what that plan entails. • Share a passion for the industry: We must have a “work to serve” mentality and

truly believe we and our teams are doing important and quality work. As we pass the baton to the next generation, I can’t help but think of something George Kennedy, retired Head Swim Coach for John Hopkins University said during his presentation at our 2015 Unleash Innovation Summit. Speaking of his student athletes he said, “I need to prepare them for their world, not the world I lived in.” It’s true. What worked in the past won’t work any longer. Our businesses, careers, families, and lives are continually evolving and different from where we started. Those changes occurred over time, slowly transforming the way we look at business and life. We must prepare our companies and our employees now for the world that exists today and is yet to come — not the one we built our careers on.

BUSINESS LEADERS MUST ADAPT TO THE WAY FUTURE LEADERS WANT TO LEAD Moving forward, our leadership playbooks must focus on the long game, taking steps to build our businesses for the next generation and the generation after that. The first step in building a business that far outlives you is to evaluate where you stand and what it takes to get to the next level.

SALES & MARKETING This premise is what drove me and my team to undertake the research series, “Future of Distribution,” and ask the question: “Has the very nature of leadership changed as a result of the pandemic? If so, what must leaders embrace to build a sustainable future.” In part one of my findings, “Reimagining Leadership,” I discovered that 53% of survey respondents believe the way distributors are currently leading is putting them in danger. As one respondent put it, “We are in danger of becoming extinct if management philosophies continue to remain archaic.” Leadership is at an inflection point. In fact, research proves it. There was a 41 percentage-point difference between where distributors think most leaders are now to where they think leaders should be five years from now. Bridging this gap may feel daunting, but incrementally we can begin to unleash possibilities not only for our businesses but for the people we employ. Remember, it’s not a 100-yard dash. It’s a marathon.

LOOKING OUT FOR THE NEXT GENERATION What we do today lays the foundation for our businesses’ future success, not only for our benefit but for those who will lead the business in the future. By taking Bob’s advice and evaluating how we lead today, we can take steps to invest in our people and help them grow into the leadership roles they will take tomorrow. Here are a few companies that are building a bridge for the next generation:

FIRST SUPPLY ENCOURAGES EMPLOYEES TO DREAM BIGGER At First Supply, a single-source distributor of plumbing, HVAC, and well and septic supplies, they conduct employee reviews throughout the year. They create a space for their employees to share their personal and professional goals. First Supply then takes that information and creates a plan to help their employees accomplish those goals. One way they do that is through cross-training programs where people can try out different positions to see if they’ll like it long term. That’s what noble leadership does. It gives opportunities for individuals to meet their potential. Lori Quinn, process improvement manager at First Supply, believes everyone at First Supply has a “superpower,” and once those special skills are unlocked – and they are in the right seat on the bus – they are happier and more passionate. Attitudes change, productivity skyrockets, and they grow both professionally and personally.

ROBERT WEED TRANSFORMS WORKPLACE EXPECTATIONS Studies show the younger the worker, the more important qualities like flexibility, empathy and personal growth are to job satisfaction. Margie Rodino, Chief Culture Office at Robert Weed Corp., a distributor of wood composite and associated products, agrees. “There are fewer people who want to work in the way our society has structured work.” For Robert Weed, this meant changing how they structure the work week and vacation time to enable greater flexibility for families. It also meant bringing on a life coach to help develop their people personally and professionally. CEO Will Weed calls these changes part of their “2.0 Transformation,” reinvesting in its culture and its people. “It’s about the sustainability of our business, keeping people employed and creating equilibrium both in our markets and our personnel.”

CH BRIGGS PROVIDE TOOLS FOR EMPLOYEES TO EMPOWER THEMSELVES Controlling and managing people are antiquated forms of leadership today. Luis Arias, Chief Growth Officer at CH Briggs, described how the company evolved from a top-down leadership model with hierarchy-specific roles to one that is more matrixed and fluid. “Leadership goes across the entire organization … You want leadership to come from within the business, so really getting people to feel confident, willing to speak up, willing to have great ideas and not feeling judged. To me, leadership is soft now.” Jonathan Peters, President and COO, echoes that sentiment: “It’s focusing on the right people in the right roles … then enabling them, giving them the tools they need and empowering them.” Emily Delucas, manager of customer care, is just one example of this. She has been with the company for five years, and has been promoted three times. “No one's going to let you stay stagnant here. If you want to grow, somebody will find you. I don't know if I would've ever been brave enough to make myself uncomfortable the way initially stepping into a supervisor role did. Patti [her supervisor] was brave enough for me, and I'm grateful for that because I don't know if I'd have done it on my own.” How will you build the bridge to the future and enable a new generation of leaders in your business? Dive into the findings of my latest research, “Reimagining Leadership,” and see how leaders like yourself are changing how they lead for tomorrow. First Quarter 2023 • 55

Held at the Philadelphia Marriott Downtown (HQ) 1201 Market Street Philadelphia, PA 19107 Rate: $242.00/night https://bit.ly/gawdasmc

Secondary Hotel Loews Philadelphia 1200 Market Street Philadelphia, PA 19107 Rate: $269.00/night, 10% discount on valet parking overnight

Saturday, May 6 - Monday, May 8, 2023

AWDA’s 2023 Spring Management Conference comes to the city of Brotherly Love from May 6-8, 2023. Hosted at the beautiful Marriott Philadelphia Downtown, this year’s meeting theme is “365 Intentional Leadership.” Philadelphia, known as the birthplace of American Democracy, is the perfect city to host this year’s leadership-themed event.

The Spring Management Conference is designed to promote interaction between Owners/CEOs, management, and operation's decision makers. It serves as an ideal platform for tactical networking, process-oriented business education, and actionable take-home solutions. New this year, GAWDA will utilize two neighboring hotels: the Marriott Downtown and Loews Philadelphia, with the GAWDA group rate.

KEYNOTE SPEAKERS

*The link to book a room will be provided upon completion of registration.

Important Deadlines Hotel Reservation Deadline: Wednesday, April 5, 2023 Cancellation with Refund ($150 fee): Saturday, March 25, 2023

STEVEN HEDLUND

HALLERIN HILTON HILL

EVP, CHIEF OPERATING OFFICER OF THE LINCOLN ELECTRIC COMPANY

RENAISSANCE COMMUNICATOR “GROW AND HELP OTHERS GROW”

JOHNNY “JOEY” JONES

COLENE ROGERS

OVERCOMING ADVERSITY

RECRUITMENT AND RETENTION

No Refund After: Saturday, March 25, 2023

56 • First Quarter 2023

2023 TIME

SPRING MANAGEMENT

CONFERENCE

MEETING

LOCATION

F R I D AY, M AY 5 , 2 0 2 3 11:00 am – 5:00 pm

Early Badge Pickup

Level 5 - Registration Desk 1

S AT U R D AY, M AY 6 , 2 0 2 3 7:00 am – 6:00 pm

Conference Registration

Level 5 - Registration Desk 1

8:00 am – 9:00 am

Executive Committee Meeting

Level 4 - 411-412

9:00 am – 12:00 pm

Board Meeting with Committee Chairs

Level 4 - 411-412

12:00 pm – 2:00 pm

Committee Meetings

12:30 pm – 1:30 pm

Young Professionals “Learn & Lunch”

Level 4 - Salons A&B

1:00 pm – 4:00 pm

Exhibitor Move-In

Level 4 - Franklin Hall

1:30 pm – 3:00 pm

Young Professionals Event: “The Hunt”

Throughout the City

2:00 p.m. - 3:00 p.m

Women of Gases and Welding Committee Meeting

Conference Room 407-408

3:00 pm – 4:30 pm

Women of Gases and Welding Meet & Greet (Female GAWDA Members Only)

Level 4 - 401-403

5:00 pm – 6:00 pm

Newcomers Reception

National Constitution Center

6:00 pm – 10:00 pm

President’s Welcome Reception & Dinner

National Constitution Center

10:00 pm – 11:45 pm

Young Professionals Scavenger Hunt Award Ceremony

Lobby Level - Liberty Lanes

S U N D AY, M AY 7 , 2 0 2 3 6:00 am – 5:30 pm

Conference Registration

Level 5 - Registration Desk 1

6:00 am – 1:30 pm

Exhibitor Move-In

Level 4 - Franklin Hall

7:00 am – 7:30 am

Networking Breakfast

Level 5 - Ballroom - Salons E-H

7:30 am – 7:50 am

GAWDA Presentation

Level 5 - Ballroom - Salons E-H

7:50 am- 8:50am

Main Stage Session - Johnny “Joey” Jones Overcoming Adversity

Level 5 - Ballroom - Salons E-H

9:00 am – 11:05 am

Educational Sessions

Level 5 - Ballroom - Salons A-D

11:30 am – 12:30 pm

Main Stage Session - Colene Rogers Recruitment and Retention

Level 5 - Ballroom - Salons E-H

12:30 pm – 1:30 pm

Group Lunch

Level 5 - Ballroom - Salons E-H

1:30 pm – 4:30pm

Contact Booth Program

Level 4 - Franklin Hall

4:30 pm – 5:30pm

Contact Booth Networking Reception

Level 4 - Franklin Hall

5:30 pm

Industry Hospitalities

M O N D AY, M AY 8 , 2 0 2 3 7:00 am – 12:00 pm

Conference Registration

Level 5 - Registration Desk 1

7:00 am – 7:50 am

Networking Breakfast

Level 5 Ballroom - Salons E-H

8:00 am – 12:00 pm

General Business Session

Level 5 Ballroom - Salons E-H

8:45 am

Hallerin Hilton Hill Renaissance Communicator - “Grow and Help Others Grow”

Level 5 Ballroom - Salons E-H

10:00 am

Steven Hedlund Industry Insight EVP, COO of The Lincoln Electric Company

Level 5 Ballroom - Salons E-H

First Quarter 2023 • 57

BUSINESS FORECAST

DISTRIBUTORS 58 • First Quarter 2023

2023 BUSINESS FORECAST DISTRIBUTOR MEMBERS

CENTRAL +5.83%

EAST +9.43%

WEST +7.1% SOUTH +7.57%

Distributor Forecast Growth Ahead in 2023 But Uncertainty Abounds Economic headwinds like inflation and supply chain shortages temper expectations. BY STEVE GUGLIELMO

very year in the 1st Quarter Issue of Welding & Gases Today, we reach out to all GAWDA members to try to get a sense of the economic landscape for the upcoming year. We speak not only to GAWDA distributors (below) and suppliers (page 68), but also to GAWDA’s Chief Economists at ITR Economics (page 85), and sister organizations American Welding Society (page 78) and the Compressed Gas Association (page 81). Taken together, we can paint a complete picture of how the industry will shake out in 2023. And this year, we see some very clear trends emerge. While there are near-unanimous calls for growth, the expectations are tempered by continuing trends like supply chain shortages, challenges finding skilled labor,

residual inflation, and expectations of a potential recession in the second-half of the year. Continuing this year, we have broken down the distributor forecast by region. This reflects the fact that prevailing industries in each region are different and problems facing distributors in the Northeast may be vastly different than those seen in Texas. Not every region is experiencing the same economic climate at the same time. As it was in 2022, GAWDA’s distributors are up across the board this year, with every region projecting growth, though with caveats and contingencies. The following are responses from GAWDA distributors across North America about what they expect to see in 2023. Thank you to those who participated. First Quarter 2023 • 59

2023 BUSINESS FORECAST DISTRIBUTOR MEMBERS

EAST

The last two years, the Eastern region of the country has projected the lowest growth among GAWDA members. In 2021, the region actually predicted negative growth, as COVID restrictions took a major toll on businesses in the northeast. With a -0.5% projection in 2021, and a 5.62% growth projection in 2022, this year represents a leap forward for the region, as cumulatively, the Eastern U.S. projects 9.43% growth in 2023, the highest projected region this year, after being the lowest region the past two years.

` Colleen Kohler, CEO NOBLE GAS SOLUTIONS “Managing and holding our sales team accountable has been one of the main ways that we achieve large growth numbers year over year,” says Noble Gas CEO Colleen Kohler. “Training our team on how to provide exceptional technical support and value added selling is how we accomplish our targets. Our customers value us as business partners in industry because we deliver top of the line customer service.” Kohler notes that CO2 is a major issue in the northeast. “It is hard to find supply at a competitive price, so it takes a lot of management and oversight to make sure we are taking care of our current customers the best we can,” she says. She concludes, “Noble is always looking to expand in any way that makes business sense to us. We are always open to working with our suppliers to be trained on new products to sell. Being on the cutting edge always helps us grow and gain confidence in our customers.”

` Ralph M. Cohan, VP of Sales/ Operations GENERAL WELDING SUPPLY CORPORATION Though General Welding Supply Corporation anticipates the instability of gas supplies to persist in 2023, the company expects to see sales growth in 2023 of 5-8%. This year marks General Welding Supply’s centennial anniversary. Says Cohan, “We continue to focus on what has helped us standout from our competition, service! Eliminate customers’ struggles to move their business forward and you are commonly rewarded with loyalty.” As others have noted, the CO2 shortage continues to wreak havoc in the region. “Being in a service driven environment 60 • First Quarter 2023

and servicing the larger hospital networks in the region, we find ourselves dependent upon the high volume, low priced market, so supply disruptions in such products as medical grade CO2 present issues,” says Cohan. “We still have hopes of getting this behind us.” Overall, 2023 should be a positive year as General Welding begins its second century.

` Stephen Nichols, Owner ARCSOURCE, INC. Increased prices and new lines will help push ArcSource, Inc. to a projected 8% increase in 2023, according to Owner Stephen Nichols. This is in-line with a projected increase for the gases and welding industry this year.

` John Larsen, Vice President WEST PENN LACO As others have noted, persisting supply chain issues will continue to impact growth opportunities in 2023. For West Penn Laco, Vice President John Larsen anticipates a 3-5% growth over 2022. “We try to control expenses to keep price increases to a minimum,” he says. “We shop around for suppliers more frequently and factor in all costs (e.g. shipping, rebates, etc.) in each purchase more closely.” He continues, “There have been opportunities for those like us that have inventory and have people to get products to customers. The industries vary, but recently the new opportunities outnumber the businesses that are slowing or closing. Overall, more manufacturing moving back to the U.S. will be good for everyone in the industry. We are always looking for opportunities to expand our business. We think this is a very good time, since many competitors have struggled with staffing and inventory, to gain new business.” The company expanded its geographic footprint about four years ago and continue to develop that area post-COVID, which will also help drive future growth.

` Lloyd Robinson, President AWISCO “AWISCO is adding an ecommerce store to better serve our customers,” says President Lloyd Robinson. “AWISCO also decided to increase our inventory levels, to create a cushion due to increased lead times.” These factors, combined with anticipated projects that will be funded by the infrastructure bill, lead AWISCO to project a 4-6% growth in 2023. “AWISCO is always looking to expand hopefully we will be able to continue to grow in 2023, by making an acquisition or two,” Robinson says. “AWISCO continues to expand the boundaries of our existing geography.” In January of this year, AWISCO expanded in Toms River, NJ.

2023 BUSINESS FORECAST DISTRIBUTOR MEMBERS

` David Goldstein, Controller AGL WELDING SUPPLY David Goldstein, Controller at AGL Welding Supply, anticipates a 12-20% growth for the company in 2023. “As we are a customer-focused company first and foremost, we have always seen loyalty to our business. Especially with the current economic and health climates, that customer-first approach has shined a bright light on the future,” Goldstein says. The company added e-commerce capabilities, which has helped bolster its growth projections. Goldstein adds, “We are always looking and evaluating both expansion of facilities and potential product offerings.”

` Matthew J. Sunde, Assistant Treasurer MIDDLESEX GASES & TECHNOLOGIES Growth into surrounding areas and regions will help contribute to an expected 5-8% increase for Middlesex Gases & Technologies in 2023. Assistant Treasurer Matthew J. Sunde notes that the company is, “fortunate to be part of the growing bio/life science industries,” which are expected to see growth this year. As others have noted, “CO2 has been challenging over the last couple of years. We heard positive options might be available heading into Q1 2023 and beyond.” The company is well-positioned for growth heading into its 75th Anniversary in 2024. continued on next page

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First Quarter 2023 • 61

2023 BUSINESS FORECAST DISTRIBUTOR MEMBERS

CENTRAL

As it has the past two years, the Central region of the country accounted for the most survey results. And while the results in 2021 and 2022 were strikingly similar (8.37% growth in 2021 and 8.9% growth in 2022), this year sees a marked shift in optimism, with the Central Region being the least optimistic region surveyed, clocking in at 5.83% expected growth.

` Gary Halter, President INDIANA OXYGEN “The past three or four years, we have budgeted for single-digit growth, but we’ve been surprised each of those years by growing our business 10% or more,” says Indiana Oxygen President Gary Halter. “Based on past growth and a strong list of prospects, we are looking at 8% growth in 2023.” He continues, “The enormous rise in energy costs have led to very large cost increases from our gas suppliers. The economy and the health of our customers will obviously have an impact as well. Educating our customers about this situation, in hopes of passing this cost along, while preserving our trust and credibility with them, will be the number one challenge as we head into 2023. I don’t feel that our customer service will be at risk. Product supply with helium and CO2 is a concern as well.” He concludes, “Recently, a well-respected independent adjacent to our traditional market sold to one of the top majors. As luck would have it, those customers had been weened for decades on the ability to transact with the owners. When the owners jumped ship - the day they turned over the keys to the new owner - a surprising number of customers went looking for a new independent with which to do their gas business. We have started two new stores in their back yard to accommodate those customers.” As it has 62 • First Quarter 2023

always done, Indiana Oxygen will continue to expand its offerings to improve its value proposition, including its new equipment repair division.

` Eric Wood, COO O.E. MEYER CO. “Our customers’ needs to purchase capital equipment and welding and cutting automation will dictate the percentage growth in 2023,” says O.E. Meyer COO Eric Wood. “We are fortunate to have many large capital equipment projects quoted with our customers with high probability of closing in 2023.” The company has made significant investments toward improvements to its e-commerce platform, its website and SEO, which have helped drive business since COVID. In 2023, O.E. Meyer will purchase six acres to relocate and expand of its locations to a more desirable area that will not only improve customer experience, but also give its current future employees a better area to work in. Wood concludes, “We have made investments in infrastructure and with new employee owners to strengthen and expand into new markets and capitalize on opportunities and market share in markets already established.”

` Joe Winkle, Owner WELDSTAR Weldstar expects to see a 10% growth in 2023, even in the face of a possible recession, according to Owner Joe Winkle. He notes that, “We have embraced technology. We believe the labor market will be outpaced by output. Thus, we will need to fill that gap by being more productive. The only way to do that is through innovation and technology.” He continues, “The two disruptors, like most areas, are the supply chain disruptions and inflation. We believe that companies who planned for such an

2023 BUSINESS FORECAST DISTRIBUTOR MEMBERS

environment will have advantages moving forward. Our region is predominately manufacturing in many forms. We believe manufacturing will remain strong for the first half of 2023.” In recent years, Weldstar has opened offices in three new locations, which will contribute to its long-term growth strategies.

` Scott Myran, President MISSISSIPPI WELDERS SUPPLY COMPANY MWSCO anticipates a growth of 5% in 2023 “if conditions slip a bit,” but could see growth of 8-10% “if we see favorable changes in employment, interest rates, and energy,” says President Scott Myran. “MWSCO is a stakeholder in Absolute Air. After delays in launching the plant in 2022, we know we'll be producing LIN, LOX, LAR in 2023, giving us much greater control of a large segment of our supply chain,” he says. “We're always ready to expand to underserved markets. Market research never ceases, when opportunities for expansion are ready for primetime, we've proven multiple times we can go to market quickly and effectively.” The company opened a new branch in Appleton, Wisconsin, in 2022, a market that

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had been on its radar for several years. That new branch will be a long-term growth driver for MWSCO.

` Brad Davis, General Manager CENTRAL OHIO WELDING, INC. “We expect our company to grow between 7-10% in 2023,” says Central Ohio Welding General Manager Brad Davis. “Most metro areas in Ohio, including the ones we service, are seeing steady growth from manufacturers adjusting their supply chains and investing in automation.” Central Ohio has multiple large construction projects that are starting in 2023 related to Semiconductors and Green Energy. These projects, as well as considerable investments in manufacturing throughout Ohio give the company confidence that this will still be a decent year in spite of forecasts for a potential downturn. “Our biggest issue in Ohio is that we do not have enough labor to fill the Welding, Machining, and Driving positions within the state,” Davis says. “At the same time, we have a lot of companies that would like to expand production. This affects growth considerably.” He concludes, “The biggest changes we have

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2023 BUSINESS FORECAST DISTRIBUTOR MEMBERS

made the past three years are how we rate our suppliers and how we pick our target customers. In our markets, the ways we used to business are going away so quickly we need to have the right partners at both ends.”

` John D’Amaro, CFO ILMO PRODUCTS COMPANY In the face of supply chain issues, gas shortages, and the ongoing labor challenges, ILMO Products company still anticipates growth of 7%- 10% in 2023, according to CFO John D’Amaro. The company projects some market segments will be up while others will be down. “While not a new market, we are seeing some growth in the propane segment of our business, driven by geographic expansion,” D’Amaro says. 2023 is shaping up to be an exciting year for ILMO, as the distributor celebrates its 110th anniversary this year.

` Jon Berger, President BERGER FARM & WELDING SUPPLY Two large customers signed contracts in December 2022 that really set the tone for a strong year for Berger Farm & Welding Supply. President Jon Berger projects a robust 20% increase

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64 • First Quarter 2023

for Berger this year, even as the industry itself will remain flat. He notes, “stocking levels have had to increase due to supply shortages.” The RV and trailer industry, one that Berger does a lot of business in, will see a down year compared to the last two years, according to Berger. Even with that factored in, 2023 still projects to be a strong year for the company.

` Robert Kurvers, VP of Sales and Marketing TOLL COMPANY Robert Kurvers, VP of Sales and Marketing for Toll Company, expects sales to be down in 2023, compared to 2022. “Large rare gas orders will be limited, as will expensive helium purchases,” Kurvers says. He notes that Toll continues to target markets for its welding cobots. Toll is also part of the cooperative that opened Absolute Air in 2023, which will allow the company to target bulk gas markets. During COVID, Toll enhanced its websites and added third-party phone and email campaigns to target prospects to gain engagements, set up appointments, and gather information, efforts which will continue to pay off this year.

2023 BUSINESS FORECAST DISTRIBUTOR MEMBERS

SOUTH Last year, the South was overwhelmingly the most optimistic region of the country, with an expected 11.74% growth. This year, responses weren’t quite as optimistic, but the region still clocked in as the second most optimistic, with a projected growth of 7.57% in 2023.

` Allen Jezouit, Vice President, Product Management & Digital Marketing MERITUS GAS PARTNERS “Sales will be up due to price increases, offset by modest volume declines later in the year,” predicts Meritus Gas Partners Vice President of Product Management & Digital Marketing Allen Jezouit. “We are paying close attention to helium and CO2 sourcing costs. CO2 pricing may be drastically impacted by the increase in the 45Q tax credits in the Inflation Reduction Act

and the proliferation of sequestration. Helium Shortage 4.0 remains underway, although the supply situation is currently stable. The labor market remains tight, especially for truck drivers.” The company’s primary business model is to expand through target acquisitions, which will continue in 2023. Concludes Jezouit, “Demand will taper off later in the year as the forecast recession takes hold. Timing of that drop-off is difficult to predict as current demand remains strong.”

` John Hill, President WILLARD C. STARCHER, INC. Though inflation and an overall uncertain economy are worrisome, Willard C. Starcher President John Hill still expects to see 6% growth for the company in 2023. “We have taken a much closer look at our delivery costs,” Hill notes. “The oil and gas industry is the dominant industry in our delivery area. The pipeline industry has been greatly impacted by government policies. But I don’t expect to see much change in this market this year.” Overall, even in the face of strong headwinds, Hill expects to see growth for the industry in the coming year.

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2023 BUSINESS FORECAST DISTRIBUTOR MEMBERS

` Robert McNeely, Purchasing Agent SHAW OXYGEN Shaw Oxygen continues its search to add reliable vendors to combat the ongoing inconsistences in the supply chain, according to Purchasing Agent Robert McNeely. The company also continues to raise costs when necessary, while simultaneously looking for ways to cut costs. All of this will help contribute to a projected 5% growth in 2023. Says McNeely, “We have added new product lines. And, more importantly, we are being more attentive to customer demands by providing concierge service, setting us apart from our competition. We are well-versed in explaining our product lines and why it is beneficial to buy from us.” The company has recently entered CO2

sales, which it anticipates will be a growth driver going forward. Barring potential political instability, 2023 projects to be a year of modest growth for Shaw.

` Nathan Stringer, President B&R INDUSTRIAL SUPPLY, INC.

An increase in inventory and addi` David Rimes, Owner tional suppliers will help B&R Industrial LAKE WELDING SUPPLIES Supply, Inc. realize a 10-15% growth in Lake Welding Supplies has increased 2023, even as supply chain issues persist. its inventory, which will help contribute President Nathan Stringer anticipates to an expected 10% growth in 2023. As that manufacturing will help the company others have noted, “inflation is really realize that potential. “We feel that all hurting our bottom line,” says Owner industry will be up in 2023,” Stringer David Rimes. Like others in the South, says. He notes that B&R added a new farming is a primary industry for Lake location in November 2022 and that sales Welding Supplies and will be a large will increase over the course of the year determinant on if the company is able this year. Overall, this will be a year of to realize its projected growth in 2023. growth for the gases and welding industry. Even in the face of rampant inflation, Rimes anticipates the gases and welding ` Revell Supply Group industry will see a positive year in 2023. Revell Supply Group anticipates a small growth of 3% in 2023, even as the company anticipates the overall industry to be down. “A few customers will have big jobs next year, otherwise I believe we would be down slightly,” the company says. The company’s biggest industries are construction and light industry, which it believes will be softening or down in 2023. It does plan for new product launches and an additional outside salesperson, “in a market that we currently serve but do not solicit,” both of which will be long-term growth drivers for Revell. The company has also expanded its safety categories and added in-house customization of safety gear in recent years.

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` Larry Simpson, President WELDERS SUPPLY & GASES OF LOUISVILLE A combination of price increase pass throughs and new revenue generated from organic growth and new logos will lead to a 6.5% growth in 2023 for Welders Supply & Gases of Louisville. The company is celebrating its 75th anniversary this year and has plans to launch a new 43,000 sq.

ft. fill plant, according to President Larry Simpson. Through COVID, Welders Supply began offering multi-channel options for customers to continue to do business with them, including e-commerce and online chats, in addition to its phone and in-person service. “Our newest technology and automation have provided quality and efficiency controls and given us more control over our supply and deliveries,” says Simpson.

WEST Coming off a year where it was the second most optimistic region in the country in 2022, combining to forecast 9.5% growth, the West continues to exude confidence in 2023. GAWDA members in the Western Region forecast a cumulative 7.1% growth in 2023.

` Benjamin Bisconer, CEO COMPLETE WELDERS SUPPLY Complete Welders Supply anticipates growth of 5-8% in 2023, assuming a stable availability of bulk gases, according to CEO Benjamin Bisconer. “The continual shortages of CO2 in our region have been disruptive and are expected to continue through 2023,” he says. “In California, the state’s policies against the oil industry and manufacturing in general will continue to create challenges for us.” Still, the company has positioned itself in a way that it relies less on distribution from its manufacturers and has been able to bring that capability in-house, which has helped promote growth even in a projected level year for the industry.

` Dave Burnett, President DJB GAS SERVICES, INC. “Uncertainty of the economy, labor shortages, and energy prices,” are three

of the factors that continue to impact the economy in 2023, according to DJB Gas Services, Inc. President Dave Burnett. Still, the company anticipates 3-5% growth in the new year. Burnett feels that the Western region of the country should fare better than the rest of the country during an anticipated slowdown. That slowdown leads Burnett to predict a level year for the industry this year.

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` Stacy Lewis Hayes, CEO VERN LEWIS WELDING SUPPLY, INC. An uncertain economy combined with continued inflation leads Vern Lewis Welding Supply, Inc. CEO Stacy Lewis Hayes to project mild 1-3% growth for 2023. This is in line with her expectations of a level year for the industry as a whole. Supply Chain issues that have cropped up post-COVID will continue throughout the year, continuing to temper any growth opportunities that might exist.

` Joshua Blas, Sales Manager CALIFORNIA TOOL & WELDING SUPPLY California Tool & Welding Supply will see an increase in sales in 2023, thanks primarily to steps it has taken to provide its customers with a strong online presence, says Sales Manager Joshua Blas. As others have noted, the CO2 market continues to be an issue. CTWS recently entered the Bulk CO2 market. CO2 won’t be the only gas supply issue posing problems in 2023, according to Blas. Helium, argon and CO2 all are difficult and expensive to procure and will impact the industry in 2023 if they persist all year.

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BUSINESS FORECAST

SUPPLIERS 68 • First Quarter 2023

2023 BUSINESS FORECAST SUPPLIER MEMBERS

2023 Supplier Forecast BY STEVE GUGLIELMO

he following are responses from GAWDA suppliers across North America about what they expect to see in 2023. Many experienced a return to normalcy in 2022, though several commonalities emerged including: a skilled labor shortage, supply chain issues, and inflationary pressures. While those problems will remain throughout 2023, the overall consensus among GAWDA suppliers is that this will be a year of growth, although not the robust growth we saw pre-COVID. We thank all of the GAWDA suppliers who participated in this year’s forecast. Be sure to check out the GAWDA Online Buyer’s Guide (buyersguide.gawdamedia. com) to see individual company responses.

` Hector Villarreal, President WELDCOA Weldcoa President Hector Villarreal anticipates seeing 10% growth or greater in 2023, even in the face of the persistent headwinds of a tight labor market. “The demand exists. Based on the amount of quotes we are generating, demand continues to increase,” he says. “For us, the capabilities exist. Lack of manpower is the issue.” The company is industry-renowned for its constant product development and improvement, something that Villarreal attributes to its client-driven process. “Weldcoa’s R&D is a little different than most companies,” he notes. “Our clients drive our product development process. They contact us with their issues, and they ask us for a solution. As such, we are constantly in a state of new product development.” With that in mind, 2023 projects to be a strong year for both Weldcoa and the industry.

` Frank Salvucci, President ANTHONY WELDED PRODUCTS “Anthony Welded Products will press further into areas of the cylinder handling/storage space that we have not pursued aggressively in the past,” says President Frank Salvucci. “We look to grow our cradles, cages and pallets sales to complement our cylinder carts, led by our legacy model, the load-n-roll series.” This will help lead the company to an expected 10-15% growth in 2023. “These offerings are in response to the growing efficiency trend of distributors using the pallets throughout their fill plant and delivery processes to handle 12-15 cylinders

at a time,” Salvucci says. “The cages, especially the ones with the pallet on the bottom, go along with the same palletization infrastructure that we are seeing an upward trend toward. We are actively listening to our customers and meeting their needs even if it is a custom order. We have the engineers and processes to be flexible with our products to meet the needs of distributors and their end user customers. Another initiative for 2023 is to continue the expansion of our Texas plant to increase capacity and efficiency including automation lines for our cradles, cages, and pallets.”

` Tim Fusco, CEO TRACKABOUT, A DATACOR COMPANY Trackabout, a Datacor Company, will parlay expansion with its existing customers and acquisition of new customers into a projected 17% growth in 2023, according to CEO Tim Fusco. “New business software is a big opportunity for gas distributors,” says Fusco. “This is a key way to get more efficient with all of the assets of the business. It is a key way to learn to do more with less over time.” Fusco says that Trackabout will “Continue to work with Datacor ERP to bring a new option for business software to gas distributors. By bringing together best-of-breed software systems for managing a gas & welding supply business, Datacor is working to raise the bar for software for gas distributors.”

` Bob Ranc, National Sales Manager MK PRODUCTS Bob Ranc, National Sales Manager for MK Products, projects a 5-6% increase in sales over 2022. “We expect the first half of the year to be good with a slowing as we head into the second half,” Ranc says. MK has plans to introduce new products in 2023, which will contribute to that projected growth and expand MK’s breadth of products. In addition to an increase in sales for MK Products, Ranc projects the industry to see a rise next year as well. “We look forward to working more closely with GAWDA distributors on our products,” he says. Of course, the best laid plans can all go awry depending on the political climate. Ranc concludes, “Can Washington get it together and do the right things?” continued on next page

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2023 BUSINESS FORECAST SUPPLIER MEMBERS

` Jim Johnston, Executive Vice President KAPLAN INDUSTRIES, INC. Kaplan Industries, Inc. anticipates a 5% growth in 2023, according to Executive Vice President Jim Johnston. “We anticipate business to be up over 2022 levels for the gas and welding industry,” Johnston says. “From industry forecasts, feedback from our customer base, and continued strong back log, we remain positive that 2023 will show growth.” He continues, “For our distributors, we see reduced lead times in 2023 and some stabilization of costs improving opportunities for them to capture new business in 2023. With that being said, the political and financial climate in the U.S. is fragile, a possible recession could take the wind out of all our sails.” This year, Kaplan Industries will continue to improve areas that haven’t been cost-effective including by implementing automated linear production to increase throughput and reduce in-house lead time. The company will continue to expand its fast-growing Hydrocarbon business for the cannabis industry, with increased bulk storage capacity and improved filling times. And one of its most important initiatives will be to continue to cultivate a positive work environment to maintain an efficient workforce during a time when maintaining employees has been a challenge for all businesses.

` Anna Clark, Sales Director ANOVA “Anova remote monitoring solutions are increasing in demand from GAWDA distributors,” says Sales Director Anna Clark. “Distributors are realizing the increased profits and business efficiencies Anova remote monitoring creates for optimal scheduling, meaningful data analytics, and insightful reporting.” The company expects to see sales increase in 2023. “Data has immense value,” Clark says. “Distributors are already realizing the significance in digitizing assets for optimal business performance and increased profits. Remote asset management in the industrial world will increase in the coming years as distributors realize more and more gains from remote tank telemetry. Technology is leading the way for better business. Data has value and Anova provides the tools required to use that data to increase profits, boost customer satisfaction and reduce carbon emissions.” She concludes, “Our remote tank telemetry software and best-in-class customer service provides seamless asset management for the client and end-consumer. Our goal is to make sure customers gain as much value possible out of their existing data to increase profits, enable easier business operations and ensure happier end-consumers.” 70 • First Quarter 2023

` Michael Veite, President VEITE CRYOGENIC EQUIPMENT AND SERVICE Continued fallout from COVID leads Veite Cryogenic Equipment and Service President Michael Veite to project a level year, both for VCE and the industry. “It’s so hard to predict,” Veite says. “Everybody is still dealing with the fallout. The inability to get product on-time and prices skyrocketing has made it hard to project where the economy is going.” Still, Veite sees opportunities on the horizon. “As distributors continue to open satellite stores and fill plants, we see lots of opportunities there. That’s our A game and we are well-positioned to work with our customers on these new plants.”

` Frank Heenan, Group Vice President Distribution and LBM EPICOR “In 2023, we anticipate seeing double-digit growth for Epicor’s Distribution group – which will be a combination of new business, but also activity within the existing customer base,” says Frank Heenan, Group Vice President, Distribution and LBM, Epicor. “This will be impacted by a number of drivers. If the economy slows, distribution companies typically use the time to look at internal processes and seek improvements in efficiency. With current staff shortages, they’ll also look for opportunities to simplify and automate processes. We’re seeing more and more distributors moving to the cloud in an effort to reduce the IT burden and sure up security concerns they may have with their technology footprint or environment. These trends bode well for Epicor, as our ERP solutions are proven to help distributors increase efficiency, productivity, and revenue. Moving forward, we expect a few factors to play a role in the economic forecast for distributors in 2023: fluctuating fuel prices from the ongoing events in Ukraine, continuing challenges within the post-covid supply chain, and the evolving political landscape in the U.S. as an election year approaches. We encourage distributors to be introspective this year. Define areas for improvement. Look at your supply chain and operations – identify where you can be more efficient, automate, reduce error, and increase security. Use this year to uncover and implement internal opportunities to enhance your bottom line.”

` John Kaylor, President ABICOR BINZEL USA New product launches and market share gains in 2023 will lead to an increase in sales above 5% for Abicor Binzel USA, according to President John Kaylor, even in an expected

2023 BUSINESS FORECAST SUPPLIER MEMBERS

level year for the gases and welding industry. Kaylor predicts that while price pressures have lessened from the 2021-22 period, they will continue to be an issue this year and that GAWDA distributors should be aware of and prepare for them. He notes that Abicor Binzel will be making “large investments in U.S. production expansion to minimize global supply challenges.”

` Rafael Arvelo, General Manager EQUIGAS, INC. EQUIGAS, Inc. expects to see robust growth of more than 15% in 2023, says General Manager Rafael Arvelo. “Even though we are technically in a recession, we still have a solid economy, unemployment is still below 4% and reshoring projects will not slow down,” Arvelo says. “Production needs to move back to the U.S. ASAP. In 2022 alone, reshoring added 350,000 employees to U.S. soil.” This will be an exciting year for EQUIGAS, as the company looks to move into a larger building in North Carolina and open new locations in the U.S. Arvelo also notes that EQUIGAS will be launching two new brands that will benefit mostly independents. He concludes, “I understand that

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the forecast for 2023 and 2024 may not be pretty. However, I deeply believe that our industry will still have some growth. Trust your instincts, be ready, and don’t believe everything you hear in the news.”

` Paul Kinsella, President EXOCOR FILLER METALS Exocor Filler Metals President Paul Kinsella expects to see growth for the company in 2023, even as he anticipates the overall industry to see a dip. “After much better than market growth in 2022, we feel that our pace will moderate this year and finish higher by 7-9%,” he says. “Recessionary pressures will offset some of our market share increases.” Exocor expanded its U.S. headquarters and warehouse in January and continues to actively expand its geographical reach to a greater share of the U.S. market, complementing its sales presence throughout Canada. Kinsella adds, “We continue to add new products and the re-introduction of our welder friendly Non-Copper Coated 70S6 wire, with much less in the line of fumes and spatter, is the future for a healthier and cleaner manufacturing environment.” He concludes, “Supply issues will still be front and center in 2023 and driven by the same global turbulence that could be causing headwinds on business growth. Dramatically increased energy prices, brought about by both natural causes and manmade decisions, negatively impacting all aspects of supply and pricing and disruptions in production in various geographies that are critical for production of some commodities is not just possible, but a given.”

` David Ellis, Vice President, Sales & Business Development, Compressed Gas Division CAVAGNA NORTH AMERICA Cavagna North America expects a slowdown in the second half of 2023, according to Vice President, Sales & Business Development, Compressed Gas Division, David Ellis. That dip can be attributed to the overall inflationary environment, as well as the global increase in energy prices. Says Ellis, “All growth for 2023 is planned by introducing new products. Cavagna has launched a complete range of compressed gas regulators for the cutting and welding space. Additionally, we have introduced a smart meter for the propane market that will allow gas suppliers to manage customers and gas storage with IOT. As the medical market continues to move to smart technology, our digital Valve and Integrated Regulator for oxygen offers real time information to the medical professional.” Ellis also offers sage advice for 72 • First Quarter 2023

GAWDA Distributors. “Protecting supply chain continuity is a lesson we all learned. Form alliances with suppliers so that your company is assured of uninterrupted supply of critically important raw materials,” he says. He concludes by saying, “Energy will continue to challenge everyone. Transportation costs due to the high cost of diesel continue to affect prices across all businesses. Any protracted strike in the rail industry would have a demonstrable effect on the entire economy.”

` Kurt Tarkany, National Sales Manager SUPERFLASH COMPRESSED GAS EQUIPMENT “Our business has been getting stronger each year as our partnerships with new and existing customers continue to grow,” says SuperFlash Compressed Gas Equipment National Sales Manager Kurt Tarkany. “We believe that the hangover effects from COVID will be further in the rearview mirror making the outlook incredibly positive for 2023.” Those factors will contribute to an expected 15% increase in sales for SuperFlash this year. “GAWDA distributors have worked hard to navigate through the difficult landscape of the past couple of years, and we have seen how so many of them are coming out on the other side stronger than ever before,” Tarkany notes. It is an exciting time for SuperFlash as the company has “added a line of mobile gas analyzers for Modified Atmospheric Packaging. Combined with our line of gas mixers, these products are ideal for the food packaging customers that use distributors’ gases for food packaging manufacturing. We also are breaking ground on a new location in the Phoenix area that will increase our footprint out west to go along with our locations in Florida and Ohio.”

` Jeff Holyoak, VP Sales & Strategic Development TOMCO SYSTEMS “CO2 shortage aversion for the year will constrain recovery and efficient use of CO2 for the year, thus big capture and reuse projects may be another year out,” says Jeff Holyoak, VP Sales & Strategic Development, TOMCO Systems. “With CO2 in solid supply I think we'll see some of the market rebound, specifically in dry ice. But large capital projects and potential for cutback in other industries will depress bulk storage demand.” Overall, Holyoak expects a 10% growth for TOMCO Systems and a level year for the industry. “Cannabis and grow houses will continue to grow,” he notes. “Increased usage and application of CO2 will improve opportunities. CO2 shortages won't be

2023 BUSINESS FORECAST SUPPLIER MEMBERS

as bad as 2022, but when they hit in Q3 there will be a quick reminder of how impactful they are.” He concludes, “We will continue to expand our CO2 capture and recovery business to ensure increased supply of CO2, greater green initiatives, and enable customers to take advantage of 45Q. Additionally we'll see some new innovations in dry ice production as that market continues to expand.”

` Matt Boettner, President and CEO ALL SAFE GLOBAL Matt Boettner, President and CEO of All Safe Global, expects to see a sales increase of more than 7% in 2023. That growth will be driven in large part by continued spending in industrial infrastructure and growth in welding applications. He expects the industry overall to see growth as well, but notes that it will be “at slower growth rates than 2022.” This year, All Safe Global plans to invest in additional space for its cylinder requalification centers to expand capacity in the Midwest, Southwest, and to establish a presence in the eastern U.S. He concludes by saying, “Overall slowing of consumer spending

in the second half of 2023 may lead to less consumer driven gas consumption such as Beverage CO2.”

` Lexi McDermott, Welding Sales Specialist DYNABRADE, INC. 2023 projects to be a strong year for Dynabrade, Inc. according to Welding Sales Specialist Lexi McDermott. “Dynabrade anticipates close to 20% growth in the welding channel, and an average growth of 10-15% across all other industries we sell into,” she says. As others have noted, supply chain continues to be a challenge. “We have continued to see a growth in our incoming orders over 2022. We are assembling and shipping products as soon as the parts arrive but are at the mercy of the supply chain to be able to support the increased demand,” McDermott says. “We have taken steps to diminish the delay by acquiring our largest parts supplier and increasing the number of parts manufactured there. We have goals to acquire other companies to further our market growth.” Dynabrade is constantly working on and releasing new tools and tool configurations to improve

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its product offerings. McDermott says that 2023 will be no different, as Dynabrade will have numerous new products ready to launch this year.

` Tom Kairys, VP of Sales and Marketing CP INDUSTRIES “I expect sales to be up due to independent distributors looking at ways to be self-sufficient in storing and transporting helium and hydrogen,” says CP Industries VP of Sales and Marketing Tom Kairys. That will help contribute to a projected 15-20% growth for CP Industries in 2023. Other factors contributing to that growth will be the continued emergence of alternative fuels for vehicles and the infrastructure that will be needed to achieve carbon neutral goals. “We are looking at some new developments and possible upgrades to our facility,” Kairys says of the company’s plans for 2023. He concludes, “The biggest opportunity that I see for the independents would be that the majors are focusing on the larger bulk accounts and neglecting the small to medium sized customers that are using bulk gases or could be prospects to use bulk gases with the right kind of mode change. Disruptors would include continued consolidation and acquisition of distributors and the emergence of new players in gas manufacturing.”

` Tony Robbins, National Account Manager THUNDERBIRD CYLINDERS Post-COVID, medical cylinder demand has decreased, leading Thunderbird Cylinders to project a decrease in sales in 2023. Says National Account Manager Tony Robbins, “Most companies have warehouses that are full of cylinders. These inventories will need to be reduced before you see orders begin to pick back up to pre-COVID levels.” This is an industry-wide issue, leading Robbins to project a down-year industry wide. Thunderbird continues to eye growth opportunities, either in “new customer/ product development or through acquisitions,” says Robbins.

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74 • First Quarter 2023

` Chris Finn, Director of Sales FINNCO VAPORIZERS A long backlog combined with strong sales projections lead FINNCO Vaporizers Director of Sales Chris Finn to project an up-year in 2023. The company will debut a new location for manufacturing this year, which will also help contribute to a strong year. Finn notes that in addition to a growth year for FINNCO, “all indications are that sales will be up” for the gases and welding industry in 2023.

` Matt Cable, President BUG-O SYSTEMS Though inflation, interest rates, and labor shortages will continue to be an issue in 2023 and beyond, BUG-O Systems still anticipates a growth of 5% in 2023. President Matt Cable notes that these challenges “will drive more manufacturers and fabricators to look for new methods to mechanize and automate their welding processes.” Even with those headwinds, Cable still sees an overall year of growth for the gases and welding industry.

` Jack Walters, III, President AMERICAN TORCH TIP American Torch Tip President Jack Walters III projects an increase in sales in 2023. He notes that there is still a manufacturing backlog, which will help contribute to that growth. However, he cautions that, “We still believe there are ongoing supply chain issues in the market. Also, all of the CAPEX purchases are still behind in delivery.” However, he notes that, “ATTC offers advantages if you are trying to keep old equipment running or want to improve efficiencies in new builds of equipment.” Walters lists the three biggest opportunities that he feels GAWDA distributors should be aware of in 2023 as: automation and accessories, how to improve supply chain, and offering customers way to improve costs and efficiencies. He concludes, “Product development is an ongoing push for ATTC to grow our business. International competition is important for all U.S.-based manufacturers. Coming up with ways to decrease costs all while improving efficiencies is critical to win these competitions. One of ATTC's main objectives is to help solve these challenges.”

` Mike Arcieri, Vice President of Sales WELDSHIP CORPORATION Weldship Corporation anticipates a 10% growth in 2023, according to Vice President of Sales Mike Arcieri. “We expect sales to be up this year as we continue to see the demand for

2023 BUSINESS FORECAST SUPPLIER MEMBERS

gases worldwide stay high. We anticipate the high demand and have positioned ourselves to meet customer needs,” he says. As others have noted, supply chain issues will continue to impact the market in 2023. “As we continue to move away from the impact of COVID-19, we remain in a period of uncertainties for global shipping delays. We look at the trends within the industry and make decisions which we believe foresee the future needs of customers by preparing orders in advance, rather than reacting to inquiries as they come in. As companies are adapting to supply chain delays around the globe, we advise customers to focus on their equipment needs in the future and place orders well in advance of the date they will be needed on site. By planning ahead, we are given the adequate time to find and offer fleet tube trailers or build newly manufactured trailers.” He concludes, “We are always looking to expand our business through new product lines or growth in location. As we continue to manufacture the highest demanded equipment in tube trailers, ASME ground storage, and ISO containers, we stay current on the industry advancements and will continue to expand our product line with new ideas and designs. We are prepared for another strong year in 2023. We have done our

best to adapt to the growing challenges that have emerged from the backlash of COVID-19 and feel that we have positioned ourselves to meet the demand of high-pressure gas storage.”

` Michael R. Hopsicker, CEO RAY MURRAY, INC. Ray Murray, Inc. will see a projected growth of 3-5% in 2023 based on the impact of its new products and entering a new market segment. CEO Michael R. Hopsicker and Compressed Gas Equipment Product Manager Mark Jenny expect to see the overall gases and welding industry be level for the year. “Some experts are predicting copper to be up 40% next year and as much as 100% in the next two years,” Hopsicker and Jenny say. Ray Murray plans to add new products in a couple of its market segments, as well as target new market segments this year. And while the company expects a strong year in 2023, it cautions that “the political push toward decarbonization could have a big impact on the industry over time. Clean energy sources like renewable propane and renewable natural gas are being unfairly banned in several states. This needs to change. We all want a cleaner planet but banning all fossil fuels is not the answer.”

First Quarter 2023 • 75

2023 BUSINESS FORECAST SUPPLIER MEMBERS

` Michael Tipper, President US TANK & CRYOGENIC EQUIPMENT Michael Tipper, President of US Tank & Cryogenic Equipment Inc. forecasts a growth of 15% in 2023, even as the headwinds of the labor shortage and supply chain issues continue. That growth will be driven, in part, due to a new offering of telemetry monitoring systems that US Tank has launched in conjunction with Otodata Telemetry. This new offering allows US Tank & Cryogenics’ customers to monitor PSI and liquid level with real time data and determine peak usage, including hours in use and volume. Tipper expects that to be a growth driver for the company in 2023. And though he expects the industry to increase this year, Tipper does fear a soft overall economy in 2023. Still, even with a difficult consumer economy in 2023, this year projects to be another strong one for US Tank & Cryogenic Equipment.

` Kurt Johannes, Director of Industrial Distribution NORTON – SAINT GOBAIN ABRASIVES Kurt Johannes, Director of Industrial Distribution for Norton – Saint Gobain Abrasives anticipates growth in 2023, even as he expects the overall industry to be level. He notes, “Production levels are trending down, toward a recession. But pricing is helping for sales reporting.” Johannes does caution that additional pressure to the oil and gas industry could negatively impact the industry in 2023. And though the overall consumer economy may be heading for a recession this year, planned new product launches for Norton – Saint Gobain in 2023 will help buoy the company.

` Sal Calandra, President B&R COMPLIANCE ASSOCIATES B&R Compliance Associates has spent the last year adding many industry experts to its company “who expand our skill sets and complement each other very well,” says President Sal Calandra. Those new additions to the company will lead B&R to a significant increase in business for 2023. Says Calandra, “Many distributors are developing and growing bulk gases in addition to focusing on growing and de-risking their traditional base business. Like us, they are very customer-focused, which makes them attractive business partners.” One new offering that will help B&R realize that projected growth is a learning management system that will make training and development readily available to distributors and other industries. “We are also willing to find experts with additional expertise to support distributors,” Calandra says. B&R Compliance Associates currently has experts with skillsets covering FDA Food and Medical Compliance, Risk 76 • First Quarter 2023

Management, Process Safety and Efficiency, DOT, Quality Systems and Certifications, Code Compliance, Validation, Food and Beverage Gases, Healthcare Installation training, OSHA PSM & RMP, Food Safety, Food Science, and more.

` Justin Guitreau, Executive Vice President TEKNO VALVES NORTH AMERICA Growth in emerging markets like specialty gases and hydrogen will help Tekno Valves North America realize a projected 25-30% increase in 2023. Executive Vice President Justin Guitreau projects the industry to be up but with a caveat. “I believe it is all about the direction that a gas distributor takes,” he says. “If you continue to stay in the same markets that have dominated the last 15-20 years, I believe it will be an overall flat to slightly negative year. If you adjust your business to the emerging markets, I believe it would provide an immediate positive return.” In 2023, Tekno Valves North America plans to add additional regional salespeople to make in-person calls to its customer base. “We feel that in-person meetings are still the best way to do business, and the best way to truly understand a customer’s needs,” Guitreau says. Though he remains optimistic for a positive year, he points to disruptors like rising costs, raw material shortages, shipping increases and workforce compensation as things that could hinder growth. “GAWDA distributors must take note of this and see that they are justified in price increases to their customers,” he concludes.

` Dave Eckert, Vice President of Industrial Markets INDUSTRIAL PRO, A DIVISION OF FORNEY INDUSTRIES Dave Eckert, Vice President of Industrial Markets for Industrial Pro, a division of Forney Industries, anticipates more than 30% growth in sales in 2023. “Organic growth for hardgoods will be much harder to produce based on our view of the market,” Eckert says. “Many have relied on price increases to drive growth, especially to enhance the bottom-line. Our emphasis will be market share growth ensuring that our distributor partners maximize their sales by having the right offering to address their customer's store-by-store. Ensuring that the end user does not go elsewhere for a solution our distributor partners should have available at an attractive margin.” He continues, “Our future is very focused and we continue to execute a three-tier strategy in our core products along with a supporting portfolio of key accessories and consumables for the welding distributor channel. At FABTECH, we introduced six new products to fill gaps and provide upgrades to our existing

2023 BUSINESS FORECAST SUPPLIER MEMBERS

` Western Sales and Testing, Inc.

program, plus delivering true innovation consistent with our value proposition. Forney Pro, Forney and Easy Weld provide our distributor partners with solutions to match to their store needs.” He concludes, “We continue to execute our value proposition by delivering growth opportunities with products not adequately served by the big brands and generating margins uncharacteristic of the machine product category.”

2023 projects to be a level year for Western Sales and Testing, Inc., as supply chain challenges continue to impact the industry. Those challenges will impact the entire industry, as the company anticipates a level year for the gases and welding segment. However, even in the face of continued supply challenges, the company plans to expand in 2023.

` Art Anderson, Managing Principal

` Hardface Technologies by Postle

AH ANDERSON CONSULTING, LLC Art Anderson, Managing Principal at AH Anderson Consulting LLC, predicts a level year for both the company and the industry in 2023. He points to factors such as lingering inflation of supply chain and production costs, the possibility of a recession, reduced industrial manufacturing production, and flat-to-low single-digit growth in consumer spending as factors that will hold back robust growth in the new year. He also expects to see continued challenges with product availability across our industry’s product portfolio, including, but not limited to, helium, CO2, select spec gases, Argon, and others as challenges that will continue in 2023.

Hardface Technologies by Postle Industries expects to see a 10% growth in 2023. The company notes that while agriculture markets were flat in 2022, they are expected to see an increase in 2023. The company warns though, that continued high energy prices and a very tight labor market could negatively impact these projections and the industry this year. Still, there is optimism that the expansion that the company made in 2022 will be “full throttle” in 2023 and will lead to robust growth for the company. It notes, “if infrastructure expenditures by the state and federal governments continue to expand, we would expect growth in the cement and construction markets as well.”

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Welding Industry Outlook Resilient, Positive, and Increasingly Automated BY GARY KONARSKA, EXECUTIVE DIRECTOR AND CEO OF THE AMERICAN WELDING SOCIETY (AWS)

f the attendance and attitude at FABTECH 2022 is an indication of what to expect in 2023, the U.S. welding industry has a strong outlook despite a muted economic forecast. FABTECH 2022, held Nov. 8 – 10 in Atlanta, had a positive vibe among the approximately 30,000 attendees. Just like you can physically feel arc characteristics when welding, visitors felt a palpable energy and excitement at the show. Every person to whom I spoke had a positive experience, welcoming the opportunity to connect and interact directly with their peers at our industry’s largest in-person event. Over the last three years, a lot of people in the welding industry developed strong associations with each other online; Atlanta offered many of them the first opportunity to turn those affiliations into in-person friendships. From a FABTECH attendance perspective, the Welding and Welding Automation Pavilions in C Hall and part of B Hall had perhaps the most consistent and busiest floor traffic because of the massive amount of automation and digital technologies. The most visible example was the number of cobots (and tooling and accessories) on display from traditional welding companies, established automation providers and start-up companies. I’d be remiss if I didn’t also mention the amount of Professional Development Hours (PDHs) and Continuing Education Units (CEUs) available at FABTECH as part of the AWS Educational Events. In addition to the sheer magnitude of products and services offered through the show 78 • First Quarter 2023

exhibitors, the ability to gain PDHs and CEUs at the show provides a solid cost justification for attending. For example, distributor personnel could have benefitted from participating in Tuesday’s seminars in the Welding Productivity Track on cobots, automation and understanding welding economics, productivity limitations and how to overcome them. These subjects are so important to our industry in 2023 that I am going to expand on them a little bit more.

ECONOMIC CONTEXT With the growth of cobots and more user-friendly pre-engineered robotic cells, I feel confident in saying that automation has reached a tipping point. To fully appreciate the far-reaching implications of technology “beyond the arc,” first consider the convergence of several factors taking place right now. I have talked with a number of manufacturers who see a robust sales cycle continuing until Q2 2023, but uncertainty beyond that. Experts, such as JPMorgan Chase, predict a mild recession beginning in late 2023. The company sees “increased spending related to infrastructure and the CHIPS and Science Act offset by reduced pandemic-related outlays. We see business investment up 3% in 2023, with solid spending on equipment and technology partly offset by lower spending on buildings, plants and structures.” Deloitte projections based on Oxford Economics’ Global Economic Model anticipate 2.5% growth in GDP in manufacturing in 2023. After 29 consecutive months of growth, the November Manufacturing Purchasing Managers Index regis-

2023 BUSINESS FORECAST AMERICAN WELDING SOCIETY

tered 49% and dropped to 48.4 in December. This marks the first time the manufacturing sector contracted since May 2020. However, the labor market remains strong, with manufacturing employment increasing by 8,000 in December. In typical times, these indicators might signal flat to slight down sales of welding equipment, but we live in anything but typical times. First, supply chain disruptions aren’t going anywhere. To buttress operations against the inevitable disruptions, there is more re-shoring of operations and sourcing of fabricated components closer to their point of use. This means that U.S. fabricators who can compete effectively have new opportunities for growth (as a side note, The Reshoring Initiative offers good guidance on how to make the business case for selling against overseas competitors). Note that re-shoring does not mean bringing jobs back here and performing them the same way they do overseas. We cannot compete on low-cost labor. We can’t even find enough skilled labor to meet demand — and here’s where we bring the conversation back to automation and digital technology, which enable us to work more efficiently and intelligently.

THE GAME CHANGERS Cobots are a game-changer for high-mix, low-volume applications in welding, plasma cutting and post-weld grinding/ deburring. They are so easy to set-up and operate (often with smart phone or tablet-like simplicity) that they can arrive on a pallet in the morning and you can be making good parts by the afternoon (as proof points, see these cobot welding videos from Vectis Automation, FANUC and Acieta; these companies shared their wisdom in an automation panel discussion I moderated at FABTECH). Cobots further flip the automation conversation because a critical mass of parts is no longer necessary to justify the cost of tooling (good tooling makes or breaks a standard robotic cell). Now, with a limited amount of modular tooling and a cobot on a cart, fabricators can profitably weld short runs of selected parts. I say selected parts because the tasks best suited for cobots are the “boring” parts. If you spot an operator sitting at a bench and loading a few pieces into a basic fixture, that’s likely a good opportunity for you to recommend a cobot and help the

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2023 BUSINESS FORECAST AMERICAN WELDING SOCIETY

customer achieve a quick win. This strategy lets a fabricator deploy their skilled labor on more challenging tasks while a cobot does boring, repetitive work at 2X to 4X the productivity rate of semi-automatic GMAW.

ADDRESSING THE TALENT GAP Cobots and robots also make manufacturing cool. Running an automated manufacturing cell is a challenge the younger generation can buy into. Automation also helps attract people who want to alleviate the physical tolls of welding, flex their mind more than their muscles and attract a more diverse talent pool. So does using data analytics applications, welding software and cutting automation. Telling young, relatively inexperienced people that their jobs involve computers, nesting software, CNC controllers or robots enables them to impact a business in a short time frame compared to the years it can take to master welding. Speaking of changing the perception of manufacturing, I’d like to give a hat tip to the industry’s social media influencers that show welding careers in a sophisticated and technically advanced manner. Factories and fabrication facilities look different compared to a generation ago, and that’s changing the perception of the most important influencers of all: parents. Overall, when we look at addressing the shortage of welding professionals, all of us need to build awareness of the opportunities, including advocating for automation and all the welding careers within the distribution channel. If you think about it, the greater goal of both is to help fabricators and manufactures become more productive. If you know a young person who wants to pursue an educational path toward a welding career, remind them that the AWS Foundation is offering more than $2 million in scholarships in 2023 and that March 1 is the deadline to apply for National, District, and Section Scholarships.

DISTRIBUTOR IMPLICATIONS OF AUTOMATION For distributors who wish to raise the bar on their automation expertise and open up new business opportunities to add more value to their customers, consider the AWS Certification Program for Robotic Arc Welding - Operators and Technicians (CRAW). Obtaining CRAW certification develops skills related to robot programming and logic, safety, robotic equipment setup, producing sound parts and coaching customers implementing automation, all of which are becoming as fundamentally valuable as recommending the correct filler wire and shielding gas. If you’re looking for precedence for having distributor personnel pursue certifications, Karen Gilgenbach, the incoming 80 • First Quarter 2023

Chair for the AWS D16 Committee on Robotic and Automatic Welding, holds CWI, CWS, CRAW-T certifications. As Zone Vice President for MATHESON, she leads a team of nearly 400 people across 36 MATHESON locations in the Midwest and credits certifications as helping advance her ability to add more value to customer interactions.

CONFERENCES AND CONNECTIONS I’d like to conclude this 2023 outlook by returning to the benefits of industry event participation. Our industry is filled with individuals who want to give back to the industry that has provided them not only a solid career with competitive compensation, but lifelong friendships and a close knit community of peers. Right now, we have four generations active in the business. Boomers are working longer, but masses of them are retiring soon. While Boomers, Gen X, Millennials and Gen Z have different communication styles and learning habits, industry events give them all an opportunity to interact and share their passion for both the science and the craft of welding. There’s an old saying that luck is what happens when preparation meets opportunity — by attending GAWDA and AWS industry events, welding industry professionals of all ages have an opportunity for peer-to-peer learning and to view future trends through the lens of past successes. Part of the reason in-person GAWDA events and AWS conferences are so important is that they create networking opportunities that are particularly important for passing the torch between generations. GAWDA has done an excellent job promoting succession planning, a major issue for smaller businesses of all kinds. Whether you have skills and wisdom to share or a desire to learn, consider participating in a panel discussion or attending one of the many networking events and social functions.

2023 BUSINESS FORECAST GUEST VIEWS

CGA’s Strategy for Success 110 Years in the Making BY RICHARD GOTTWALD, PRESIDENT AND CEO, THE COMPRESSED GAS ASSOCIATION

T Richard Gottwald is President and CEO of the Compressed Gas Association (CGA). He can be reached at 703-7882748 or rgottwald@ cganet.com.

he Compressed Gas Association is now heading into its 110th Year in 2023. To put that into perspective, CGA has been around for 20 United States Presidents, the first long distance telephone service, the creation of the first moving assembly line, the discovery of penicillin, the creation of the entire U.S. Space Program, and so much more. Over that time, CGA’s members have persevered through wars, the ever-mercurial economy, and global pandemics. Not only have they persevered, but they have also played essential roles in the safety and security of the global community. Most recently, during the COVID-19 pandemic, when vaccines needed to be distributed, CGA members stepped up to ensure we had the dry ice we needed to deliver them safely. When hospitals were filling with patients, CGA members were busy making sure medical oxygen was available to those who needed it. And at CGA, the standards we’ve been writing for 110 years became life-saving resources as the world scrambled to use existing technologies in new ways. It’s for reasons like these that I am proud to lead this incredible association. The work our members do has a real impact on the safety and health of our nation and the world. Today, we are working diligently to address emerging issues, particularly those surrounding the burgeoning hydrogen economy. Throughout the course of 2022, CGA staff presented at ten hydrogen conferences, sharing our “Safety is Step One” message with more than 32,000 conference attendees. Many of these events connected us with audiences well outside of our membership – from

fueling station operators, to utility companies, to aviation and aerospace companies. Now, we are taking what we’ve learned this year, last year, and the past 109, and planning for the future.

CGA’S THREE YEAR STRATEGIC PLAN Through our new plan we intend to build on CGA’s strengths as a globally recognized industry leader and adapt to the changing needs of our membership. Created by CGA leaders, committee members, and staff, this plan sets the course for our future and lays out five strategic priorities that we will work to accomplish in the next three years. Guided by this plan, our efforts will focus on publications, people, agility, impact, and operations.

PUBLICATIONS CGA maintains a library of over 380 publications, including safety standards, safety alerts, safety bulletins, technical bulletins, technical reports, training materials, e-learning modules and handbooks. Through our extensive library, CGA works to address safety and technical information related to the manufacture, transportation, storage, transfilling, and disposal of gases (liquefied, non-liquefied, dissolved, and cryogenic); and the containers and valves which hold compressed gases. Throughout the next three years we will continue our work to facilitate the adoption and use of CGA publications among CGA members, the industry at large, external stakeholders, and materially impacted parties. First Quarter 2023 • 81

2023 BUSINESS FORECAST GUEST VIEWS

AGILITY According to the International Standards Organization, the average standard takes more than three years to produce, from inception to publishing. Over the last decade, CGA has worked hard to meet and exceed that average. Over the next three years, we will continue our work to improve CGA’s ability to address emerging issues and expand more quickly into new areas, as well as ensure that CGA technical and educational resources shift to address evolving needs.

PEOPLE Committees are the fuel that keeps CGA running. In order to ensure our talent pool (or tank) doesn’t run low, we are investing heavily in our people. Over the next three years we will be expanding CGA’s ability to attract and grow engagement with the talent needed to support CGA committees and programs, including young and emerging professionals.

IMPACT It is often said that in business it’s not what you know, it’s who you know. This holds true for associations too. As we eye the future, we will be promoting CGA’s positions and objectives while broadening our influence by engaging

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in public relations, advocacy, and partnerships with like-minded organizations. With our messages reaching beyond our immediate membership, we are solidifying our position as a leading authority on safety, standards, and the ever-changing industry landscape.

OPERATIONS Since the start of the pandemic, CGA has made huge strides in modernizing our technology, operations, and even our physical office space. We will work hard over the next three year to continue to improve our internal processes, modernize our technology, increase digitization, and formalize plans for association continuity. Now, more than ever, safety must be at the forefront of our industry as we continue to explore new applications that bring our products ever closer to end users. The priorities set out in the plan are an ambitious roadmap that will advance CGA’s position as a leading authority on industry safety and better enable us to respond to emerging issues. CGA is well-positioned to carry out our safety mission, and to meet the challenges laid out in the new plan. To move this plan forward, we will need support from all sectors of our industry. We need continued participation from the talented, committed people who have long served on our committees, and we must continue to engage new participants who will carry our important work forward. I thank our members and GAWDA subscriber members for your continued dedication and collaboration as we further our mission to promote ever-improving safe, secure, and environmentally responsible manufacture, transportation, storage, transfilling, and disposal of industrial, medical, and food gases and their containers. We look forward to a bright future with all of you.

Consider the Disruptors When Forecasting BY KEN THOMPSON

D As an executive and advisor, Ken Thompson has been dedicated for over 60 years to strengthening manufacturers’ and distributors’ supply chain relationships through the sharing of best practices, managing disruptions, and coordinating visions and implementation of systemic technological change to further solid strategic alliances.

ating back many years, our trade association has always used the early months of the arriving New Year to offer business forecasts for the following twelve months. The practice falls back to the Penton Publishing Welding Design & Fabrication editions, continuing with GAWDA Media as it serves the NWSA and GAWDA sequencing. Suppliers and distributors alike deployed every method from an index finger searching for the prevailing wind, to sophisticated analysis of changing markets, footprint sensitive activities, and new and changing business models, products, and services. For the public companies among our mix, these forecasting activities became underpinnings for the “guidance” provided to boards, shareholders, and other investors. Most involved in these forecasting activities base approaching budgets, activity goals, and, yes, compensation and bonus incentives on the predictions. While we all can write some numbers down on a piece of paper that estimates the future, we cannot positively identify the “disruptive activity” that can blindside us. Who, as we did our following year forecasting in December of 2019, saw COVID on the radar? Putting our spread sheets aside, what disruptive potential resides on the horizon that requires some consideration? A few surface immediately. Impacts of a digitally connected supply-chain are front and center. Consequences of “all things” connected to ENERGY surround us. Changes in our work force – retirement of knowledge and experience, skill sets and work habits of those joining our ranks, succession in so many of our family-owned businesses, and the result of industry wide consolidation.

It is impossible to read a trade association article, attend a webinar, sit in a meeting audience, or network with an associate and not be aware of the enormous shift in all distribution vertical practices toward seamless digitized supply chain activities. The “headliners” – MSC, Fastenal, Grainger, and Amazon – report huge adoption rates, significant growth in revenue and margin and streamlining of logistic services. While the welding and packaged gases hard goods portfolio matches up more closely with MRO products, other distribution verticals in HVAC, plumbing, Jan/San, office products, and electrical components are all deeply engaged in B2B relationships with their clients. The “gold standard” is likely Schneider Electric, a $26 billion French owned company (120,000 employees) manufacturing and distributing electronic components. They have not only perfected their own e-commerce platform, but have successfully integrated it with their independent distribution partners to serve clients preferring to do business with local companies. Agree with it or not, our gases and welding distribution model feel these impacts every day. The argument that “we are different” because of the gases portion of our portfolios is wishful thinking. We absolutely need our hard goods sales to help underwrite our infrastructure costs, and these SKUs are escaping us and headed through alternate, electronically connected channels. Our hard goods suppliers – many loyal to our channel to a fault for so many years see this migration, too. They are obligated to their respective investors to follow the path to greatest success. If our distribution network does not offer these electronic paths to end markets, our suppliers must follow the First Quarter 2023 • 83

2023 BUSINESS FORECAST GUEST VIEWS

We absolutely need our hard goods sales to help underwrite our infrastructure costs, and these SKUs are escaping us and headed through alternate, electronically connected channels. alternatives. Those alternate options include building their own electronic pathways directly with end users or following those already in place and performing well. The GOOD NEWS is that many in our industry space are actively engaged in building out these capabilities so that they can sustain their respective market relationships and effectively represent their suppliers. ENERGY underpins so much of our business activity. All our atmospheric gas making processes consume enormous amounts of energy. Increased costs of electricity force up the cost of production. Many storage facilities require refrigeration – more electric power. Today, the transportation element is heavily dependent on diesel fuel, and regardless of wishful thinking about powering future transportation, in the immediate future we have to deal with high and unstable energy costs. Energy also plays a major role in all hard goods products – steel making, rubber and plastics, cannabis growing, powering our computers, and lighting, heating, and cooling our facilities. These variables require constant cost management, and must be reallocated in the cost of our services to the client – inflation is no-where near under control. The entire industry struggles with labor costs. The aging of our experienced and talented work force is nothing new. However, the locating, hiring, training, compensating, and retaining of a competent and productive work force is increasingly more 84 • First Quarter 2023

difficult. Those entering meaningful employment today have very high expectations. For the past two years, job seekers have grown accustomed to remote work environments, place high dollar value on yet-to-be-proven skills, seek a package of benefits and “rights” that stress work-place efficiencies, upsetting balances for advancement and reward mechanisms long satisfactory within a “best place to work” atmosphere. Consultants tell owners and managers that “they must manage differently,” but the bottom line is that labor costs dramatically increase, and these costs must eventually be absorbed in the products and services offered to end users. The welding and gases distribution business has been absolutely blessed with so many small family or privately owned companies – both on the supplier and distributor side. That is one very important ingredient in the comradery of our business models, and a significant contributor to the high level of genuine sharing, networking, and friendships that make our industry unique. Families would often “run out of sons and brothers” and force an ownership change. Today, we are truly fortunate that “daughters and sisters” are taking a keen interest in perpetuating the family business model. The proof is before one as they view industry committee membership and rotation through the Chairs. Executive offices and board rooms of our public company partners reveal like images. Further, many owners facing a situation where no family succession alternatives exist are establishing an ESOP structure where long term, loyal, and productive employees can guarantee the future of the company. If these succession options had been on the horizon 30 years ago, one would wonder whether we would have ever been introduced to Airgas, PDI, Trigas, TechAir, or others? Regardless of the way succession is shaped in the years going forward, we will ALWAYS see some level of consolidation. It will come in the form of private equity roll ups as well as regional independents collaborating with businesses in adjacent footprints. Either activity will lead to some level of disruption, as there is always some fall out when these consolidations occur. Even though a non-compete Agreement seems endless to the affected individual, many times a re-birth occurs when the individual or individuals re-join the industry. There is some chemistry in welding and gases that one cannot totally dismiss – they often come back. So, BE PREPARED! There will be DISRUPTIONS that will change the best prepared 2023 business forecast. Often, what might appear to be a devastating disruption may offer a significant opportunity on the back side. Our industry leaders are resourceful people. If there is a slight chance of a good outcome, they will find it. Good luck to all of GAWDA in 2023.

BUSINESS FORECAST ITR ECONOMIC OUTLOOK

Looking Ahead to a Slowdown in 2023 GAWDA members will have to battle through a slowdown in the second half of the year. BY STEVE GUGLIELMO AND BRIAN BEAULIEU

ollowing three tumultuous years marked by outside influences on the business community, 2023 will see a return to a sense of normalcy in 2023. However, with that normalcy comes the prospect of a slowdown in the second half of the year. We had the opportunity to speak with GAWDA’s Chief Economist and President and CEO of ITR Economics Brian Beaulieu about what GAWDA members can expect this year. Check out the full first quarter forecast on pages 58 for a deeper dive into what the firm expects to see in the economy in early 2023. Also, check out the January 15th episode of GAWDA TV to see an interview with Brian on his expectations for the year ahead. We thank Brian for his help and insight in putting this forecast together.

WELDING & GASES TODAY: What is the overall economic outlook for the welding & gases industry in 2023?

BRIAN BEAULIEU: It's really mixed. The federal reserve has

put us into an inverse yield curve situation. And that is giving us an 88% probability that in the second half of 2023, we are going to find conditions weakening for our industry. GAWDA members are going to have to battle through that in order to make 2023 the year that they would like it to be. On a dollar basis, it's going to be easier than on a volume basis to call it a flat year, relative to 2022. But it can be done. We know these ladies and gentlemen. They can do it.

WGT: The last three years have had outside influences that have been challenges. First COVID, then inflation and supply chain shortages. Do you see the business environment returning to a semblance of normalcy this year? Or will we still see those outside influences continuing to have an outsize impact on business?

BB: Yes. It will have some degree of normalcy associated with it in that supply chains are becoming more normal. They aren't back to normal, but they are becoming more normal. And I think that's going to continue. We're seeing onshoring going on more and more. Investment into the United States remains very strong. And that is going to help make business conditions get more into a rhythm and feel the way that they used to feel. The labor shortage is going to continue to be a problem. And that's not ever going to feel normal, I don't think. But we control what we can control. And what is normal is treating your people right and having a very strong, positive culture, and doing the best you can. WGT: ITR produces an incredible amount of information through your website. You also have the quarterly forecast in each issue, including this one on page 88. If you were in an elevator with a GAWDA member and you only had a minute to talk, what is the biggest takeaway you would want them to walk into 2023 with?

BB: The biggest takeaway I would like to impart on people is that with everything going on around us and all the swirling news, just focus on what you can control. We can't control interest rates. We can't control inflation. But we can control how we react to those. If you focus on what you can control, and do that very well, then the rest of it tends to diminish in relative importance. And that is the best way to get through, particularly the second half of 2023. WGT: Are there any growth markets that have presented themselves specific to GAWDA members?

BB: There are some markets that have been impervious to the

whole pandemic. Healthcare, for one. Supermarkets, obviously, for another. But those are going to be returning to normal. I think that some of the members are going to find more milFirst Quarter 2023 • 85

BUSINESS FORECAST ITR ECONOMIC OUTLOOK

itary defense spending opportunities. Congress is giving the Pentagon more than what they asked for. We're going to be building more ships than the Navy has asked for. Those are all opportunities that I think a lot of us were concerned wouldn't be there under the current political environment. But it looks like they will be there over the next five years. So, go look for those opportunities, they're going to be fertile.

We have the luxury of being the world's number one economy and the most favored currency, for now. But the big gamble is, can we figure out how to digitize our currency so that it is competitive when it comes to international settlements and even domestic trade? If we can't figure out how to digitize it, without losing our liberties, we've got a major problem. And that is something to keep an eye on going forward.

WGT: When you look back on the COVID era

WGT: When you say digitize it, do you mean like

and this period of history, what do you think the biggest lesson that we will have learned as businesses will be?

cryptocurrency?

BB: You should be asking a philosopher that question. So

many of us understand more keenly how important family is over everything else. We may have given that more lip service than heart-felt service before COVID came around.

It has been fascinating to me how many companies have been able to change on the fly. Others insist on clinging to the old ways of doing things. Legal firms that are demanding all their attorneys come into the office. Why? They don't need to be in the office. "Well, how else are we going to build a strong culture?" There are other ways to build a strong culture. Millennials and Gen Z don't want to be in the office, by and large. If you can't accommodate them, then you're excluding yourself from a tremendous realm of talent. I think we're at a crossroads where there are people who can adapt to this new paradigm and then those who cannot. And one is going to have a very rich talent pool to draw from, especially as we are contending with this labor shortage. And the others are going to be dealing with that labor shortage much more acutely because they can't change. It's going to be fascinating to see how that plays out. WGT: How about looking back a little bit further. What is your biggest economic takeaway from the end of the Great Recession to this coming depression that you have predicted for the 2030s?

BB: The biggest takeaway is that historians will look back and

say, "Whoa. That's when they passed that tipping point. It was in April 2009 when our national debt exceeded 80% of our nominal GDP." 800 years' worth of history tells us that we do not recover from something like that very easily, if at all. In fact, I'm only aware of one country that has ever recovered from that. 86 • First Quarter 2023

BB: Not so much cryptocurrency, but the Chinese took 10% of their currency and turned it into electronic money. There is no paper. And when you use one of the digitized yuans in China, they know exactly where you are. They know exactly what you bought, and they know exactly what you paid for it. What American is going to sit still with the government knowing that sort of detail about our day-to-day economic life? So, we'll probably do it on the international scene. It's more about using blockchain effectively. Not bitcoin or other crypto, it's just using the blockchain. But somehow keeping the government's nose out of our business. That will be the trick. WGT: As a firm that has prided itself on being able to see out past the horizon, what would you say the biggest economic disruptors of the next five to ten years will be? And how can members prepare themselves?

BB: Some of the biggest disruptors are going to be the mounting U.S. national debt and deficit spending as a percent of GDP. Those are big swords that are hanging over our heads. Inflation is going down right now to normal levels, but it's going to be coming back because of that fiscal policy and because of monetary policy and the labor shortage all at the same time.

Another major factor that I think people need to keep an eye on is nationalism. That's new. We lived through globalization in the 80s and 90s and the first part of this century.The pendulum has swung back the other way.There are new ways of seeing this future and attacking this future. Another huge thing to consider is that what got you here, in terms of your wealth and your portfolio isn't what is going to get you where you want to be over the next 10 years. If you're still playing the game with the rules from ten years ago, you're going to lose. The opportunity cost is going to be tremendous. You have to recognize that this inflation and this government's propensity for spending

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money it doesn't have changes the rules in a way that we haven't seen since the 70s and the early 1980s, which is ancient history for most people. We don't have to reinvent the playbook, but we better study that old playbook to figure out what works and what doesn't work. WGT: Are there any common misconceptions or mistakes that you're seeing people make that you would advise them to correct in the coming years?

BB: Not beyond some of the things we've already touched

on. Stop believing that government can fix everything. Stop believing that the Federal Reserve is some all-powerful entity. Start looking more inward and driving what you can control and be the best version of yourself, both as a company and as a leader. That's where you're going to make the biggest difference going forward.

BB: Yes, I have several, as a matter of fact. First, people have

tended to look upon the Federal Reserve as if they're omniscient and all-powerful. They're just people trying to do the best that they can do with imperfect tools. So, don't give them too much credit for trying to engineer a soft landing. There's an 88% probability that we're not going to have a soft landing, based on what has already happened. So that is what we should be dealing with.

The other part of it is just turn off the news. There's a reason we invented sports. It gives us something else to follow. The headlines are going to drive you crazy. We offer a lot of free material on our website. Avail yourselves of that to get behind the headlines and look at the data to see what is actually going on. I promise, it's different than what those headlines are telling you.

WGT: Are there any last thoughts you'd like to leave readers with as we head into the year?

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