The Official Publication of the Gases and Welding Distributors Association
2019THE YEAR OF Workshops for Warriors
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contents
Second Quarter • Spring 2019 • Volume 18, No. 2
DEPARTMENTS 06
PRESIDENT’S VIEW Minneapolis SMC and a New Training Benefit for GAWDA Members BY BRAD PETERSON
10
DIRECTOR’S DESK Turning the Articles in this Magazine into Actionable Items BY JOHN OSPINA
12
EDITOR’S NOTE Springing into Action
COVER STORIES
2019THE YEAR OF
BY VERONICA WESTFALL
GAWDA CONSULTANTS 14
edical Gases Distribution M Rules and Exceptions
18
BY THOMAS L. BADSTUBNER
24
Four Cylinder Filling Tips
20
BY MICHAEL DODD
arijuana, CBD Oil and M Your Company Drivers
72
32
BY RICHARD P. SCHWEITZER, ESQ.
ITR SECONDQUARTER OUTLOOK: Manage for the Short Term; Prepare for the Long Term
TTACKING THE SKILLS GAP A Workshops for Warriors is Mission Ready BY AGNES H. BAKER
PAGE
32
BY ALAN BEAULIEU
GUEST VIEWPOINTS
38
44
24
BY VERONICA WESTFALL
MEMBER PROFILE
PAGE
ICHES IN THE NICHES R CarbonCure Technology: A $400-Billion Opportunity for Gas Distributors
OXARC A Complete Single- Source Supplier and the Best in Customer Service BY AGNES H. BAKER
48
STAY CONNECTED
2 • Spring 2019
ALES & MARKETING S Driving Immediate Sales through Text Marketing
50
BY ADAM NATHAN
SALES & MARKETING The Space Between BY JOHN TAPLEY
54
BEST PRACTICES Reducing the Truck Order Backlog through Leasing BY BRIAN HOLLAND
BEST PRACTICES Announcing New eLearning Resources from CGA BY RICH GOTTWALD
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contents
Second Quarter • Spring 2019 • Volume 18, No. 2
THE TEAM
SPRING MANAGEMENT CONFERENCE PREVIEW
EXECUTIVE EDITOR
John Ospina jospina@gawda.org PUBLISHER
Bill Brod billb@gawdamedia.com EDITOR IN CHIEF
Veronica Westfall veronicaw@gawdamedia.com
Saturday, May 4 – Monday, May 6, 2019
PAGE
56
MINNEAPOLIS, MN
CONTRIBUTING EDITOR
Natasha Alexis nalexis@gawda.org CONTRIBUTING WRITER
Agnes H. Baker CREATIVE DIRECTOR
Robin Barnes robinb@gawdamedia.com VICE PRESIDENT, SALES
Tim Hudson timh@gawdamedia.com RELATIONSHIP MANAGER
Hannah Gray hannahg@gawdamedia.com COVER DESIGN
Greg Minix
We’ve upgraded our website! Visit it today at GAWDAMEDIA.COM
NEWS FROM GAWDA
NEWS ROUNDUP
56
84
INDUSTRY NEWS
92
MERGERS & ACQUISITIONS
94
SPRING MANAGEMENT CONFERENCE PREVIEW May 4 – 6, 2019 Minneapolis, MN
SAVE THE DATE!
95
WELCOME NEW MEMBERS!
Upcoming Industry Events
96
NEW OFFERINGS
100
ADVERTISERS INDEX
Welding & Gases Today (USPS 22-975) is published quarterly: Winter, Spring, Summer and Fall, with additional publications in Spring and Summer. • Non-member subscription rate is $195 per year. • GAWDA members (key contacts and branch locations) receive the magazine as part of their dues. • GAWDA members can order additional yearly subscriptions (4 issues) for $40. • Welding & Gases Today is published by Data Key Holdings, LLC. on behalf of the Gases and Welding Distributors Association. • Periodicals postage paid at Ft. Lauderdale, FL, and at additional mailing offices (ISSN 1558-5344). • Editorial correspondence should be sent to Editors c/o editorial@gawdamedia.com • Advertising correspondence and materials should be sent to William Brod, Data Key Holdings, LLC., 1415 W. Genesee St., Syracuse, NY 13204; 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 ©2019 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.
4 • Spring 2019
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SPRING 2019 HIGHLIGHTS:
Minneapolis SMC and a New Training Benefit for GAWDA Members by brad peterson
L
ife only seems to get busier. The GAWDA team has been hard at work, as I am sure you have been in your business. A quick snapshot of developments:
SMC MINNEAPOLIS Brad Peterson is GAWDA’s 2018–2019 president, as well as chairman and chief acquisition officer of family-owned Mississippi Welders Supply Company, Inc. He also serves on the board of the Independent Welding Distributors Cooperative (IWDC) and the board of Absolute Air. He can be reached at 800-6574422 or bradp@mwsco. com.
6 • Spring 2019
The response has been great. By the time you read this, I hope that you’ll be on your way there. We’ve got a great meeting lined up, and I look forward to welcoming you to the city where I was born. The weather has been warming up, the snow has been melting and we expect a beautiful spring with lots of greenery and flowers. The NCAA championship basketball game will have concluded on April 8 (in Minneapolis) so we’ll know whether your brackets were close … and the city will still have that spiffy look and excitement in the air. If you are interested in sending your employees to attend the contact booth program only, we are offering a $50 registration. This is an especially great deal for those located within driving distance. The registration includes the cost of parking at the hotel and attendees can register on site.
GAWDA STAFF
We’ve onboarded two new individuals, and they have quickly become integral to the operation. Daiana Sanchez is our graphics and communications expert and is responsible for event marketing graphics, meeting registration sites and the GAWDA App. Andrea Levy came to us with some great background experience and will be filling in for Natasha for a short time, coordinating and planning our meetings. After that, she will continue with member engagement and metric analysis work. Natasha will be out while she takes a short maternity leave. We congratulate her on the impending birth of a baby daughter. John, Bruce and Steve continue their excellent work of keeping the organization on track.
CGA RELATIONSHIP
The Compressed Gas Association (CGA) has transitioned to new executive leadership, and our relationship continues to be strong and mutually beneficial. Rich Gottwald is the (relatively) new executive director, but he has years of experience at other associations. Rich and his team have
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P RESIDENT’S VIEW If you are interested in sending your employees to attend the SMC contact booth program only, we are offering a $50 registration. This is an especially great deal for those located within driving distance. struck a deal with us at GAWDA to provide online training modules. You will read about this initiative in a separate article on Page 54. The first three modules have been delivered and more are on their way. If you have particular topics you would like addressed, please let us know by contacting Andrea Levy at 954-367-7728. GAWDA has direct input and involvement in their selection.
To access the modules, you need to provide your safety information to CGA (unless you have fewer than 10 employees, in which case you simply certify that). The information is readily available on your OSHA 300 report, which you otherwise need to maintain for federal compliance. Just go to the GAWDA website, download the form and fill in the data. It’s only six numbers for each year — items such as the number of recordable cases, the hours of exposure, etc. The only remaining step is to register yourself and/or your team members for the training, and then you are good to go. You’ll be able to access the training and also CGA pamphlets, alerts, bulletins and other publications.
OTHER PLANNING
The work of GAWDA consultants, staff, committees and the board continues — I see a dedicated group of individuals that strive to do what is in the best interests of our industry. They are at work behind the scenes answering questions, planning meetings, deliberating the best communication strategies and bringing value to our membership. Thanks to all!
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DIRECTOR’S DESK
Turning the Articles in this Magazine into Actionable Items by john ospina
John Ospina is GAWDA’s executive director. He can be reached at GAWDA Headquarters in Hollywood, FL, via telephone at 844-2513219 or via email at jospina@gawda.org.
I
think we can all agree that Welding & Gases Today provides a wealth of information. But, are you actively turning that information into actionable items by sharing it with the people in your company? Think about the different job functions within your organization and match them up with articles in this magazine. New employees and training managers can benefit from reading about the Compressed Gas Association safety eLearning modules on Page 54, and learn how they can participate in this free program. Anyone that handles cylinders should get familiar with filling and testing articles like the one on Page 18, by our consultant Mike Dodd. Drivers and managers should be aware of DOT views on issues like the one on Page 20, by our consultant Rick Schweitzer. Anyone
selling medical gases would benefit from the article on Page 14, on Medical Gases Distribution Rules and Exceptions, by Thomas L. Badstubner. Purchasing managers and owners should keep up with new products throughout the industry, which can be found on Page 96. By the way, if you’re attending the SMC in Minneapolis, you should visit the exhibitors that promote “new products” in each magazine and allow them to give you a more in-depth explanation of their benefits. Regardless of whether you buy from them or not, it’s always a good practice to keep up with new product innovations. 10 • Spring 2019
Owners and top management should always be discussing the articles on market changes for threats and opportunities, such as Mergers and Acquisitions on Page 92 and the Economic Outlook on Managing for the Short Term and Preparing for the Long Term by ITR on Page 72.
KEEPING UP WITH WORKFORCE DEVELOPMENT
GAWDA has joined a new Skilled Trades Coalition (STC) made up of more than 17 industry associations that will be looking into how we can all contribute to strategies that will draw more workers to skilled trades, dispel myths about trade careers and improve public perceptions. The inaugural meeting was held on Dec. 5, 2018, at the American Welding Society (AWS) headquarters in Miami. Coalition participants exchanged information on the current and future outlook of the trades’ employment gap and thoughts on how we could combine resources to develop best practices, identify common challenges and create next steps STC Members and action plans. In order to move forward, the group is first focusing on initiatives to establish the coalition governance, data mining, marketing campaigns, stakeholders and funding. The coalition began working through these issues on a teleconference on March 18, 2019. The group also compiled and discussed a list of existing workforce programs within each of our organizations. A second faceto-face meeting is scheduled for September 2019. Follow-up articles will be developed as the coalition progresses. As always, thank you for your continued membership in GAWDA and your support of the industry.
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FROM THE EDITOR
Springing into Action by veronica westfall
S Veronica Westfall has over 25 years of writing experience and is the author of more than two dozen textbooks for the construction trades. She can be reached at veronicaw@ gawdamedia.com.
pring always brings a renewed sense of energy and optimism, and I hope that this issue will provide you with some inspiration for applying this positive energy to your business. The service article in this issue focuses on Workshops for Warriors, a great cause that has done much to help put our veterans to work while simultaneously addressing the growing need for skilled tradespeople. Veterans bring a unique mindset to any work environment: they come to the table with deeply ingrained values of integrity, teamwork and determination, as well as the invaluable ability to perform well under pressure. Hiring a veteran is a win-win on both sides. We have our third installment of Riches in the Niches, a special section dedicated to
exploring new markets in the welding and gases industry. Spring’s article provides an overview of CarbonCure, a unique process that uses carbon dioxide in the production of concrete building materials, reducing the cost and carbon footprint of the concrete as well as increasing its strength. We also have guest articles on text marketing, fleet leasing and the space between the microbulk and bulk markets. In addition, we have a profile on Oxarc and an article from CGA President Rich Gottwald on three new free eLearning modules available to all GAWDA distributor members. I hope you enjoy this issue, and as always, please feel free to reach out to me with any member news, story ideas or other feedback. I look forward to seeing you all at the Spring Management Conference in Minneapolis.
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CONSULTANTS FDA & MEDICAL GASES
Medical Gases Distribution Rules and Exceptions by thomas l. badstubner
T
he FDA and state regulations recognize the traditional distribution of typical prescription drugs:
From the DRUG MANUFACTURER
GAWDA’s FDA and Medical Gases Consultant Thomas L. Badstubner is president of AsteRisk, LLC in Lewisville, TX. Members can reach him at 508-883-0927 and tom@asteriskllc.com.
to the WHOLESALE DRUG DISTRIBUTOR to the PHARMACY to the PATIENT This distribution model works well for traditional drugs. The FDA, state Boards of Pharmacy and regulations are well structured to efficiently manage traditional pharmaceuticals. These structures are not necessarily perfectly formed for medical gas distribution. Typical pharmaceuticals are: • Relatively dangerous • Expensive • Have a container that is inexpensive and disposable • Subject to counterfeiting for economic advantage • Subject to diversion from established distribution channels to internet and unlicensed sales • Manufactured by relatively few, large firms with wide distribution for each drug package
14 • Spring 2019
Medical gases are: • Relatively safe (most medical gases exist in the atmosphere at lesser concentrations) • Inexpensive • Have a container that is very expensive and reusable • Typically, not subject to counterfeiting — e.g., there is an insignificant economic advantage to counterfeiting oxygen • Not subject to diversion, internet or unlicensed sales — the cylinder asset is so valuable that the distribution channel is closely controlled • Manufactured by many small firms with relatively local distribution for each drug package Because of the fundamental uniqueness of medical gases and the variety of special medical gas applications, questions often arise about the appropriate distribution of medical gases. Here are some examples to clarify the rule and the exceptions:
MEDICAL GAS DISTRIBUTION CASES A. Can I sell medical gas to another medical gas manufacturer, medical gas distributor, pharmacy or traditional pharmaceutical manufacturing company? Yes. In most situations, the company selling the medical gas and the company buying the medical gas must be licensed by the state for the sale, distribution or manufacturing of drugs. The specific licensure/permitting requirements vary by state. Usually, you must be licensed in your state and in the state of your customer.
CONSULTANTS FDA & MEDICAL GASES B. Can I sell medical gas directly to a medical clinic or hospital? Yes, if the clinic or hospital is medically licensed by the state. C. Can I sell medical gas directly to a nonmedical clinic? Not usually. If the clinic is not medically licensed by the state, it is not able to buy prescription drugs for non-emergency use. See the emergency use question H. Examples of non-medically licensed clinics are cryosaunas. Cryosaunas may have business licenses or other non-medical licenses that do not enable them to purchase prescription drugs or medical gases. Typically, a medical doctor may purchase medical gases for a clinic under his license. In this case, ensure that the invoice and delivery is to the medical doctor and not to the clinic. Exceptions may exist, depending on state regulations. D. Can I sell medical gas to a nurse or midwife? Maybe. Check with your state regulations. Often the medical gas sale will be allowed if the nurse or midwife is licensed and under the supervision of a licensed physician. See question H.
E. Can I sell medical oxygen to a patient with a prescription? Yes. If a patient presents you with a valid prescription, and if you are licensed to sell medical gases, you are permitted to sell medical oxygen directly to the patient. F. Can I sell medical oxygen to a fire department, ambulance or Emergency Medical Service (EMS) without a prescription? Yes. According to the 2003 Draft Medical Gas Guidance, the FDA states: If a medical gas company sells medical oxygen to emergency medical services for emergency use, the label would contain the statement: “For emergency use only when administered by properly trained personnel for oxygen deficiency and resuscitation. For all other medical applications, Rx Only.” The FDA would not prohibit the sale of medical oxygen with this labeling to emergency medical services without a prescription. G. Can I sell medical nitrous oxide or other medical gases to a fire department,
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ambulance or EMS without a prescription? No. Only oxygen is allowed to be sold under the “emergency use” exception. However, you can sell nitrous oxide to licensed hospitals or physicians affiliated with these establishments. Then the licensed physician/hospital can supply nitrous oxide or other drugs to the EMS. This is becoming important because new, portable pain relief devices are being marketed to EMS’s and these devices use nitrous oxide and oxygen. H. Can I sell medical oxygen to a school, airport or company without a prescription? Yes, in certain limited circumstances. The agency allows medical oxygen to be dispensed without a prescription to properly trained individuals for oxygen deficiency and resuscitation, as long as the following conditions are met: 1. A high-pressure cylinder filled with medical oxygen and used for oxygen deficiency and resuscitation must have the “emergency use” statement present on the drug label. See question F. 2. The equipment intended for such use must deliver a minimum flow rate of 6 liters of oxygen per minute for a minimum of 15 minutes, and include a content gauge and an appropriate mask or administration device. 3. Proper training is documentation that an individual has received training within the past 24 months, or other appropriate interval, in the use of emergency oxygen, including providing oxygen to both breathing and non-breathing patients, and safe use and handing of emergency oxygen equipment. Training may be obtained from any nationally recognized professional organization, such as the National Safety Council, the American Heart Association, the American Red Cross, etc. 4. Under no circumstances can emergency oxygen be used to fill high-pressure cylinders or be used in a mixture or blend. Once all of these conditions are met, an individual or firm may have access to medical oxygen without a prescription. I. Can I sell medical oxygen to scuba shops for routine diving use? No, scuba diving is not a medical application. However, medical oxygen can be sold for emergency care or treatment at the scene of a diving emergency if the conditions in question H are 16 • Spring 2019
J.
K.
L.
M. N.
O.
P.
met. Rescue divers, and other specially trained divers, may buy medical oxygen under the “emergency use” exception in question H. Can I sell medical oxygen for aircraft pilot use? No, aviator breathing oxygen is not a medical application. However, medical oxygen can be sold to EMS’s for patient use in Life Flights. Can I sell medical gases for maritime use? Yes, in certain circumstances. For United States flag vessels, the medical oxygen must be supplied via a valid prescription or to a licensed medical doctor. For foreign flag vessels, the ship must produce a certificate of proficiency of medical care. Can I sell medical carbon dioxide for cannabis oil extraction? Not usually. If the firm buying the carbon dioxide does not have a medical license from the state and is not a federally registered drug manufacturer, you may not sell medical carbon dioxide to the firm. However, this is an evolving market and the guidance may change in the future. Can I sell medical nitrogen for semen cryo-storage? No. This is not a medical application. Can I sell medical nitrogen to a plumber for purging a medical gas pipeline? Yes, usually. In most states, a simple letter from the plumber about the purging requirements is all that is needed to justify selling them medical nitrogen. Some states (e.g., Florida) require special permits for plumbers to use medical nitrogen. Can I sell a medical gas to a researcher? Maybe. If the gas is being used on tissues or cells that will be later used in a human or animal body, the gas should be medical grade. If the tissues or cells will be destroyed/ discarded, the gas should not be medical grade. What should I do if my customer insists that their application requires a different grade of gas (medical or non-medical) and we are not certain if it is appropriate? New research and new drug applications are being developed that cross the traditional definitions of medical gases. For these new, nontraditional applications, your customer likely knows more about what an appropriate gas grade is. Have the customer explain their usage in writing and consider the request. If in doubt, please contact tom@ asteriskllc.com for guidance. Some states (e.g., Florida) will require a special permit for this exception.
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CONSULTANTS DOT, SECURITY, OSHA & EPA
Four Cylinder Filling Tips by michael dodd
I GAWDA DOT, Security, OSHA and EPA Consultant Michael Dodd is president of MLD Safety Associates in Poplar Bluff, MO. Members can reach him at 573-7182887 and at MLDSafety@ hotmail.com.
18 • Spring 2019
t has been a few years since I last published this article, but it is an extremely important topic. I conduct high-pressure cylinder/liquid container/carbon dioxide cylinder filling classes for GAWDA members all across the country. There are four items that I stress during my training classes that, if done, really reduce the chances of fatality or serious injury to our employees and customers.
1. HAMMER TEST (DEAD RING) ALL STEEL CYLINDERS.
The PRV on this cylinder has been removed and the connection The Department of Transportation plugged, resulting in a dangerous installation. (DOT) requires all steel cylinders approved to go 10 years between requalification to pass a hammer test prior to each I now recommend during my training sessions fill. Hammer testing is a simple procedure that has that all steel cylinders be hammer tested prior been used for decades. To perform this test, use to filling, not just those approved for 10 years. a ball-peen hammer to lightly strike the sidewall of an empty, unpressurized cylinder. If the sound 2. VERIFY THAT YOU CAN SEE THROUGH produced is a clear bell tone, the cylinder is clean THE HOLES ON THE SAFETIES OF and free of corrosion. If the sound is dull or dead, LIQUEFIED GAS CYLINDERS, SUCH AS the cylinder may be corroded or contain a foreign THOSE CONTAINING CARBON DIOXIDE material. In that case, tag the cylinder out of service AND NITROUS OXIDE. and have it inspected. (Note that a hammer test is If a fusible metal-backed safety gets installed not effective on aluminum cylinders.) onto a liquefied gas cylinder, then someone has I know of two cylinder failures in the past few a made a bomb just waiting to go off. Overfill years (one fatality and one near miss) that very the cylinder or expose it to high temperatures — likely would not have happened if the cylinder causing the cylinder to go hydrostatic full — and had been given a hammer test. Both cylinders the resulting pressure can rupture the cylinder. If were in oxygen service and had water in them there is nothing wrong with the cylinder, then the when filled. Both cylinders were also extremely failure pressure can be approximately 2.5 to 3.5 corroded and pitted on the inside from 100 percent times the stamped service pressure. Therefore, if oxygen and 100 percent humidity. Each had been the cylinder filler will just check prior to filling hydrotested within two years of failure. Therefore, that they can see through the holes on the cylinder
safety or verify the holes are not filled with anything, then they have verified that a fusible metal-backed safety has not been installed.
3. VERIFY THAT THERE IS A PRESSURE RELIEF DEVICE (PRV) ON A LIQUID CONTAINER BEFORE FILLING.
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4. VERIFY THAT THERE IS A BURSTING DISC (BD) ON A LIQUID CONTAINER BEFORE FILLING.
Numbers 3 and 4 go together. I know of two recent instances in which the PRV and BD were removed and the openings were plugged, resulting in a catastrophic failure of the liquid container. Both cases resulted in near fatalities for three people. In both cases, the container filler did not see that the safety devices were removed and plugged. Since then, I have continually emphasized that any person filling a liquid container must first find the pressure gauge and look immediately behind the gauge and ask the very important question: Does it have a PRV and a BD installed? There are more cylinder filling tips to know and follow to prevent potential problems. These are just four of them that I give special emphasis to during my cylinder filling classes. Please verify that your cylinder filling people know these four items and use them. Doing so could save the life of an employee or a customer.
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CONSULTANTS GOVERNMENT AFFAIRS & HUMAN RESOURCES
Marijuana, CBD Oil and Your Company Drivers by richard p. schweitzer, esq.
T GAWDA’s Government Affairs and Human Resources Legal Consultant Rick Schweitzer is president of Richard P. Schweitzer, PLLC in Washington, DC. He is also GAWDA’s general counsel. Members can reach him at 202-223-3040 and rpschweitzer@rpslegal. com.
20 • Spring 2019
he proliferation of products containing cannabidiol (CBD) oil has further muddied the issues of testing and restrictions on drivers with a Commercial Driver’s License. CBD oil is a type of cannabinoid, one of several naturally occurring chemicals that can be found exclusively in cannabis plants. Unlike tetrahydrocannabinol (THC), however, CBD does not produce a “high” or psychotropic experience. Using marijuana for recreational reasons is legal in 10 states and the District of Columbia, and using medical marijuana is legal in 33 states and D.C. Possession or use of marijuana remains illegal under federal law, however; it is listed in Schedule I of the Controlled Substances Act. But under current law, federal prosecutors in states that have enacted laws authorizing the use of medical marijuana may not charge persons obtaining or using marijuana for medical use. Possession and use of CBD oil is legal under the laws of almost every state. It is used by many persons to treat a variety of conditions, including anxiety, depression, nausea, pain, sleep disorders and even acne, although there are questions about whether it produces any true pharmacological benefits. CBD may be found in oils, foods, drinks and vaping products. For commercial motor vehicle drivers, nothing has changed with regard to marijuana use. The Department of Transportation’s Office of Drug and Alcohol Testing and Compliance has recently reiterated that it remains unacceptable for any safety‐sensitive employee subject to drug testing under the DOT’s drug testing regulations to use marijuana for any reason. The office stated, “Medical Review Officers will not verify a drug test as negative based upon information that a
physician recommended that the employee use ‘medical marijuana.’” The Federal Motor Carrier Safety Administration website states it bluntly: drivers taking medical marijuana, even if prescribed by a physician, cannot be medically certified. The same applies to any recreational use of marijuana by a commercial motor vehicle driver. Accordingly, the driver qualification regulations in 49 CFR §391.41(b)(12)(i) state that a driver is physically qualified to drive a commercial motor vehicle if he or she “[d]oes not use any drug or substance identified in 21 CFR 1308.11, Schedule I, an amphetamine, a narcotic or other habit-forming drug.” But what about CBD oil? Because cannabidiols contain only trace amounts of THC, a driver using CBD oil will probably test negative for marijuana. This is not an absolute statement, however. Depending on the type of extract, the dosage and the extent of usage, it is possible, though unlikely, that enough THC will show up in a test sample to generate a positive drug test result for marijuana. Even if the driver does not use enough CBD oil to trigger a positive drug test, the use of CBD is still prohibited under the driver qualification regulations because it is a Schedule I substance. The Drug Enforcement Administration published a final rule effective in 2017 creating a new Controlled Substance Code Number (drug code) for marijuana extract (7350). The DEA has recently issued a clarification on its website that the new rule provides that drug code 7350 does not include materials or products that are excluded from the definition of marijuana as set forth in the Controlled Substances Act. If a product
CONSULTANTS GOVERNMENT AFFAIRS & HUMAN RESOURCES
Company policy should prohibit any commercial motor vehicle driver from using any CBD oil or extract.
consisted solely of parts of the cannabis plant excluded from the CSA definition of marijuana, such product would not be included in the new drug code (7350) or in the drug code for marijuana (7360). But the DEA clarification states “there may be some misunderstanding about the source of cannabinoids in the cannabis plant.” The DEA goes on to assert that “cannabinoids, such as
tetrahydrocannabinols (THC), cannabinols (CBN) and cannabidiols (CBD), are found in the parts of the cannabis plant that fall within the CSA definition of marijuana...” Thus, CBD oil remains a Schedule I substance and its use is prohibited for commercial motor vehicle drivers. But the DEA also stated, “if a product, such as oil from cannabis seeds, consisted solely of parts of the cannabis plant excluded from the CSA definition of marijuana, such product would not be included in the new drug code (7350) or in the drug code for marijuana (7360), even if it contained trace amounts of cannabinoids.” Based on this explanation, prudent company policy should prohibit any commercial motor vehicle driver from using any CBD oil or extract. Managers cannot know for sure whether a CBD product is or is not included in the definition of marijuana extract under the DEA rules. A driver found to possess CBD oil is subject to an out-of-service order, even if the driver has not failed a DOT drug test. Recently, the Vermont Department of Motor Vehicles placed a driver out of service for 24 hours because he had a bottle of CBD oil in his vehicle. Your company drivers face similar risks if they use these products.
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Spring 2019 • 21
2019: THE YEAR OF SERVICE
ATTACKING THE SKILLS GAP Workshops for Warriors is Mission Ready By Agnes H. Baker
P
romoting the safe operation and economic vitality of distributors of industrial gases and related welding equipment and supplies is GAWDA’s mission. Providing educational and training opportunities within that industry tops the organization’s list of ways to accomplish this. One of the current challenges our nation faces is a shortage of skilled workers — in particular, welders and fabricators. With welding an integral part of so many manufacturing processes, from building tunnels to launching spacecraft, trained and certified welders are critical to our economy. GAWDA is well aware of the talent shortage, and a unique training facility in California called Workshops for Warriors (WFW) has caught the attention of many members. As we reported last June, GAWDA member Weiler Abrasives Group, a leading provider of abrasives, power brushes and maintenance products for surface conditioning, donated $25,000 to WFW. Founded in 2008 by Hernán Luis y Prado, a U.S. Navy officer who served in combat tours in Afghanistan and Iraq, WFW is a nonprofit school that provides veterans and transitioning service members with advanced manufacturing training and industry-recognized certification for careers in welding, machining and fabrication. Tuition scholarships are available to students, or they can use their GI Bill. 24 • Spring 2019
WFW relies on the support of individuals and private industry for both monetary and product donations. Weiler is heading up Leading a Warriors’ Charge, a national brand awareness and fundraising campaign created to support Workshops for Warriors. It aims to raise scholarship dollars and to get the WFW message out through a yearlong advertising campaign. Workshops for Warriors founder and CEO Hernán Luis y Prado. Weiler’s Nate Schmid, director of marketing – Americas, said, “Along with our partners Independent Welding Distributors Cooperative (IWDC) and ORS Nasco, we’ve raised over $77,000 thus far and plan to expand our campaign in 2019 to include additional products and promotions.” In this article, we take a closer look at the WFW program and how GAWDA members are building a better industrial gas and welding supplies community by supporting this unique effort.
2019: THE YEAR OF SERVICE Workshops for Warriors provides veterans and transitioning service members with industry-recognized certification for careers in welding, machining and fabrication.
DEFINING THE NEED
Two trends are fueling the current skilled worker crisis: the retirement of the current generation of trained workers and the lack of high school graduates pursuing careers in industrial trades. The “Deloitte Skills Gap in U.S. Manufacturing 2015–2025 Outlook” report estimates that over the next decade, there will be nearly 3.5 million manufacturing jobs open in America. The skills gap is expected to result in 2 million of those jobs going unfilled, or about 6 in 10 manufacturing posts being vacant. The lack of welders is a big part of the skilled worker shortage. According to the American Welding Society (AWS), in the past 12 months, there have been over 140,000 job postings for welding professionals and over 30,000 of these were for pipe welders. By 2022, it is projected the U.S. will need over 450,000 welding professionals. In addition to a dearth of welders, skilled 21st century machinists are also scarce. According to Workshops for Warriors, advanced manufacturers report a sizable gap between the talent they need to keep growing their businesses and the pool of skilled employees. It is estimated that over the next decade, this gap will equate to a $32 billion loss to the U.S. economy as manufacturing seeks offshore contracting to continue to grow their businesses.
According to the American Welding Society, in the past 12 months there have been over 140,000 job postings for welding professionals. Spring 2019 • 25
2019: THE YEAR OF SERVICE
Left: The WFW machining program provides national accreditation. Right: The WFW welding program is a combination of safety and hands-on training.
BUILDING A PIPELINE With headquarters in San Diego, California, a city with the third-highest concentration of veterans in the U.S., Workshops for Warriors is tapping into a talent pool well suited to help solve the skilled worker shortage and to reduce unemployment for veterans at the same time. According to WFW, more than 15,000 active-duty service members transition out from service annually in San Diego, and the city has more than 240,000 veteran residents. The U.S. Census Bureau reports that more than 10,000 of these veterans are currently unemployed and 16,000 live in poverty. By providing accelerated training, certification and help with job placement in advanced manufacturing and fabrication careers, WFW aims to change those statistics and, in fact, already has. Since October 2011, Workshops for Warriors has trained and certified 572 veterans, wounded warriors and transitioning service members, and students have earned over 3,800 nationally recognized credentials in welding, computer‐aided drafting, computer‐aided manufacturing, CNC lathe and CNC milling. Workshops for Warriors boasts an overall 94 percent placement rate, with most students having landed a job prior to graduation. The WFW team has found that while leadership skills and a strong work ethic are the hallmarks of a veteran, service members may not know how to effectively market their skills when transitioning to the civilian sector. Matt Miller, CEO of AWS and a decorated U.S. veteran, agrees. He explained how important a program like this is to returning troops: 26 • Spring 2019
“When I look at WFW as a former enlisted serviceman, I am amazed at how right it is for veterans. It provides more than just training for a viable, upwardly mobile civilian career, like welding — it allows veterans a chance to think about their next steps in a productive way. An organization like WFW did not exist when I was transitioning to civilian life — I wish it had.” With a current seat capacity of between 40 and 60 students per semester, WFW runs two main 16-week accelerated programs — welding and machining — both taught by veterans. In just four months, graduates can easily obtain full-time employment at a minimum of $18 an hour, anywhere in the United States. The WFW machining program is accredited by the National Institute for Metalworking Skills (NIMS) and the welding program is accredited by the American Welding Society. In 2015, Workshops for Warriors won the AWS Excellence in Welding Award in the Educational Facility category, with an individual AWS Excellence in Welding Award presented to WFW’s Dean of Welding Lyle Palm. The welding program is designed to prepare students to become well-rounded, entry-level welders with upward mobility potential. According to WFW, the curriculum is a combination of safety and hands-on training, which includes three basic courses that must be taken in sequential order: shielded metal arc welding (SMAW), gas metal arc welding (GMAW) and flux-cored arc welding (FCAW). Upon completion of the program, the student will successfully operate
and qualify for all required welding standards in those three welding processes. Palm has been with WFW since 2010. A retired U.S. Navy senior chief petty officer with over 20 years of experience specializing in welding nuclear and non-nuclear piping systems and structural components, Palm brings to the program both a mastery of the art of welding and a passion to pass his knowledge on to veterans like himself. Palm discussed his amazement at how the four-person welding shop he joined in 2010 has turned into a program with 18 welding booths and 36 machining stations. “You really have to be here to experience what a truly remarkable operation this has become,” Palm said. This extraordinary training opportunity attracts veterans from all over the county. Scholarships are often available for those for whom the GI Bill is unavailable.
THE JOINT EFFORT
From industry leaders donating high-tech equipment to private donors providing significant financial support, Workshops for Warriors continues to grow and deliver worldclass training to its students. Companies provide support in many ways. For example, Praxair, Airgas and WestAir have helped out with gases. Victory Welding Alloys and Washington Alloys have provided welding wire. Hypertherm has provided plasma cutting machines for students to train on, and Haas has donated equipment and software programs to the machining center. Spring 2019 • 27
2019: THE YEAR OF SERVICE
The demand for facilities to train welders and machinists continues to outstrip supply. 28 • Spring 2019
2019: THE YEAR OF SERVICE Jim Horvath, vice president of distributor relations for ESAB, has been a Workshops for Warriors supporter since he first visited the school over three years ago. “While on business in San Diego, I had the opportunity to meet John Jones, WFW director of development, and Lyle Palm,” Horvath recalled. “I was so impressed with the school’s level of excellence and with the opportunities it was creating for veterans and for our industry that I immediately suggested to ESAB that we become involved. ESAB’s president, Shyam Kambeyanda, and executive vice president, Billal Hammoud, agreed and have generously supported ESAB’s ongoing initiative to supply state-of-the-art welding machines, plasma cutters and assorted welding hardgoods to the Workshops. Most recently, at WFW’s request, ESAB sent a shipment of Sentinel auto-darkening welding helmets, TWECO welding stingers and Victor journeyman cutting kits.” Horvath also works tirelessly at spreading the word about WFW and has been instrumental in increasing awareness about the program to GAWDA members. At the 2018 GAWDA
Annual Convention in Seattle, Washington, Jones and Palm were guests of ESAB. “This enabled them to make further contacts with people in our industry who are in a position to become involved in the program,” Horvath explained. Organizations like GAWDA and AWS have been especially helpful in getting the word out, Palm reported. “We are grateful to GAWDA for providing us with networking opportunities and booth space at their annual conventions and meetings. This has enabled us to build valuable relationships with companies like Weiler Abrasives Group. The resources of AWS have been great for our education programs and, of course, our students leave here with AWS certifications, which are crucial to employment as a welder.”
SPARKING GROWTH
Operating welding and machining training programs is expensive. Workshops for Warriors’ current $3.5 million budget supports everything from scholarships and program expenses, to equipment, facility and material costs.
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Spring 2019 • 29
2019: THE YEAR OF SERVICE Jones, a Marine (Ret) and the director of development since 2016, leads the organization in raising funds to advance its objectives and expand its platform, and he has been instrumental in shepherding the organization into its next phase. With demand for trained welders and machinists outstripping what WFW can currently supply, WFW is launching two major fundraising efforts: a capital campaign for a new education and train-the-trainer facility, and a partnership initiative aimed at increasing scholarship donations known as Pride in Partnership. While in-kind product support is always appreciated, Jones emphasized that, for the two current fundraising campaigns, cash donations are most needed. Founder and CEO Hernán Luis y Prado says that, “Workshops for Warriors will continue to innovate, educate and enable veterans to change the future of our country.”
Weiler Abrasives Group has added the WFW logo to some of its products as a way of developing awareness of the program with its customers.
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2019: THE YEAR OF SERVICE
Join the Mission Show Your Support
GO TO: DONATE.WFW.ORG • Make Workshops for Warriors your charity of choice by participating in our marketing initiative, Pride in Partnership. Contact Director of Development John Jones at j@wfw.org or call 970-631-3542. • Visit the Workshops for Warriors booth at the 2019 GAWDA Annual Convention in Washington, D.C.
Workshops for Warriors 2970 Main Street San Diego, CA 92113 Phone 619-550-1620 Fax 619-550-1621
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Spring 2019 • 31
RICHES IN THE NICHES CARBONCURE TECHNOLOGY
Riches Niches IN THE
I
n 2005, engineer Robert Niven attended a United Nations summit on climate change, where he witnessed a global demand for solutions to reduce carbon emissions. Inspired by the summit, Niven considered the applications of waste emissions in the construction industry and founded CarbonCure, a CO2 utilization company with a mission to reduce the carbon footprint of the concrete industry. His solution? To turn waste carbon dioxide into a valuable commodity — concrete.
32 • Spring 2019
RICHES IN THE NICHES CARBONCURE TECHNOLOGY
CARBONCURE TECHNOLOGY:
A $400-BILLION OPPORTUNITY FOR GAS DISTRIBUTORS by veronica westfall
HOW DOES IT WORK?
The CarbonCure Technology injects a precise dose of liquid carbon dioxide into ready-mix concrete and concrete masonry products, chemically converting the CO2 into a mineral (calcium carbonate). The CO2 is typically supplied in a 3,000L microbulk tank and introduced at the mix plant like any other concrete admixture. It integrates seamlessly into the manufacturing process and does not impact other properties of the product. The calcium carbonate produced by the introduction of CO2 allows the concrete manufacturer to reduce the percentage of Portland cement in the mix, which saves both cost and the carbon footprint created in the production of the Portland cement. (The manufacture of Portland cement is responsible for 7 percent of the world’s CO2 emissions, so this further reduces the carbon footprint of the finished product.)
THE EQUIPMENT
Concrete plants are retrofitted in a single day and require no capital expenditures or changes to their materials and production processes. Batching is controlled by a simple interface integrated with the batch computer. In a ready-mix dry batch application, the CO2 is injected into the hopper, while in a central mix or masonry application, the CO2 is injected into the central mixer. Once injected into the wet concrete mix, the CO2 reacts
with the calcium ions in the cement to form a nano-sized calcium carbonate mineral that becomes permanently embedded in the concrete.
EFFECTS ON CONCRETE
The CarbonCure Technology has no effect on fresh concrete properties, including set-time, slump, workability, pumpability, air content, temperature or finishing. It also does not alter any hardened concrete properties, including pH, freeze-thaw, density, color, texture or durability. In fact, the CarbonCure Technology actually improves the compressive strength of ready-mix concrete by 10 percent at the standard 28-day cure time, which enables concrete producers to optimize their mix designs while reducing the carbon footprint of their concrete.
GREEN ADVANTAGES
When CO2 is used in most other applications, it eventually makes its way back into the atmosphere. With the CarbonCure Technology, the CO2 is chemically transformed into a mineral, which means it will never be released into the atmosphere as a greenhouse gas. The beneficial reuse of CO2 is expected to become a $1 trillion industry by the year 2030, according to the Global CO2 Initiative. CO2 utilization products for the concrete sector alone create an estimated $400 billion market opportunity and have the potential to reduce up to 1.4 gigatons of annual CO2 emissions by 2030. Spring 2019 • 33
RICHES IN THE NICHES CARBONCURE TECHNOLOGY
Among 200 companies evaluated, GCI ranked CarbonCure as the most scalable solution to address this opportunity. The CarbonCure portfolio of technologies has the potential to unlock 500 megatons of annual carbon dioxide reductions and create up to $26 billion in new production efficiencies. “We’ve made it simple and profitable for the construction industry to build resilient structures with lower CO2 emissions,” explained Niven. “Every ton of CO2 utilized in concrete production with the CarbonCure Technology results in a multiplier effect that saves an additional 28 tons of CO2 and over $3,100 in production efficiencies.” A CarbonCure valve box and microbulk tank.
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The CarbonCure Technology uses CO2 sourced from industrial emitters. Gas suppliers then collect, purify and distribute the CO2 to concrete plants. In January 2018, CarbonCure led a team of five companies to demonstrate the world’s first integrated CO2 capture and utilization (CCU) from cement for concrete production, a major milestone for the company. This project built upon previous cement plant CO2 capture demonstrations and was the first project to collect cement kiln CO2 for subsequent utilization downstream in concrete production and construction. The project demonstrates a turnkey solution for the cement and concrete industries that could create an opportunity to profitably capture and convert cement production CO2 emissions into value-added concrete for construction projects. Specifically, CO2 emissions from the Argos Roberta cement plant near Calera, Alabama, were captured by Sustainable Energy Solutions’ Cryogenic CO2 Capture technology, transported by Praxair and reused in Argos’ Glenwood (Atlanta) concrete operations equipped
RICHES IN THE NICHES CARBONCURE TECHNOLOGY
The CarbonCure Technology integrates seamlessly into the concrete operator’s batching software.
with CarbonCure’s CO2 utilization technology. Cement production is expected to be both the earliest and largest market for CCU technologies.
WHAT THIS MEANS FOR GAS DISTRIBUTORS
CarbonCure’s vision is to make the introduction of CO2 into concrete standard for all concrete production across the globe. CarbonCure’s scalable clean technology is now available in more than 130 concrete plants in North America and Asia. Niven says that their goal for 2019 is expansion — there are 6,500 concrete manufacturing plants in the U.S., and each one of them needs to be matched up to a CO2 distributor. The team is also focused on developing European partnerships. Roberts Oxygen Company, Inc., has teamed up with CarbonCure Technologies to provide a complete solution for innovative carbon dioxide from industrial emitters for the concrete industry in Pennsylvania, Delaware and New Jersey.
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RICHES IN THE NICHES CARBONCURE TECHNOLOGY
Effectiveness of CO2 as a cement replacement in ready-mix concrete.
“The CarbonCure Technology presents a fantastic new approach to CO2 utilization,” said Scott Van Pelt, vice president of sales at Roberts Oxygen. “The introduction of CO2 into concrete production chemically converts and permanently captures the CO2, which is positive for the environment. By
partnering with CarbonCure, we can now provide an enhanced service-oriented solution for concrete producers who choose to adopt this sustainable technology.” Roberts Oxygen currently supplies CO 2 to multiple CarbonCure installations with a variety of configurations. CarbonCure Technologies, Inc., has also entered into a strategic commercial relationship with Airgas to serve the Gulf Coast region. Airgas offers concrete producers a complete value-added CO2 supply and service solution, supported by its large and reliable Gulf Coast distribution network. “Airgas focuses on creating value for customers and acting responsibly to help preserve the environment by reducing atmospheric CO2 emissions,” said Scott Koonce, vice president of bulk sales and operations at Airgas.
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36 • Spring 2019
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CarbonCure has received many national and international awards, and most recently was recognized as a 2019 New Energy Pioneer by Bloomberg New Energy Finance, making it one of 10 game-changing companies recognized for leadership in fueling the transition to a lower carbon economy. The company is also a finalist in a $20 million Xprize Competition to convert CO2 into valuable
RICHES IN THE NICHES CARBONCURE TECHNOLOGY
CarbonCure CEO Rob Niven.
products. A counter on its website (www. carboncure.com) tracks the number of pounds of carbon that have been saved by the company to date, and as of April 1, 2019, they have saved 59 million pounds of emissions. In September 2018, CarbonCure’s Jennifer Wagner was recognized as one of 22 Climate Trailblazers from around the world at the Carbon Smart Building Day, a conference hosted in San Francisco for building professionals striving to achieve a net zero carbon-built environment. CarbonCure’s highest profile project to date has been the office building at 725 Ponce de Leon Avenue in Atlanta, Georgia. Opening in 2019, this project was supplied by Thomas Concrete. With 25 plants licensing CarbonCure’s technology, Thomas Concrete is CarbonCure’s leading concrete partner. The project used 48,000 cubic yards of concrete made with the CarbonCure Technology, diverting 1.5 million pounds of CO2 from the atmosphere. That’s equivalent to 800 acres of forest absorbing CO 2 for a year. Spring 2019 • 37
MEMBER PROFILE
OXARC
A Complete Single-Source Supplier and the Best in Customer Service by agnes h. baker
R
ooted in the magnificent Pacific Northwest, OXARC is a leading U.S. industrial gas distributorship with over 360 staff members and 22 locations serving the tri-state area of Washington, Oregon and Idaho. Founded by Jerry Walmsley, the company began with his purchase of Northwest Oxygen Company in Spokane, Washington, in 1968. From that first shop with 15 employees, Jerry and his team developed one of the largest industrial gas distributorships in the nation. Jerry remains active in the business as chairman of the board, and his daughter, Jana Nelson, who has been with the company since 1975, serves as OXARC’s 38 • Spring 2019
president. The management team that supports Jana in the company’s mission to be the most complete single-source supplier with the best customer service in its region includes a mix of new and long-term employees. Executive Vice President Mike Sutley has been with OXARC since 1972 and anchors the overall business. Keeping the facilities running smoothly is Vice President of Operations Don Nelson, Jana’s husband. Newer to the team is Jason Kirby, vice president of sales and general manager, who keeps a close eye on sales. The third generation of Walmsley’s is on board at Right: Jana Nelson, president of family-led OXARC, with newest addition.
MEMBER PROFILE
Left: OXARC’s territory includes about 1,000 square miles of the Pacific Northwest. Right: OXARC recently installed state-of-the-art cylinder spray paint technology at its Pasco, Washington plant.
OXARC as well, with four of Jana and Don’s children hard at work throughout the company: two in human resources, one as an IT professional and one in the company’s fire division.
THRIVING ON DIVERSIFICATION
One of the hallmarks of OXARC’s success is its well-diversified business, which was developed through a combination of organic growth and welltimed acquisitions in new or growing markets. Gases and hardgoods represent the lion’s share of revenue, 45 percent and 25 percent, respectively, but the company is also strong in safety (13 percent), fire equipment (10 percent) and industrial sales (6 percent), which includes large-scale equipment. The interplay between these divisions drives OXARC’s steady 5–6 percent annual growth rate. “We started out as a basic welding equipment and gases supplier, but have sought to diversify our interests as a way to grow and protect our business,” said Jana. “The first move outside of our traditional market was the 1995 purchase of the Columbia Fire Equipment Company. It was a success from the start. Today we sell and service fire extinguishers, carry related equipment like first aid
kits, refill extinguishers and conduct fire equipment inspections and training. The fire division then expanded into fire suppression systems, off-road vehicles, paint booths and document storage rooms. We are now evaluating advanced clean gas systems for future growth.” OXARC’s main markets revolve around the region’s agricultural industry. Mike Sutley explained, “We cover a lot of rural areas. The region’s growers and food processors are a big source of revenue for us. We sell a lot of refrigerant gases, which are used to both freeze and store food products and in cannabis processing.” OXARC’s customers include giants like ConAgra and Tyson foods. Supplying the local pulp and paper industry is another solid market for OXARC. And the region’s growing urban areas, like Portland, Oregon, are creating plenty of fabrication and construction-related business.
LOCATION, LOCATION, LOCATION
OXARC’s territory takes in an incredible 1,000 square miles of the Pacific Northwest. With excellence in customer service critical to its mission, OXARC has 22 facilities positioned around the tri-state region, including 20 branch locations. Right in the middle of OXARC territory is Pasco, Washington, where the
company has centralized its production and distribution operations. With bulk tanks, transports, a 25,000-sq. ft. warehouse for hardgoods, a welding school and both a state-of-the-art, fully automated Weldcoa industrial fill plant and a specialty gas plant, Pasco serves as the company hub. OXARC has two additional fill plants — one is in Spokane, Washington, and the other in Gresham, Oregon — and 11 other locations with liquid tanks to support the specific needs of customers throughout the region. Bulk CO2 tanks, as well as oxygen, nitrogen, argon, nitrous oxide, medical oxygen and liquid hydrogen tanks, are located in Pasco, as is a fleet of trucks that includes everything from tube trailers with fill capacities from 45,000 SCF to 180,000 SCF to trucks that support microbulk systems. In addition to its branch locations, the company has two unique facilities. OXARC’s Springfield/Spokane location is dedicated to cylinder production, the wholesale fire group and its fire division, the certified welding inspection (CWI) division and one of OXARC’s welding schools. In its Vancouver, Washington, facility, OXARC provides cylinder testing and cylinder refurbishing services. Spring 2019 • 39
MEMBER PROFILE Left: Organizing OXARC’s broad territory and diversified customer base is Jason Kirby, vice president of sales and general manager. Right: OXARC keeps up with dry ice demand with production from four machines.
Organizing this broad territory and diversified product and customer base is OXARC’s sales management team. To keep this complex business on course, Mike explained: “Our sales management team is divided into two territories, North and South, and we have a team leader for our CWI and safety divisions as well. This group is in constant communication with each other, coordinating business across branches and divisions. To encourage team playing, there are no sales commissions. In fact, all of OXARC’s employees are either salaried or hourly. Everyone is eligible for a bonus each month if the company meets its gross margin goal for that period. This system has worked very well for us.” Jana noted that from an operations standpoint, the company’s membership in GAWDA has been instrumental in helping them with DOT compliance, training and safety issues, especially in filling processes and with the FDA.
THE GAS BUSINESS
Representing 45 percent of all revenue, OXARC’s gas business is its most significant division. CO2 is its largest selling gas followed by nitrogen, argon, 40 • Spring 2019
acetylene, other specialty gases, oxygen, chlorine and helium. OXARC sells a lot of CO2. According to Mike, the company has an average run of 2,000 tons of CO 2 per month. Agriculture is a big driver behind these sales, with up to 500 tons of CO2 a year going to a local hops producer and an enormous amount of CO2 in the form of dry ice going to processors of the region’s less traditional crop — cannabis. With four ice machines operating in three locations, the company both produces and sells dry ice products. OXARC got into the business back in 2009, supplying mostly pellets for dry ice blasting and packaging for small labs. “Today, we still sell to labs, but the real growth is driven by the cannabis industry, which uses dry ice as part of the extraction process for cannabis processing,” reported Mike. OXARC’s nitrogen business is finding renewed strength in the oil and gas market where it supplies nitrogen for purging and pipeline testing. The company can provide up to 6,000 psi for pressure testing from its nitrogen trailers. These services are in increasing demand by natural gas companies, refineries and even gasoline businesses, according to Mike.
Acetylene has been part of the OXARC portfolio since 1981, but its acetylene business really took on significance in 2011 when the catastrophic explosion at the Louisville, Kentucky, plant of Carbide Industries created a shortage of the raw material needed for acetylene production. OXARC was able to expand and upgrade its acetylene plant in Pasco at that time and supplied major gas producers like Praxair and Linde (now Messer) with product. Today, OXARC is a major acetylene supplier in the Northwest, producing 1.5 million cubic feet of product per month. Specialty gases are another important and growing part of OXARC’s portfolio. The company acquired its first specialty gas plant in 1987 and produced mainly ultra-high purity (UHP) gases. Today, its state-of-the-art spec gas facility in Pasco, designed and built to meet its customers’ needs, can produce gases in parts per million. Extraction gases, such as N-propane and N-butane, which are used in processing cannabis, represent the company’s fastest growing specialty gas market. In fact, OXARC now has three 12,000-gallon tanks of extraction gases in Pasco to support this business.
MEMBER PROFILE Mike reported that in addition to creating a huge spike in gas sales, “Extraction gases have created a whole new market for related equipment, especially from a safety perspective where we see a very positive growth in providing supplies like gas monitors and gloves. It is in areas like this that OXARC’s diversification allows it to participate in the entire supply chain for goods and services, not just the gases.” Chemicals is yet another spoke in OXARC’s wheel of diversified offerings, and it got its start in an interesting way. When an Idaho company that OXARC was supplying with chlorine shut down, one of its employees, Cristian Stanciu, approached OXARC about getting into the chemical business. Cristian joined OXARC in 2003 and is the company’s top chemical salesman today. OXARC’s main chemical product is sodium hypochlorite (NaOCl), which is used in potable water and wastewater treatment and for purification in swimming pools. Looking ahead to future demand in the gases market, OXARC has the capability to supply high-pressure hydrogen up to 6,000 psi, something no other company offers in the Pacific Northwest. With the belief that hydrogen as a transportation fuel is a growing market, OXARC is ready for those applications that require higher fill pressures.
SAFETY
Safety is the next most important part of OXARC’s business after gases and hardgoods, and OXARC’s diversification allows it to cross-sell into safety from its many markets. As mentioned, the recent development of the cannabis industry has been a big boost to the company’s safety division. Training is another important element. In the safety division, a big part of the company’s sales strategy lies in education, and OXARC runs some unique
OXARC’s state-of-the-art specialty gas facility in Pasco, Washington.
training programs. “We have a fairly large safety division,” said Mike, “and the training programs we develop with our vendor partners have proven to be a great way to grow our sales.” Used in training are the OXARC/ Honeywell fall protection trailer and OXARC/Honeywell confined space training unit — both of which are mobile and can be taken to customer sites. All employers want to keep their workers safe and OHSA rules and regulations require training, especially for work in confined space environments, so OXARC’s mobile training is in demand. OXARC carries much of the safety equipment related to this training, and Mike noted that “the training has created both sales and customer loyalty.”
SPECIAL SERVICE CAPABILITIES
OXARC has found that diversification, especially into services, is not only a good way to grow the business, it’s also a good defense against recessionary forces. One of the many services OXARC provides is certified welding inspec-
tions. Its certified welding inspection division was launched in 2001 with two inspectors. Today, CWI has 10 certified personnel who inspect projects in OXARC’s region and beyond. “There is a lot of new construction in the West that requires welding inspection services, and our CWI division has been very successful in capturing this business,” reported Jana. Another service area that OXARC has developed is welding repair. Jana noted that during the recent recession, when sales of new equipment were down, the company’s welding repair business soared, filling in revenue gaps and providing a valuable service to their customers. High-pressure compressed gas cylinder fill capability up to 4,500 psi is another hard-to-find service provided by OXARC. “We have lots of miles between the communities we serve,” explained Mike, “and these cylinders can hold about 25 percent more product. That means less handling for us and our customers, who tend to be too small Spring 2019 • 41
MEMBER PROFILE for bulk but too big for regular cylinder racks. We build HP cylinder packs by order, which allows our customers to store the quantities they need.” OXARC also has three locations in Washington — Wenatchee, Okanogan and Walla Walla — that can provide cut steel for customers. For these centers, OXARC buys steel in bulk and cuts it to order. The company also makes its own bandsaw blades.
to four graduating high school seniors this year. The welding schools also serve as an in-house resource. OXARC employees are what make the company successful, and the retirement of many of its longterm staff presents a challenge. Finding and retaining new employees can be daunting. After all, few people outside the industry have any idea what is involved in an industrial gas distributorship. OXARC offers programs for beginner, intermediate and advanced welders at its Spokane and Pasco welding school locations.
THE WELDING SCHOOLS
The company’s two welding schools offer yet another much-needed service at a time when welders are in short supply. OXARC began its welding school in 2001 and today has programs for beginning, intermediate and advanced welders at its Spokane and Pasco locations. The program’s job placement rate stands at 95 percent. The school also offers OXARC the opportunity to get young people interested in welding. It sponsors the Boy Scouts’ welding merit badge program each year, complete with a helmet for each candidate, and hosts Iron Clad, a program that introduces welding as both an art and industrial technique to high school students. It also provided OXARC welding school scholarships 42 • Spring 2019
To address this knowledge gap and get people excited about career paths within the industry, OXARC educates its new employees by offering welding classes. During a three-day course at its welding school, new employees get to use many of the products OXARC sells, gaining a better understanding of customer needs. Jana reported that this program has been very successful.
NEW INITIATIVES
OXARC has been in business for over 50 years and today is hard at work preparing for the next 50. “I plan to see the company meet the $100 million-plus mark in revenue this year,” related Jana. One of the company’s current initiatives is a complete revamp of its website. OXARC is looking forward to rebuild-
ing the site so that it can expand its ecommerce options and provide more mobile apps. OXARC is also launching private branding for all of its welding consumables. The company provides very high-quality goods at competitive prices, and its branding initiative is intended to make OXARC customers aware of its value-added products. On the management side, Jana explained that she is planning on developing a policies and procedures manual that will help define and streamline the company’s diverse operations. For the future, OXARC is working on introducing cylinder tracking — a musthave in the distribution business today. This represents a very large undertaking, and the company is in the process of carefully evaluating its options. OXARC considers staying ahead of the markets one of the cornerstones of its success, and Jana emphasized that this is how the company will continue to move forward: “We have built OXARC one new business venture at a time, and we will continue to develop platforms that serve new customers and applications. With the next generation of the Walmsley/Nelson family on board, we plan to strengthen our position as the most complete single-source supplier in our region, with the most dependable and knowledgeable team.” Jana added: “We are very proud of our employees, and they are valued greatly. I have a plaque hanging in my office from the late ’80s in my father’s beautiful writing. It states, ‘This company shall continue forever.’ That was his dream, and both my family and our employees plan on honoring that dream.” Agnes H. Baker is a freelance writer and editor with 20 years of experience covering the industrial, medical and specialty gas industry. Based in Massachusetts, she is at: agnes.h.baker@gmail.com.
Driving Immediate Sales through Text Marketing by adam nathan
L Adam Nathan is the CEO and founder of the Bartlett System (www. bartlettsystem.com), a business coaching consultancy dedicated to providing management and analytics tools to support rapid-growth entrepreneurs. He can be reached at adam@ bartlettsystem.com and 718-763-7163.
44 • Spring 2019
et’s say you’ve spent money and time building your website and creating a social media identity on Facebook and Twitter. You have a dedicated marketing resource working on email campaigns and a team on the phones for both inside and outside sales. But your revenues have been unexpectedly low for the last month, or maybe your inventory is too high for a certain item, or Tuesday mornings are notoriously slow. You need to generate immediate sales. Do you have the right marketing tools to sell something right now? Do you have the right tools to sell a specific product immediately? As you’ve undoubtedly experienced, with most marketing tools you’re up against some daunting challenges. The typical office worker already receives 88 emails a day. Research indicates that they may only open 6 to 20 percent of them, and that doesn’t include legitimate emails that were caught by a spam filter. Social media requires you to “make friends” with potential and current clients. It’s time intensive, and so is getting your customers on the phone to sell them something right now. As a distributor, many of your customers might not even be spending much time on social media in the first place. If you’re not leveraging text messaging, also known as SMS (short message service), you may be missing out on one of the most powerful technologies to drive immediate sales in the marketer’s toolkit.
Let’s look at why text messaging is effective, how it can be leveraged, where to start and some of the ground rules to respect your customers and legal requirements.
FOR STARTERS, HOW IS SMS MARKETING DIFFERENT THAN THE TOOLKIT YOU HAVE NOW?
Text has phenomenal power for several reasons. There is a 98 percent open rate for SMS messages, and 90 percent of those messages are opened in under three minutes. This is unheard of in the world of email. Moreover, you are communicating with your customers on the device that they are most connected to. And research has shown that 70 percent of users actually like to receive offers by text. You’re not even bothering them. Provided your users have opted-in to your communication and you aren’t sending excessive messages, there is no better tool to reach them on their terms, immediately, and with a more powerful framework for a call-to-action. SMS is about access and it is about right now. “When it comes to announcing special deals and promotions, or staying top of mind with bitesize tips, there is no better way for a distributor to get their marketing into the hands of customers than with text messaging,” said Annie Eissler, a marketing professional with experience serving the wholesale distribution industry.
SALES & MARKETING HOW MIGHT A DISTRIBUTOR PUT SMS MARKETING INTO PRACTICE?
Let’s look at two ways. The first is to create a text message club, a list of customers that have opted-in to receive promotions, information and communication from your company. Your marketing team can then almost effortlessly segment this list into meaningful groups that you can reach by SMS. You might, for example, pick one of those segments and send a brief promotional discount together with an image, video and up to 160 characters of text. Your customer can act on the promotion simply by responding to the message at that moment. Alternatively, you can work through your network of drivers and outside sales representatives. You can segment these groups as well, informing your drivers of the day’s promotion and rewarding
Lloyd Robinson, second from right, with members of his point-of-sale team (left to right): Joe Karnchanabut, Kevin Martinez and Fred Kuveke. SMS messaging enables Lloyd’s team to communicate promotions and enroll in-store customers into his text club.
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SALES & MARKETING them for sales that are closed as a result of them sharing the promotion directly with the customers. Enrolling the drivers in a sales campaign that is simple to understand and share maximizes the valuable face time that they have with your customers. For the driver, the promotion couldn’t be easier. A simple image of the product and a link to a description is in the palm of the driver’s hand. So are the instructions to capture a sale. There’s nothing complicated about it. Text messaging remains the most popular application on the cellphone. There is no better way to reach a broad network of your customers quickly. AWISCO President Lloyd Robinson explained the process: “With our salespeople and our counter people, we can send a text and say, ‘Hey, for the rest of your day we’re going to run a promo on x,y,z item.’” Drivers and counter people can also be incentivized to enroll customers in the text message club to take advantage of the day’s promotion. This can generate both immediate sales and downstream revenues.
HOW DO YOU KNOW IF THE NEW SALES CHANNEL IS WORKING?
Your return on investment couldn’t be clearer. SMS marketing enables a distributor to track opt-ins, opt-outs, click-throughs and total sales with ease. Marketing A/B tests are straightforward, and if certain groups of customers — or drivers — have a consistently higher response rate, it is easy to adjust target segments to maximize the value of a given audience.
WHAT ARE THE CHALLENGES ASSOCIATED WITH SMS MARKETING?
The largest one is that you can’t simply gather the phone numbers of all of your clients and send them messag46 • Spring 2019
Lloyd Robinson at left with driver Learie Thomas.
es, or even message your own drivers unless you are providing them with the phones. As tempting as it is to skirt this, text message recipients need to opt-in. The Telephone Consumer Protection Act (TCPA) has mandated that all text communication be permission-based. Users must provide “express written consent” and be clear about their identity, the purpose of the text communications, the anticipated frequency of messaging and more. This law has some teeth to it — every incidence of an unsolicited text message can lead to a fine of $1,500. Luckily, penalties are easy to avoid. Text recipients can opt-in by simply sending a keyword like MIGWELD to your number. This provides an auditable documentation trail for you — and them. If desired, they can later opt-out simply by texting STOP. SMS services make configuring many of these processes straightforward. It is, of course, common sense that the volume of messages and offers be appropriate for your audience.
Close monitoring of sales, opt-out rates and target segments make this relatively effortless once you’ve set up your system. There are some training and change management considerations to note. As with any new technology implementation, new processes are needed and employees need to understand the journey, what’s expected of them and the value it creates for their own responsibilities. Careful thought should be given to each before beginning the process of developing your list and rolling out the tool.
SO, IF I CAN’T JUST TEXT ALL THE CELLPHONE NUMBERS I HAVE, HOW DO I BUILD A LIST?
As a distributor, you have a number of options. Your sales force can directly enroll customers and prospects into the text message club. This can be done through the promise of promotions, sweepstake offers, in-person event sweepstakes, offering helpful training content and more.
SALES & MARKETING Most SMS marketing services support these enrollment strategies natively. Your drivers can play a powerful role with your customers as well as leveraging their face-time with customers to encourage participation in the text message club. Social media, events, email signatures, website sign-up forms and printed content can all carry a callto-action to join the list. And, finally, you can leverage your point-of-sale cashiers and marketing to enlist customers. Signing up for a text message club might yield an immediate discount on their purchases or generate a texted coupon for a later date. The ROI varies for every distributor, but research has shown that 20 percent off of a $100 purchase will enroll nearly 25 percent of your targets, while 40 percent
will convert almost 60 percent. While the ROI of these discounts needs to be validated thoughtfully, there is no doubt that they will grow the number of your SMS recipients. The figures around text message are staggering. Every day, six billion text messages are sent. If you’re not leveraging SMS for your company’s marketing, you are missing out on a rich tool not just for driving immediate sales, but for a broad platform of other tools as well. “I have the ability to get messages to drivers in real time and not have to communicate individually,” Robinson said. “We just send a message to a group and they all get it. SMS is a technology that lends itself well to any distribution business. The faster an independent distributor can get out information, the
better you can compete with the larger companies.” SMS can enable you to better understand your customers likes and dislikes, communicate with your employees, share valuable information, generate reminders for appointments and much more. Messaging can be integrated with existing tools to create a unified marketing platform. It is also incredibly affordable. It is possible to send 7,500 text messages a month for less than $125. As the saying goes, the best time to start building your text message club was 20 years ago. The second-best time is today. Strongly consider adding SMS messaging to your marketing toolkit. It offers a wide range of benefits — but no benefit more powerful than driving immediate sales.
Spring 2019 • 47
SALES & MARKETING
The Space Between by john tapley
N John Tapley is a business management consultant and entrepreneur with expertise in new business startup, innovative business growth and marketing strategies and digital/ social media marketing. He has significant experience in all facets of the industrial gas industry, both domestic and global. He is also a mentor at the Entrepreneur and Innovation Institute, Georgia State University and can be reached at John.Tapley@itbpartners. com and 404-314-8106.
48 • Spring 2019
o, we’re not talking about the Dave Matthews song, but that’s a nice lead in to a discussion of the volume range for CO2 between beverage and bulk. CO2 is a critical supply component in the beverage industry for fountains, taps, etc. First came cylinders, then a supply mode change to “bulk” filled onsite, which offered the advantages of eliminating product swap and supply interruptions. This led to an expansion of the microbulk model to the atmospheric gases. Both modes are long past new, but both are constantly looking for the next big move, and equipment suppliers are doing a good job with innovation and expansion of the model. In the early ’90s, McDonald’s and the fast food industry led the charge to convert from cylinders to onsite CO2 fill and storage for beverage carbonation. Convenience and onstream reliability were the big bonus for the end user. But the business model for the supplier was a slightly more difficult fit — miles are money and they don’t earn you any revenue, and driving long distances in between stops with small drops is a losing proposition. While it could make sense for the end user to pay more per unit volume than they were for a cylinder swap, there is a limit to how much more they could be charged. Fortunately, the fast food industry is densely populated where routes can be scheduled to minimize miles and account for the small revenue drops. On the other end of the spectrum, large bulk in 40-ton trailers makes no sense for drops like 500 lbs., which would be a good size beverage delivery. There are many difficulties with this process. One issue is that delivery access is often restricted and complicated. In addition, although
the business model in large bulk does account for longer-range delivery, there is a limit to miles and drop size for the economics to work. We’ve all been there trying to convince our logistics department to deliver to a small tank in a remote zone, and it rarely, if ever, works. And site requirements are exponentially more difficult — installing a bulk tank requires a larger footprint, more complicated foundations and a more complex installation all around.
AND EVER THE TWO SHALL MEET…
Stepping outside of CO2 for a minute, an extension of the beverage business delivery model was developed in the late ’90s for atmospheric gases — enter the term microbulk. If it works for CO2, why can’t it work for the other stuff? Well it can and it has, but not exactly in the same way. For instance, the customer market density is much lower than in the beverage business and therefore larger-volume tanks to maximize the drop size are a factor, along with different physical properties between CO2 and the atmospherics. So here we are now with robust supply chain modes for bulk beverage CO2, large bulk CO2 and the atmospheric microbulk business. And new trends in a few segments are calling for larger volume CO2, but not quite the large bulk volumes. This is the in-between customer, and we must find ways to make beverage fit small bulk and/or large bulk fit this new volume range. Suppliers are cobbling together beverage tanks to fit the higher flow and volume needs in this new space and trying to find ways to rework the large bulk business down, but it’s been very difficult to meet the in-between customer. The
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smaller volume, early-version beverage trucks are disrupting the delivery model of multiple, small-volume drops with the occasional delivery that can empty a truck.
APPLICATIONS
Where are these new applications coming from? Recent trends in craft beer, horticulture and construction to name a few. And although some applications have been there for a while, it’s time to recognize this CO2 volume segment as distinct with a supply chain fit for the purpose. Equipment suppliers are now heeding the call. Recent product offerings in onsite storage and distribution/delivery equipment are addressing the needs of this segment. Chart Industries introduced a new line of storage systems,
Perma-Max, designed specifically for CO2 service, with faster fill times and increased flow rates. The microbulk atmospheric model is expanding to leverage larger-volume CO2 supply. According to Jeff Holyoak, director of business development and marketing at TOMCO2 Systems: “The industry continues to see an influx of smaller-volume CO2 applications including craft/ microbrew, cannabis extraction and grow houses for enhanced crop yield where bulk trailer fills aren’t efficient or economical. TOMCO 2 Systems continues to adapt by providing turnkey storage systems and expanding the capacity range of our Econo Body delivery truck line to include 5.5-ton to 10-ton capacities, enabling traditional bevcarb distributors to diversify their customer portfolio and expand their markets.”
Now the two business models on either side can allow customers and suppliers the best-fit supply mode for each operation. And what about marketing to this new segment? CO2 supply in these trending areas is critical. Make it known that you are focused with the right-size equipment best suited for this volume range. And while you’re at it, recognize the opportunities for additional wallet share and bundling opportunities with other products and services. Highvalue gases in the lab segment, welding equipment and supplies in the construction segment, nitrogen in the beverage segment and so on. Set your sales team up for campaigns to target this space and recognize profitable growth opportunities as an early adapter. Perhaps now is the time for a name of this new space between, any ideas? Spring 2019 • 49
BEST PRACTICES
Reducing the Truck Order Backlog through Leasing brian holland
T Brian Holland is president and chief financial officer at Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing and lifecycle cost management. For more information, visit www. FleetAdvantage.com.
50 • Spring 2019
ruck procurement has been a key challenge for private fleets, for-hire carriers and establishments that rely on trucking across many industries, including welding, manufacturing, construction and retail. This challenge has been accentuated by the backlog of orders for Class-8 heavy-duty trucks, mainly stemming from an American economy that has been wholesome and resilient ever since the Great Recession ended in 2010, and a dilapidated industry attitude toward truck procurement that is finally changing. Class-8 truck orders and sales continued at a healthy stride through much of 2018, as many companies saw the necessity to upgrade to newer equipment or add to their equipment to handle the amplified demand in shipping cargo during the nation’s economic commotion. According to ACT Research, Class-8 net orders totaled 506,300 units at the end of November, the second-strongest 12-month order period in history, straggling only the 12-month period ending in October. Monthly orders (28,082) continued to outpace the number of units being manufactured (27,973) as of November 2018, and while this cavity is narrowing it still shows an elevated demand for new trucks. Principally for welding, oil and gas brands, these establishments will remain feeling the effects of an order backlog into 2019 if they continue their asset attainment strategy based on functional obsolescence against economic obsolescence. Companies that shorten their asset managing lifecycles based on an adaptable lease model will be able to plan their substitutions better and thus avoid the distress linked with the current backlog.
The aggressive economy means that more corporations are distributing supplies to job sites or goods across the country; more businesses are in need of re-stocking shelves and inventory; and more consumers are in need of goods ordered online and therefore the transport of those shipments. Trucks and transportation have been the backbone of this economic machine. Replacement and truck attainment strategies that help the economy stay motivated need to be carefully measured, especially as we proceed through 2019, when companies have begun to take a closer look at their bottom line.
HOW LONG DOES IT MAKE SENSE TO KEEP A TRUCK IN SERVICE?
The established business philosophy was for organizations to make mass purchase orders of trucks and drive them for 5 to 10 or more years of service, squeezing every dime out of the truck’s usage. However, data and analytics are proving this standard to be costly and unproductive. Instead, private fleets and for-hire carriers are realizing they can attain more savings on the truck’s overall impact to the bottom line, as well as maintenance and repair (M&R), the highest adaptable and volatile cost of a fleet operation, by transitioning to a shorter lifecycle. When distribution companies drive their trucks as long as they can, they operate on functional obsolescence, making decisions based on the truck’s ability to stay on the road. In most cases, when organizations let the truck command the timetable for replacement, they are often left struggling to order a new truck based off of limited planning cycles and the existing backlog of truck orders. Instead, today’s leading corporations are using a different method.
UNDERSTANDING THE TIPPINGPOINT Organizations are now keeping a close eye on what we refer to as a truck’s individual TIPPINGPOINT, the point at which it costs more to operate the truck than it does to replace it with a newer vehicle. Aspects such as the cost of fuel, utilization, finance costs and M&R are all factored into reaching each truck’s unique TIPPINGPOINT, giving fleet operations employees and finance departments a closer look based on data and analytics, and helping to predict the optimal time to replace an aging truck.
THE ADVANTAGES OF LEASING VS. OWNERSHIP
A recent Fleet Advantage analysis of long-term ownership versus shorter lifespan management demonstrates a noteworthy cost savings over time. For example, a fleet that opted for a four-year lease model on a truck would save about $27,893 per truck in comparison to a seven-year ownership model due to factors such as fuel, utilization, financing and M&R. The shorter lease model is also cost-effective when linked to just a four-year ownership model, showing a typical savings of $12,710. This method offers flexibility to adapt to changing markets, ultimately driving down functioning costs while strengthening the corporate persona and driver recruitment and preservation efforts by constantly upgrading to newer trucks. Corporations
A fleet that opted for a four-year lease model on a truck would save about $27,893 per truck in comparison to a seven-year ownership model. are leveraging data analytics and inclusive fleet studies that produce a fleet modernization and utilization plan, projecting when aging equipment will need to be replaced. This is efficient with today’s fluctuating demand and the current booming economy as companies trying to acquire equipment exclusively based on demand are faced with equipment shortages and long lead times. The advantages of leasing new equipment vs. maintaining older equipment are numerous: • Improved fuel economy • Reduced M&R costs and downtime • Compliance with government mandates for greenhouse gas emissions for heavy-duty vehicles • Improved driver recruitment and retention • Enhanced corporate image • Improved cashflow management Spring 2019 • 51
BEST PRACTICES The corporate tax rate has been cut to 21 percent with immediate write-off for equipment.
Just as significant, recent alterations to the corporate tax rate, as well as new accounting standards, have made it more appealing to lease equipment. With these changes, at least in the case of truck acquisition, purchase of equipment remains pricier compared with shorter-term leasing of the equipment. Also, leasing remains the favored method for companies, regardless of whether they have a strong or weak balance sheet. In addition, leasing also allows companies to avoid the risk of residual value and the expense of remarketing.
WHAT ARE THE IMPENDING TAX CHANGES?
The new tax plan contains several provisions that will impact equipment procurement: lower tax rates for businesses, non-deductibility of interest expense for C corporations, limiting like-kind exchanges to real property and expensing of depreciable assets instead of writing them off over years. The key is to know how these changes may impact a company’s balance sheet, financial plan and tax strategy, and to adjust accordingly to help improve the company’s financial performance. In terms of what changed, the corporate tax rate has been cut to 21 percent with immediate write-off for equip-
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BEST PRACTICES ment. As an example, bonus depreciation is doubled to 100 percent, and companies can write-off the full amount of qualifying purchases in the same year of acquisition, which is intended to spur investment. In addition, used equipment will qualify for bonus depreciation for the first time. Should the finance department recommend leasing these assets, companies can continue to deduct the cost of leased assets and the tax benefits inherent in tax-advantaged leases get passed along to the lessee through lower pricing. Lessees will also enjoy lower tax rates that will help them expand their businesses. In many cases, a lease is still favorable over a loan for acquiring new equipment. Under the new U.S. accounting rules, customers with operating leases will find that the capitalized asset cost is lower compared to a loan or cash purchase. Why? Because the balance sheet presentation of an operating lease reflects only the present value of the rents due under the contract as the asset amount, and as a result, it is still “partially” off-balance sheet. In addition, since the cost of an operating lease is reported as a straight-line expense of the full lease payment each period, there is no front-end
loaded profit-and-loss impact that comes from expensing depreciation and imputed interest costs as there is when a customer borrows to make an outright asset purchase. The P&L impact is different under the international accounting standards (the expenses are front-end loaded), but the result under both standards is that leasing — compared to borrowing to buy — will show a better Return on Assets (ROA), Return on Invested Capital (ROIC) or Return on Capital Employed (ROCE) for the lessee, which are measures used by many companies and equity analysts. Moreover, consider the discounted cost and built-in flexibility of financing, which offers additional savings, extended payment options and equipment upgrades or addons. Improved cashflow management, keeping pace with technology and aligning capital asset acquisition strategy with business needs in real time all create economic and practical advantages compared to a loan. By implementing this new outlook of shorter truck lifespans, industry organizations and transportation businesses will become better equipped at replacing their aging truck fleets in a more effective manner as we continue into 2019.
OFTEN COPIED / NEVER EQUALED
Al
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Spring 2019 • 53
Announcing New eLearning Resources from CGA Free for Participating GAWDA Members! by rich gottwald
W Richard Gottwald is president and CEO of the Compressed Gas Association (CGA). He can be reached at 703-7882748 or rgottwald@ cganet.com.
54 • Spring 2019
e at the Compressed Gas Association are excited to announce the availability of new eLearning modules, which participating GAWDA members can access for free. These modules provide a modern training method for introducing basic safety information to new industry employees across a range of topics, including the safe handling of compressed gases, acetylene cylinders and cryogenic liquids in portable containers. First launched in 2011, the partnership between GAWDA and the Compressed Gas Association provides participating GAWDA distributor members with complimentary access to CGA’s electronic safety publication library (enabling one employee per company location to gain free access to CGA’s library of over 330 electronic publications for a total value of more than $18,000 per user). In addition, these GAWDA members qualify for CGA member pricing on hard copy publications, the CGA Handbook of Compressed Gases and safety videos. In 2019, we added a new benefit to this program — free access to CGA’s eLearning modules for up to 15 employees per company location.
The eLearning portal provides users with a variety of interactive experiences as they work through each module, assesses user comprehension of material and allows supervisors to track user completion. These modules can be completed at the user’s convenience (individuals can close the training and return at a later date to the same place where they left off).
CGA’S ELEARNING MODULES COVER A GROWING VARIETY OF SAFETY TOPICS
Topics covered in the first phase of eLearning modules are listed below. TM-1, Safe Handling and Storage of Compressed Gases, covers the following major areas of compressed gas safety: • Cylinder and container examples and markings • Equipment examples • Understanding labels, symbols and product classification • Moving and storing cylinders and containers • Connecting and using cylinders and containers • Emergency response and site security
BEST PRACTICES TM-2, Safe Handling of Acetylene Cylinders, provides an overview of the following: • Acetylene properties and characteristics • Acetylene cylinders and equipment • Acetylene cylinder storage, handling and use TM-3, Safe Handling of Cryogenic Liquids in Portable Containers, provides an overview of the following areas related to cryogenic liquids: • Properties and characteristics • Containers and equipment • Safe storage, handling and use We are also actively working with GAWDA to select additional topics for future modules as we continue to develop this exciting new resource. Current topics under development include: • Filling of Industrial Gas Cylinders • Filling of Medical Gas Cylinders • Filling of Carbon Dioxide (Liquefied Gas) Cylinders
broken into categories based on employee exposure hours of participating companies. Separate awards may be given to the winners in each category. Representatives of CGA and GAWDA will present the awards at the GAWDA annual conference, and then at the subsequent CGA annual meeting. For example, awards covering the year 2018 will be presented first at the 2019 GAWDA Annual Convention, and then again at the 2020 CGA Annual Meeting. Participating companies submit award data to CGA for calculation of the winners. Individual company data is held in strict confidence and is not shared with any person outside of CGA staff. In order to monitor overall industry safety improvement, aggregate data representing all submitters by category may be shared, but no individual company’s data will be shared without express written permission from an authorized representative.
HOW TO GET ACCESS TO CGA’S ELEARNING MODULES FOR YOUR TEAM
Interested GAWDA distributor members may apply for this program any time to gain access to CGA eLearning modules and publications. If your company has 10 employees or more, you will also be required to submit your safety data on the following schedule: • Renewing companies must submit their data by January 31 for uninterrupted access to CGA benefits and for award consideration • First-time participants must submit their data for award consideration by May 1 To apply, you will need to submit the subscriber registration form and the distributor safety award reporting form to GAWDASubscription@cganet.com. If you have questions about the application process, please contact CGA staff member Mike Federovich at 703-788-2722.
Want to give your employees access to this powerful eLearning resource? Sign up to participate in the cooperative program between GAWDA and CGA. To be eligible for this unique member benefit, your company: • Must be a GAWDA distributor member in good standing • Must participate in the CGA & GAWDA Distributor Reporting and Safety Awards Program (requires annual submission of OSHA 300A safety data to CGA — for all companies with 10 or more employees) • Must not be a former member of CGA with a membership termination date later than Oct. 10, 2011
CGA & GAWDA PRESTIGIOUS SAFETY AWARDS PROGRAM
Launched in 2012, the CGA & GAWDA Distributor Safety Reporting and Awards Program promotes safety awareness as an extension of the missions of both associations. All GAWDA distributor members are encouraged to join the more than 80 companies currently participating. Each year, these awards honor the participating GAWDA distributor member companies that have shown the greatest improvement in safety performance. Any GAWDA distributor member company that reports its annual occupational injury and illness experience for gas-related operations in the award year and the previous four consecutive years is eligible to compete for an award. The award may be
HOW TO SIGN UP
ACCESSING CGA’S ELEARNING MODULES
Once your company has successfully signed up for the CGA subscription program, you will need to apply for access to the eLearning modules. Participating GAWDA members may navigate to the CGA member site at https://portal.cganet. com, click on Publications, then search by the training module ID (e.g., TM-1) or filter on Video & Training Materials. Select the desired module, then select Initiate E-Learning on the publication detail page. CGA staff will then enroll users in the training program and send instructions for accessing the module within one business day. Once registered, users will have access to each training module for 90 days. Spring 2019 • 55
SPRING MANAGEMENT CONFERENCE PREVIEW
It’s All About Service Saturday, May 4 – Monday, May 6, 2019
HYATT REGENCY MINNEAPOLIS 1300 NICOLLET MALL MINNEAPOLIS, MN 55403 PHONE: 612-370-1234
OVERFLOW HOTEL
DOUBLETREE GUEST SUITES MINNEAPOLIS 1101 LASALLE AVENUE MINNEAPOLIS, MN 55403 56 • Spring 2019
Registration and Badge Pickup NICOLLET BALLROOM PROMENADE – HYATT REGENCY MINNEAPOLIS Friday
12:00 pm – 6:00 pm
Saturday
7:00 am – 6:00 pm
Sunday
7:00 am – 5:00 pm
Monday
7:00 am – 12:00 pm
Attractions MALL OF AMERICA The country’s largest shopping complex, complete with a theme park and aquarium.
MINNEHAHA PARK Cascading falls in a beautiful setting with hiking and biking trails.
MINNEAPOLIS STONE ARCH BRIDGE Biking and walking paths on this former railroad bridge with panoramic views of St. Anthony Falls.
MINNEAPOLIS INSTITUTE OF ART A fine art museum featuring an encyclopedic collection of over 80,000 objects, spanning 5,000 years of world history. Open to the public free of charge.
MINNEAPOLIS SCULPTURE GARDEN An 11-acre preserve featuring a conservatory and scores of sculptures by notable modern artists.
Weather & Attire The average high temperature in May for Minneapolis is in the 60s, with nighttime lows in the 50s. Attire for all meetings and events during the Spring Management Conference is business casual. Special attire for the President’s Welcome Reception & Dinner is flannels and jeans.
WE NEED YOUR HELP WITH THE GAWDA ARCHIVE PROJECT Do you have a drawer full of old pictures, meeting badges, early publications or supplier giveaways that you would like to donate to the GAWDA archives? If so, please bring them to the GAWDA Booth at the SMC! In preparation for GAWDA’s 75th Anniversary Celebration in 2020, we are collecting GAWDA-related memorabilia from members for use in the magazine and newsletter, for a mobile display during events and to preserve as a permanent archive at the GAWDA Headquarters in Hollywood, FL. In addition to collecting your GAWDA memorabilia at the SMC, donated items can also be mailed directly to GAWDA at 1 Oakwood Blvd., Suite 195, Hollywood, FL 33020. For more information, please contact Andrea Levy, Director of Member Services & Programs, at 954-367-7728, ext. 260 or alevy@gawda.org. (Please note that donated items will become a part of the permanent collection and cannot be returned.) Spring 2019 • 57
SMC 2019 AGENDA TIME
MEETING
LOCATION
Friday, May 3, 2019 12:00 pm – 6:00 pm
Registration and Badge Pickup
Nicollet Ballroom Promenade
Saturday, May 4, 2019 7:00 am – 6:00 pm 8:00 am – 9:00 am 9:00 am – 12:00 pm 1:00 pm – 5:00 pm 1:00 pm – 2:00 pm 2:00 pm – 3:00 pm 2:00 pm – 3:00 pm 2:00 pm – 3:00 pm 2:00 pm – 3:00 pm 3:00 pm – 4:00 pm
Conference Registration Executive Committee Meeting For the GAWDA Executive Committee only Board of Directors Meeting For the GAWDA Board of Directors only Exhibitor Move-In Regional Chairs Meeting For Chairs of Regional Meetings only Industry Partnering Committee Meeting For Committee members only Gov. Affairs and Safety Committee Meeting For Committee members only Insurance Trustee Committee Meeting For Committee members only Member Services Committee Meeting For Committee members only Young Prof. Steering Committee Meeting For Committee members only
Nicollet Ballroom Promenade Regency Room – 2nd FL Regency Room – 2nd FL Hyatt Exhibit Hall Regency Room – 2nd FL Lakeshore B – 1st FL Lakeshore A – 1st FL Lakeshore C – 1st FL Regency Room – 2nd FL Regency Room – 2nd FL
First Timers’ Reception 4:30 pm – 5:30 pm
5:30 pm – 9:30 pm
Welcome to all first-time attendees of the GAWDA Spring Management Conference! We want to personally welcome you to your first SMC. President’s Welcome Reception & Dinner
(Offsite – Nicollet Island)
(Offsite – Nicollet Island)
Sunday, May 5, 2019 6:00 am – 12:30 pm
Exhibitor Move-In
Hyatt Exhibit Hall
7:00 am – 5:00 pm
Conference Registration
Nicollet Ballroom Promenade
7:00 am – 8:00 am
Networking Breakfast
Nicollet Ballroom CD and Lakeshore
58 • Spring 2019
President’s Welcome Reception GAWDA President Brad Peterson welcomes attendees to the Spring Management Conference in Minneapolis at the Welcome Reception & Dinner. No need to leave early, plenty of time to catch up with old colleagues and friends! The Welcome Reception & Dinner will include dinner, drinks, live music and a lumberjack show. Join us!
WEAR YOUR FLANNELS AND JEANS.
Spring 2019 • 59
SMC 2019 AGENDA TIME
MEETING
LOCATION
Sunday, May 5, 2019 (continued) General Business Session 8:00 am – 11:30 am
Speakers: • Thomas Elliott • Traci and Lori Tapani
Nicollet Ballroom AB
11:30 am – 12:30 pm
Group Lunch
Nicollet Ballroom CD and Lakeshore
12:30 pm – 4:30 pm
Contact Booth Program
Hyatt Exhibit Hall
4:30 pm – 11:00 pm
Industry Hospitalities
By invitation only
Monday, May 6, 2019 7:00 am – 12:00 pm
Conference Registration
Nicollet Ballroom Promenade
7:00 am – 8:00 am
Networking Breakfast
Nicollet Ballroom CD and Lakeshore
INSURANCE PROGRAM
General Business Session
8:00 am – 12:00 pm
Nicollet Ballroom AB
Speaker: Craig MacFarlane Industry Panel Discussion
INSURANCE PROGRAM
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Contact Booth Program
SUNDAY, MAY 5 12:30 – 4:30 PM
Increasing opportunities for Distributor and Supplier connections! Show hours extended from 3.5 to 4 hours, meaning more time to see vendors and to showcase products and services .
HYATT EXHIBIT HALL
GAWDA Consultants are available in the GAWDA Booth to answer questions: Mike Dodd (DOT, Security), Tom Badstubner (FDA, Medical Gases), Rick Schweitzer (Government Affairs, HR) and Brian McLaughlin (Group Life Insurance).
Prize Program
It’s back and bigger than ever! For the full list of prizes, visit bit.ly/smcprizes19
What does improved productivity mean to you? It’s time to get mobile and get connected. • TIMS Assistant*—Real-time access to the information your salespeople need now with the ability to create an order at any time. • TIMS Delivery*—Everything your drivers want for smooth deliveries: scheduled, hot–shot, or milk run. • TIMS Plant*—Fill plant, dock operations, and branch transfers are seamless. • TIMS Contract Campaign Manager—Turn hours into minutes. Quickly renew all your contracts: view, edit, approve, and update. • TIMS Bulk Gas Manager—Streamlined and user-friendly: tank monitoring, product forecasting, ordering, scheduling, delivery, and payment processing. *TIMS Assistant, TIMS Delivery, & TIMS Plant are mobile applications that work on smartphones or tablets, and in real-time with TIMS Software.
TIMSSOFTWARE.COM/INDUSTRIAL Spring 2019 • 61
M E E T T H E S P E A K E R S Sunday, May 5, 2019
Compliance Made Simple.
Electronic Records Electronic Signature
Gas + Cryogenic Production Records
Medical Gases: O / N / N2O / CO2 Food/ Beverage Gases: O / N / CO2 Industrial Gases: O / N / N2O / CO2 Aviation: O
Thomas Elliott
A-OX WELDING SUPPLY (Owner and President)
Tom is the owner and president of A-OX Welding Supply, and the third generation to run the family business. In the beginning, Tom’s grandfather sold supplies out of his truck, and now 69 years later, A-OX Welding Supply has grown to include seven stores with a large cylinder stock, a bulk tanker fleet, delivery trucks and on-site bulk tanks. Since 2004, when Tom took the reins of the family business in Sioux Falls, South Dakota he’s made countless moves to ensure its success for the years and generations to come. Today, A-OX Welding Supply has the fourth generation working in the business and, in addition to its traditional work, handles a wide array of medical and scientific gases, specialty gases for lasers and other modern manufacturing processes, gases for emissions testing and robotic equipment. Tom will share his story of a recent fire at their main facility and expand on a presentation he made at an IWDC meeting in October. DO NOT miss this session even if you heard Tom at IWDC. He will cover safeguards and policies put in place since then.
Traci and Lori Tapani FDA Inspected + Validated
Tracking + Records:
Production / Training / Labels / Maintains COA + Certification / Equipment
62 • Spring 2019
WYOMING MACHINE, INC. (Co-Presidents and Sisters)
Lori and Traci Tapani are both graduates of the Carlson School of Management at the University of Minnesota and hold Bachelor of Science degrees in business. Upon graduation, Lori went on to work as a certified public accountant and Traci worked in banking operations and international trade finance. In 1994, Lori and Traci became the owners of Wyoming Machine, Inc., located in Stacy, Minnesota. Wyoming Machine is a precision sheet metal fabrication company specializing in CNC punching, laser cutting, forming and welding. It was founded in 1974 and serves a variety of companies and industries throughout the area making products such as heavy equipment, retail store fixtures and electronic enclosures.
SMC 2019 Monday, May 6, 2019 Noah, Class of 2018
Craig MacFarlane
INSPIRATION LEADERSHIP INSIGHT
Despite being totally blind since the age of two, Craig MacFarlane has become a master in many fields including becoming widely recognized as the World’s Most Celebrated Totally Blind Athlete. His list of athletic accomplishments is lengthy and impressive. He has succeeded in wrestling, track and field, snow skiing, water skiing, water ski jumping and golf. He has won more than 100 gold medals, the majority against sighted competition. He has won multiple national championships in two countries. He has represented two countries internationally, and won on the world stage, too. He has set records, and then exceeded them. He has even performed as a professional athlete, being the only totally blind person to ever achieve such success.
LEADING A
WARRIORS CHARGE
Don’t Forget the App! Download the GAWDA 2019 Spring Management Conference App for a full list of events and attendees, direct attendee messaging and social media access, maps and much more!
Rebuilding American Manufacturing One Veteran At A Time.™ Weiler Abrasives is proud to support Workshops for Warriors®, an organization that provides veterans and transitioning services members with training and certification for careers in welding, machining and fabrication at no cost to the veteran. SUPPORT THE CAUSE:
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Spring 2019 • 63
SMC 2019 EXHIBITORS SUNDAY, MAY 5 12:30 pm – 4:30 pm
Hyatt Exhibit Hall
Guide to Contact Booth Program Exhibitors
There’s no better place for face-to-face information exchange than the Contact Booth Program. It’s a huge and highly informative showcase of vendor and supplier offerings and an outstanding networking opportunity. Take a moment to review the offerings of these featured exhibitors as you plan which booths to visit during the SMC!
GAS INNOVATIONS — NEW OFFERINGS TO DISTRIBUTORS LaPorte, Texas — Gas Innovations offers its High-Pressure Tube Modules “Our Competitive Advantage” to distributors. Distributors may rent, lease or buy for supplying air, argon, carbon monoxide, ethane, ethylene, helium, hydrogen, methane and nitrogen. Gas Innovations will help distributors identify opportunities for shortterm projects, temporary supply, pipeline interruption, etc. www.gasinnovations.com See us at booth 205.
ARCOS SHOWCASES LINE Mt. Carmel, Pennsylvania — Arcos Industries, LLC manufactures a comprehensive line of superior quality bare wire, covered and tubular welding electrode products. Our wide range of consumables includes high alloy, stainless steel and nickel alloy electrodes. Arcos electrodes meet or exceed demanding military and nuclear application specifications such as: ASME Nuclear Certificate #QSC448, ISO 9001: Certified, Mil-I 45208A Inspection and Navy QPL. www.arcos.us See us at booth 116.
SELECT-ARC SETS THE STANDARD OF EXCELLENCE IN TUBULAR WELDING ELECTRODES Fort Loramie, Ohio — Select-Arc, Inc., manufactures a complete line of premium quality flux-cored and metal-cored welding electrodes: carbon steel, low alloy, stainless steel, nickel alloy and hard surfacing. The company backs its exceptional welding wire products with outstanding service and the best value-added in the industry. Select-Arc sets the standard of excellence in tubular welding electrodes. www.select-arc.com See us at booth 118. 64 • Spring 2019
COMPUTERS UNLIMITED SERVING GAS & WELDING DISTRIBUTORS FOR OVER 40 YEARS Billings, Montana — TIMS Software, developed by Computers Unlimited, is the premium ERP software solution for gas and welding supply distributors. Available features include mobile solutions that are fully integrated with the TIMS system, cylinder tracking/management, order processing for gases, hardgoods and rental equipment, inventory/ warehouse and truck routing/dispatching mobile management, credit card processing, document imaging, ecommerce and advanced data analysis tools. www. TIMSsoftware.com/Industrial See us at booth 406.
SMC 2019 EXHIBITORS MODULAR GAS FILLING AUTOMATION FOR ANY SIZE BUDGET
MERCER INDUSTRIES — SOLUTIONS, START TO FINISH
Aurora, Illinois — Weldcoa’s SurFill™ automation was designed by seasoned people who filled cylinders for a living. The touchscreen PLC automates all of the responsibilities of the traditional human cylinder filler creating a safer environment, uniform product fill, maximum production and new levels of management control/ simplification of training. Four levels of automation are available to fit every size gas cylinder filling operation. Systems can be installed into new or existing facilities. The Sur-Fill is a highly efficient, cost effective alternative to conventional filling methods. To learn more, visit www.weldcoa.com/sur-fill-filling-automation today. www.weldcoa.com See us at booth 414.
Ronkonkoma, New York — Mercer Industries supplies a full line of technologically advanced, superior quality, long-lasting bonded and coated abrasives, diamond blades and industrial files. The Mercer commitment to serving its customers and providing quality products spans over 50 years. Quality, performance, delivery, service and value are the focal points for this second-generation family business. www.mercerindustries.com See us at booth 308.
BTIC AMERICA OFFERING UNISO HIGH-PRESSURE GAS CYLINDERS Houston, Texas — BTIC America Corporation (BAC) is a subsidiary of Beijing Tianhai Industry Co., Ltd., which is one of the best and largest cylinder manufacturers in the world. BAC provides cylinder sales and services. Products include high-pressure gas cylinders (DOT/TC and UNISO), acetylene cylinders, cryogenic cylinders, fire-fighting cylinders and SCBA cylinders. www.btic-america.com See us at booth 110.
AMWINS HAS DELIVERED FOR OVER 27 YEARS Charlotte, North Carolina — Distributors have entrusted their insurance investment to AmWINS Program Underwriters for over 27 years. With specialized coverages, competitive pricing, loss control, strong claims management and now cyber liability, you cannot afford not to ask your agent about AmWINS. Contact us today to learn how your business can benefit from AmWINS Program Underwriters. www.amwins.com See us at booth 207.
ANTHONY WELDED PRODUCTS LOAD-N-ROLL SERIES CARTS Delano, California — Anthony Welded Products, Inc., is excited to attend another GAWDA conference with a couple of cutting-edge products to show, one of which is the new patented Load-N-Roll cart line. This four-wheel design revolutionizes the way cylinders are handled. Scan the QR code for a quick video about the Load-N-Roll series carts. www.anthonycarts.com See us at booth 317.
AMERICAN STANDARD MANUFACTURING (ASM) — PROVIDING OVER 28 YEARS OF EXCELLENCE Central Bridge, New York — ASM has provided over 28 years of excellent customer service and outstanding product quality. They continue to manufacture high-pressure and propane cylinder storage and merchandising cabinets for both industrial and commercial use, along with a variety of ergonomic cylinder-handling devices. www.amrstd.com See us at booth 609. Spring 2019 • 65
SMC 2019 EXHIBITORS CAVAGNA OFFERS ALLIN-ONE PRODUCT VALVE Somerset, New Jersey — Cavagna Group’s I-VIPR is a valve with an integrated pressure regulator. Its ergonomic design provides the user with easy access to all primary functions from one side of the cylinder. I-VPR is suitable for various welding gases, including oxygen, acetylene and AR/ CO2 mixtures. www.cavagnana.com See us at booth 408.
NEW SIPHON ZERO BULK FILL PLANT SYSTEM WITH ZERO STORAGE LOSS New Prague, Minnesota — The new Siphon Zero Bulk Storage System is engineered for the efficient storage of argon or oxygen liquid with zero losses at fill plants. The key design feature is a heat exchanger located in the inner vessel gas space. Liquid nitrogen is passed through the heat exchanger to control the tank pressure, preventing any gas losses, regardless of the Siphon Zero usage patterns. Contact Chart to improve your bottom line. www. chartbulktanks.com See us at booth 325.
CONTROLLED EFFICIENCIES, LLC EXPANDS OFFERINGS TO INCLUDE FOOD GRADE, INDUSTRIAL AND AVIATION Goodlettsville, Tennessee — Controlled Efficiencies, LLC (CE) offers innovative solutions that simplify the intricacies of compliance, designed for government-regulated industries. Our Electronic Records and Electronic Signature CERES Program is used for FDA production documentation and tracking for medical, food grade, industrial and aviation gases. Contact 615-206-8765 or go online for more information. www.cesimplify.com See us at booth 216.
CRYOWORKS SPECIALIZES IN COMPLEX SYSTEM DESIGN Jurupa Valley, California — From a simple flex hose to an entire complex piping system, CryoWorks provides a wide range of new and used products for the storage, distribution and transfer of cryogenic fluids. They specialize in “complex” system design, engineering services, project management, repairs, service and turnkey installations. www.cryoworks.net See us at booth 123.
FLEXOVIT USA, INC., FEATURES HIGH-PRODUCTIVITY ABRASIVES FOR POWER TOOLS Angola, New York — Flexovit USA, Inc., is a U.S.-based manufacturer of high-productivity abrasives for portable power tools. Flexovit operates a 100,000-sq. ft. ISO certified factory and four sales and distribution centers, and deploys a team of technical sales representatives to provide support to abrasive users through a selective network of authorized distributors in the U.S., Canada and Mexico. www.flexovitabrasives.com See us at booth 409.
THE HARRIS PRODUCTS GROUP OFFERS SPECIALTY GAS EQUIPMENT Mason, Ohio — The Harris Products Group, a Lincoln Electric Company with headquarters in the U.S., is an international manufacturer of gas distribution systems and cutting, welding, brazing and soldering equipment and consumables. For more information, please visit our website. www.harrisproductsgroup.com See us at booth 620. 66 • Spring 2019
SMC 2019 EXHIBITORS LINCOLN ELECTRIC CO. WILL NETWORK WITH DISTRIBUTOR PARTNERS Cleveland, Ohio — With more than 200 technical representatives and field sales support personnel, Lincoln Electric strives to assist distributor partners as they meet end-user needs with application expertise, quality products and outstanding customer service. www.lincolnelectric.com See us at booth 618.
ABRASIVE SOLUTIONS POWERED BY NORTON, INSPIRED BY YOU Worcester, Massachusetts — Norton knows that you run a complete operation, and you expect complete solutions. Whether you are preparing materials for welding, grinding after the weld or blending the work piece to achieve the finish your customers demand, Norton offers the products you need to make it happen. Abrasive solutions powered by Norton, inspired by you. www.nortonabrasives.com See us at booth 523.
WELDSHIP INTRODUCES MINI CO2 TRAILER Bethlehem, Pennsylvania — Weldship Corporation unveils a new mini bulk 2,500-gallon CO2 tank trailer. It fits easily into compact spaces and is equipped with a 1.5-in. liquid load/unload line and a 1-in. vapor line. The 300 PSI tank provides the same pressure rating as larger trailers and is perfect for smaller jobs. This single-axle unit has a tight turning radius and an overhead compartment door, allowing limited interference. Other features include an RSS/ABS braking system, air suspension, disk brakes, weatherproof LED lighting and an automated tire inflation system. www.weldship.com See us at booth 316.
KAPLAN INDUSTRIES PROVIDES TOTAL SOLUTIONS Harrison, Ohio — More than just an industrial cylinder supplier, Kaplan Industries offers a wide portfolio of services. Executives will discuss our expanded Hydrocarbon offering for the medical cannabis industry, cradle manifold systems, liquid and propane offerings, medical and beverage options, including cylinder reconditioning and both hydro and UT testing. No one inventories a more complete line of cylinders and valves for compressed gases, offering both new and refurbished cylinders. www.kaplanindustries.com See us at booth 505.
MCDANTIM — TRUMIX® GAS BLENDERS Helena, Montana — McDantim Trumix® Gas Blenders are a unique approach to accurate, on-site gas blending. Using laminar gas flow properties, they maintain industry standard accuracies over a wide range of flow rates without buffer tanks or electricity. Trumix® Gas Blenders offer two- or three-component blends available at flow rates ranging from 1 SCFH to over 4,000 SCFH. www. mcdantim.com See us at booth 527.
BLACK STALLION® IS PROTECTION AT WORK Santa Fe Springs, California — Black Stallion® is a leading supplier of gloves, flame-resistant garments and other gear designed to protect workers on the job. What sets us apart from other suppliers is our innovative products, dynamic customer service and superior value. Visit our booth to see our newest innovative and stylish welding gear — the NEW 2019 BSX® Collection. www.blackstallion.com See us at booth 210. Spring 2019 • 67
SMC 2019 EXHIBITORS
TOMCO2 SYSTEMS — DRIVING GLOBAL CO2 SOLUTIONS Loganville, Georgia — TOMCO2 Systems has established itself as the world leader in the CO2 industry, backed by extensive experience in storage vessels, transport vessels, special applications, parts and services, while designing, fabricating, servicing, installing and inspecting turnkey solutions to fit any CO2 application need. Technicians are available 24/7 to ensure equipment delivers maximum efficiency, allowing industrial gas distributors to provide additional value to their customers while minimizing expenses. www.tomcosystems.com See us at booth 513.
VOESTALPINE BÖHLER WELDING Sugar Land, Texas — A pioneer in innovative welding consumables, Böhler Welding offers a unique product portfolio of more than 2,000 products for joint welding worldwide. Expertise in even the most demanding welding applications in oil and gas, pipeline, chemicals, power generation, transportation and automotive industries and more. www.voestalpine.com/welding See us at booth 606.
ROTAREX GAS HANDLING PROCESS Hackettstown, New Jersey — Serving the industry since 1922, manufacturer of valves, fittings and regulators for compressed gases. Source-to-process solutions for the handling of gas including specialty, semiconductor, corrosive, industrial and medical. Innovator for cylinder valves, line valves, integrated valve-regulators, regulators and fittings in materials such as brass, ASB stainless steel, nickel and Hastelloy. www.rotarex.com See us at booth 511.
SAFTCART EXECS DISCUSS LATEST OFFERINGS Clarksdale, Mississippi — SafTCart, a “Made in the USA” manufacturer, will discuss their latest innovations including the Aluminomics Trailer for efficient cylinder delivery. They will also be on hand to discuss the warehouse-friendly box cart line and employee-friendly cylinder delivery systems. www.saftcart.com See us at booth 215.
WEILER COVERS YOU BEFORE, DURING AND AFTER THE WELD Cresco, Pennsylvania — As an industry leader and global manufacturer of surface conditioning solutions, Weiler Abrasives Group is dedicated to forging collaborative relationships with our customers in diverse markets — welding and fabrication; industrial production; and maintenance, repair and operations — to tackle their toughest cleaning, grinding, cutting, deburring and finishing challenges. www.weilercorp.com See us at booth 225. 68 • Spring 2019
SMC 2019 EXHIBITORS BUG-O SYSTEMS — EMPOWERING PEOPLE TO TRANSFORM THE WELDING AND CUTTING INDUSTRY Canonsburg, Pennsylvania — Manufacturing in the USA since 1948, Bug-O Systems is committed to empowering our customer by providing operator-controlled mechanized solutions for their welding, cutting and custom applications. Stop by our booth to meet a few members of our team and to hear what we’ve been working on. We look forward to speaking with you! www.bugo.com See us at booth 717.
OTTO ARC SYSTEMS — CONQUER REPEATABILITY El Dorado Hills, California — Otto Arc Systems provides advanced products for an array of requirements. Currently we offer high-performance orbital welding, plasma/fiber laser cutting, facing machines and accessories. Our products keep production and labor costs down for our clients. Reliable service and quality products equal exceptional results. Visit us at the Spring Management Conference or at our demo showroom in Texas. www.ottoarc.com See us at booth 612.
EXECUTIVE FILLER METALS ATTC® — AMERICAN TORCH TIP QUALITY MADE IN THE USA FOR 79 YEARS Bradenton, Florida — American Torch Tip is a U.S. manufacturer of cutting and welding equipment. We stock thousands of products for the six most common cutting and welding platforms including MIG, plasma, oxyfuel, laser, TIG and thermal spray. Our brands include LIGHTNING ®, PHD ® and PHDX ™, CLEANCUT ™ , THERMATEC ® and LASERTEC ® . www.americantorchtip.com See us at booth 621.
Buffalo, New York — For over 22 years, Exocor has focused on providing high-performance welding filler metals to distributors in North America. The Executive brand of stainless steel, aluminum, nickel, mild steel and low alloy filler metals are complemented by industry leading technical knowledge, service and support. New distributor partners wanted in key geographies. www.exocor.com See us at booth 502.
World Class Products. First Class Service. ™ • DOT / TC / ISO / UN Approvals • Specialty & Calibration Gas • Industrial Gas • Alternative Fuels • Aerospace • Beverage C02 • Medical Oxygen • SCUBA • Fire & Rescue • Nitrous Oxide
Spring 2019 • 69
SMC 2019 EXHIBITORS ELEET ADDS STOCKING FACILITY IN TEXAS
PRISM VISUAL SOFTWARE LAUNCHES WEB SERVICES, ROUTE OPTIMIZATION AND ROUTE TRACKING Roslyn, New York — Prism Visual Software sells back office accounting, CRM, mobile Android delivery and customer web shopping software to support a welding supply distributor’s end-to-end technology needs. Prism Route Management Dispatch Suite sells with a fully integrated Accounting ERP or integrates with QuickBooks, Microsoft Dynamics and SAGE. It supports fill tank, cylinder exchange workflow with scanning, gas and hard goods inventory control, rental billing, mobile invoice for delivery and equipment service, electronic survey and DOTs, and more. www.prismvs.com See us at booth 213.
Bolivar, Ohio — Eleet has been providing high-quality rehab bulk tanks and industrial and medical final-line assemblies for over 20 years. Now we’re offering new Taylor-Wharton bulk and micro-bulk tanks. With Eleet’s piping and testing, these new bulk tanks have been excellent performers in the field. CO2 tanks have inner stainless steel and recondensing coil as standard; a new micro-bulk tank offers exceptional versatility. Eleet now has stocking locations in Ohio, Texas and Georgia. www.eleetcryogenics.com See us at booth 509.
ASTARAS REPRESENTATIVES WILL DISCUSS PRIVATE BRANDING Largo, Florida — Astaras, Inc., founded in 2000, is a PRIVATE BRANDING leader in the welding industry. Astaras is part of the IBG Group, an international holding company with 24 production facilities worldwide. Drawing from our global family of factories and our U.S. production, Astaras manufactures OEM quality TIG torches, MIG guns, gouging torches and related consumables. www.astaras.com See us at booth 622.
ACME CRYOGENICS VAPORIZERS
VISIT BOOTH
213 70 • Spring 2019
Allentown, Pennsylvania — Cryogenic Experts, a division of Acme Cryogenics, manufactures a full line of vaporizers for all types of cryogenic and non-cryogenic specialty fluids. Products range in flow rate from 100 SCFH to 3,000,000 SCFH, in temperature from -460F to +1500F and in pressures from sub-atmospheric to 15,000 PSIG. Let Acme show you the difference! www.acmecryo.com See us at booth 306.
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KEY FEATURES: Category Listings
Find active GAWDA suppliers by category.
See ALL GAWDA suppliers by clicking the category “supplier.”
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Read articles from supplier members about new products, case histories, troubleshooting and more.
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Have extra equipment, fleet or excess inventory? Sell it to fellow GAWDA members through this forum.
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For more information contact Tim Hudson timh@gawdamedia.com | gawdamedia.com
THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™
ITR Second-Quarter Outlook:
Manage for the Short Term; Prepare for the Long Term by alan beaulieu
EXECUTIVE SUMMARY 2019 The leading indicator signals for 2019 and early 2020 are directionally unchanged. The downside signals are more pronounced than they were last month. However, there are no indications that we need to change our U.S. Total Industrial Production outlook through 2021. Aggressively pursuing opportunities and knowing where your company is in the business cycle and what the leading indicators are telling you specifically are the keys to profitably managing the near term.
A (B+C+D)/E 2018
56.8%
BUDGET OUTLOOK B
C
D
E
NET SOCIAL TOTAL SPENDING HEALTHCARE INTEREST SECURITY AS % OF GDP 1.6%
5.2%
4.9%
20.6%
This content is exclusive to2.7% GAWDA Members. 63.4% 6.0% 5.5% 22.4% 2019 − 2028
For more information on GAWDA 2019 − 2038 69.1% 3.6% 7.4% 6.2% 24.9% and association membership, contact: Data Source: CBO, 2018 Long-Term Budget Outook THE LONG VIEWStephen Hill, GAWDA Membership Services Manager The U.S. national debt recently surAny one of the four / issues by itself could potentially be manageable. Any one of the 954-367-7728 x first 220 shill@gawda.org passed $22 trillion. The trend through the first four months of this government fiscal year are arguably as ominous as last year turned out to be. We remain steadfast in our long-term view that the 2020s will be followed by a tumultuous decade characterized as a modern-day economic depression. ITR Economics speakers discuss this regularly during presentations and offer ideas on how to prepare and even thrive through that period. There are five related issues that lead us to our conclusion regarding the 2030s: 1. Demographics 2. Healthcare costs 3. Entitlement spending 4. Inflation 5. National debt (U.S., China and elsewhere) 72 • Spring 2019
factors could conceivably be rationalized away as nonconsequential by a well-intentioned prognosticator. However, in concert, and with no intent for change on our part, they constitute a significant economic threat. The table above is a means of illustrating the issue. The Congressional Budget Office (CBO) put together a long-term view of where federal government spending is headed. Column B, Net Interest, shows the net interest expense for the federal government as a percentage of all federal spending. Likewise, columns C and D show healthcare and Social Security expenses as percentages of federal spending. Column E is total federal spending as a percentage of GDP. Note that government spending is not only accounting for a progressively larger share of the U.S. GDP, but that by approximately 2028, the total of interest, healthcare and Social Security expenditures will account for 63.4 percent of federal spending. That means the federal government will not be able to maintain funding for discretionary items such as defense, the arts, infrastructure, foreign aid, etc., unless tax revenues are significantly “enhanced,” non-discretionary spending is cut and inflation is encouraged. Potentially compounding the issue is the U.S.’ increasing reliance on finding a means to fund our spending. Foreign investors currently hold approximately 29.3 percent of the U.S. national debt. The U.S. government bondholders’ breakdown is shown in the pie chart on the next page.
ITR FOR GAWDA We are in the position of needing domestic and foreign investors to continue lending money to the U.S. government, unless we are willing to take an alternate course of action: 1. Cut back federal government spending. 2. Increase federal taxation on U.S. individuals and corporations. 3. Encourage the Federal Reserve to print more money to buy more of the debt (which is likely inherently inflationary in the long run). 4. Repudiate the debt. The day the foreign investors leave the market is the day interest rates soar and the good times stop. We can change before that happens. But hoping for such a cultural shift is not a realistic strategy. Make the decisions you need to now so that you, your family and your business are prepared for what is coming at us. We frequently talk about the opportunity-oriented aspects to the economy, investment strategies and taking advantage of trends so prosperity can be had. All of this is laid out in our book, Prosperity in
Who Owns the U.S. National Debt?
$5.73 trillion
$6.89 trillion
(27.0%) U.S. Government
(32.5%) U.S. Investors
$6.21 trillion
(29.3%) Foreign Investors
$2.38 trillion
(11.2%) Federal Reserve
TOTAL U.S. DEBT IS $22 TRILLION This content is exclusive to GAWDA Members.
the Age of Decline. The difficulties alluded to above will occur at a macro level. Your task
For more information GAWDA (and ours) is to make sure on we are positioned at the micro level to shepherd that which we can influence and control through a perilous time. You can prosper while others are and association membership, contact: captured by the age of decline. Stephen Hill, GAWDA Membership Services Manager CORE ECONOMY AT A GLANCE 954-367-7728 x 220 / shill@gawda.org 12/12
12MMT/A CURRENT 2019 2020 2021
HIGHLIGHTS
U.S. TOTAL INDUSTRIAL PRODUCTION
4.2
0.5
0.7
2.0
Production will likely transition to slowing growth in the near term.
U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS
6.1
-0.6
4.4
4.1
New Orders will grow at a slowing rate through the first half of this year.
U.S. PRIVATE SECTOR EMPLOYMENT
1.9
1.6
1.3
2.0
Employment will likely transition to Phase C in the middle of this year, with Phase C lasting through most of 2020.
U.S. TOTAL RETAIL SALES
5.0
3.9
3.6
3.1
Retail Sales transitioned to Phase C. Slowing growth will persist into the middle of next year.
U.S. WHOLESALE TRADE OF DURABLE GOODS
7.9
3.8
6.2
4.6
Wholesale Trade will grow at a slowing rate through this year before growing at an accelerating rate next year.
U.S. WHOLESALE TRADE OF NONDURABLE GOODS
7.0
0.2
3.6
5.6
Wholesale Trade will generally rise through 2021, with the exception of mild decline in the second half of this year.
Note: Forecast color represents what Phase the market will be in at the end of the year.
Spring 2019 • 73
THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™
ITR CONSUMER ACTIVITY LEADING INDICATOR™ INDICATOR DECLINING TREND SUGGESTS INDUSTRIAL PRODUCTION DECLINE INTO AT LEAST LATE 2019 The ITR U.S. Consumer Activity Leading Indicator declined in January. The general downward movement in the indicator suggests a slowing pace of growth for the consumer sector during 2019, which is in line with expected business-cycle decline in the industrial sector during the same time frame.
ITR Consumer Activity Leading Indicator™ Rates-of-Change
Production
Leading Indicator
15.0
15
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4.4
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Leading Indicator - Monthly
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This content is exclusive to GAWDA Members. For more information on GAWDA U.S. TOTAL and association membership, contact: U.S. Total Industry Capacity Utilization Rate INDUSTRY CAPACITY Stephen Hill, GAWDA Membership Services Manager UTILIZATION RATE Rates-of-Change Production LATE-2018 PEAK IN INDICATOR 15.0 954-367-7728 x 220 / shill@gawda.org SUGGESTS IMMINENT PEAK IN PRODUCTION
The U.S. Total Industry Capacity Utilization Rate 1/12 is declining from a late-2018 peak. This indicator is signaling that the U.S. Industrial Production 12/12 will peak in the near term and then decline through at least the first half of this year.
Rate
21
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5.0 4.2
4.6
7
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US Total Capacity Utilization Rate - 1/12
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ITR FOR GAWDA U.S. CONFERENCE BOARD LEADING INDICATOR INDICATOR SUGGESTS EXPECTED CYCLICAL DECLINE IN PRODUCTION WILL PERSIST THROUGH AT LEAST THIRD QUARTER The U.S. Conference Board Leading Indicator 1/12 declined further in January from a September 2018 peak. This indicator is signaling that the U.S. Industrial Production 12/12 will enter a declining trend around the middle of this year, later than called for by other leading indicators, and decline into at least late this year.
U.S. Conference Board Leading Indicator Rates-of-Change
Production
Leading Indicator
15.0
30
10.0
20 4.2
5.0
10 3.2
0.0 -5.0
0 -10
US Industrial Production - 12/12
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US Leading Indicator - 1/12
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This content is exclusive to GAWDA Members. For more information on GAWDA U.S. ISM’S PURCHASING and associationU.S. membership, contact: ISM’s Purchasing Managers Index MANAGERS INDEX Stephen Hill, GAWDA MembershipRates-of-Change Services Manager PMI DECLINE PERSISTS; Production INDICATES INDUSTRIAL 954-367-7728 15.0 x 220 / shill@gawda.org PRODUCTION BUSINESSCYCLE DECLINE INTO AT LEAST LATE 2019
The general declining trend in the U.S. ISM PMI (Purchasing Managers Index) 1/12 persisted in February. This suggests the upcoming expected decline for the U.S. Industrial Production 12/12 will persist into at least the closing months of 2019.
Index
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10.0
50 4.2
5.0
25
0.0
0 -10.7
-5.0
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US Industrial Production - 12/12
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US Purchasing Managers Index - 1/12
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Spring 2019 • 75
THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™
GAWDA EXECUTIVE SUMMARY/DASHBOARD GAWDA-SPECIFIC INDICATORS INDICATORS
HIGHLIGHTS
CURRENT GROWTH RATE (12/12)
PHASE
U.S. INDUSTRIAL PRODUCTION INDEX
Production is expected to join other major industrial countries on the back side of the business cycle imminently. Expect a weaker second half of the year.
4.2%
B
U.S. PROCESSED GOODS FOR INTERMEDIATE DEMAND PRODUCER PRICE INDEX
Prices of commodities such as oil, copper, aluminum and steel are below the year-ago level, resulting in easing inflationary pressure.
4.7%
C
U.S. CRUDE OIL FUTURES PRICES
Oil Prices ticked up sharply in recent months. Prices are expected to oscillate around the mid-$50 to low-$60 range in the coming quarters.
18.4%
C
U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS WITHOUT AIRCRAFT
The ITR Leading Indicator™ and the U.S. Purchasing Managers Index suggest rate-of-change decline in New Orders will extend through at least late 2019.
6.1%
C
U.S. ELECTRICAL EQUIPMENT NEW ORDERS
A tentative growth rate peak in U.S. Electric Power Generation, Transmission and Distribution Production suggests that New Orders will transition to Phase C imminently.
3.4%
B
This content is exclusive to GAWDA Members.
U.S. FABRICATED METAL PRODUCTS NEW ORDERS
Business-cycle decline in end-use markets is expected to lead to a
9.0% Forpeak more GAWDA in annualinformation total New Orders in theon coming months. and association membership, contact: Rate-of-change decline in the Wilshire Total Market Index is U.S. DURABLE GOODS NEW ORDERS indicative of rising economic headwinds that will likelyServices materialize in Manager 8.0% Stephen Hill, GAWDA Membership WITHOUT AIRCRAFT New Orders this year. 954-367-7728 x 220 / shill@gawda.org ITR LEADING INDICATOR (MONTHLY)
Decline persisted through February. The Indicator’s movement suggests imminent business-cycle decline in U.S. Industrial Production will persist into at least late 2019.
Most GAWDA indicators are in Phase C, Slowing Growth. Expect growth to give way to decline in many markets in the second half of the year. Ensure that optimism from 2018’s business-cycle rise does not carry over to 2019 and lead to business decisions that are inappropriate for this phase of the business cycle. Avoid overexpansion at the top of the business
A
RECOVERY
76 • Spring 2019
B
ACCELERATING GROWTH
0.1 (Monthly)
C C C
cycle and make sure you aren’t using linear projections when making financial decisions. Now is a prudent time to consider product development in preparation for the expected rise in the industrial sector starting around mid-2020. Success requires constant adaptation. Your performance in 2019 will depend on your own strategic initiatives as the economy turns downward.
C
SLOWER GROWTH
D
RECESSION
ITR FOR GAWDA
U.S. INDUSTRIAL PRODUCTION B - ACCELERATING GROWTH 2019 0.5% 108.2* 2020 0.7% 109.0* 2021 2.0% 111.2* * Index based to 2012 = 100.
U.S. Industrial Production Index Data Trend Index 120
Index 120
12MMA Forecast 12MMA 3MMA 108.3
110
110
HIGHLIGHTS: ◼◼ Production was up 4.2 percent from the year-ago level. ◼◼
Slowing growth in the consumer sector will contribute to business-cycle decline in Production this year.
◼◼
Production will contract in the second half of this year.
U.S. Total Industrial Production during the 12 months ending in January was up 4.2 percent from the same period one year ago. Production will likely transition to Phase C, Slowing Growth, early this year. Growth is expected through the first half of this year at a slowing rate. Activity will then decline into early next year. Production will then expand through 2021. U.S. Total Retail Sales recently transitioned to a slowing growth trend. Industrial Production has benefited from growth in the consumer sector, but will likely slow in its pace of rise along with Retail Sales. Retail Sales are not expected to enter a recession during this business cycle, which suggests the recession in Industrial Production will likely be mild by historic standards. However, take caution not to budget linearly as the industrial economy enters a cyclical downturn.
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U.S. Industrial Index Rate-of-Change This content is exclusive toProduction GAWDA Members.
For more information on GAWDA 15 and association membership, contact: 10 Stephen Hill, GAWDA Membership Services Manager 4.2 5 954-367-7728 x 220 / shill@gawda.org
15 10 5
0
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12/12 Forecast Range
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Management Note: Revisit your capital expenditure plans with the expectation of slowing growth and then decline this year.
Spring 2019 • 77
THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™
NDF NOs: U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS (EXCLUDING AIRCRAFT) C - SLOWER GROWTH 2019 -0.6% $826.0 billion 2020 4.4% $862.3 billion 2021 4.1% $897.7 billion
U.S. Nondefense Capital Goods New Orders (excluding aircraft) Data Trend Bils of $
Bils of $ 1200
300 12MMT Forecast 12MMT 3MMT
250
1000
HIGHLIGHTS: ◼◼ New Orders were up 6.1 percent from one year ago.
200
800
Business-to-business activity will rise at a slowing rate into mid-2019.
150
600
Small businesses are likely investing in new capital goods at a slower rate.
100
◼◼
◼◼
U.S. Nondefense Capital Goods New Orders during the 12 months through December totaled $820.6 billion, up 6.1 percent on a yearover-year basis. The New Orders 12MMT will rise at a slowing pace through the first half of this year, but will then contract into early 2020. Business-to-business activity will subsequently recover and rise through the remainder of 2020 and 2021. The Small Business Capital Expenditure Plans 12/12 is in a general declining trend. This suggests that small businesses are likely to be applying downside pressure on New Orders. Firms in the business-to-business sector should exercise some caution during the current period of slowing growth. A mild recessionary trend in New Orders is expected late this year and early next year.
820.6
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This content is exclusive to GAWDA U.S. Nondefense CapitalMembers. Goods
New Orders (excluding aircraft) Rate-of-Change For more information on GAWDA and 20 association membership, contact: Stephen Hill, GAWDA Membership Services Manager 6.1 10 954-367-7728 x 220 / shill@gawda.org
78 • Spring 2019
0
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Management Note: Do not be scared off by the business-cycle declining trend in New Orders; be ready to aggressively pursue opportunities now to beat the business cycle.
ITR FOR GAWDA OIL PRICES: U.S. OIL FUTURES COMMODITY PRICES C - SLOWER GROWTH Mar 2019 $55.97 per barrel Jun 2019 $61.12 per barrel Sep 2019 $55.32 per barrel Dec 2019 $57.49 per barrel HIGHLIGHTS: ◼◼ The Prices 3MMA was down 15.9 percent from one year ago.
U.S. Oil Futures Commodity Prices Data Trend $/bbl.
$/bbl. 120
120 3MMA Forecast 3MMA Actual
100 80
100 80
52.34 60
60
Rising inventories should mitigate the rise in Prices this year.
40
40
U.S. Crude Oil Futures Prices during the three months ending in February averaged $52.34 per barrel, down 15.9 percent from the same period one year ago. Prices have rebounded in the last two months after ending 2018 in a declining trend. Prices will fluctuate around the $50–$60/barrel range this year. Oil inventories have risen in recent months. This will likely keep the Prices 3MMA from rising rapidly in the near term. Budget accordingly. However, U.S. sanctions on Venezuela and Iran are keeping Prices elevated.
20
Management Note: Look for ways to increase efficiencies to lower your costs this year.
-40
◼◼
Prices will be around the $50–$60/barrel range this year.
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This content is exclusive toFutures GAWDA Members. U.S. Oil Commodity Prices Rate-of-Change For more information on GAWDA 80 and association 12/12 membership, contact: Forecast Range Stephen Hill, GAWDA Membership Services Manager 12/12 40 954-367-7728 x 220 3/12 / shill@gawda.org 18.4
80
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Spring 2019 • 79
THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™
STEEL PRICES: U.S. STEEL SCRAP PRODUCER PRICE INDEX
U.S. Steel Scrap Futures Commodity Prices Data Trend
C - SLOWER GROWTH Mar 2019 501.63* Jun 2019 467.21* Sep 2019 429.94* Dec 2019 422.04* * Index based to 1982 = 100. HIGHLIGHTS: ◼◼ The forecast for Prices was revised downward due to leading indicator evidence. ◼◼
The Prices 3MMA has risen in recent months, but will generally decline this year.
◼◼
The PMI is signaling that the Prices 12/12 will decline through 2019.
This content is exclusive to GAWDA Members.
U.S. Iron and Steel Scrap Producer Prices during the three months through January were up 10.4 percent from the same threemonth period one year ago. Leading indicator evidence, including the U.S. Primary Metals Leading Index, suggested that Prices would likely fall below range in the near term. As a result, the forecast was revised downward. The U.S. ISM PMI (Purchasing Managers Index) 1/12, which typically leads Steel Prices by three to four quarters, is in a declining trend. This indicator is signaling that further cyclical decline is likely for Prices through 2019, consistent with our outlook.
Steel Scrap Futures Commodity Prices For moreU.S. information on GAWDA Rate-of-Change and100 association membership, contact: Forecast RangeServices Manager Stephen Hill, GAWDA12/12 Membership 12/12 954-367-7728 x 220 / shill@gawda.org 50 3/12
100
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Management Note: Avoid locking in Prices at the top of the price cycle; you will likely be able to pay less for Steel later this year.
80 • Spring 2019
ITR FOR GAWDA
U.S. FABRICATED METAL PRODUCTS NEW ORDERS
U.S. Fabricated Metal Products New Orders Data Trend
C - SLOWER GROWTH 2019 -0.3% $401.7 billion 2020 4.4% $419.4 billion 2021 4.8% $439.5 billion HIGHLIGHTS: ◼◼ New Orders were 9.0 percent higher in 2018 than in 2017. ◼◼
Annual New Orders are expected to peak in the coming months as end-use markets experience business-cycle decline.
◼◼
Rise is expected to resume in 2020 and 2021.
U.S. Fabricated Metal Products New Orders totaled a record-high $399.1 billion in 2018. This was 9.0 percent higher than in 2017. The New Orders 12MMT is expected to peak in the coming months and then decline through the end of the year. Rise will resume around early 2020 and persist through at least 2021. New Orders came in 0.1 percent below the forecast range; the forecast is consistent with the preponderance of leading indicator evidence. The New Orders outlook for 2019 is consistent with expectations for end-use markets such as U.S. General Machinery Production and North America Light Vehicle Production. Furthermore, trends in quarterly U.S. Construction Materials and Supplies New Orders indicate slowing growth in demand from construction markets.
This content is exclusive to GAWDA Members. U.S. Fabricated Metal Products For more information on GAWDA New Orders Rate-of-Change and association membership, contact: 30 Stephen Hill, GAWDA Membership Services Manager 20 954-367-7728 x 220 / shill@gawda.org
30 20
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12/12 Forecast Range
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Management Note: Evaluate your capital needs for the next rising trend beginning around early 2020. The anticipated mild downturn in 2019 may be a good time to improve processes and upgrade equipment while interest rates are still relatively low.
Spring 2019 • 81
THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™
AGIMPX: U.S. AGRICULTURAL IMPLEMENT PRODUCTION INDEX C - SLOWER GROWTH HIGHLIGHTS: ◼◼ The pace of year-over-year growth is declining. ◼◼
General rate-of-change decline will likely persist for much of 2019.
◼◼
The Lawn and Garden component is underperforming.
U.S. Agricultural Implement Production during the 12 months through January was up 3.9 percent from one year ago. The pace of growth has been generally declining from a February 2018 peak of 15.0 percent, in tandem with declining U.S. Farm Proprietors Income. The ITR Checking Points system suggests the Production pace of growth could tick up in the near term. However, general rate-ofchange descent will likely persist for much of 2019. This expectation is in line with actual trends in John Deere Stock Prices, a 10-month leading indicator, and anticipated further business-cycle decline in U.S. business-to-business activity. Changes to agriculture tariffs pose a risk to this market, which is strongly tied to export activity and commodity price trends. The Lawn and Garden Equipment component, currently down 2.1 percent year-over-year, is underperforming overall Agricultural Implement Production. Decline in Lawn and Garden Equipment Production will likely persist in at least the near term; limit resources or exposure to this sector if possible.
Agricultural Implement Production Index Data Trend Data Trend
Index 120
12MMA
Index 120
3MMA 100
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This content is exclusive to GAWDA Members. For more information on GAWDA Agricultural Implement Production Index Rate-of-Change Rate-of-Change and 45 association membership, contact: Stephen Hill, GAWDA Membership Services Manager 30 954-367-7728 x 220 / shill@gawda.org
82 • Spring 2019
15
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Management Note: Consider increasing your cash balances and closely manage accounts receivable as Agriculture Implement Production traverses the back side of the business cycle.
ITR FOR GAWDA ITR ECONOMICS – METHODOLOGY MOVING TOTAL/MOVING AVERAGE:
Moving totals/averages are used to smooth out the volatility inherent to monthly data at the product/company level.
MONTHLY MOVING TOTAL (MMT) VS. MONTHLY MOVING AVERAGE (MMA):
There are times when it is desirable to calculate a monthly moving average instead of a total. Averages are used when the data cannot be compounded, such as an index, percent, price level or interest rates. Totals are used for things where it makes sense to add the data together (for example, units sold or total dollars spent).
3MMT/A:
A three-month moving total (3MMT) or average (3MMA) is the total (or average) of the monthly data for the most recent three months. Three-month moving totals (3MMT) or averages (3MMA) illustrate the seasonal changes inherent to the data series.
12MMT/A:
A 12-month moving total (12MMT) or average (12MMA) is the total (or average) of the monthly data for the past 12 months. The 12MMT(A) removes the seasonal variation in order to derive the underlying cyclical trend. It is also referred to as the annual total or average.
RATE-OF-CHANGE:
A rate-of-change figure is the ratio comparing a data series during a specified time period to the same period one year ago. Rates-of-change are expressed in terms of the annual percent change in an MMT or MMA. Rates-of-change reveal whether activity levels are getting progressively better or worse compared to last year. Consecutive rate-of-change illustrates and measures cyclical change and trends. ITR Economics’ three commonly used rates-of-change are the 1/12, 3/12 and 12/12, which represent the year-over-year percent change of a single month, 3MMT(A) and 12MMT(A), respectively. A rate-of-change above zero indicates a rise in the data relative to one year prior, while a rate-of-change below zero indicates decline.
This content is exclusive to GAWDA Members.
For more information on GAWDA and association membership, contact: BUSINESS CYCLE POSITIONS: The data trends and rates-of-change identify positions in the business cycle. Those positions are: Stephen Hill, GAWDA Membership Services Manager 954-367-7728 x 220 / shill@gawda.org
A
RECOVERY
B
ACCELERATING GROWTH
12/12 is rising below zero and the data trend is either heading toward a low or is in the early stages of recovery.
12/12 is rising above zero, data trend is accelerating in its ascent, and growth is occurring above year-ago levels.
This is the first positive phase of the business cycle.
This is the second positive phase of the business cycle.
C
D
SLOWER GROWTH
RECESSION
12/12 is declining but remains above zero, data trend is decelerating in its ascent or has stopped its rise, but it is still above last year.
12/12 is below zero and the data trend is at levels below the year-earlier level.
This is the first negative phase of the business cycle.
This is the final phase and second negative phase of the business cycle.
ITR Economics for GAWDA | Welding & Gases Today ITR ECONOMICS | P: 603-796-2500 | www.itreconomics.com
Spring 2019 • 83
INDUSTRY NEWS Indiana Oxygen Company Announces Three New Area General Managers
Jerry Yarger
Greg Byer
I n d i a n a Oxygen Company has announced the promotion of three employees: Jerry Yarger has been promoted to area general Ty Guernsey manager, Ohio. Greg Byer has been promoted to area general manager, North. Ty Guernsey has been promoted to area general manager, South.
CGA Appoints Sarah Saunders New Director of Marketing and Communications
The Compressed Gas Association (CGA) announced that Sarah Saunders has assumed the newly created role of director of marketing and communications at the trade association. “We’re excited to have Sarah join our team,” said Richard Gottwald, CGA president and CEO. “As a skilled marketing and communications veteran, Sarah brings the expertise and vision necessary to position CGA as a leading authority for safety information about the industrial, mediSarah Saunders cal and food gases 84 • Spring 2019
industry, helping ensure that all those who come in contact with our members’ products use them in a safe and responsible manner.” As a long-time independent marketing and communications consultant, Saunders has worked extensively with trade associations and other nonprofits in business, high tech, financial services and environmental conservation. In the late 2000s, she led science communications for one of the world’s largest international marine research programs. In addition, she has more than 20 years of experience in private sector sales and marketing. Saunders holds an MBA from Georgetown University, and a B.A. in English and a BFA in theater from Southern Methodist University. She lives in Vienna, Virginia.
Norris Cylinder Expands Sales Team Norris Cylinder Company has announced a new addition to their growing sales team. Jim Hayden has joined the Norris family as the new specialty sales manager. Wi t h m o r e than 20 years of compressed gas industry experience, Hayden Jim Hayden has worked with industry leaders such as Airgas and Air Products. For 10 years, Hayden worked for Airgas in Northern California and Nevada in various roles in distribution/logistics, sales and customer service, servicing a wide range of markets including petrochemical, pharmaceutical and aerospace. In addition, Hayden spent nine years with Airgas as the DLA regional program manager within the Outlook Services Supply Chain Solutions group. Prior to
that position, he served eight years in the United States Marine Corp in the aviation field. “We very much look forward to Jim joining our team,” said Michael Rollins, Norris Cylinder’s vice president of sales and marketing. “He brings a wealth of experience in the specialty cylinder, military and government sectors and will be instrumental in helping us achieve our objectives in these very important markets.”
F&M MAFCO Welcomes New Vice President of Sales and Marketing
Timothy Fries has joined F&M MAFCO, Inc., as their new vice president of sales and marketing. Fries has over 20 years of sales management and leadership experience in parallel markets, as well as extensive experience developing new business opportunities and creating customized solutions to fit customer needs. The company notes that Fries’ strong winning attitude and personality are assets that will complement and enhance F&M MAFCO’s Timothy Fries ability to meet the needs of its customers as they continue to provide quality, innovative products to the marketplace.
Dale Oxygen, Inc., Named to Pennsylvania Business Central Top 100
Dale Oxygen, Inc., has been named a Top 100 organization by Pennsylvania Business Central. According to PBC, this year’s Top 100 are leaders in their chosen fields, bringing new ideas, technology
INDUSTRY NEWS Kairys Joins CP Industries as and services to their counties and spheres VP of Sales and Marketing of influence. Established in 1939, family-owned CP Industries has hired indusDale Oxygen, Inc., is celebrating 80 years try-veteran Tom Kairys as their new of manufacturing and distributing indusvice president of sales and marketing. trial and medical packaged gas products Kairys brings a wealth of relevant inand is a specialized expert in the distridustry experience to the role, having bution and service of welding, cutting, served in sales leadership roles within safety and industrial tool products. Their the industrial gas market segment. He 106-8212 1/4 pg. 4C _3.375 x 4.375_Welding & Gases Today_Jan. 2017 portfolio of industrial and medical gas will oversee all sales operations and products also covers bulk gas programs marketing activities, with an enhanced for specialized high-volume customers. focus on CPI’s overall product portfolio Currently, Dale Oxygen services cusand commercial capabilities. tomers in 13 counties throughout central “Tom is bringPennsylvania. Established and headquaring unparalleled tered in Johnstown, Pennsylvania, with industry experitwo branch operations in Indiana and ence to CPI that Altoona, Pennsylvania, Dale Oxygen will help us exehas become a regional leader servicing cute the compamanufacturing, health care, educational ny’s long-term and environmental markets. strategic sales Tom Kairys
plan,” said CPI President Michael Larsen. “I am really excited to join the team at CP Industries,” Kairys said. “Our diverse product line and ability to deliver prodMichael Larsen ucts tailored to the customer’s needs that ultimately will help enhance their business will provide CPI with sustainable growth for years to come. We are in a really good spot, and the future looks very bright.”
IOMA Management Change The International Oxygen Manufacturers Association has
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INDUSTRY NEWS changed management/leadership. IOMA is now managed by Brickell Tiller and Associates, LLC, with locations in the U.S. and Europe. Their contact information is as follows: Phil Brickell is located in the U.K. and can be reached at: pbrickell@iomaweb. org. Michael Tiller is located in the U.S. and can be reached at: mtiller@ iomaweb.org.
Chart Moves Microbulk Repair Operations Chart Industries has announced that microbulk repair operations have moved out of their Canton, Georgia, facility. Coverage for Perma-Cyl tank repairs will now be at the McCarran, Nevada, facility on the West Coast and the Brentwood, New Hampshire, facil-
ity on the East Coast. Please contact them at 1-800-231-8276 for additional information.
Indiana Oxygen Announces Three Executive Promotions Indiana Oxygen Company has announced three employee promotions. Anne Brant Hayes has been promoted to vice president/corporate counsel for Indiana Oxygen. She graduated from Indiana University with a business degree Anne Brant Hayes in 2001, and from the Indiana University School of Law in 2004. After passing the bar, Hayes was a
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prosecutor for Marion County, and later became a member of the Labor Law Department of Barnes & Thornburg. She joined Indiana Oxygen in 2010 and recently served as CFO. Jay Brant has been promoted to vice president/chief information officer. Brant graduated from Indiana University in 2006 and from Lincoln Electric’s Field Sales Jay Brant Training Course in Cleveland, Ohio. He was hired by WestAir of San Diego, California, and was the territory manager out of the Oceanside, California, branch for three years before joining Indiana Oxygen in 2010. He served as the southern ter-
INDUSTRY NEWS ritory manager before becoming CIO, overseeing Indiana Oxygen’s I.T. and eCommerce. Josh Davidhizar has been promoted to chief financial officer. Davidhizar graduated from Bethel College with an accounting degree in 2008 and earned his CPA license in 2011. He graduated from the University of Notre Dame’s Executive MBA Program in 2018. Davidhizar served as senior audit consultant at the University of Notre Dame in South Bend, Indiana, for several years before joining Indiana Oxygen in June 2018 as its controller.
Josh Davidhizar
F&M MAFCO Welcomes New Midwest Regional Sales Manager
F&M MAFCO, Inc., has promoted Matt Miller to Midwest regional sales manager. Miller will oversee and manage salesmen in the Midwest region, which includes Ohio, Kentucky, Indiana, West Virginia, Western Pennsylvania, Michigan, Wisconsin and Illinois. Miller has been with F&M MAFCO for over 12 years in their outside sales department. According to the company, he has been a key component in landing and maintaining some of their largest customers, Matt Miller and his industry
knowledge, tireless work ethic and relationship building skills will benefit him in his new management role. Miller will be directing new business development initiatives and collaborating with his peer managers to achieve increased business opportunities in the Midwest region.
AWISCO Welcomes New Branch Leaders AWISCO has announced two new branch leaders, Kathy Isgro and Jerry Ott. Isgro previously worked in inside sales at AWISCO’s West Milford, New Jersey, location and is excited to take on her new role at the company’s Branchville, New Jersey, location. “I have a lot of experience with AWISCO from West Milford and working with a
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INDUSTRY NEWS supplier on Long Island and revealing our upcoming showroom renovations to our customers,” Ott said.
Kathy Isgro
Jerry Ott
very experienced manager who helped me grow into being able to take on this new position,” Isgro said. “I am looking forward to the challenge of taking that experience to a new level here and revitalize this location to the standards of what customers can or should expect from AWISCO.” AWISCO is also happy to welcome Jerry Ott as the new branch leader of AWISCO West Babylon. “I look forward to making West Babylon the best welding, industrial and compressed gas
Xiris Automation Adds Two Dozen Sales Representatives in North America
Xiris Automation, Inc., has added four outside sales representatives in Canada and 20 outside sales representatives in the United States. Norm Sted, director of sales for North America, stated, “We feel strongly that Xiris has the best welding cameras in the industry; however, that is not enough, we must also have the best technical sales support.” The company noted that the new representatives have extensive experience in the welding industry and will provide a swift response to distrib-
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INDUSTRY NEWS members. Hydrostat provides service to a variety of different gas industries, including requalifying, repairing and refurbishing cylinders and tanks used to house high-pressure, low-pressure and liquid gases. According to the company, Hydrostat has one goal in mind: ensuring cylinders and tanks are safe for continued use. Hydrostat will be hosting an open house celebration on May 9, 2019, with free safety training by the Minnesota Propane Association as well as facility tours.
Exocor Welcomes Atteberry to Sales Team Michael Atteberry has joined Exocor as their new territory manager – Southeast USA covering Florida, Georgia, Alabama and South Carolina, extending the company’s geographical reach further into the U.S. “Atteberry brings with him over 25 years of experience with filler metal sales and management, along with the technical skills Michael Atteberry that customers have come to rely upon,” said Paul Kinsella, Exocor president and chief operating officer. “His entrepreneurial spirit will be a great addition to Exocor with our continued promotion and growth of the Executive filler metal product line.”
Ratermann Manufacturing Welcomes New Label and Custom Imprint Manager
Mary Ratermann-Carter has been promoted to manager of the Label and Custom Imprint Division at Ratermann Manufacturing. In addition to supervising the entire label production department, 90 • Spring 2019
she works closely with customers helping them develop customized products that fit or enhance their branding and service needs. Mary RatermannCarter Another part of her job entails overseeing the label compliance team, which works directly with OSHA, DOT, CGA and the FDA to ensure all labels are complaint with regulatory requirements. “We spend a lot of time sourcing the best materials and testing our labels to make sure customers receive something that exceeds and outlasts their expectations,” Ratermann-Carter said. “For example, our ink is UV cured so it continues to strengthen with light exposure. We have an in-house printing team that is cross-trained in compliance and design. This department is open to almost any customer request of labels, including a wide variety of custom shapes and sizes. We stay current with compliance requirements by working directly with OSHA, DOT, CGA and FDA and keep our customers up to date. I take a lot of pride in this department — I really want it to be the very best in the industry.”
Wire Wizard Adds Three New Technical Sales Team Members Wire Wizard has added three new technical sales team members. Benjamin Dawson has joined the Wire Wizard team as technical sales representative for Michigan. Dawson holds a Bachelor of Business Administration from Central Michigan University and brings 20 years of experience in the welding and robotics integration industry. Based in the Detroit area, he is conveniently located in the heart of Michigan’s automotive manufacturing center.
Scott DeBolt is now the technical sales representative for Indiana and Illinois. DeBolt comes to the Wire Wizard team as a highly qualified welding professional with over 15 years in OEM equipment sales and distribution experience in the upper Midwest. Heath Jackson is the new technical sales representative for Tennessee, Alabama and Mississippi. Heath holds a BBA from Mississippi State University and an MBA from the University of Tennessee. Heath joins the Wire Wizard team with over 25 years of industrial sales experience.
AWG Hires New Director of Bulk Gas Sales AWG Gases & Welding Supplies has added Amy Sexton as director of bulk gas sales. Based in the Chicago area, her role will foAmy Sexton cus on aggressive bulk sales growth, both directly and in support of AWG’s field sales teams throughout the country. Sexton spent her early career with a major industrial gas supplier with a focus on building out several CO 2 production plants in the U.S. She holds a chemical engineering degree from Drexel University and is currently working on her MBA at DePaul University in Chicago.
GRCC Presents Metallica with a Steel Guitar In a previous issue, we mentioned the $100,000 grant provided by the band Metallica to Grand Rapids Community College in support of workforce training. In this issue, we
INDUSTRY NEWS Left: GRCC President Bill Pink with Metallica guitarist James Hetfield. Right: GRCC welding instructors John Doneth, Nick Pinckney and Nathan Haney.
wanted to let you know how GRCC gave back. Welding professors John Doneth, Nick Pinckney and Nathan Haney appreciated the band’s support, and used their skills to turn 14-gauge sheet steel into a decorative guitar with the foundation’s logo and “GRCC WELDING” cut into the front. GRCC President Bill Pink and Julie Parks, GRCC’s executive director of workforce training, met with Metallica guitarist James Hetfield at a recent concert to present him with the gift. Pink said Hetfield emerged from the band’s dressing room strumming the guitar with a big smile. “He loved it,” Pink said.
Hamilton Joins Eleet Cryogenics as Sales Director Eleet Cryogenics, Inc., has announced the addition of Rick Hamilton as director of sales, Southwest region. Prior to joining Eleet, Hamilton worked for multiple major industrial gas companies as a bulk specialist in the industrial gas, medical gas and oilfield markets. The company noted that Hamilton’s skillset and knowledge base will bring
value to end user bulk applications, as well as providing additional expertise in mode change analysis, contractual requirements and Rick Hamilton other areas that will result in the best solutions for their business. “Rick is extremely customer focused and works with the highest ethical standard,” said Doug Morton, Eleet’s vice president of sales. “Rick has effectively covered the entire Gulf Coast and is a Texas resident of 20 years, with a degree in business from the University of Louisiana. He is a passionate family man and spends his spare time watching his twin sons play competitive golf as two of the top junior players in the country. His employment here is a culmination of his experience and excellent track record in the industry.”
Norris Cylinder Awarded ABS Certification Norris Cylinder recently achieved
a facility certification by the American Bureau of Shipping (ABS) to manufacture high-pressure compressed gas cylinders for offshore and marine industry applications. Norris Cylinder is the only manufacturer of high-pressure steel and acetylene cylinders in the United States. ABS’s stringent review of Norris Cylinder’s capabilities demonstrates that the company successfully meets or exceeds the established regulatory standards for cylinder manufacturing. With this facility certification, Norris Cylinder is approved for manufacturing high-pressure accumulator vessels as well as pursuing additional cylinder type approvals to support customer needs related to maritime uses of cylinders. Fred Grindle, Norris Cylinder’s vice president of quality and environmental, commented, “Through Norris Cylinder’s Management System, we have proven the ability to comply with the national and international regulations set forth by ABS in the manufacturing of pressure vessels for maritime applications. The high-quality standards set forth by ABS very much mirrors our own level of quality that we strive for when producing each Norris cylinder.” Spring 2019 • 91
M&A SCORECARD Messer Group and CVC Close Acquisition of Linde Messer Group and CVC Capital Partners Fund VII recently announced the completion of the planned acquisition of certain businesses in North and South America from Linde plc, launching a new name in the Americas market. Messer Americas offers largely the same products, services and people customers have come to know and trust. Together with Messer Group, the company represents a USD $3 billion global enterprise that includes presence in the Americas, Europe and Asia. “I am proud to serve as CEO of Messer in the Americas, a continuation of my prior role,” said Jens Luehring, president and CEO of Messer Americas. “While we have a new name, we draw
on a rich heritage of safely and reliably supplying gases, innovative technologies and application expertise to meet our customer needs. We are a technology and applications leader with the industry knowledge and applications expertise to meet customer needs across industrial, food, medical, chemical and electronics industries, and our mission is to become the premier supplier of choice in the Americas, with excellent speed to market and an entrepreneurial spirit.” With over 70 production facilities in five countries across North and South America, Messer Americas is one of the largest inJens Luehring
dustrial gas companies in this region. As part of Messer Group, the company offers over 120 years of proven expertise in the safe and reliable production and delivery of industrial, medical and specialty gases.
Aberdeen, WA, Acquisition Expands Central Welding Supply to 24 Locations Dale Wilton, CEO of Central Welding Supply, announced the acquisition of Coastal Containment & Welding Supplies, establishing a new location for Central Welding Supply in Aberdeen, Washington, and expanding Central Welding Supply’s reach of service from the I-5 corridor near Olympia, Washington, west to the Pacific coast. This location becomes Central Welding
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M&A SCORECARD Supply’s 24th retail outlet throughout Washington, Oregon and Alaska. Coastal Containment & Welding Supplies (CCWS) was established by Jerry and Cheryl Thompson, serving customers in the Aberdeen and general Grays Harbor region for over 30 years. CCWS had been a cylinder gas dealer and partner for Central Welding Supply since 2003, and the Central team is very familiar with their customers, business and service area. Central Welding Supply celebrates a rich history in the Pacific Northwest that began in 1975 as a small start-up founded by Mickey Wilton. Today, the Central Welding Supply family of companies has grown to 24 retail locations, multiple divisions, over 300 dedicated employees and nearly $100 million in annual revenue.
OMAX Joins Forces with Hypertherm OMAX Corporation, a manufacturer of abrasive waterjet systems, plans to join forces with Hypertherm following the signing of a definitive merger agreement that establishes OMAX as a wholly owned subsidiary of Hypertherm. “Hypertherm is excited to welcome OMAX to our family and to bring together the leading waterjet R&D and engineering team in the world with our hardworking and talented waterjet team in Minnesota,” said Hypertherm President and CEO Evan Smith. “We are confident the combination of OMAX’s cutting-edge technology and solutions, innovation focus, strong brand name, commitment to customers and excellent culture is a perfect complement
to Hypertherm’s waterjet offerings and plasma cutting industry leadership position. It enhances our strategy of delivering cutting solutions that put customer needs first.” Hypertherm does not plan to make significant changes to OMAX’s operations, management structure or distribution channels. The company’s current offices and manufacturing operations in Kent, Washington, where the majority of its 390 associates are located, will remain intact, with no consolidations or reductions planned, in keeping with Hypertherm’s no-layoff philosophy. Hypertherm also anticipates continuing both the Hypertherm and OMAX waterjet product offerings and brands, as the companies’ technologies and business models balance each other.
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u p c o m i n g industry events Here are some of the events scheduled for 2019 and beyond. Check the EVENTS tab on the GAWDA website at www.gawda.org for more information.
MAY 2019 GAWDA Spring Management Conference – Minneapolis, MN MAY 4 – 6, 2019 IWDC Sales & Purchasing Convention Pittsburgh, PA MAY 14 – 16, 2019 JUNE 2019 GAWDA Regional Meeting Seven Springs, PA JUNE 17 – 19, 2019 JULY 2019 GAWDA Regional Meeting Stevenson, WA JULY 17 – 19, 2019 AUGUST 2019 GAWDA Regional Meeting Mashantucket, CT AUGUST 6 – 7, 2019
OCTOBER 2019 IWDC Owners Meeting – Manalapan, FL OCTOBER 22 – 25, 2019 NOVEMBER 2019 IOMA Annual Meeting Bangkok, Thailand NOVEMBER 2 – 6, 2019 FABTECH – Chicago, IL NOVEMBER 11 – 14, 2019 APRIL 2020 GAWDA Spring Management Conference – Austin, TX APRIL 5 – 7, 2020 SEPTEMBER 2020 GAWDA Annual Convention Phoenix, AZ SEPTEMBER 25 – 28, 2020
GAWDA Regional Meeting Ypsilanti, MI AUGUST 19 – 20, 2019
MARCH 2021 GAWDA Spring Management Conference – Nashville, TN MARCH 29 – 31, 2021
SEPTEMBER 2019 GAWDA Annual Convention Washington, DC SEPTEMBER 28 – OCTOBER 1, 2019
OCTOBER 2021 GAWDA Annual Convention Colorado Springs, CO OCTOBER 6 – 9, 2021
94 • Spring 2019
ABRASIVE PRODUCTS FOR THE PROFESSIONAL
NEW PRODUCT!
T
he following businesses recently joined the Gases and Welding Distributors Association. For more information about the benefits and services available to members, please contact the Association at 844-251-3219 and Stephen Hill, membership services manager, or visit www.gawda.org.
SUPPLIER MEMBERS XIRIS AUTOMATION, INC.
1016 Sutton Drive, Unit C5 Burlington, Ontario, Canada L7L 6B8 905-331-6660 FAX 905-331-6661 www.xiris.com
NORTH AMERICAN HELIUM
750 11th St. SW, Suite 400 Calgary, Alberta, Canada T2P 3N7 646-755-3291 www.nahelium.com
Cameron Serles, president sales@xiris.com
Nicholas Snyder, chairman and CEO nsnyder@nahelium.com
Norm Sted, director of sales, North America nsted@xiris.com
Marlon McDougall, president and COO mmcdougall@nahelium.com
Lisa Colling, sales and service coordinator lcolling@xiris.com
Phil Kornbluth, marketing consultant phil@kornbluthheliumconsulting.com
Xiris Automation, Inc., offers both open arc and sub arc cameras for in-process weld monitoring. They also provide post-weld tube and pipe inspection systems.
KNOWGAS
566 Brick Church Drive Nashville, TN 37207 925-606-2949 www.knowgas.com sales@knowgas.com George Ratermann, CEO george@rmimfg.com
KnowGas supplies cylinder tracking kiosks, manifolds and telemetry kits that connect to the KnowGas portal for managing bulk, mini-bulk and cylinder gas.
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North American Helium is a leading helium exploration and production company developing new sources of reliable longterm helium supply in North America.
KNOW SOMEONE WHO OUGHT TO JOIN GAWDA?
Membership application forms are available online for completion here: www.gawda.org/join. 844-251-3219 Stephen Hill, membership services manager shill@gawda.org
Anyone interested in additional information about membership may get in touch with GAWDA’s membership services manager.
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NEW OFFERINGS
PRODUCTS | SERVICES | TECHNOLOGIES
3 2
1. Gas Innovations Introduces New Website and Catalog
Gas Innovations has launched a new 2019 website (gasinnovations.com) featuring an all-in-one page of hydrocarbon products. Each page contains gas data, C of C, SDS, purities and packaging details. In addition, they have introduced a new 38-page Hydrocarbon and Specialty Gas Catalog that can be accessed as a PDF on their website.
2. Hypertherm Introduces XPR Rotational Torch Sleeves
Hypertherm is now offering three new torch sleeves for XPR plasma cutting torches and lead sets. The sleeves allow the torch and lead sets to remain axially fixed while the torch-holding device rotates 360 degrees in either a clockwise or counter-clockwise direction. This capability greatly enhances torch lead life in high-flex applications. The new sleeves — available in short, medium and extended lengths — are ideal for bevel or 3D/robotic cutting applications when using either an XPR170 or XPR300 X-Definition Plasma system. The sleeves include several engineering advances. An outside diameter of 76 mm (3 in.), allows for an increased wall thickness and eliminates compression caused by clamping. Pre-sealed, high-precision bearings reduce axial play by 90 percent and radial play by 81 percent. This keeps out dirt and other particulates associated with plasma cutting and greatly extends the life of the sleeve and lead system. 96 • Spring 2019
“Hypertherm is constantly working to advance the capability of our products by devoting extensive resources to research and development,” said Phil Parker, product manager for Hypertherm’s heavy industrial plasma products. “By listening and incorporating feedback from our partners and customers, we are able to deliver products like our X-Definition Plasma and these new torch sleeves that help customers increase the efficiency of their cutting operation.”
3. Computers Unlimited Announces New Module for Managing Bulk Gases
Computers Unlimited, developers of TIMS Software, has just released a new application to complement their existing ERP software product, which provides the means to streamline and unify all bulk gas operations. TIMS Bulk Gas Manager, as with all TIMS software applications and mobile products, is fully integrated with the core TIMS system. Bulk Gas Manager streamlines the processes of bulk gas tank installations, forecasting, ordering, scheduling, delivery, billing and payment processing. Based on customer feedback, Bulk Gas Manager, which began as a means to manage propane deliveries, has now been expanded to include the management of argon, CO2, helium, hydrogen, nitrogen and oxygen, as well as propane. TIMS collaborates with leading telemetry partners to offer integration of real-time telemetry readings with TIMS Bulk Gas Manager to help optimize deliveries using forecasting refill requirements, scheduling efficiencies and effective delivery routing. To date, TIMS has partnered with Chart Industries, DataOnline, Wise Telemetry, KnowGas and GasLog.
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4. Hypertherm Introduces New Consumable Kits for XPR Cutting Systems
Hypertherm is now offering consumable starter kits for its XPR X-Definition Plasma systems. These kits are available with or without a torch for mild steel and non-ferrous cutting applications. The kits include a variety of consumables to allow for cutting at different amperages, using all of the gas process types supported by the XPR170 and XPR300 systems. The consumables contain several patent-pending technologies to improve consumable life and cut quality. Examples include Cool nozzle and Arc response technology, the latter of which protects consumables from the negative impact of ramp-down errors, a regular occurrence in real-life cutting. By reducing the impact of ramp-down errors, XPR consumables can last up to three times longer than those on older generation systems. In addition, XPR consumables are designed with ease of use in mind. An EasyConnect feature allows operators to quickly plug the torch lead into the torch connect console without the use of tools, while a patent pending QuickLock electrode delivers easy quarter-turn tightening to further reduce setup time. Another new design feature is a quick-change torch that enables an operator to rapidly change torches with just one hand. “Whether you are cutting mild steel, stainless steel or aluminum, these new starter kits will make it easy for XPR customers to get all of the consumables they need in one convenient kit,” said Martin Geheran, product manager for plasma torches and consumables. “We think customers will also enjoy the convenience of the kits that come with a torch as it will give them the option of having a second torch, or
even multiple torches, pre-loaded with consumables for even faster change-outs.”
5. ALM Positioners Granted New Patent
ALM Positioners has been awarded a patent related to the development of Robot-Ready Hydraulic Positioners. The patented technology virtually eliminates programmed position variability, which is especially important for robotic welding. This improvement provides a multi-axis positioning solution for large weldments at a much lower cost than conventional servo positioning technology. The patented feature development is a result of ALM’s drive to create a family of high-capacity multi-axis positioners suitable for pendant-controlled, programmable positioning, intelligent welding and robotic welding applications. All four application types are enabled by ALM’s patented technology and flexible Plug & Play Motion Control Technology. Plug & Play ALM Positioners can be deployed or redeployed to any of the application types.
6. Responsive Respiratory Expands Into the CPAP
Market with Purify O3 CPAP/BiPAP Ozone Sanitizer
Responsive Respiratory has entered the CPAP market with a new portable Purify O3 ozone sanitizer. The Purify O3 sanitizer utilizes ozone technology to disinfect CPAP and BiPAP equipment, including masks, tubing or humidification chambers, in just 35 minutes. The sanitation cycle is quick and whisper quiet, killing 99.99 percent of bacteria and germs. continued on next page
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9 “The addition of the Purify O3 to our product line was a natural extension,” said Tom Bannon, Responsive Respiratory president. “The CPAP and oxygen therapy markets go hand in hand, so many of our provider partners offer both. It was a logical fit to extend into the market, to offer this affordable, simple to use sanitizer to our customer base.” Purify O3 features a compact and lightweight design with a rechargeable lithium‐ion battery, ideal for use at home or on-the‐go. The unit stores and sanitizes in the included carry case, making Purify O3 an excellent choice as a disinfection solution for patients who travel or are short on space. “The Purify O3 sanitizer comes as a kit and includes everything the patient needs to sanitize their PAP equipment — no adapters, filters, pre‐wash solutions or replacement bags are required,” explained Bannon. “The complete kit offering is key for both providers and patients. Patients need access to a sanitizing option that is user‐friendly and available at an affordable price point. Providers appreciate the simplicity of the product offering — with only one item to stock.”
7. Ratermann Introduces New Arctic Fox 3000L VHP Horizontal Tank
Ratermann Manufacturing has introduced a new Arctic Fox 3000L VHP horizontal tank that features all of the same performance features as their 3000L vertical model with top and bottom fill capabilities. This horizontal tank is ideal for use in cities that have certain height restriction codes. It features a removable outer frame, is forklift accessible from all sides and includes lifting 98 • Spring 2019
eyes for crane placement. Preinstalled pipe-away adaptors make it ideal for indoor applications, and it includes a ½-inch auxiliary liquid port that can be used for cryotherapy applications. Certification for medical oxygen is available as an added option.
8. Xiris Automation Introduces PIP Feature
Xiris Automation, Inc., has released an expanded version of WeldStudio, its software utility for controlling and displaying images from weld cameras. The latest version of WeldStudio includes the Picture-in-Picture (PIP) feature, a powerful new feature that allows for an inset window to be created in the camera image with different settings from the main camera image. When implemented, key areas of interest within the inset window can be set up with different contrast levels than the rest of the image, optimizing the inset window for a bright weld arc while its surrounding background can be enhanced to see the darker surrounding features. The Xiris WeldStudio software includes everything needed to set up, control, display and record video from Xiris XVC weld cameras. The user-friendly interface allows operators to set up and control multiple cameras on any suitable PC running Windows 7/8/10 operating system.
9. Wire Wizard Multifunction Wire and Welding Pliers Now Available
Wire Wizard has introduced Multifunction Wire & Welding Pliers. These heavy-duty pliers are designed for use with MIG welding guns and the wire delivery system.
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The pliers feature rounded tips for sharply bending wire for easy feeding through Wire Guide Modules and the rest of the wire delivery system. Additionally, they serve as an indispensable welding tool for servicing and maintaining welding consumables and removing spatter build-up. Manufactured from heavy-duty chrome vanadium, they are built to last in a tough industrial environment and include a convenient belt pouch.
10. Ratermann Releases New Hard-Cover and Digital Cryogenics Catalogs
Ratermann Manufacturing has released hard-cover and digital editions of its comprehensive Cryogenics Catalog. The catalog features products such as cryogenic valves, actuators, vaporizers and much more. To provide customers with a searchable option, the catalog is also available in a digital format. The Digital Cryogenics Catalog is mobile-friendly and can be accessed anywhere from a smart phone or computer. The digital version allows customers to search by product, category, page number or product number. A user can then bookmark or take notes on their favorite pages or products. Each product is linked directly to www.rmiorder.com, allowing customers to add products to their cart and check out online. The digital catalog also simplifies communications between different departments within a company by allowing users to create a list of products to send to another department, such as purchasing. This way, the department in charge of ordering can see exactly what products are being requested and order
the products by adding them to their online cart or simply forwarding the list to the sales team via email. To request the new hard-cover or digital link to the Ratermann Cryogenics Catalog, email the sales team at sales@rmimfg.com.
11. Pulsa Releases Software Update and New Cellular Gateway
Pulsa has released a new Cross-Network Cellular Gateway that supports cellular coverage across 10+ carriers in the United States (including Verizon, AT&T, T-Mobile and Sprint) and over 400 carriers globally with one hardware platform. In addition, Pulsa has released a software update with several new features, including custom email triggers that allow distributors to configure their sensors to send messages upon reaching custom-defined gas level conditions. The new update also allows for sensor sharing, which means that distributors can share sensors with their customers, while continuing to manage their entire customer inventory in their own accounts. Customers can simultaneously view their own levels and predicted depletion dates, and set their own custom alerts for sensors. All software updates are available in Pulsa iOS, Android and web applications. “This release marks a major milestone to provide gas distributors with the ability to fully manage their customers’ packaged gas inventory,” said Sam Fatoohi, head of business development at Pulsa. “We have listened to customer feedback and improved our solution to meet their needs.” Spring 2019 • 99
ADVERTISERS INDEX
Acme Cryogenics, Inc...............................................59
Hobart Institute of Welding Technology.......................89
American Torch Tip...................................................89
Kaplan Industries, Inc...............................................13
Ameritanx, Inc..........................................................88
The Lincoln Electric Company.....................................7
AmWINS Program Underwriters.................................60
McDantim................................................................30
Anthony Welded Products, Inc...................................53
Mercer Industries.......................................................3
Arcos Industries, LLC..............................................IBC
NorLab Calibration Gases Division of Norco, Inc..........34
ASM/American Standard Manufacturing....................21 ASTARAS.................................................................11 BTIC America Corporation.........................................47 Bug-O Systems International.....................................35 California Cylinder Corp............................................86 Carborundum Abrasives.............................................8 Catalina Cylinders....................................................69 Cavagna North America, Inc......................................31 Chart, Inc...................................................................9 Computers Unlimited................................................61 Controlled Efficiencies..............................................62 Cryoworks...............................................................87
Norton Abrasives......................................................29 ORS Nasco..............................................................36 Otto Arc Systems.....................................................37 Prism Visual Software...............................................70 Radiac/Tyrolit Industrial Abrasives.......................22, 23 Revco Industries, Inc................................................27 Rotarex, Inc.............................................................93 SafTCart, Inc..............................................................5 Select-Arc, Inc........................................................ BC Thermacut, Inc.........................................................12 Thermco Instrument Corporation...............................45
ELCo Enterprises, Inc................................................85
TOMCO2 Systems Company......................................17
Eleet Cryogenics, Inc................................................52
Veite Cryogenic Equipment & Service Corp..................1
Exocor.....................................................................87
voestalpine Bรถhler....................................................19
Flexovit USA, Inc......................................................95
Weiler Abrasives Group.............................................63
Gas Innovations.......................................................88
Weldcoa..................................................................43
H & H Sales Company, Inc.........................................85
Weldship Corporation...............................................15
The Harris Products Group.......................................IFC
Winton Products Co., Inc..........................................86
100 โ ข Spring 2019
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