Welding & Gases Today | Q1 2021 by Welding & Gases Today

The Official Publication of the Gases and Welding Distributors Association

THE BUSINESS FORECAST ISSUE

GAWDA NEWS

Meet the 2021 Board of Directors

First Quarter 2021

MEMBER PROFILE

nexAir: 80 Years of Change

CONSULTANTS

Regulatory Changes in a New Administration

COVID-19

Operation Warp Speed & Dry Ice

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contents First Quarter • Winter 2021 • Volume 20, No. 1

DEPARTMENTS

PRESIDENT’S VIEW Eyes Up: A Look at Our 2021 GAWDA Theme BY ABYDEE BUTLER MOORE

DIRECTOR’S DESK 2021 Brings a Sense of Hope and Energy BY JOHN OSPINA

EDITOR’S NOTE A Clean Slate

COVER STORIES

BY STEVE GUGLIELMO

GAWDA CONSULTANTS

Regulatory Changes in a New Administration BY TOM BADSTUBNER, MARILYN DEMPSEY, MICHAEL DODD, RICK SCHWEITZER, AND STEVE GUGLIELMO

ost Trip Vehicle P Inspection Report

BY MICHAEL DODD

Winter Safety

BY MARILYN DEMPSEY

GA & GAWDA’s 2020 C Young & Emerging Professionals Summit is a Rousing Success

BY RICHARD GOTTWALD

I TR FIRST-QUARTER OUTLOOK Why We Prefer Looking at the Economy “By the Numbers”

BY BRIAN BEAULIEU

MEMBER PROFILE

exAir: 80 Years of n Continuous Change BY BOB MCENIRY

2 • Winter 2021

THE BUSINESS FORECAST ISSUE

Distributor Forecast BY STEVE GUGLIELMO

46 Supplier Forecast BY STEVE GUGLIELMO

AWS Forecast

CGA Forecast

BY GARY KONARSKA

BY RICH GOTTWALD

62 Operation Warp Speed and Dry Ice

BY JOHN CAMPBELL AND MAURA GARVEY

Interview with ITR Economics BY STEVE GUGLIELMO AND BRIAN BEAULIEU

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contents First Quarter • Winter 2021 • Volume 20, No. 1

THE TEAM EXECUTIVE EDITOR

John Ospina jospina@gawda.org

FEATURES

26 Meet Your 2021 GAWDA Board of Directors BY STEVE GUGLIELMO

86 Where is the Money in Your 2021 Business Plan

BY MIKE MARKS

PUBLISHER

Bill Brod billb@gawdamedia.com EDITOR IN CHIEF

Steve Guglielmo steveg@gawdamedia.com CONTRIBUTING EDITORS

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

Robin Barnes robinb@gawdamedia.com VICE PRESIDENT, SALES

Tim Hudson timh@gawdamedia.com RELATIONSHIP MANAGERS

Hannah Gray hannahg@gawdamedia.com Lesli Mitchell leslim@gawdamedia.com Anne DeSantis anned@gawdamedia.com

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88 Search Engine Trends for the Gases and Welding Industry 90 Deliver a Better User Experience Through Your Website BY BRIAN BLUFF

92 The Non-Negotiable Traits of a Successful Salesperson BY JAY SPIELVOGEL

94 The Shared Traits of All Great Leaders BY RANDY SQUIBB

96 Reorganizing Your Workforce BY ART WASKEY

NEWS ROUNDUP

100

021 GAWDA SPRING 2 MANAGEMENT CONFERENCE PREVIEW

103

2021 SCHEDULE

104

INDUSTRY NEWS

108 IN MEMORIAM 109

NEW MEMBERS

MERGERS & 110

ACQUISITIONS

113

ARCHIVED 2020 EVENTS

114

NEW OFFERINGS

119

ADVERTISERS INDEX

120

THE LAST WORD

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 ©2021 Data Key Holdings, LLC. • All rights reserved. • Nothing may be reproduced in whole or in part without written permission of the publisher. • Questions and comments can be sent via e-mail to Editors, c/o editorial@gawdamedia.com. • Data Key Holdings, LLC. reserves the right to print portions of all or any correspondence mailed to the editors without liability on its part and no such correspondence will be returned. • Visit Welding & Gases Today Online at www.gawdamedia.com.

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PRESIDENT’S VIEW

Eyes Up A look at our 2021 GAWDA theme BY ABYDEE BUTLER MOORE

L Abydee Butler Moore is GAWDA’s 2020-2021 president, as well as President and COO of Butler Gas Products Company. She can be reached at 412771-7660 ext. 316 or abutlermoore@ butlergas.com.

6 • Winter 2021

earning to cross the wake as a young water skier, a child hears two bellowing words of wisdom from her parents in the boat, “Eyes up!” Your body follows your head. Eyes up and on the tree-lined horizon results in successfully crossing the boat’s wake. Eyes down fearfully at the water results in a painful face plant. I imagine there are physics behind this phenomenon, as to why skiers catch tips and edges when they look down, but the metaphor translates to life and business quite well. Eyes up and on the target results in the body following the mind’s destination. We often find what we seek. It is called the “Belief Cycle.” I first learned about it in a seminar with Ari Weinzweig, founder of Zingerman’s. Your beliefs dictate your actions, and your actions influence others’ beliefs, which, in turn, govern their actions, thus, ultimately, confirming your original belief. It is a self-fulfilling cycle. You believe most people are friendly, so your actions are to smile at strangers on the sidewalk; they see you and believe you are nice, so they smile back, ultimately confirming your belief that people are kind. Perhaps, instead, you believe most people are jerks. You look out for yourself and ignore those passing by you on the sidewalk, or look away quickly if your eyes happen to meet. People respond coldly to you, thus, confirming

your belief people are rude. As business leaders, self-awareness of our beliefs is critical, because whether we realize it or not, they ultimately determine the outcomes around us. Eyes up and on the target is the first step in getting the body to follow. 2020 was a painful year in many ways for many businesses. Post-trauma, it is natural to be inwardly focused. Virtuously, we want to make sure our employees are okay. We feel compelled to lick our wounds, to nurse the injured areas of our businesses back to health. There is merit to this action. And there is a tipping point. Beware prolonged internal focus. Someone has to steer the ship; someone has to cross the wake. Keeping your eyes up at the helm spots inflection points in the market, helping you notice opportunities and threats with customers and suppliers before it is too late, and overall keeps things moving forward. As an Association, our eyes will be up this year. Objects in motion stay in motion. We have to start somewhere in bringing our membership back together, and we are starting with the Spring Management Conference (SMC). Our industry is best served when we collaborate on safety, build rapport in the supply chain, and learn best business practices. Eyes up prevents the face plants, and the best way to keep moving forward is to start.

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Winter 2021 • 7

DIRECTOR’S DESK

2021 Brings a Sense of Hope and Energy BY JOHN OSPINA

W John Ospina is GAWDA’s executive director. He can be reached at GAWDA Headquarters in Hollywood, FL, via telephone at 844-2513219 or via email at jospina@gawda.org.

8 • Winter 2021

e still have a lot of work ahead of us, but 2021 brings us a new sense of hope. Vaccines are now being distributed throughout the U.S. It was a slow start and there will continue to be challenges over the coming months, but we are moving forward. At the time of writing this article, I had seen a 14-day trend of lower cases in the U.S. I can only hope that this trend continues. As more vaccines are introduced to supplement the Pfizer, BioNTech and Moderna vaccines, we should see the pace quicken. After taking into consideration input from all GAWDA members, we moved this year’s Spring Management Conference from March 29-31, to May 24-26, 2021. We are committed to making this a successful event. You can read more about the meeting details on pages 101 to 102. Your safety continues to be a top priority, so rest assured that we will be prepared to continue any safety protocols that may be needed during the meeting dates.2021 will also see the return of GAWDA Regional meetings. You can see the full schedule on page 103. You can see the list of available recordings on page 113. In 2020, we all got a crash course in virtual meetings. We started with the GAWDA Consultants Roundtables as a quick way to get much needed information to GAWDA members. Over the summer, we offered sales training and an

ITR update. We held town hall meetings to discuss the SMC and Annual Convention and we closed the year with the Monthly ITR updates. If you missed any of these virtual meetings, you can still access many of these through our members-only site. You can see the list of available recordings on page 113. This medium of communication continues to be an effective and convenient way to communicate timely information. We will continue to work with our GAWDA consultants and our association partners such as the CGA and NAW on proposed legislation issues. With a new administration will come many changes throughout the year. So, with that in mind, we’re continuing our monthly Consultants Roundtables. Should the need arise throughout the year, additional virtual meetings will be developed to keep our members informed. 2021 will also see an increase in volunteer engagement. We have a great group of new committee co-chairs who are eager to step up and help improve the member experience for all GAWDA members. The GAWDA leadership continues to support these committees and provide guidance during both the Board meetings and the monthly committee meetings. I look forward to seeing many of you during this year’s in-person National and Regional meetings. As always thank you for your continued support.

WORKS

FROM THE EDITOR

A Clean Slate BY STEVE GUGLIELMO

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

10 • Winter 2021

’ve never been one for New Year’s Resolutions. Perhaps it’s the cynic in me, but I’ve never found the turning of the calendar to be a good enough motivator to fundamentally change something about yourself. Whether it’s a new diet, a vow to workout or even to cut one of your vice’s out of your life. However, this year, like most people, I welcomed the changing of the calendar with open arms. I don’t believe that all of the problems and issues that we dealt with in 2020 magically disappeared when the calendar hit 2021, but there was absolutely something cleansing about putting that year in the rear-view mirror. Or, as Abydee puts it, in making “2020 hindsight.” I’m so excited about 2021, not just because it means that we are past 2020, but because there are so many exciting things happening. And our industry seems to be at the forefront of many of them. First, there was the approval of multiple COVID-19 vaccines. For the first time, it seemed like there might actually be a light at the end of the tunnel. And, owing to the cold storage requirements of some of the vaccines, our industry got to be a key player in the distribution. I love working in our industry, but I felt especially proud to be working in it throughout this year as we literally saved lives, first with the much-needed medical oxygen at the height of the pandemic, and later with the dry ice to pack and ship the vaccine. And with the advent of the vaccine and a post-

COVID horizon finally within view, came the announcements that in-person events would resume in 2021. GAWDA made the announcement in late December that this year’s Spring Management Conference would be moved from March to May but, barring any unforeseen circumstances, would still be happening in person. I can’t wait to get back to in-person meetings. The networking and learning opportunities at these events just can’t be approximated virtually, no matter how good we’ve all gotten at Zoom. Finally, GAWDA Media is launching a new media platform that I’m incredibly excited about. In the February 1 issue of the GAWDA Connection e-newsletter, we launched the very first episode of GAWDA TV. We are working with an incredibly talented host and video editor, Adam Vanderhoof, and working with GAWDA members and consultants to put together an episode of GAWDA TV to launch in conjunction with each newsletter. We couldn’t be more excited about this new product. If you have ideas for a future episode or would like to be interviewed in an upcoming episode, please shoot me an email at steveg@gawdamedia.com. I’m knocking furiously on wood as I type this, but I truly believe that 2021 is going to be a great year for GAWDA and our industry. It will not only mark a return to normalcy, but, I believe, a fitting next step in the second 75 years of our journey. I can’t wait to make this vision a reality with all of you!

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CONSULTANTS ROUNDTABLE

Consultant Roundtable:

REGULATORY CHANGES IN A NEW ADMINISTRATION How a Biden administration will change the regulatory landscape for GAWDA members and how they might handle a COVID vaccine BY TOM BADSTUBNER, MARILYN DEMPSEY, MICHAEL DODD, RICK SCHWEITZER, AND STEVE GUGLIELMO

he First Quarter of 2021 will be marked by two milestone events. The first is a transition of powers within the federal government. And the second is the rollout of a COVID-19 vaccine. GAWDA’s Consultants spoke with Welding & Gases Today about how these two events might impact our industry and the changes that they expect to see as a result of them. Thank you to Tom Bastubner, GAWDA’s FDA and Medical Gases Consultant, Marilyn Dempsey, DHS, EPS and OSHA Consultant, Michael Dodd, DOT Consultant, and Rick Schweitzer, Government Affairs and Human Resources Consultant, for lending their time and expertise to discuss these important topics. The following is a lightly edited transcript of that conversation. WELDING & GASES TODAY: How do you see the regulatory environment in a Biden administration differing from the environment of the Trump administration? And what will that mean for GAWDA members? Rick Schweitzer: In general, I think there is going to be more of a labor orientation to the new administration. And, for transportation, that means a great focus less on highways and more on transit. More on labor, less on cooperation with management. There will be, probably, a more adversarial relationship between government and business and less of a cooperative relationship. If you go back to the Obama administration, particularly on things like HAZMAT transportation and EPA regulations, there was quite a contentious, adversarial relationship between 12 • Winter 2021

business and government. I think, specifically, when you’re looking at regulations, first of all, from a global standpoint, I think there will be less of an effort to preempt state and local regulations, particularly those that are seen as safety regulations. On the transportation side, I think, for things like state and local meal and rest break requirements for truck drivers or for hours of service of regulations, there will be little stomach at DOT or elsewhere to preempt state or local requirements. And, I think, things like the definition of “employees” as opposed to “independent contractors” is likely to change significantly. In California, in the last several years, there has been a fight to impose a new standard, sometimes referred to as the “ABC Standard” for who is an employee and who is an independent contractor. The House of Representatives, in June of 2020 actually passed a law that would have adopted the California rule as Federal law. It never got through the Senate. However, if the Senate does manage to switch to Democrat control, (EDITOR’S NOTE: This interview was conducted before the January 5 Georgia Runoff Elections) I think it is highly likely that that bill comes up again. This would have tremendous repercussions for labor law in this country. WGT: Rick, are these changes that you’re referring to things that can be done unilaterally by a Biden administration? Is it a question of how the agency chooses to enforce its rules or would they have to be changed through legislation? RICK: In terms of more enforcement and less cooperation, that doesn’t require regulations or legislation. That would just

CONSULTANTS ROUNDTABLE

be a change in attitude and focus and priorities at regulatory agencies. Similarly, to the labor orientation, that just means that the policies and priorities of agencies are going to differ. That’s something that any administration can do, based on their particular orientation and their constituencies. The specific legal or regulatory requirements, like the definition of an employee, would require a change in the law. MARILYN DEMPSEY: I agree with Rick. We’re really going to have to wait and see. I think that is going to be an interesting transition. I believe the EPA regulations will be significantly tightened and enforcement will also be increased. TOM BADSTUBNER: For many years we’ve been working on having appropriate regulations for medical gases. The existing regulations are appropriate for most situations. But there are some explicit examples where the regulations are not appropriate for medical gases. For example, on expiration dates and calculation of yield. The FDA has been working on appropriate regulations for medical gases for about two years and has postponed the release of those proposed new regulations a few times. The last postponement happened in July, and it postponed to August 2021. If the Biden administration

has different priorities, it’s possible it could be postponed even further. The Compressed Gas Association, under Rich Gottwald’s leadership, has taken a proactive position and is discussing options to encourage the agency to honor their commitments to release proposed medical gas regulations in August 2021. RICK: There are several items with regards to DOT where I think there might specific changes in the regulations that I think are important for members to understand. The first would be liability insurance minimums. The Obama administration had an advanced notice of proposed rulemaking to look at liability insurance minimums for motor carriers including HAZMAT carriers, and they were relying on a GAO study that indicated that these minimums, which are now $1 million or $5 million, depending on what type of HAZMAT you transport, haven’t been changed since 1984. So, a significant increase just looking at inflation would be in order. It would probably be in the neighborhood of double or even triple what is required right now. How that would affect premiums and the availability of coverage in the marketplace is completely unknown at this point. But I expect that is something that will come up.

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CONSULTANTS ROUNDTABLE

I think the hours-of-service short haul exemption, which exempts drivers from driver logs and ELDs and the 30-minute break requirement will get additional scrutiny. That has just recently been expanded to 14 hours and 150 air miles. It wouldn’t surprise me if that were restricted back to something less broad. There might well be a rulemaking on sleep apnea requiring companies to impose additional restrictions on drivers who have been diagnosed or even targeting of drivers for sleep apnea. Right now, basically, medical examiners have a great deal of discretion in that area, but they are operating on guidance, not regulations. I could see the administration looking at the regulation of off-duty hours for drivers. You go back to a horrific accident that involved a Walmart driver that was driving several hours just to get to his work reporting location before he got into the truck and logged on duty, and had a fatigue related accident in which there were several fatalities. I think that, and some similar incidents could be used as a justification for a regulation that could impose limits on how far a driver could commute to work or how long a driver could commute to work before beginning a shift. Similarly, I could see restrictions on driver compensation. Right now, the trucking industry specifically, maybe not for GAWDA members, but for many carriers, the payments are by the mile or by delivery, which is, some think, an excuse or an encouragement to speed or to fudge hours. I could see the agency, for the first time ever, looking at compensation regulations. The DOT has never done that before, but they might well do that. I could also see the agency reconstituting their proposed rule on speed limiters on commercial motor vehicles. The Obama administration was pursuing that approach, the Trump administration, essentially, set it aside. I could see that being put back on the front burner. Marijuana legality is something that I think is going to be taken up by Congress. And I’m not sure how that might affect drug and alcohol testing. Even if marijuana is legalized for personal use on a nation-wide basis as it has been in a number of states now, there is still no impairment test for marijuana like there is for alcohol. So, it would be very difficult to treat marijuana testing the same way we treat alcohol testing. But I could see there being some effort underway by Labor or Driver organizations to at least get medical marijuana exempted from DOT testing. And then there are lots of equipment regulations that might be considered by DOT. Things like underride guards for the sides of the vehicle or the strengthening of rear underride guard requirements. And additional safety technology stan14 • Winter 2021

dards that, right now, are optional but may well be imposed by the National Highway Traffic Safety Administration. Things like lane departure warning requirements, collision avoidance systems, collision notification systems, cameras on the outside of vehicles as opposed to mirrors. And lots of other safety technology devices that have been optional. MIKE DODD: I want to chime in on two of the items that Rick mentioned. With regard to the hours of service, right now we’ve had the benefit of it going to 14 hours, which is not that big of a deal for employees vs. the 12 hours. But the 150-mile radius has been such a benefit for our membership that I would really hate to see that go back again. That has made a very big difference for a vast majority of our small distributors and our large distributors. As far as staying out of the logging rules if they stay inside the 150 miles. That would not be a deal breaker. If it goes back to the old rules, okay, we lived with that for all those years. It wouldn’t be the end of the world. The sleep apnea program, though, that would be a whole new ballgame. We’ve had people try to impose that over the last few years. That will be a lot of cost, expense, and time involved for the Motor Carriers and the drivers if they put that program into place. That one is a concern. MARILYN: Like Rick said, the doctor has the discretion right now. Last time I went for my Med Cert, the Dr. measured my neck and if it was over a certain measurement, they would have sent me for a sleep apnea test. WGT: Could you explain what that would mean, functionally? My wife says I snore, I may have sleep apnea. Who knows? If I were to become a trucker, what would that mean for me if I was diagnosed with sleep apnea? What would change? RICK: Well, right now there are a number of technical markers that direct a medical examiner toward screening. One is neck size, as Marilyn mentioned. If your neck is over 17 inches, that is a marker that you might be obese, and obesity is also an indication of potential sleep apnea or some other kind of sleep disorder. And then, there are a series of questions that they ask you. Do you snore? Do you have a history of daytime drowsiness? Do you take naps in the afternoon? If the answer to any of those questions, or several of them, is yes, then you’re sent for a sleep test or some other kind of diagnostic analysis. Some tests are home tests, some you have to go to a sleep lab. But if the diagnosis comes back that you’re within a certain range for waking up, then you have a sleep disorder, whether it’s sleep apnea or something else. And at that point, the medical examiner has discretion to order you to take certain measures as treatments. And they can qualify your medical certificate

based on you complying with those requirements. Again, a regulation might take that discretion out of the hands of the medical examiner and make it specific in the requirements in 391.41. Right now, it just says if you have any breathing or a disorder that interferes with your ability to operate a commercial motor vehicle safely, then you aren’t qualified. They could be a lot more specific than that and sort of incorporate all of these steps that I’ve just outlined. WGT: Let’s move from one topic that everybody is sick of talking about in politics, to another one. Once we move past COVID, what would you say is going to be the biggest takeaway for GAWDA members from this whole experience? Are there going to be best practices, things that we learned that are going to carry through and become an everyday part of our lives? How is our safety culture going to change? MARILYN: Oh, buzzword for me. Safety culture. I believe the overall Safety Culture of GAWDA members has improved since the onset of COVID-19. Members are very engaged with their employees, their health, the health of their families and this engagement results in a greater confidence of management by employees. One of the biggest takeaways from COVID is how we view the impact of a sick employee. Pre-COVID illnesses were an annoyance for a few days. Now, it can be over 14 days, that is a much larger impact on day-to-day operation, and I believe this will change how employers approach health evaluations, employee wellness programs and cross-training employees. RICK: The whole idea of contact tracing. When you have an employee who has either tested positive or has been exposed to someone who has tested positive, how far do you go in contact tracing? Does it affect everybody that person has come in contact with for a certain number of days? Who implements that? Who requires it? Who enforces it? A lot of this is going to end up in the courts, unfortunately. A lot of it already has. I think we’re going to have this miasma of tort requirements and quasi-regulatory requirements for the foreseeable future. MARILYN: And we’ll have to see whether more states other than Illinois and New York will lean more towards the company must prove COVID was not contracted at work. Right now, most states follow OSHA’s reporting criteria where a case of COVID is NOT work related unless all of the following are true: 1. The case is a confirmed case of COVID-19 (see CDC information on persons under investigation and presumptive positive and laboratory-confirmed cases of COVID-19). 2. The case is work-related (as defined by 29 CFR 1904.5); and

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CONSULTANTS ROUNDTABLE

3. The case involves one or more of the general recording criteria set forth in 29 CFR 1904.7 (e.g., medical treatment beyond first aid, days away from work). RICK: That’s a fundamental change in workers comp law. The assumption that if you have COVID, that you got it at work. In no other area, is that presumption in effect. TOM: I see a couple of other changes, post COVID. Everybody, especially employers, are taking a look at our responsibilities to ensure health in a different way. Marilyn mentioned tracking employees and advising them of what to do if they’re ill or once they’ve been exposed to somebody who is ill. That is something we wouldn’t have done before. But after COVID, we might be more concerned to employees’ health exposure away from work… because it may affect our operations. The other thing that we’re taking more seriously is the environment our cylinders are being exposed to as well as how they are cleaned by our customers. We have always had the responsibility to ensure our cylinders are not contaminated, but we’re recognizing it more this past year. MARILYN: And general housekeeping. TOM: Exactly, housekeeping as well. I think those are actually some potentially positive things that will come out of this experience that we’ve been through. Understanding and implementing our own responsibilities more affirmatively. This industry, I think, does a marvelous job of managing risk. We’re shipping millions of high-pressure cylinders with unbelievable amounts of energy stored inside of them. And they’re all hazardous materials. And they have to be treated very carefully. And we do that to all kinds of industries. From welding to foods to biotech to oil extraction. And we do that really well. I think we’re probably looking at that risk management process even more carefully than we did before. WGT: Now, with the advent of multiple very effective vaccines, is there going to be a situation, or can there be a situation, where companies are going to start mandating that employees have to be vaccinated in order to come to work? Does that put us in a perilous legal situation? Where do you see that headed? RICK: Yes, I could see companies mandating that employees have a vaccine in order to be eligible to return to work. And that does put them in sort of a precarious legal position. My expectation is that the federal government, either administratively through the CDC, or possibly even through Congressional action, could impose guidelines and some liability protections for businesses so that it becomes a government regulation, 16 • Winter 2021

rather than a business requirement. I think that is certainly the preferable way to go. There are still some people who are opposed to vaccines generally, others who might be opposed to a COVID vaccine, thinking that it was rushed through the process. And how the government treats those people, and, barring government action, how employers deal with those people, is going to be interesting. But yeah, I think that’s a legitimate concern. Right now, the CDC has said things like, it’s okay for employers to do temperature checks every morning and to ask questions about whether or not you have felt sick in the past 24 hours and other relatively innocuous and non-invasive inquiries. Obviously, requiring a vaccine is a different magnitude and does impose some medical risks on people. The best vaccines do. So, my guess is that the government will step in at some point and allow businesses to make these requirements without liability. But, again, this is a different administration. If it were still the Trump administration, I would say absolutely that will happen. But under a Biden administration that is going to have more of a labor orientation, it’s less of a certainty. WGT: On the subject of vaccines, there has been a lot of talk about how we get it to places. How do you think that this vaccine, as it becomes more widely available, is going to positively impact our members and our industry? TOM: The Pfizer vaccine requires dry ice for refrigeration. And the dry ice producers are aware of that and are considering how they can supply the dry ice for the vaccine. Fortunately, we have widely distributed carbon dioxide and dry ice plants around the country, so I think this is something that our industry will be able to handle. WGT: Is there anything we didn’t touch on that you want to leave members with as a last thought? MARILYN: We talked previously about getting back on track with safety and compliance. Most companies have experienced COVID disruptions and they at least have a response. The first quarter of 2021 is a good time to review that response: find out what went well and where your gaps are, both in policies and in training. The other consideration is the dramatic increase of insurance rates. One of the easiest ways to decrease your premiums and MOD rates is to have less accidents and injuries. I think this is a good time for companies to review and improve their policies, procedures and training programs – these are key components of a good Safety Culture and a direct route to decreasing incident costs.

CONSULTANTS ROUNDTABLE

W GT: T h a t ’ s a g o o d p o i n t . We ’ v e b e e n s o preoccupied dealing with COVID, that we’ve let our normal compliance and training slide by the wayside. As we start to get back to normal in the near future, anything on that topic that we should add? MIKE: I am concerned that training has taken a backseat, and that eventually will catch up. And one of the ways that it is going to catch up is that inspections are starting to pick back up again. Not only are they doing new, remote inspections. But I’ve had many people now that have had in-person inspections. Most of them have been from the Pipeline and Hazardous Materials Safety Administration looking at cylinder requalification and cylinder filling issues, but, while they’re there, they’re mandated to look at the training. And they’re looking at shipping papers, etc. So, I’ve had a lot of calls in the last couple of weeks about in-person visits and roadside inspections have picked way up again. So, I think things are getting back to normal from a regsulatory standpoint and an inspection standpoint. And I’m not sure our members are prepared for it.

TOM: From an FDA perspective, we haven’t seen an increase in inspections yet. We have seen some inspections from the states. But not so many from the federal FDA. As they begin to travel more, I’m sure we will start to see more inspections. However, I believe that the premise underlying the questions is inaccurate (compliance and training issues). I think we have done different kinds of training this year. And, certainly, we had to train our people on new and different procedures. For example, I reviewed the free FDA Current Good Manufacturing Practice training that we sponsor for GAWDA members. In 2019, there were 1,846 training sessions. In 2020, 1,953 people were trained with this tool… a 5.8% increase over 2019! I believe that GAWDA members are still committed to training their employees as much as they were before the pandemic. However, I think the training is evolving, and GAWDA members recognize that their success depends on well-qualified employees.

Winter 2021 • 17

CONSULTANTS DOT & SAFETY

Post Trip Vehicle Inspection Report  BY MICHAEL DODD, GAWDA DOT CONSULTANT

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

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

18 • Winter 2021

art 396 .11 requires a driver of a Commercial Motor Vehicle to prepare and sign a written vehicle inspection report at the completion of each day’s work on each vehicle operated and each trailer that was used. A separate report must be prepared for each power unit operated during the day’s work. The report must cover at least the following parts and accessories: 1. Service brakes including trailer brake connections 2. Parking (hand) brake 3. Steering mechanism 4. Lighting devices and reflector 5. Tires 6. Horn 7. Windshield Wipers 8. Rear vision mirrors 9. Coupling devices 10. Wheels and rims 11. Emergency equipment

No specific format is required; however, provisions must be made for three signatures: • The driver’s signature preparing the report (396.11(b)). • The motor carrier’s, mechanic’s, etc. signature certifying the reported defects or deficiencies have been corrected or that no correction is necessary (396.11(c)(1)). • The reviewing driver’s signature acknowledging the corrective action taken by the carrier (396.13(c)). The next driver of the vehicle signs the report, only if defects or deficiencies were noted by the driver who prepared the report, to acknowledge that the driver has reviewed it and that there is a certification that the required repairs have been performed. If you need a post trip inspection form that you can use as is or modify to your company needs, just contact me and I will be happy to send you the form in Word format.

RECORD RETENTION Motor carriers must maintain the original of each vehicle inspection report and the certifica-

tion of repairs for at least 3 months (396.11(c)(2)). You are not required to carry the report on the vehicle the next day.

EXEMPTIONS Driver vehicle inspection reports are not required of the following operations: • Driveaway–towaway (Tow truck) operations as specified in 396.15 • A motor carrier operating only one motor vehicle (396.11(d)) • A private motor carrier of passengers (nonbusiness) (396.11(d)).

COMPLETING THE REPORT Using the example report provided, the driver completes the first portion of the report at the end of the day. If no defects are noted, the driver checks the provided spot, signs the report and you are finished. If any of the “DOT Regulated Safety Items” are checked as defective, the items must be corrected before driving on the next trip. If any of the “Maintenance Items” are defective, then you ask yourself if the vehicle is safe to operate. If yes, then you can correct the items at your next convenient opportunity. When sending the vehicle in for repairs, send the report along with the vehicle so the mechanic can sign the report after completing the repairs. If the repair facility does not sign or refuses to sign the inspection form, then the motor carrier can sign the inspection report. The report would then come back with and be left in the vehicle so the next driver could then sign the report to acknowledge that the driver has reviewed it and that there is a certification that the required repairs have been performed. Remember, this last signature only happens if there were noted defects and the defects were corrected. Please note that, currently, DOT does not require a written post trip inspection report if no defects were noted during the inspection, but many companies have decided that they want the driver to complete one, so they have documentation showing the inspection was done. If there are any questions regarding this Bulletin, please contact: Michael Dodd GAWDA DOT Consultant MLD Safety Associates, LLC P.O. Box 93 Poplar Bluff, MO 63902 (573) 718-2887 Email: MLDSafety@hotmail.com Winter 2021 • 19

CONSULTANTS SAFETY

WINTER SAFETY As temperatures drop, review these winter best practices to protect your employees. BY MARILYN R. DEMPSEY, SAFETY DRAGONS WORKPLACE CONSULTANTS, LLC

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

nyone working in a cold environment may be at risk of cold stress. Some workers may be required to work outdoors in cold environments for extended periods. For example, snow cleanup crews, sanitation workers, police officers and emergency response and recovery personnel, like firefighters, and emergency medical technicians. Cold stress can be encountered in these types of work environments. What constitutes extreme cold and its effects can vary across different areas of the country. In regions that are not used to winter weather, near freezing temperatures are considered “extreme cold.” A cold environment forces the body to work harder to maintain its temperature. Whenever temperatures drop below normal and wind speed increases, heat can leave your body more rapidly. Although OSHA does not have a specific standard that covers working in cold environments, employers have a responsibility to provide workers with employment and a place of employment which are free from recognized hazards, including cold stress (OSHA General Duty Clause).

WHAT TO DO: •

•

20 • Winter 2021

Train workers on how to prevent and recognize cold stress illnesses/ injuries, how to apply first aid treatment and ways to reduce the risk of cold stress. Provide engineering controls, e.g., radiant heaters, work shields to break the wind, heated work environments.

•

Use safe work practices: ` Encourage employees to drink water or warm drinks It is easy to become dehydrated in cold weather. ` Schedule heavy work during the warmer part of the day. ` Assign employees to tasks in pairs (buddy system) when working outdoors, so they can monitor each other for signs of cold stress. ` Allow employees to interrupt their work if they are extremely uncomfortable. ` Give workers frequent breaks in warm areas. ` Acclimatize new workers and those returning after time away from work, by gradually increasing their workload, and allowing more frequent breaks in warm areas, as they build up a tolerance for working in the cold environment.

WINTER WORKING/WALKING SURFACES Slip and Fall injuries account for 15% of all work-related injuries in the U.S. The risk of slip and fall injuries increase with the accumulation of snow and ice. SIMA, the national nonprofit organization representing the snow removal industry, has some tips on safe winter walking. • Wear proper footwear. Proper footwear should place the entire foot on the surface of the ground and have visible treads. Avoid a smooth sole and opt for a heavy threaded shoe with a flat bottom and use your toes to ‘grip.’ • Accessorize to see and be seen. Wear sunglasses so that you can see in the reflective

CONSULTANTS

SAFETY

•

light of the snow. Also, wear a bright coat or scarf so that drivers can easily see you. Plan ahead. While walking on snow or ice on sidewalks or in parking lots, walk consciously. Instead of only looking down, occasionally pause and scan from left to right to ensure you are not in the way of vehicles or other hazards. Don’t jump or slide. Always focus on keeping your feet on the ground as much as possible while walking slowly. Sliding sounds like fun but can result in serious injury. Be careful when you shift your weight. When stepping off a curb or getting into a car, be careful since shifting your weight may cause an imbalance and result in a fall.

SAMPLE SAFETY PRACTICES The GAWDA Safety Committee has published dozens of sample safety practices and works diligently to ensure they are accurate and current. Many of these practices may be used as part of a safety training program or as guidelines for business operations.

If you need assistance accessing the documents, please contact Andrea Levy. If you have any questions regarding the safe practices, please contact me.

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Winter 2021 • 21

MEMBER BENEFIT

CGA & GAWDA’s 2020 Young & Emerging Professionals Summit is a Rousing Success BY RICH GOTTWALD, CGA PRESIDENT & CEO

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

22 • Winter 2021

n late 2019, Abydee Butler Moore, head of Butler Gas Products and President of GAWDA’s Board of Directors, approached CGA’s Vice President of Operations and Administration Laura Brumsey with an idea for a Young Professionals Summit for Compressed Gas Association and GAWDA members. CGA’s Young & Emerging Professionals Committee had just recently been formed, and Laura was excited to work with this new group to bring Abydee’s vision to life. Then COVID-19 hit and plans for the Summit got put on the back burner. That is, until April, when the committee’s technical education task force made it clear that this type of programming was more needed than ever. The decision was made to take the Summit online and move ahead with an event in August 2020. Laura put out a call for subject matter experts who would be willing to share their time and knowledge with our industry’s young professionals. More than 40 subject matter experts responded, providing support for 10 virtual sessions. Each session would feature an hour-long presentation, followed by a moderated panel and open question and answer session. CGA and GAWDA partnered together to co-host this groundbreaking virtual series: the 2020 Young & Emerging Professionals Summit, and Weldcoa signed on as event sponsor. This innovative series of online events was designed to provide unparalleled learning opportunities for the compressed gas industry’s next generation of great safety thinkers and leaders. It would be offered free for all qualifying participants. Individual webinars covered an exceptional lineup of educational topics, including: cylinder

filling; oxygen safety; cylinder valves, pressure relief devices (PRDs), regulators, and connections; hydrogen; container filling (cryogenic liquefied gases); carbon dioxide; air separation unit pumps and compressors; and cylinder and valve failure analysis. Sessions were designed to focus on communicating the reasons for requirements in today’s safety standards, including lessons learned through incidents, near misses, and the personal experiences of speakers and panelists. The Summit closed out with a final session on how new participants can gain the most from their participation in CGA and GAWDA. This session featured a joint presentation from Rich Gottwald, CGA President & CEO, and John Ospina, GAWDA’s Executive Director. Following the presentation, a panel discussion was held with young professionals from both CGA and GAWDA who provided invaluable insights into their experiences participating in both associations as well as their thoughts on what the industry can do to attract and retain young professionals in the near future. Summit attendance was limited to young and emerging professionals who work for member companies in good standing with CGA or GAWDA (in order to register through GAWDA, an individual’s company had to participate in the CGA publications subscription program). “Young and emerging professionals” are defined as those aged 45 years or younger, OR someone who is new to their area of industry operations. In the end, the 2020 Young & Emerging Professionals Summit would become CGA’s largest training and education event ever. Over the course of 10 sessions held in just 6 weeks from August 18 to September 29, 2020, we hosted

MEMBER BENEFIT more than 2,000 participants, from 100 companies, who work in dozens of countries around the globe. We wish to extend a warm note of gratitude to GAWDA for co-sponsoring the Summit with CGA; to Weldcoa for sponsoring this event; to all of our speakers, panelists, and moderators for sharing their time and expertise; to the participants who dialed in from around the world; and to all those committee members and staff who worked so tirelessly behind the scenes to make each session such a success.

In the end, the 2020 Young & Emerging Professionals Summit would become CGA’s largest training and education event ever.

SESSION 1 (AUGUST 18) “Knowledge Management & Succession Planning – Key Conversations, Combating Knowledge Loss, and Preparing for Advancement” • Keynote Speaker: Dr. David Delong, Smart Workforce Strategies • Panelists: Jack Finn, FIBA Technologies; Richard Pawulski, Air Liquide; Kelvin Dixon, Matheson; Allison Earlbeck, Earlbeck Gases & Technologies • Session Moderator: Hector Villarreal, Weldcoa

SESSION 2 (AUGUST 25) “Air Separation Unit (ASU) Pumps and Compressors” • Speaker: John Bernard, CGA Consultant • Panelists: John Bernard; Dr. John Somavarapu, Air Liquide; Patrick Smith, Air Products & Chemicals • Session Moderator: Anu George, Air Liquide

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Winter 2021 • 23

MEMBER BENEFIT SESSION 3 (AUGUST 27) “Cylinder Filling: Industrial and Medical Gases” • Speaker: Kevin Klotz, Weldcoa • Panelists: Don Renner, Weldcoa; John Willenbrock, CGA; Terran Bergdale, A-OX Welding Supply Company; Rob Stauder, Linde • Session Moderator: Zach Fowler, Praxair Distribution Inc., a member of Linde

SESSION 4 (SEPTEMBER 1) “Hydrogen: Production, Storage, Transport, and Emerging Applications” • Speaker: Pierre Drolet, Air Liquide • Panelists: Pierre Drolet; Tom Drube, Chart Industries; David Farese, Air Products & Chemicals; Carl Rivkin, Nikola Motor Company • Session Moderator: Alessandra Martin, Messer Americas

SESSION 5 (SEPTEMBER 3) “Cylinder Valves, Pressure Relief Devices (PRDs), Regulators, and Connections” • Speaker: Jerry Sameth, CGA • Panelists: Jerry Sameth; Shaun LaGrange, Linde; William Hald, Rotarex; Rohit Behani, Tekno Valves • Session Moderator: Zach Fowler, Praxair Distribution Inc., a member of Linde

SESSION 6 (SEPTEMBER 15) “Carbon Dioxide Production, Filling & Emerging Applications” • Speaker: Dave Burgener, CO2 & N2O Consulting • Panelists: Dave Burgener; Bud Klotz, Weldcoa; Matt Erwin, Airgas, an Air Liquide company; Andrew Stride, Matheson • Session Moderator: Laura Brumsey, CGA

SESSION 7 (SEPTEMBER 17) “Container Filling: Cryogenic Liquefied Gases” • Speaker: Dave Mason, Roberts Oxygen Company • Panelists: Dave Mason; Kevin Klotz, Weldcoa; Tom Badstubner, AsteRisk; Kevin Kimker, Cee Kay Supply • Session Moderator: Jake Kilgas, Airgas, an Air Liquide company

SESSION 8 (SEPTEMBER 22) “Oxygen Safety: Cleaning, Compatibility, and Lessons Learned” • Speaker: Sid Phakey, Linde 24 • Winter 2021

• •

Panelists: Sid Phakey; Bud Klotz, Weldcoa; Dr. John Somavarapu, Air Liquide; Jim White, Praxair Session Moderator: Sara Beers, GenOx Transportation

SESSION 9 (SEPTEMBER 24) “Cylinder and Valve Failure Analysis” • Speaker (Cylinders): Steve Gentry, Worthington Industries, Pressure Cylinders • Speaker (Valves): Richard Paciej, PhD, Linde Electronic Gases and Specialty Products • Panelists: Steve Gentry; Richard Paciej; Greg Eytchison, Western Enterprises • Session Moderator: Laura Brumsey, CGA

SESSION 10 (SEPTEMBER 29) “Panel & Roundtable Discussion: Leveraging CGA & GAWDA Participation” • Speakers: Rich Gottwald, CGA & John Ospina, GAWDA • Panelists: Abydee Butler Moore, Butler Gas Products; Justin Guitreau, Tekno Valves North America; Anu George, Air Liquide; Zach Fowler, Praxair Distribution Inc., a member of Linde; James Reebel, Air Products & Chemicals • Session Moderator: Hector Villarreal, Weldcoa Feedback from participants was overwhelmingly positive, with all sessions averaging a 4.6 out of 5 rating. Many attendees reached out to express their sincere appreciation for the knowledge gained in these sessions, particularly the history lessons and real-life experiences that were shared. One attendee stated “[This session] was by far the most detailed Oxygen Safety presentation I have had the privilege of watching. It was extremely helpful to see the videos and photos shared. By actually showing and explaining industry specific examples of where the hazards and mistakes are occurring, young and emerging professionals like myself, can learn and be, hopefully, safer moving forward.” Another shared their most valuable takeaways from the event, noting “Listening to other people in the industry who are just as passionate about doing things correctly. Most things were reminders, but vital that we hear them more often.” Many participants also particularly enjoyed Kevin Klotz’s live walkthrough of a cylinder filling area, which provided an opportunity to see different types of equipment. Planning for the 2021 Young & Emerging Professionals Summit has already begun, and a call for presenters will be circulated in early 2021. We look forward to working with the industry’s leading experts to continue the knowledge transfer that started at this year’s event.

LEADERSHIP MEET YOUR 2021 BOARD OF DIRECTORS

fter a difficult 2020, GAWDA looks forward to making 2020 “hindsight” and looks forward to 2021 with “Eyes Up.” The GAWDA Board of Directors will help make 2021 an unforgettable year for GAWDA. Starting with the Spring Management Conference in May 2021, will mark a return to normalcy for the association. As the pandemic begins to subside with the introduction of a vaccine (aided, in large part, by the gases and welding industry), GAWDA will emerge even stronger than before. 26 • Winter 2021

Much of that will begin with the Board of Directors. These association leaders are on the front lines of the industry and are able to take the issues facing our industry and help to craft an effective strategy for the association. Members of the Board of Directors are here to serve the membership. The next few pages provide an opportunity for members to get to know the member-based leadership team, as we take a forward look at 2021. We thank the 2021-2022 GAWDA Board for their help in putting this together and for their service on the Board.

THE QUESTION We asked the 2021-22 GAWDA Board of Directors to consider this one simple question:

“After a difficult year in 2020, what are you most excited aboutfor both your company and GAWDA in 2021?” These were their answers.

NEWS FROM GAWDA PRESIDENT

ABYDEE BUTLER MOORE Butler Gas Products

Regarding GAWDA in 2021, I am most looking forward to seeing our industry friends and getting back together for in-person learning. A big value component for GAWDA is supply chain relationship building and networking. This is best served in person, and I am excited to all get back together. Our company is looking forward to reuniting with our supply chain partners. While some have been open to visits and in-person collaboration, many have been travel restricted. Hoping these limitations are a thing of the 2020 past!

PRESIDENT ELECT

BOB EWING

Red Ball Oxygen Company Inc. We spent 2020 investing in our business and strengthening our systems and people. We are really looking forward to seeing the fruits of some of that work this next year. I think last year proved that this industry is resilient, and we will come roaring back! For GAWDA, I’m most looking forward to safely returning to real face-to-face meetings and seeing my industry friends again.

FIRST VICE PRESIDENT

ROBERT ANDERS Holston Gases, Inc. Normalcy. 2020 was a year that disrupted every aspect of our lives. I am excited about getting back to the normal rhythm of life – seeing our customers and vendor partners face-to-face who are our friends not through ZOOM but actually sitting down and catching up on life. I am excited about the SMC in Nashville and the AC at the Broadmoor.

name a few. Our employees did an outstanding job of handling adversity through 2020 and the COVID-19 Pandemic, I am very proud of all or our people. What an outstanding team effort by all. Due to this, we are in great position to handle any adversity while taking advantage of the opportunities mentioned above. As it pertains to GAWDA, we are all very excited about getting back at it. We are looking forward to seeing everyone again at the SMC in Nashville, along with opportunities to visit and network at the GAWDA Regional Meetings and, of course, the Annual Convention. It will feel great to get back to normal, hoping the New Normal brings us all back together.

FIRST PAST PRESIDENT

BRAD PETERSON Mississippi Welders Supply Company, Inc.

I am most excited for GAWDA to be able to return to in-person meetings when the pandemic situation allows. The personal contact and the networking with industry peers is priceless, and a great opportunity to be with friends. For our company, I’m excited for just about everything. We are firing on all cylinders and have jet fuel in the tank. Our automation team is dynamite, our cryo team is on fire, our branches, our main office, our fire extinguisher and CO2 divisions…everyone seems to be taking care of customers with confidence, professionalism and expertise. On top of all that, we’re a participant in Absolute Air. The project will come to fruition in the coming year, with production from the ASU providing LOX/LIN/LAR to our five member companies. And for icing on the cake, we see that a vaccine is going to be available for the coronavirus. 2021 is going to be great!

SECOND PAST PRESIDENT

NED LANE

Cee Kay Supply, Inc.

SECOND VICE PRESIDENT

GARY HALTER

Indiana Oxygen Company As a company, Indiana Oxygen is looking at a number of tremendous opportunities for growth in 2021. Growth within existing customers, new business pursuits and potential acquisitions to

For our company in 2021, I am most excited for a vaccine that will allow us to get back to some sense of normal. I am missing the interaction with our employees in walk-arounds and quarterly town hall meetings. A masked conversation or zoom call is not the same! We also had to cancel our Company picnic and Christmas party in 2020. I look forward to re-connecting with our team! Winter 2021 • 27

NEWS FROM GAWDA For GAWDA in 2021, I am, again, most excited for personal interaction. I miss the time spent with fellow Distributors and valued Suppliers. I am looking forward to reconnecting in Nashville and Colorado Springs.

VICE PRESIDENT

BRAD ARMSTRONG  General Air Service & Supply Co.

The completion of numerous construction projects we started in 2020 is probably what I am most excited about for General Air in 2021. Last year were we able to acquire some additional property across the street from our primary operational hub. We are relocating welding repair, adding dry ice manufacturing, building a new gas laboratory, and remodeling all the office and meeting space. I am highly anticipating the first conference that we will be able to safely gather together as an industry. My fingers are crossed for this to happen at GAWDA’s Spring Management Conference this coming May.

VICE PRESIDENT

ALLIE EARLBECK

Earlbeck Gases & Technologies I think it goes without saying that we are all excited about the premise of in person events. I have dearly missed our company get-togethers and GAWDA meetings. However, to that end, I am most excited to be going into 2021 with a renewed appreciation of our industry. The events of 2020 have made it so much more clear how resilient we are. We have really rallied together to help one another and though we haven’t gotten to see one another in person, I think we all feel a sense of gratitude for how fortunate we are to be connected to such great consultants and resources through GAWDA. Our community will be much stronger on the other side of 2020.

VICE PRESIDENT

JOSHUA HAUN

Haun Welding Supply, Inc. I am most excited about getting back to some sense of normalcy. While 2020 brought many challenges, we have been encouraged by the perseverance, dedication, and flexibility of our employees. We are looking forward to being able to interact more in person, both at GAWDA events and with our customers. We are ex28 • Winter 2021

cited to go live with our new ERP, which has been a long time coming. This new platform will allow us to integrate many of our systems, be more efficient and focused, and allow us to better serve our customers. I am excited to be part of a great, hardworking GAWDA Board who has been able to adapt and find new ways to engage members, while continuing to bring value to the membership in a variety of ways. I am most excited for more Zoom meetings! (just kidding)

VICE PRESIDENT

COLLEEN KOHLER Noble Gas Solutions

At Noble, we are all looking forward to kicking off 2021. We were pushed to learn, grow, and adapt to the challenges of 2020. Our company is excited to see our industry friends again in person at both the SMC and annual convention. I am also personally excited to share how we have embraced CRM systems (specifically salesforce) at our SMC in Nashville. Being elected to the GAWDA board has been a lifelong dream of mine. As my father is a Past President, it is a great honor to serve with my fellow board members and hopefully follow in his footsteps.

VICE PRESIDENT

GEORGE RATERMANN  Ratermann Manufacturing, Inc.

I am most excited about seeing our customers and industry friends again at GAWDA meetings. 2020 has shown, more than ever, how important the little things are like conversations with people in our industry, hearing about their families, and laughing at their stories. I also miss the great take-aways and learning from the conventions. But, most importantly, I miss the old friends and new friends that are made at them. As far as what I’m excited for in our company; I am so thankful for everyone on the Reliably Ratermann team and excited to keep growing together as a company. In 2020 we have launched several new resources for our customers like; Ratermann Academy Online Training, a Podcast, Customer Q & A’s, The R-bar, R-direct customer accounts, and LinkedIn, we are thrilled to continue to provide additional solutions and learning resources to our customers in 2021. We are so thankful and grateful for the support from our customers and this industry!

NEWS FROM GAWDA VICE PRESIDENT

STEPHEN ROSENTHAL  Economy Welding and Industrial Supply, LLC

My wish is that 2021 brings both health and prosperity to our company as well as to all GAWDA members. I am extremely excited to get my salespeople back out on the road and for them to visit customers again. Having GAWDA vendors come to see us as well will be a great pleasure. I am looking forward to traveling, particularly being able to go to regional GAWDA meetings. I believe that our businesses will continue to grow despite the pandemic speedbump that slowed us and other members down. And I see growth in the future.

VICE PRESIDENT

LINDA SMITH  Chemweld, Inc

We had big plans for what we wanted to accomplish in 2020. When COVID-19 hit, we were forced to re-evaluate our expectations and be creative in how we reached out to customers and prospects. Even though 2020 was hard, I believe it challenged us to think outside the box and, in turn, helped us to incorporate some very innovative marketing tools that will lead us into a successful 2021. I am obviously looking forward to getting back on track and continuing to grow our business, but I am most excited about getting back to in-person meetings both with customers and, of course, the GAWDA events! You see,

NEW!

GAWDA is not only a dynamic professional association that has helped our Chem-O-Lene fuel gas business to flourish, but, over the years, GAWDA has become like a family to me. I have met so many great people and have developed many close friendships. It will be fantastic to see everyone in person again at the SMC in Nashville and to return to our meeting culture that has suffered through isolation in 2020! I am honored to be serving on the Board of Directors and look forward to serving GAWDA in this capacity.

VICE PRESIDENT

ERIC WOOD

O.E. Meyer Company After a difficult year in 2020, and what appears to be more of the same to the start of 2021, there are many things I am looking forward to next year. The first thing I am most excited for is an end to the pandemic with the help of a successful vaccine. The second thing I am looking forward to most is gathering again with so many of the friends and co-workers we share through GAWDA and all the other great industry organizations in which our members belong. Everyone works so hard to contribute to this great organization and I can’t wait to share a beer with them at the next opening reception! O.E. Meyer has continued to grow throughout this year’s challenges by adding new team members and expanding into new markets served. Along with new challenges faced, we welcomed new employees, new technologies, and new ideas in 2020 and don’t plan on stopping that in 2021. I am looking forward to the exciting things that GAWDA has upcoming and for how bright the future is for our company.

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Winter 2021 • 29

MEMBER PROFILE

80 Years of Continuous Change nexAir Evolves in an Everchanging Industry BY BOB MCENIRY

escribing an eight-decade company as “youthful” and “dynamic” might seem like an oxymoron. However, examining the progression of nexAir illustrates a whole different view of the word “old.” The company has evolved and excelled in an industry that has seen significant changes in distribution roles. Established in 1940, nexAir was formed to distribute packaged gases in a small geography where major gas producers needed service capability. Originally named Standard Welders Supply, the company was initially highly dependent on its gas supplier for producing, packaging, and providing cylinder gases. Over the next 80 years, the whole industry landscape would markedly change, and that small company would evolve into an industry giant. Today, nexAir serves over 35,000 customers through its vast network of 75 locations in 8 states with over 700 employees.

FROM HUMBLE BEGINNINGS TO MODERN DAY Standard Welders Supply began as an offshoot of an automobile parts company. Unexpectedly, World War II and its related effects made for a turbulent business climate, resulting in the company being passed through several owners. Amid this chaos, R.Q. McEniry, my father and my son, Kevin McEniry’s, grandfather, was transferred to Memphis. “Mr. Mac,” as he was later known, was an industry veteran and had been with Linde Air Products for 26 years. Joining Linde 30 • Winter 2021

in California, he had sales and application assignments all over the United States. He arrived in Memphis in 1942 as manager of Linde’s office. In addition to caring for his direct customers, one of his chief responsibilities was to find an owner for Standard Welders Supply. Over the next eight years, Mr. Mac brokered the sale of the company several times. Finally, running out of potential buyers, several prospects told him, “If you think it is such a good deal, why don’t you buy it yourself?” In December 1950, he took his own advice and bought the company. Over the next 70 years, one of three McEniry family members would run the company. Like most first-generation owners, Mr. Mac was a hardcharging guy, a great salesman, and a do-it-all person. Trained in gas applications, he grew the company quickly. After graduating from Vanderbilt University, I joined my father in 1963. I was immersed into sales before turning to a management role, later becoming President in 1971 and running the business for the next 36 years. In 1994, my son, Kevin McEniry, a third-generation member, entered the company. Likewise, after numerous assignments, completion of his MBA, and thirteen years’ experience, Kevin would take over as CEO.

DEVELOPING THE BUSINESS AND MARKETS SERVED The 1950’s and 1960’s were high growth times for the gases industry. As the major gas producers turned their attention to the enormous potentials for gases in the Aerospace, Chemical,

MEMBER PROFILE and Steel industries, the opportunities for a distributor such as Standard increased exponentially. Adding to those prospects, the late 60’s and early 70’s saw a surge of new plant openings and relocations in Standard’s footprint. However, many of these plants were also coming to rural areas that were outside the traditional Memphis market. To take advantage of these opportunities, the company needed an expanded and educated sales force. Reinforcing that need was the growth in other market segments. As exciting as the metal fabrication market was becoming, the medical gas market was equally invigorating. Originally, Standard’s healthcare focus had been the home care market. However, as medical gas technologies emerged, Standard found itself in a growing institutional market. Eventually, the company would be providing anesthesia equipment, ventilators, infant incubators, monitors, and a host of disposable products.

ASSEMBLING TALENT & MAINTAINING CULTURE To meet those needs, the company began building a team that could exploit these opportunities. I recruited my college friend, Bill Vaughan, whom I knew to be a leader. Bill joined the company in 1969 and took over building out the sales team. Over the next 39 years, Bill became a significant member of the management team, retiring as President. Together, Bill and I began recruiting people that could be trained in the multiple disciplines for a high growth company. Particular attention was given to recruiting college graduates. Each trainee would be placed in “boot camp,” that is, they were put in entry level positions to gain exposure to various disciplines across the company. A typical trainee would spend at least a year with stops in cylinder filling, cylinder distribution, warehouse, and store sales. From that training, our management team was able to determine whether they were proficient in sales, supervision, operations, finance, human resources, or any other facet of the business. Many of the group were encouraged to obtain graduate degrees. “Camaraderie and culture sharing have been the primary goal of our training”, says Bill Proctor, current nexAir President. “I was fortunate to be an early participant in the formation of this program with specific emphasis on personal skills and interaction.” The cultural payoff has been terrific. Today, the top officers in the company are currently around 50 years of age. Most have worked together for more than 25 years and were the products of that training. As the company has gotten larger, maintaining culture is a major focus. “Our mission statement: serve selflessly and assist eagerly to create customers for life, defines our culture,” says Kevin McEniry, Chairman & CEO.

nexAir’s current Executive Leadership: Mike Enders, Executive Vice President of Operations; Bill Proctor, President; Kevin McEniry, CEO; Milton Lovell, CFO and General Counsel; Brian Yarmowich, Executive Vice President of Business Development (not pictured).

Winter 2021 • 31

MEMBER PROFILE The training that began as an informal process is now more formal and measured. nexAir’s Training Director conducts both in person and online training. All employees are enrolled in a training platform, nexAirU, and employees are required to complete courses on a regular basis. “We are serious about recognizing employees that stand out in our objective,” Kevin says. “Employees from all areas of our company are nominated for the Spark Award, which honors employees that excel in our mission.” These awards are announced in the quarterly employee newsletter, the airWave. The publication also outlines the company’s successes, achievements, changes, and related news.

ACCLIMATING TO GROWTH As the business grew, there was a natural expansion to meet the logistical challenges. In the 70’s, Standard began opening branches to expand its geographical and operational reach. Simultaneously, there was a significant change occurring in the industry that effected where those branches would be located. Many first-generation owners with similar timeframes as Standard were now selling their companies. This created opportunities for Standard to buy those companies and expand its markets. Concurrently, there was a surge of industrial plants being built or expanded. Amid all these dynamic events, one other significant milestone transpired that would forever define the role of the company. In 1984, Linde, who was supplying most of the company’s packaged gases, decided to move out of the packaged gas business. Linde approached Standard with an enticing proposal to buy its Memphis packaging plant. Situated on five acres, the plant offered unique capabilities, including specialty gas and acetylene production. Over the next four decades, the company would acquire an entire block of adjacent property. Today, that plant is 14 acres and processes in excess of 95,000 cylinders per month.

ADAPTING TO INDUSTRY CONSOLIDATION Across town, Mid-South Oxygen, founded in 1945, followed a history analogous to Standard. Phil Heppel, one of the founders, died suddenly in 1980. His sons, Scott and Chris, together with Phil’s son-in-law, Chip Valentine, did a wonderful job of bringing the company through this tragedy to grow the business, add stores, and make acquisitions. Meanwhile, the industry was going through massive consolidation. With that development, competition was no longer confined to local players. Leadership at both Standard and MidSouth spotted a developing opportunity based on the strong synergies between the two companies. On May 1, 1996, the 32 • Winter 2021

companies merged, increasing the base company by over 60%. Industrywide, this marriage was a major and intriguing milestone. Two of the largest distributors in the U.S. had combined ownership. Internally, the company had new faces. Scott Heppel of Mid-South took over a big gap in the management team by becoming the company’s first real CFO. His brother, Chris Heppel, headed up the immense medical products distribution business that both companies had grown. The merger came at a very opportune time for the industry. Chip Valentine, who had become Vice Chairman of nexAir was in line to become the future president of NWSA, now known as GAWDA. Through this experience, Chip made a lot of crucial contacts for nexAir and his own career. Chip would leave the company in 2003 to develop a consulting business based on his experience.

A NEW IDENTITY Combining the companies was arduous but rewarding as the synergies of the combined operations began appearing. Simultaneous with the announcement, a new identity was also revealed. The original name, Standard Welders Supply, had been limiting in the vast array of gas markets that the company now served. Similarly, the name Mid-South Oxygen was too regional and constraining. Based on a study with a marketing firm and the company’s emphasis on gas products, the name nexAir was chosen. The genesis for the name was the Latin word “nexus” and the English word “air.” Nexus means a joining of two or more things. So, “nex” coupled with “Air” denotes the company’s expertise in applications of refined air. With the new name, nexAir had clearly defined its focus for gases across a broad spectrum of industries.

NEXAIR AS A CONSOLIDATOR Over the last 24 years, while continuing to grow its base business, nexAir completed nearly 50 acquisitions. The most notable of these acquisitions took place within the last decade. In 2008, nexAir entered the Georgia market with the acquisition of a specialized company. Praxair was nexAir’s principal gas supplier, but Praxair’s packaged gas arm, Praxair Distribution Inc. (PDI), also had a presence in the same area. With nexAir’s aggressive growth as a regional distributor, a logical progression was a joint venture to consolidate costs and eliminate duplication. PDI’s locations in Georgia, Alabama and Tennessee were included. The success of this venture led to another transaction. In late 2015, nexAir bought PDI’s position in Praxair Distribution Southeast (PDSE), a venture that formed in Florida and southern Georgia. With the completion of these deals, nexAir’s market stretched from

MEMBER PROFILE

the western borders of Louisiana and Arkansas through the northern border of Kentucky and to the tip of Florida, including some business in the Caribbean.

EXPANDING PRODUCT OFFERINGS nexAir’s considerable volume in the CO2 market led to an examination of all CO2 products. In 2008, nexAir entered the dry ice business with a calculated buy of an existing operation in Brandon, MS. This venture was given the name nexAir Carbonic. Strategically, this move gave the company increased access to CO2 and a larger presence in food, pharmaceutical, and shipping markets. This presence was enhanced substantially in 2016 when nexAir purchased two additional plants from gas producer Air Liquide. The first was a CO2 production plant and the second was a Dry Ice production facility, both located in Millington, TN. Another market that nexAir strategically wanted to strengthen was the medical and healthcare gas segment. That opportunity came in late 2019. When Praxair and Linde merged their global businesses, both companies had many U.S. locations. Seventeen of Linde’s packaged gas locations fell in the nexAir arena. Using the same logic of the former PDI acquisitions, the Linde LifeGas healthcare business was spun off to nexAir. Now branded nexAir Healthcare, these locations compliment

the nexAir footprint and increase nexAir’s penetration into the health care segment.

IMPROVING EFFICIENCY AND PROVIDING SUPPORT nexAir began operating the Linde assets on January 1, 2020. One of the prized parts of the purchase was a much-needed packaged gas plant southwest of Atlanta. In its 1980’s heyday, operating as Holox, that facility was the largest plant of its kind in North America. However, through industry consolidation, the plant’s volume decreased drastically. Conversely, nexAir’s need in the same geography had grown and its needs were substantial. nexAir’s volume had long outstripped its Norcross, GA filling capability and the company had been searching for a new location. The Linde facility was perfect. The gases industry stands to markedly benefit from the transaction. The plant fills a gap for the industry distributors. With nexAir’s volume in place, the plant can now support distributors in an immense geography. Scott Neal, a nexAir veteran with more than thirty years in the industry, was recently appointed Vice President for Wholesale and Distributor sales. The move was to separate nexAir’s traditional sales team from the needs of other distributors. Scott recognizes what nexAir uniquely represents to the industry. continued on next page

Winter 2021 • 33

MEMBER PROFILE

In 2020, Deloitte

Private and The Wall Street Journal named nexAir among The Best Managed Companies in the United States.

“The days of running a small acetylene plant are long gone. The industry depends on high volume plants like those nexAir has in Memphis, Okeechobee, and Union City. In addition, nexAir’s ability to produce non-conventional, high purity, and specialty gases make us a great supplier for wholesalers. In the past, those needs were provided by the major producers. Now that most of those suppliers have exited the market, the conventional distributor has lost that source and accompanying support. Although some are competitors to nexAir, those distributors are servicing markets beyond our reach. nexAir recognizes that its traditional sales team is not necessarily the channel to all markets. Having those products available to industry distributors is a win-win for all parties. Likewise, the professionalism of the nexAir Plant Operations Team, their ISO recognition, their regulatory compliance, and their attention to detail make nexAir a logical choice,” says Neal.

USE OF TECHNOLOGY Despite its age, nexAir is aggressive in its use of technology. The biggest payoffs in technology have been in projects to control nexAir’s costs. Mike Enders, EVP of Operations, explains, “With all the interns and young talent that the company has recruited, we have the resources, and it is just a matter of challenging their intellect. Rather than have these talented people waiting for a ‘job to open up,’ we test them and put them to productive use. In their initial training, the trainees get a feel for the culture and the business. Now, we immerse them in problem solving”. Projects currently underway address warehousing, logistics, routing, financial control, website design, and a host of other tasks. The current pandemic has accelerated the use of technology, especially in the communication arena. Online meetings are becoming the rule rather than the exception, saving significant 34 • Winter 2021

amounts in travel expense. However, the implementation of other communication tools is far more thorough. “As an example, we have two Support Centers, one in Memphis and another in West Palm Beach,” Enders says. “Inside those centers, prior to COVID-19, we already had a significant number of these support people working remotely. With a concerted training effort, we took this technology and spread it throughout the company.” On the financial front, nexAir is actively working with suppliers and customers to decrease dependence on paper transactions. “If anything, the pandemic has hastened our use of technologies.” Mike adds.

LOOKING TO THE FUTURE 2020 marked the 80th anniversary for nexAir. Looking to the future, management is confident of continued growth but is constantly aware the business landscape is everchanging. “After 80 years of history, we know that each decade is different. nexAir will evolve to meet whatever lies ahead,” Kevin McEniry says. 2020 has been rewarding for the company. Not only was 2020 its 80th anniversary but it was one of recognition. In June, nexAir received one of the nation’s most prestigious awards. Deloitte Private and The Wall Street Journal named nexAir among The Best Managed Companies in the United States. “Criteria for the recognition was based on strategy, execution, and financial performance,” says Milton Lovell, nexAir CFO and General Counsel. Kevin McEniry added, “These attributes echo our mission and values. While we are proud of the national recognition, we are even more proud of our heritage.” Bob McEniry is Chairman Emeritus and has been with nexAir for 57 years.

2021 BUSINESS FORECAST DISTRIBUTOR MEMBERS

DISTRIBUTOR FORECAST OVERALL GROWTH BY GEOGRAPHIC REGION

EAST -.5%

CENTRAL +8.37%

WEST +4.65%

SOUTH +6.125%

36 • Winter 2021

2021 BUSINESS FORECAST DISTRIBUTOR MEMBERS

GAWDA DISTRIBUTORS PROJECT A REBOUND IN 2021  After a difficult year in 2020, most distributors expect to see growth in the new year  BY STEVE GUGLIELMO

very year in the 1st Quarter Issue of Welding & Gases Today, we reach out to all GAWDA members to try to get a sense of what the year ahead has in store. We talk to GAWDA distributors and suppliers (page 46), as well as the Chief GAWDA Economists at ITR Economics (page 68). This year, in an effort to paint an even more complete picture, we also spoke to the American Welding Society (page 56), CGA (page 58) and Consultants Buzz Campbell and Ken Thompson (page 62). Taken together, we should get an idea of how the industry will rebound in 2021 after a difficult year in 2020. This year, we have opted to break down the distributor forecast by region, as the economic climate is not uniform across the country and the industry, exacerbated by government regulation on business and commerce during the COVID-19 pandemic. With a highly contentious election occurring in the midst of one of the worst global pandemics the world has ever seen, 2020 was a highly uncertain year. More than anything, the overarching theme in the responses of GAWDA members is the need to return to some sort of normalcy, or at least certainty, in the business climate. With that caveat in place, most members project for 2021 to begin to rebound and for 2022 to be a return to growth for the industry. The following are responses from GAWDA distributors across North America about what they expect to see in 2021. Thank you to those who participated.

EA S T  In the 2020 Forecast, the Eastern region of the country projected as the most optimistic of the four, predicting a cumulative 6.25% growth among respondents. However, after the devastating impact of the pandemic, the Northeast is by far the least optimistic region heading into 2021. After not having single projection of decreased or even level growth going into 2020, the region as a whole projects a 0.5% contraction

next year. This can be attributed to the political impact of the pandemic (state government restrictions) as well as a skewing toward hardgoods among respondents. Keen Compressed Gas Co. President Bryan Keen forecasts a 5-10% increase in 2021. “Once we get the vaccine in circulation and we can get more comfortable going to work every day, I think our industry will take off,” he says. He says that the company is “cautiously optimistic” for a V shaped recovery. “We are going through a more intense planning process than we ever have before,” he says. “We want to make sure we are right sized and focusing on the right business opportunities when we come out of this pandemic.” The company is investing in finding talented new people and training its existing people as well as buying trucks and cylinder assets. The company has also begun evaluating the dry ice market. “We are late to the party, but we’ll learn quickly, and play catch up for a year or two,” he says. “We are also focusing on anything gas related including microbreweries, lasers, cannabis, food, research labs, universities and bio sciences.” Economic uncertainty, due primarily to COVID restrictions, lead Ace Welding Supply, Inc. to project a 5% loss in 2021. Though they forecast a decrease for the year, the company does expect to see a V shaped recovery for the economy once the recovery period begins. Due to the uncertainty, the company is holding off on business expansion for the year. Lloyd Robinson, president of AWISCO, forecasts a 6-10% growth for 2021, primarily due to the impending vaccine. He says the biggest factor in 2021 will be, “The efficacy of the vaccine. That would, in turn, get people back to work. Also, I am hopeful that some infrastructure package will pass.” While Robinson is projecting growth in 2021, he notes that revenue will still be around 10% lower than it was in 2019. “I believe that it will be more of a U-shaped recovery.” He concludes, “Until the COVID situation is under control, all bets are off. If the winter is as bad as some are predicting, things will not improve. I am Winter 2021 • 37

2021 BUSINESS FORECAST DISTRIBUTOR MEMBERS

afraid that more shutdowns may be coming.” The incoming political administration leads Commercial Miscellaneous Sales President Louie Centofanti to forecast only level growth in 2021. He notes that trends like the price of steel increasing the cost of cylinders, welding wire/rods, and most other things used by the company and its customers will continue to negatively impact growth potential. One thing Commercial Miscellaneous Sales does plan to do in 2021 is to upgrade its bulk tanks. That will lead to lower cost of products, according to Centofanti. Strate Welding Supply Co., Inc. will also see level growth in 2021, according to President Russell Strate, Jr. Like others, Strate says the biggest factor in this projection is government actions taken in response to the pandemic. Like Centofanti, Strate also points to rising steel prices as having a negative impact, as well. “How the new administration responds to the challenges that we face will make a difference in what the future will hold,” says Strate. For now, he predicts a U-shaped recovery. Nick Mattiace, Vice President of McKinney Welding Supply, Co., projects sales to fall 10% in 2021, primarily

GAWDA

38 • Winter 2021

driven by a slow down in non-residential construction and COVID restrictions that he anticipates will carry over into the first quarter of the year. The specter of COVID will continue to cast a shadow over the recover in 2021, with Mattiace predicting that it will have a negative impact on the economy throughout the year. Other things constraining growth include increased pricing due to the rising cost of labor and raw material increases. Seaboard Welding Supply, Inc. has seen many of its customers go out of business this year, leading Partner Brian Nowell to forecast a decrease of 18% next year. He also points to surcharges on energy and logistics increases as having adverse effects in 2021. Of COVID, Nowell says, “I don’t think this will impact our five-year plan too much, but definitely next year’s forecast. We feel it will be a bit of a U-shaped recovery, with the government allowing business to open, then partially, then close and then do it all over again five months later. It is hard to adjust to.” With things slowing down, Seaboard is looking at smaller markets like providing CO2 and liquid nitrogen to aqua farmers indoors. He concludes, “We are lucky that we’re part of the welding and gas industry, because we sell to so

2021 BUSINESS FORECAST DISTRIBUTOR MEMBERS

many different industries. When one slows up, we concentrate on the others. Too bad the restaurant industry can’t do that!” “We’re still looking to acquire other business, not letting COVID deter us from accomplishing our goals.” That is the position of Jackson Welding & Gas Products, who anticipate 5-7% growth in 2021. The company does caution that it is dependent on the impact that COVID continues to have on the economy. “COVID has affected small businesses and certain industries that require gases. That is factored into our 2021 forecast.” Earlbeck Gases & Technologies will see a 7% growth in 2021, according to COO Allison Earlbeck. “There was initially some uncertainty and conflicting views on how the pandemic would impact our industry, but I believe we’ve all seen it play out enough to be confident that we will survive to tell the tale of COVID-19. Out of concern for public safety, we had to close our training center until we were confident to operate without putting anyone at risk. We are now seeing an increased demand for training as we’ve reopened, with many people looking for an ‘essential’ occupation such as welding to ensure stable income. We are also seeing increased

demand for gas for COVID related applications which will offset some of the lost income from slower small business spending.” Earlbeck notes that the company pulled back its expectations for 2020 and 2021 due to the pandemic, but still anticipates a V-shaped recovery.

S OU TH Mirroring the way the East flipped from most optimistic in 2020 to least optimistic in 2021, the South did almost the complete opposite. Headed into last year, the region projected as the least optimistic in the industry. This year, however, the region is the second must bullish in the new year, forecasting a cumulative 6.125% growth. Advanced Welding & Industrial Supply LLC President John Brewer, Jr. predicts a growth of 3% over 2020 sales, though he cautions that an increase in regulations could put a damper on that growth. With regard to business expansion, Brewer notes that the company will “continue to move cautiously.” Aside from COVID, there are no new underlying macrotrends that Brewer anticipates will impact growth one way or another. “Companies will have to replace, upgrade or fix equipment

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that they have been holding out on,” says Andy Oxy Co., Inc. VP Britt Lovin. That will help drive Andy Oxy to an expected 8% growth in 2021. Lovin expects to see a V-shaped recovery as we come out of the pandemic. The company is actively looking at a few new lines to increase its product offerings. It has also moved into niche markets like aqua agriculture as it sees new greenhouses built using this technology. B & R Industrial Supply, Inc. President Nathan Stringer anticipates an increase in manufacturing business in 2021. This will help the company reach its forecasted growth of 10-15% for the year. Like others have cautioned, steel increases could impact that projection. Stringer notes that the company hopes to expand its location this year. One niche market that Stringer is excited about is CNC tooling. Ned Lane, President of Cee Kay Supply, says that the biggest factor impacting his 6-7% growth projection for 2021 is, “The vaccine to get the economy back on its feet.” Cee Kay is heavily involved with dry ice, making it an active participant in the distribution of that vaccine. Assuming a smooth rollout, Lane anticipates that B2B online activity will continue to grow. If the vaccine is widely available in the first quarter of the year, Lane projects a V-shaped recovery. The company has “a 10-year plan that has aggressive growth goals,” says Lane. That requires Cee Kay to “hire quality personnel to fill growth opportunities.” In addition to dry ice for the vaccine, Lane believes that the cannabis market will drive sales in CO2, dry ice and butanes. The impact of COVID-related shutdowns leads Industrial Welding Supply, Inc. to project level growth in 2021, according to Operations Manager Jim Brancato. This will lead to a U-shaped recovery for the economy. As such,

2021 BUSINESS FORECAST DISTRIBUTOR MEMBERS

Industrial Welding Supply does not have plans to expand its business in 2021 through new products or locations. Brancato notes that government funds for infrastructure repair or construction could be a boon for the industry. But overall, he believes that fear of continued shutdowns will make 2021 an uncertain year. Despite the threat of potential COVID lockdowns, nexAir President Bill Proctor sees a growth of 7% for 2021. “I am optimistic the recovery will be more of a V into 2021 and 2022,” he says. He sees the threat of further COVID lockdowns and capital spending by customers as the biggest factors impacting projections for 2021. “I expect to see increases in consolidation and a rise in commodities (steel, copper, etc.),” says Proctor. “We plan to expand geographically with locations.” As others have noted, the dry ice market has been a growth driver for nexAir. “We expect that to continue through the food and vaccine cold supply chain,” Proctor notes. Pure Air Ltd. VP of Operations Michael Crambes projects 25% growth in 2021 based on three factors. First, the re-opening of travel and tourist trades, second, the belief that sales targets will be more receptive to sales calls, and third, pricing actions. “The slow in the economy has resulted in a very competitive sales environment,” he says. “Suppliers have become very active with price increases in Q4 2020, which we will feel in 2021.” While he is optimistic for 2021, he does note that, “We don’t know what to expect from the new administration and tax policies. That leaves some uncertainty.” Island Gases Limited projects a sales increase of “5% to 10% at best” in 2021. “The success of vaccines and other factors in stemming the tide of COVID and being able to restore purchasing power for business restoration,” will be

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2021 BUSINESS FORECAST DISTRIBUTOR MEMBERS

the biggest factors impacting that projection, according to Clyde Sobers. “Here in Barbados, we are a tourism-driven economy. This has been hit hard by COVID-19 and Global Warming will create high risks annually,” he says. To combat these challenges, Island Gases will seek opportunities to be more efficient using technology, given the drive by customers to be more tech-savvy. Larry Simpson, President of Welders Supply Co. of Louisville forecasts a 5% growth for 2021 based on “economic recovery from the COVID-19 pandemic, capital investment in automation and technological improvements given lost of capital.” Simpson expects more of a U-shaped recovery, noting that they simply shifted expected gains from 2020 into 2021. The company plans a facility expansion in 2021 as well as expanded lines of business, which Simpson expects to help fuel growth. He is excited about the beverage, CO2 and dry ice markets. He concludes, “Availability of good talent will be contributor to a positive outlook for 2021.” “Oil production and the incoming administration’s stance on fossil fuels” are the primary reasons that Derrick Campbell Manager/Owner of Schad & Pulte Welding Supply, Inc. projects a decrease of 30% in 2021. Campbell also notes that the consolidation of wholesale suppliers and direct sales from manufacturers are trends that will impact growth as well moving forward. He also notes that online sales distribution has increased, with non-industry suppliers taking some market share. Campbell has seen an increase of walk-in traffic and a growth of the DIY consumer as niche markets that could help growth. Willard C. Starcher, Inc. will see a sales growth of 20% this year, according to President John Hill. He notes that COVID-19 could impact that growth, but is optimistic that the industry will experience a V-shaped recovery. Even with that projection, the company does not have plans to expand in 2021 through new lines or locations. “So far, we have experienced a V-shaped recovery,” says Holston Gases President/CEO Robert Anders. “April and May were bad, but we were at pre-COVID levels by late summer. As long as there are no further lengthy lockdowns, we should be fine.” Anders projects an 8-10% growth in 2021, depending on, “how the economy reacts to a new administration and the effect of any new tax or regulatory changes.” Holston will continue to expand in 2021. Says Anders, “Every year, we want to enter into at least four new geographical areas, either through acquisition or scratch start. Holston entered the dry ice business last year, which has been paying immediate dividends. He concludes, “We are just focusing on the things that we can control.” 42 • Winter 2021

CEN TRAL  As it did last year, the Central Region of the country once again had the most respondents to this year’s survey. The region is more optimistic heading into 2021, than it was at the start of 2020. Last year, respondents forecasted 5.29% growth, but this year, the region sees an 8.37% growth, the most optimistic region in the country. Delille Oxygen Co. will see a 10% growth in 2021, according to President Josh Weinmann. “We didn’t decline during the COVID issues, but with the vaccines coming out, the morale and certainty in our consumers should improve a little to make 2021 better than 2020,” says Weinmann. “We have some big projects that will finish and begin to generate in 2021 that will ultimately create our growth and get us through a possible slow economic growth.” He notes that COVID did impact his forecast, “because it caused so much uncertainty with consumers that it will cause a hangover into 2021.” However, he notes that it did not impact the company’s fiveyear projection appreciably. He says, “Our business practices changed during the pandemic and I believe we learned a lot from it that will help us the next five years and beyond.” Delille will introduce new product lines and processes in 2021 that will “expand our business in more ways than just financially.” Weinmann concludes, “I’ve always believed that facing and getting through adversity will only make you stronger. So, while dealing with the issues and challenges from COVID, I made sure we focused on things that we were forced to do to try to remain successful that we normally wouldn’t have done in a perfect world. Moving forward, I think those lessons will have a positive impact on our company that we can build on.” Indiana Oxygen President Gary Halter expects a 4-6% growth in 2021, based on the recovery from COVID as well as the automotive industry. “Fuel prices are huge for CO2 supply and the industry in general,” Halter says. “The vaccine will have an impact on the CO2 industry. Industry consolidation has always been a growth opportunity for us.” Halter expects to see a U-shaped recovery and notes that the pandemic has made Indiana Oxygen more conservative in its projections. However, he notes that, “We see opportunities for expansion in a couple of markets due to independents being acquired by the majors. We also view propane as a growth engine for us in a couple of key markets.” Berger Welding Supply expects to see an uptick of 15% in 2021, as businesses continue to look for cost effective and time saving measures. The company believes that market share may be up for grabs for independents as big mergers may have put some of that share at risk. Berger anticipates a V-shaped recovery in 2021.

“In 2021, I expect to see continued industrial investment in Ohio and some of the surrounding states, due to macroeconomic policies and the uncoupling of our relationship with China,” says Brad Davis, General Manager at Central Ohio Welding, Inc. “We have more welding and manufacturing jobs in Central Ohio than we have qualified applicants, so I would expect a continuing push towards automation in industries that have not already started this.” The company projects 10% growth in 2021. “Regionally, the biggest factor will be how quickly a vaccine for COVID-19 can get into the hands of the vulnerable and health care workers. The sooner that happens, the more likely we are to have a V-Shaped recovery, which will benefit a lot of our manufacturing customers. The longer we wait for it, the more long-term damage will be done, which could put some of these same manufacturing concerns out of business,” he says. For the company, Davis notes that, “We made the largest capital investment in our 100-year history in 2020 and expected higher levels of growth in 2020 and 2021 than we are likely to achieve, primarily due to the pandemic. Our five-year forecast is for significant growth and hasn’t changed much because we expect the economy to bounce back. We expect a V-Shaped recovery for our company and industry, primarily due to macroeconomic policies. We are going to continue the expansion that we started in 2020 into 2021. In 2021 we are opening a second location regionally and are working with other resellers in several nearby states.” The company plans to enter the food-grade gases and beverage CO2 markets within the next 12-18 months. Helget Gas Products’ handling of the pandemic with its customers is the biggest factor leading Vice President Linda Fette to project a 10-15% growth in the new year. Helget has gotten involved with concrete plants using CO2 and large microbreweries, which Fette sees as growth drivers going forward. The company anticipates a V-shaped recovery and says that the things that could impact projections the most are, “changes from the new administration and major gas suppliers.” The company does have expansion plans in 2021 that it is excited about and will help contribute to that growth. WISCO will see a level 2021 compared to 2020, according to President Craig DeVries. “During the Trump years, we saw strong sales growth, only tempered by the metals tariffs, virus and resulting lockdowns,” he says. “We saw very little inflation. Low interest rates will continue. There will be a reverse of the rate of growth due to the Biden administration policies.” 2020 saw a reduction from the 2019 peak by 10-13%. The company also reduced its five-year forecast due to the new administration. WISCO does plan to introduce a new location in 2021.

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2021 BUSINESS FORECAST DISTRIBUTOR MEMBERS

“We are lucky that we’re part of the welding and gas industry, because we sell to so many different industries. When one slows up, we concentrate on the others. Too bad the restaurant industry can’t do that!” – BRIAN NOWELL SEABOARD WELDING SUPPLY, INC.

President Doug Lampton of Lampton Welding Supply expects an 8-10% increase in 2021, contingent on the speed in which the vaccine is distributed. Additionally, he expects the return of the oil industry and subsequent rise in oil prices to play a role. “I would expect M&A activity to pick up as companies see their cash reserves dry up and look to sell before bankruptcy,” Lampton says. He notes that, “The pandemic reduced our projected growth forecast for sure, with all the business shutdowns. However, long term, we are structured to gain back the sales and profits we weren’t able to realize in 2020. I’m cautiously optimistic that we will see more of a ‘V’ shaped recovery given the large equipment orders we have been receiving lately.” Lampton has entered into the gas supply for cannabis market and will also grow its focus on beverage gases. Finally, he says, “I believe this pandemic has accelerated our IT investments into our offering an online buying platform that should be active in 2021.” ILMO Products Company expects a 5-10% increase in 2021. However, the lingering effects of the COVID pandemic continue to hang over the economy. Other things that could depress growth are the continued tariffs, increased gas costs and shortages of helium. All things considered, the company expects to see a U-shaped recovery for 2021. While 2020 was a difficult year, due to COVID, Weld Plus, Inc. President Paul Rensing projects a growth of 15% in 2021. “Low financing rates helped customers afford capital goods and taking manufacturing back from China will help U.S. manufacturing,” says Rensing. Weld Plus will introduce a couple of new products in 2021 that will also aid in growth. He notes that welding automation has also allowed for growth. “Hopefully the U.S. manufacturers get a lot of work back from what went to China in the last 15 years,” he says. 44 • Winter 2021

More confidence and better commodity prices for farmers and ranchers will lead Winfield Iron & Metal to a 10% growth in 2021, according to President and Owner Taylor Duncan. He cautions that more regulation and/or a weaker dollar could change that projection, but that he does expect markets to begin growing in 2021 and anticipates a V-shaped recovery for the business. While O.E. Meyer hadn’t completed its official forecasting at the time of the interview, President/CEO Craig Wood anticipates a 2.5 – 3% growth in 2021. “With the election in the rearview mirror and a vaccine on the horizon, customers who were reluctant to spend in 2020 will likely invest in 2021,” he says. The company has seen steady improvement since May and made an acquisition the 4th Quarter of 2020 that Wood expects to enhance O.E. Meyer’s outlook for 2021. He notes that, “Washington gridlock could have a positive impact on the overall business climate,” and that O.E. Meyer will, “continue to build upon our core capabilities which will, in turn, better position our customers in their space.” Delta Gases, Inc. will see an increase of 15% in 2021, says Vice President Todd Linnenbringer. “I feel like there will be a lot of pent-up spending once things are opened back up,” he says. The company expects a V-shaped recovery of the economy. Linnenbringer notes that he has not noticed inflation, steel prices or consolidation having an adverse impact on the industry. Delta does not have any new expansions planned for 2021. Rodney Huber, President of Huber Supply Co. anticipates level to 1% growth for the company in 2021. “We were hit later than most and we are usually the last to come out of it as well,” Huber says of the impact of COVID. “We are hopeful that the 2nd Quarter of 2021 will give us a big bounce.” The company does not have concrete expansion plans for 2021 but Huber notes that they are exploring helium options. “We do not fill our own right now and pricing is becoming an issue,” he says. The company continues to expand its repair department and is looking to become more involved with robotics. “That’s where the future is, so we don’t want to get behind,” says Huber. Mississippi Welders Supply will see a 2-4% growth in 2021, according to President Scott Myran. He says that the ongoing COVID crisis as well as associated business shutdowns, both government imposed and economic, will have the biggest impact on meeting that projection. “We will continue to be challenged finding and retaining CDL endorsed personnel, along with other skilled labor,” Myran says. He says that COVID set back the company’s top-line projection but “created more discipline to impact the bottom line. I see a U-shaped recovery for our business.” Finally, he says that “the mental health of employees is a consideration we all need

2021 BUSINESS FORECAST DISTRIBUTOR MEMBERS

to watch and be prepared to direct to EAP.” “Pent up demand for products and lots of capital” will aid Weldstar Company to a 10% growth in 2021, says Rod Lassiter, Technical Sales Rep. Lassiter anticipates a V-shaped recovery for the company and for the industry.

WEST Heading into 2020, the Western Region of the country was the second most optimistic, forecasting a cumulative 5.71% growth. This year, the region is the second least optimistic, expecting just a 4.65% growth, trailing both the South and Central regions of the country. Western Gasco Cylinders Ltd. President Stu Younger forecasts 10% growth in 2021, assuming no further government mandated slowdowns or lockdowns or an outbreak of COVID within the business. “COVID-19 has slowed business,” says Younger. “We have been in a V-shaped recovery, but we don’t expect the V to continue. It will slow and we should see a more gradual increase in 2021.” The company will expand its product lines next year, which should result in positive growth. “Once a roll out for the vaccine is in place, we should see more business optimism and more investment in spending,” says Younger. Continued COVID uncertainty will lead to a level year for Bishop Welding Supply in 2021. The company forecasts a U-shaped recovery. There is optimism that demand for CO2 from breweries will continue to be a growing trend that will positively impact the business in 2021 and beyond. Four Corners Welding & Gas Supply also anticipates a level year in 2021, according to President Amber Chisamore. Chisamore notes that there is uncertainty in the oil/gas refining and coal industries, as nobody is sure how they will be impacted by a Biden presidency. “There is also uncertainty with stimulus and CARES act funds being distributed in our rural area.” Chisamore points to “pressure to increase minimum wage at an unsustainable level” as a detrimental trend for Four Corners. She expects “more of an L-shape” recovery and is not sure that the area will ever fully recover. Continuing the trend, Brad Armstrong, President of General Air, also forecasts a level year, due in part to the impact of COVID shutdowns and the low price of oil. “COVID definitely impacted our forecast,” says Armstrong. “We expect a V-shaped recovery, but not until Q3 2021. Our growth will need to come from market-share gains in our traditional verticals vs. new growth markets.” Regional improvements and competitor volatility are just two of the factors that will help drive Complete Welders Supply to an expected 12% growth in 2021, says CEO Benjamin

Bisconer. Like many others, Complete Welders Supply has seen the expanding cannabis industry as a growth market for the company. Overall, Bisconer predicts a V-shaped recovery in the coming year. Dave Burnett, President of DJB Gas Services Inc. projects a 5-8% growth in 2021, depending on how the government continues to address the pandemic. DJB has seen product supply problems, but Burnett expects that to be less of an issue in 2021 and beyond. He says, “We were up 2-3% in 2020, but that was way below our normal growth. We had a V-shaped recovery during the last half of 2020, but it looks like it may turn into a U-shaped one.” While DJB is always on the lookout for acquisition opportunities, it does not have concrete expansion plans for 2021. Two growth markets for DJB are dry ice and biotech. Industrial Source also expects a 5-8% growth this year, according to Co-President Bob Laing. “If we get vaccinations soon enough, business should rebound quickly,” says Laing. A trend that has emerged that could impact that projection is the continued tightening of the CO2 supply in the Northwest. According to Laing, “We are constantly investing in our capabilities. We hope our investments will impact our business in a positive way. I’m sure we are like many that really can’t give an accurate forecast until the virus’s impact subsides. We hope and expect a V-shaped recovery.” Oxarc, Inc. projects for a modest 1-2% growth, says Executive Vice President Michael Sutley. This is due, in part, to increased material and compliance cost, as well as the political environment changing the compliance landscape and making it more difficult to do business. Oxarc will continue to invest in assets to help grow the business and support growth when things get better. One industry that Oxarc is involved in that will help drive that growth is the cannabis industry. “The cannabis industry continues to expand and consolidate,” says Sutley. “This is going to be an area where we can grow.” While Rainier Welding Supplies Owner Jeffrey Michaelson forecasts a 2-3% growth in 2021, he notes that, “The supply chain must get better,” before there can be a return to robust growth. For 2021, Michaelson projects a U-shaped recovery. He notes that the projected growth is contingent on construction financing. Vern Lewis Welding Supply, Inc. will see a growth of 5-10% in 2021 due in large part to the “booming economy in Arizona.” The company’s projection is “unaffected” by the COVID-19 pandemic. Vern Lewis will complete its central distribution project this year, giving it a new location. As others have noted, cannabis will be a growth market for Vern Lewis, as it was recently legalized in the state. Winter 2021 • 45

2021 BUSINESS FORECAST SUPPLIER MEMBERS

SUPPLIER FORECAST BY STEVE GUGLIELMO

The following are responses from GAWDA suppliers across North America about what they expect to see in 2021. To see video interviews for those suppliers who participated, visit the GAWDA Media channel on YouTube or check buyersguide.gawdamedia.com to see individual company responses with embedded videos. Thank you so much to all who participated!

46 • Winter 2021

2021 BUSINESS FORECAST

eldcoa expects sales to be up in 2021. “The disruptions that occurred this year didn’t cancel any projects. It put them on hold,” says President and Co-Owner Hector Villarreal. “In fact, it sped some of them up. But ultimately, I think a lot of projects that were put on hold are going to come back online with next year’s budget and we’re going to see an increase because of that. I think a lot of people have been very conservative in their buys, just buying what they need. And I think a lot of people have pushed that as far as they can and at some point there has to be a restock.” Villarreal notes that since the pandemic, many companies, including Weldcoa, have become very mobile in the new environment. The company introduced its Weldcoa Wednesday training videos as a way to stay in touch with customers while remaining socially distant. “I believe that if you’re not already creating value through digital resources, you’re behind the eight-ball now,” he says. “We were ahead of the curve, so when COVID hit, we just presented it in a different way and ramped it up and turned that content into webinars.” Villarreal believes that we are at a time that calls for government interaction to stimulate the economy and that if that happens, the economy and the industry will rebound quickly in 2021. Check out the video interview on the GAWDA Media YouTube channel.

As the pandemic subsides, SafTCart is hopeful that its sales division will be able to take a more hands-on approach with customers in 2021. This will lead to an expected 5-10% growth, according to Marketing Manager Ann Elizabeth Upchurch. “People wanting normalcy will greatly impact their spending habits in 2021,” she says. “We are continuing to see an improvement as things begin to get back to normal. We hope capital budgets from the majors will increase this year.” SafTCart continues to bring innovations and new products to the forefront and believe these innovations will help grow its business in the future. It continues to focus on the package gas industry and growing its business through distributors. 2021 will be a level year for Cavagna North America according to David S. Ellis, Vice President, Sales and Business Development, Compressed Gas Division. Capital spending curtailment and an appetite for improved profits preventing growth strategies from gas companies will both hinder growth in the new year. Ellis also believes that the increasing pricing of global brass and copper will continue into 2021. “In 2020, our sales improved in the medical space,” says Ellis. “At this point, we believe the necessary assets are in the field, so we see no continuation of improved medical sales, even if the

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virus surges again.” Cavagna plans to launch a new line of compressed gas regulators in the second half of the year. Says Ellis, “The VIPR (valve integrated pressure regulator) continues to grow in North America. Gas companies in this market are realizing the benefits that their global counterparts have taken advantage of for years.” While Buffalo, New York-based Dynabrade, Inc. saw its sales decrease in 2020 compared to 2019, the company determined that it had gained market share against its competitors. That, combined with the fact that the company’s welding channel outperformed Dynabrade’s other channels, leads Welding Supply Channel Manager Lexi McDermott to forecast a 20% growth in 2021, as Dynabrade continues to gain in market share. “Thankfully, a majority of this industry is deemed essential to keeping our country open and running,”” says McDermott. “Due to this, we believe that our sales will remain neutral in the start of 2021, with strong positive growth later this year.” Dynabrade is planning to release at least ten new tools or configurations in 2021. “We are constantly working on improving our current offerings and developing new tools and accessories to meet market needs,” McDermott says. “We know that GAWDA distributors sell into a wide range of end users, some way outside of the industry and we want you to know that we can support you in all of them. Being newer to GAWDA, we are looking to add distributor partners in 2021. We feel that the right distributor partner, with proper training, is a great extension to our market reach.” Check out the video interview on the GAWDA Media YouTube channel.

John Kaylor, President of Abicor Binzel USA, projects a robust 20% growth for the company in 2021, believing that COVID will be in the rear-view mirror by the end of the second quarter. The pandemic set Abicor Binzel USA back from its five-year plan and Kaylor believes that the economy will see more of a U-shaped recovery returning to 2019 levels by the beginning of 2022. The company has product launches planned for 2021 which will help contribute to the expected growth and it continues to see growth in markets like weld fume control from increased regulations and awareness of welder safety. One other thing that the company is keeping its eye on is the impact of the current tariffs on China and changes in the U.S. administration. Adding new customers and increased sales on the medical side will lead to a 12% increase for ICS Industries, Inc., according to President Kevin Shanks. The company has increased its resources on the medical side due to the pandemic, which has aided in growth and which Shanks expects to continue to Winter 2021 • 47

2021 BUSINESS FORECAST SUPPLIER MEMBERS

grow through 2021. Shanks also notes that the propane market has been increasing for the past several years, serving as a growth market for ICS. Continued COVID-related restrictions leads Cosen Saws North America Director of Sales Kent Hughes to forecast a level year in 2021. Hughes notes that, in addition to the threat of continued restrictions, transportation costs continue to rise. “We’re forecasting cautiously for the first half of the year and then rebounding in the second half,” says Hughes. “We just opened a warehouse in Canada and we will put more focus there and in Mexico.” Hughes notes that he is concerned about a delayed economic impact that has not been seen yet due to COVID and the prolonged shutdowns. “Our customers who are into medical oxygen and medical gases have done okay this year, but the industrial business has been down dramatically,” says Kaplan Industries Executive Vice President Jim Johnston. “Our expectation is that as we get through the year next year, that demand is going to come back and there is going to be a need for additional cylinders.” That returning demand will help propel Kaplan Industries to a 5-10% increase in 2021. Kaplan is very excited about a new 15,000 sq. ft. facility that it is building that is expected to come online in the middle of 2021. The building will house more inventory, allowing Kaplan to continue to be a “just-in-time” supplier. Johnston expects a modest U-shaped recovery in the early part of the year but once we get past March, he expects the recovery to pick up steam. Kaplan recently started doing more with extraction gases for cannabis, and that segment of the business has been growing dramatically. The company believes it will continue to be a growth market going forward. Check out the video interview on the GAWDA Media YouTube channel.

“We are looking at an increase well into the double digits, as the growth we were experiencing pre-COVID continues and North America gets back to business,” says Exocor President and COO Paul Kinsella. “Everyone should see a recovery, as the underlying business environment is good.” Kinsella expects that the end of 2020 and possibly Q1 2021 will be slightly sluggish, as people gradually return to normal, but predicts that the latter three quarters of the year will be very strong. DataWeld Incorporated expects to see a 5% increase in 2021 on the back of its new product offerings. “We have been able to close business because of our ability to perform our software installations without having to travel to the distributor site,” the company says. “We expect our software business to expand in 2021. We are looking to hire people and will be releasing new products.” The company notes that 48 • Winter 2021

consolidation has had a big impact on its business but that it has slowed down significantly in the last three years. It hopes that consolidations don’t increase in 2021. “We are feeling positive and optimistic about the economy returning to a more normal environment in the second half of 2021.” Cody Patrick, National Accounts Manager at Gas Equipment Company, predicts sales to be level to up 8% based on key account activity and price increases. “With the increase of price on raw goods and high demand of cryogenic equipment, I expect sales to increase sizably over the course of 2021,” he says. “As in recent years, prices have increased by 2-5% annually. Given the instability of the global market and fluctuating costs of raw goods, we expect volatile trends to continue until the economy is stabilized.” Patrick notes that GEC experienced significant growth over the course of 2020 even through the turmoil of COVID-19. He notes that, regardless of socioeconomic changes, the gases and welding industry always finds a way to stay relevant. Patrick expects the economy to come back strong after the introduction of the vaccine but notes that there is much that remains uncertain as we continue to discover the long lasting impacts caused by COVID-19. Citing the lingering effects of COVID-19 on the economy, David W. Bell, President of WITT Gas Controls LP expects sales to decrease by 10% in 2021. In addition to the impact of the virus, Bell notes that increased consolidation by the major gas companies may have an adverse effect on supplier business as well. Though COVID will impact 2021, Bell says that he anticipates a V-shaped recovery for the five-year forecast. He says, “WITT always has new products to introduce, plus we will plan to increase staff if business permits.” A niche industry that has growth potential for WITT is food processing, specifically Modified Atmosphere Packaging (MAP), which Bell predicts to continue to grow at a double digit rate until 2024. The million-dollar question for WITT, and, indeed, the entire economy is, “What will the post COVID-19 economy look like?” Dave Bent, President of EvolutionX U.S., Inc. predicts sales to increase by 50% in 2021, with the biggest factor in that growth being the acceleration of B2B eCommerce adoption by distributors and their customers. “I would expect eCommerce-based sales for distributors to grow by an average of 10% of total sales for hard goods with some distributors seeing greater than 30%,” Bent says. EvolutionX plans to add staff through the year and it recently merged with a digital marketing agency called Spinstak. The new business will enable EvolutionX to offer an eCommerce platform combined with digital marketing services for distributors.

2021 BUSINESS FORECAST SUPPLIER MEMBERS

The COVID-19 pandemic slowed All Safe Global’s growth forecasts, but President and CEO Matt Boettner expects a rapid recovery in the economy by Q2. He forecasts a 10-15% increase for ASG for the year, citing the macro effects from vaccine deployment and the trend towards outsourcing cylinder service and recycling work. “Multi-region gas suppliers are working to consolidate their cylinder requalification work with fewer vendors,” Boettner says. “Labor cost increases and availability are putting pressure on margins.” The company is actively seeking to acquire additional requalification companies in the new year and beyond. Boettner also cites gas equipment for craft beverages as a strong niche market that should rebound well from COVID. “There is no point ignoring the fact that 2020 was the most peculiar year, in every aspect of life. We were extremely fortunate to still very nearly hit our target,” says FIBA Technologies Business Development Manager Andy Evans. “We have some further challenging targets for 2021. If we can hit them, we will be doing very well.” Evans notes that many in our industry produce “must have goods.” “These are not luxuries. What we do underpins the vital sectors, such

as food, health and construction. Because those sectors are vital, our products are needed.” In 2020, FIBA expanded its Pennsylvania and Louisiana service locations. Additionally, it expanded its vaporizer manufacturing in Kentucky. This year, it has plans for further expansion and broadening of its manufacturing to include Ohio. He concludes, “There is no doubt that 2020 saw the serious arrival of hydrogen globally. Of course, 2021 will see this sector grow, though this can no longer be seen as a ‘niche market.’ We’re proud that FIBA and other great American companies are leading the way in the hydrogen sector.” While Evergreen Midwest Inc. President Tom Cregan expects sales to increase by 2-3% in 2021, it comes with the caveat that business was off by 18% in 2020. Cregan expects to see a U-shaped recovery and specifically cites work stoppage issues related to the pandemic as the biggest hindrance to stronger growth. He also says that, “The new change in presidential administration will greatly impact the corporate tax rate and regulations in a negative way.” Evergreen Midwest continues to sell into the cannabis market with CO2 and Butane products, which will continue to be a growth market for the company.

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“Business returning to normal and a sales force able to reconnect with customers,” will lead C K Worldwide to a 5% growth in 2020. As others have noted, C K has seen a growing increase in consolidation of distributors. Still, the company expects to see a V-shaped recovery in the economy, though it is a bit more conservative in its short-term projections. “We are looking to launch two new products and hope this will allow us to have productive contacts with our current distributor base and encourage a focus on our product range,” the company says. It notes that this is all contingent on a successful vaccine rollout and resolution to the pandemic. “With the availability of several different COVID-19 vaccines next year, as well as pent up consumer demand and a new administration in the White House, the outlook for manufacturing and the U.S. economy in general is looking much brighter,” says MPT Industries President Michael Trubea. MPT will see an increase of 18% in 2021 on the wings of that optimism. “All businesses appear to have experienced a major setback earlier this year when the virus first spread throughout the U.S. Although businesses like ours, which supply essential products or services have since rebounded

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to some extent, there will be plenty of room for growth in the next 1-5 years as the U.S. economy expands and the world economy continues to reopen. The recovery will be U-shaped for our business, as well as the industry,” says Trubea. The company hopes to release new products in the second half of the year that have been in development for some time, which will expand MPT’s product line and help it gain market share. Computers Unlimited/TIMS Software will see an increase of 15% this year, according to Director of Sales & Marketing Doug Iversen. “CU has seen a significant increase in the adoption of newer technologies,” Iversen says. “While the trend started before COVID-19, the pandemic has complimented the rate of adoption as well. E-commerce and online shopping (rather than in-store), and the use of mobile/smart devices for deliveries enabling touchless - and paperless - deliveries, curbside or at traditional delivery locations are key factors with the increased interest. Distributors are realizing increased sales opportunities and enhanced customer services, as well as lowering the cost of transitions and deliveries. We expect the trend to continue since distributors are under pressure to do more with less through the pandemic. There is a paradigm shift

2021 BUSINESS FORECAST SUPPLIER MEMBERS

underway with consumers’ expectation of access to product, as well as how they want product delivered. Consumers are forming new habits through the pandemic, and those habits will continue to a new normal post-pandemic.” Iversen notes that CU is encouraged with the shift from off-shorting to on-shoring manufacturing and production and the potential that brings to the domestic gas and welding suppliers. Beyond 2021, the company has several development initiatives that it is excited to bring to market. “The feedback from existing customer-users has been very positive,” he notes. “Increased market share through repeat business from distributors that have purchased our equipment and realized the quality, built in standard features, and after the sale service that we offer is unmatched,” will help drive Eleet Cryogenics to a continued double digit growth target in 2021, according to VP of Sales Doug Morton. Morton notes that he has seen some companies exit the cryogenic equipment manufacturing business in recent years if it was not their core focus or strength. He feels that Eleet is well-positioned to continue to service this segment. He notes, “We provide medical oxygen cryogenic bulk systems, so as a critical provider, this area has

been busy. We have seen some of the industrial business be held up; although it appears to be coming back strong. We expect to see continued growth and will reinvest to be a solid provider to the distributors as needed for the long term.” The company is continuing to expand and add new products in 2021, which will positively impact the business as Eleet positions itself to be a value-added equipment provider. Morton concludes, “We have some very unique and durable delivery units, whether our ‘Dura-Bulk’ microbulk delivery vehicle or the ‘Scorpion’ portable trailer mounted unit that we anticipate continued growth based on the positive feedback from the market.” EQUIGAS, Inc. General Manager Rafael Arvelo forecasts 25% growth in 2021 based on four factors: market share gain, adding sales force inside and outside, new strategic alliances, and new products available for 2021. “April and May of 2020, and now December 2020, have been really good months, thanks to the high demand of products like tanks, valves, regulators, hoses, etc.,” Arvelo says. “EQUIGAS is also forecasting an increase of some equipment for CO2 service, due to the storage and transportation of the Pfizer vaccine. 2020 was a really good year for EQUIGAS and we are expecting 2021 is going

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to be even better!” EQUIGAS plans to increase it sales staff to go along with the new products added to its portfolio this year. It also added an expansion to its warehouse in December 2020, which increased storage capacity by 60%. “The biggest enemy of our outlook is the uncertainty,” Arvelo says. “Not so much political but the time of going back to normal. As the indicators show we are still in a strong and solid economy. But we need the faith and the strength of Americans to stay united, to keep working hard nonstop, and staying safe with common sense, which nowadays is not too common.” Check out the video interview on the GAWDA Media YouTube channel.

A combination of COVID, interest rates, taxes and a restriction on travel will temper growth this year. However, Wally Anderson, Sales Manager for The M.K. Morse Company, still projects 6% growth in 2021. Anderson expects to see a positive sales increase in welding and gas distribution. He says that M.K. Morse has added a new warehouse/distribution center/weld center in California that should help aid in growth for the U.S. market. “We are really focused on GAWDA distribution going into 2021,” says Anderson. “We have aligned our agencies and direct sales teams to focus on this business model and its sales teams keeping the GAWDA distributor end-users in play for our activities. I believe the U.S. economy will drive sales growth as we continue to buy ‘Made in the USA’ across the country.” Flange Wizard Inc. will look to rebound after a down year in 2020, says Owner/CEO Bob Doan. “Let’s get this virus conquered and open the door for more travel and conventions,” he implored. “We need to see more boots on the ground pounding the pavement.” Doan notes that COVID brought what had been robust growth to a complete halt and is hopeful for a rapid recovery. One industry that has been strong in recent years, especially during the Trump administration, has been ship building. Doan hopes that the incoming administration doesn’t halt those recent gains. He says, “We need to keep the American made motto moving forward in the years ahead.” Director of Sales for Western Enterprises Cheryl Sinclair expects to see a growth of 10% as the company and the industry rebound from 2020. Western Enterprises will introduce new products this year that will help make that forecast a reality. However, Sinclair points to continued tariffs, price increases, raw material increases, and rising hourly labor wages as factors that could constrain growth. Still, Sinclair notes that the new product launches could have a more than $10 million impact in the next three years, even in the midst of a U-shaped recovery. Datacor, Inc. is projected to increase its 2020 sales by 10% according to VP of Sales Dan McCusker. “COVID caused 52 • Winter 2021

uncertainty in 2020. 2021 will offer more stability,” McCusker says. “COVID also exposed the need for digital technology, which we offer.” McCusker expects to see an increase in M&A activity and does not see the work from home trend being reversed even as the virus recedes. He notes that the company will make back all of its losses and more from 2020, so he anticipates a V-shaped recovery. “So much will come down to the effectiveness of the vaccine and the perception of the masses with respect to COVID-19,” he notes. Check out the video interview on the GAWDA Media YouTube channel.

With the advent of the vaccine and the need for cold storage, dry ice will play a role in an expected 12% growth for TOMCO2 this year. “We’ve already seen most of the recovery,” says VP of Sales and Development Jeff Holyoak. “However, the industrial gas markets still lag, so I’d say we’re in store for a U-shaped recovery. Timing is the issue, I’m not sure anyone can be sure how fast or how slow it will occur. But there is pent up demand for growth.” In addition to its dry ice business, continued market penetration and cost competitiveness will be key growth drivers for TOMCO in 2021. “As the market gains confidence that an end to the pandemic is nearing, CAPEX spending will flow much faster,” Holyoak says. Check out the video interview on the GAWDA Media YouTube channel.

Washington Alloy Co. expects to see a 10-15% increase this year, says Vice President Wade Valentine. “We are seeing increased demand for several our flux cored products,” Valentine says. “As business continues to grow in a post-pandemic world, we expect to see nice growth in this product line.” Valentine notes that Washington Alloy “experienced quick reversal from the pandemic, with growth in Q3 and Q4” and will look to carry that momentum into the new year. The company plans to expand its offering of Exxon-approved material in 2021, which will allow new opportunities for the company in markets that were otherwise unobtainable. “We are excited about our lineup of metal cored wire, and believe our newly improved product will allow us to more aggressively help distributors target end users who may benefit from this application.” Direct Wire will also see sales rise by 10-15% according to President Eric Laubach. The company had a down year in 2020 due to the COVID pandemic, but expects to rebound to 2019 numbers plus 10% in 2021. The company also expects to see oil and gas pick up, in addition to putting the pandemic in the rearview mirror. Laubach notes that the price of copper is increasing and may hit its highest number in years, especially as China

2021 BUSINESS FORECAST SUPPLIER MEMBERS

continues buying more copper. He sees a V-shaped recovery for new products, with current welding cable sales expected to see more of a U-shaped recovery. He is excited about new products that Direct Wire will be introducing this year, which will take the company into new markets and help grow the business. Direct Wire has been working in recent years in green markets such as wind, solar and battery, which have been growth drivers. “I coordinate the activities of a dozen of the industries larger, independent, family-owned distributors,” says The Thompson Group Principal Ken Thompson. “I look at them individually and as a business segment. While we are generally all similarly impacted by outside events, each company responds differently depending on a number of factors directly impacting them. It’s fair to say that COVID has impacted all. Revenues fell sharply in late 1Q and all of 2Q, 2020. Rebounds began, to different degrees through Q3, and into Q4. Generally, all will end calendar 2020 about where they began in January 2020 - most consider that as positive given the circumstances. We all see moderate revenue growth in 2021, but a lot powered by pricing actions by suppliers. Consolidation among all segments will probably pick up in 2021.

A combination of alternate channel competition by aggressive e-commerce players, anticipated restrictions on face-to-face interactions driven by end users, has all evaluating the new appearance of sales and marketing teams. Budgets to support sales and marketing will be reviewed to be sure the customer relationship can be maximized. Consolidation of major gas suppliers has realigned some relationships and independent distributors and increasing their logistics capabilities to have better control over supply options. Distributors who managed to adjust to changing circumstances during 2020 will continue to do things that are working to satisfy customers. Those who struggled, will likely do no better; and some of those will not survive. Very few feel that 1Q 2021 will see any marked improvement – just continuing momentum for those already experiencing it. Confidences based on vaccine coverage, and its affirmative impact on business will likely run into 3Q 2021. Simply stated - NO MAGIC BULLETS IN EARLY 2021.” With the promise of a COVID vaccine soon to be widely available, Precise Equipment Company President Dennis Daugherty expects to see a 20-30% increase in 2021. The economy will see a V-shaped recovery, according to Daugherty, even as raw material

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costs continue to rise due to tariffs. The company has new product releases scheduled for 2021, which will help Precise attain those growth targets. A niche market that has proven to be a growth market for Precise is indoor agriculture. Precise has been able to sell carbon dioxide equipment into that market. Daugherty also points to the continued growth of research centers and ongoing health care expansion as growth industries for Precise. Though the fallout from COVID deterred the forecast slightly, an expected V-shaped recovery in 2021 will help drive CO2Meter to an expected 20% increase, according to Director of Marketing Morgan Morris. “COVID is continuing to impact our in-person opportunities and is having an impact on specific key industries, such as hospitality, restaurant, and beverage,” she says. However, emerging trends like CO2 capture, COVID and CO2 monitoring near vaccination storage, pharma, welding, and industrial gases continue to shape the company’s focus. CO2Meter has new products planned for 2021, with a welding focus, which will help contribute to the 20% growth projection. Other markets that continue to be growth drivers include: pharma, agriculture/cannabis, beverage, and industrial. Jim Wallick, Global Director of Sales-Abrasive Division, at Mercer Industries a Division of Champion Cutting Tool Corp., anticipates a 10% growth in 2021. The company recently was purchased by Champion, which opened up new opportunities for the company to cross-sell into. Wallick also expects the economy to improve as people get vaccinated and go back to work. Other trends that might potentially impact growth are the price of oil and the overall health of the economy. For 2021, Wallick expects to see a U-shaped

recovery, with things getting back to normal as we distance ourselves from COVID-19. Kurt Johannes, Director, National Distribution, SaintGobain Abrasives (Norton/Carborundum) forecasts a growth of 15% in 2021. The company was able to weather 2020 with no layoffs in its field sales force or manufacturing facilities. Says Johannes, “As the economy bounces back from the pandemic, we are positioned to supply solutions and products to end-users through our distributor partners without missing a beat.” Saint-Gobain has plans for several new product launches and an expansion of product lines, which will allow the company and its distributor partners to gain profitable market share. “The reduced production during the pandemic allowed time for improvements in our manufacturing facilities and improving productivity. Our development of new products has now slowed, allowing our forecast to remain robust,” says Johannes. Ratermann Manufacturing will see an increase in sales in 2021, according to CEO George Ratermann. “COVID-19 had a major impact on our team in 2020, but we are optimistic for a strong recovery in 2021,” he says. The company is most excited about its new Houston facility, along with expansion plans and services that it has ready to roll out in 2021. Says Ratermann, “We are really enjoying helping our customers who are serving in new markets like cannabis, beauty, beverage and cryotherapy.” Ratermann is excited to return to a sense of normalcy and hopes that in-person meetings can resume in earnest in 2021. “There is so much value in the GAWDA seminars and events,” he says. “Getting back to being able to network and learn with our industry will be fantastic!”

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2021 BUSINESS FORECAST AMERICAN WELDING SOCIETY

WELDING Industry Outlook BY GARY KONARSKA, EXECUTIVE DIRECTOR AND CEO OF THE AMERICAN WELDING SOCIETY (AWS)

uring times of crisis, good business leaders control the factors they can, adapt readily and plan for life post-crisis. Our industry successfully controlled its destiny by ensuring that welding, cutting and related companies were deemed “essential businesses.” As a result, comparatively more workers retained their jobs. One might think the pandemic temporarily alleviated the shortage of skilled welders, but it actually exacerbated it in many instances, such as when one person testing positive required an entire department to self-isolate. Lack of a stable workforce has hindered organizations that might have otherwise been able to capitalize on opportunities. If companies were not serious about automation before the pandemic, the labor and supply chain disruptions we’ve experienced should have prompted them to dip their toe in the automation water. The same holds 56 • Winter 2021

true for harnessing the power of IoT and data-driven solutions to reduce the burden of time-consuming administrative tasks and eliminate sources of human error. For those who have not attended their AWS Section meeting recently, 2021 provides an opportunity to attend a virtual Section meeting, a new component in AWS’ multi-year digital transformation. Since travel concerns will remain for at least the first half of the year, our suite of online courses provide an immersive experience while learning remotely, while the AWS Online Educational Library (eLibrary) offers 24/7 access.

CERTIFICATION When it comes to essential services, few are more critical than AWS’ Profession Certification programs, led by the flagship Certified Welding Inspector (CWI) program. AWS and its test partner, Prometric, resumed certification testing in June of 2020. By November, testing

levels had reached about 80% of normal levels. In 2021, the primary issue will be capacity limitations and social distancing requirements at test facilities. “After a year where many employees made sacrifices, supporting certification attainment is a great method of investing in employees,” says John Gayler, Senior Vice President, Welding & Technology, AWS. “Companies can show they are serious about raising performance levels and standardizing on skill sets for a position.” Specifically for distributors, the new AWS Certified Welding Sales Representative (CWSR) program provides sales fundamentals and offers unbiased training to understand customer pain points and solutions and opens a path to become a CWI (some distributors now hire CWIs to differentiate themselves). Other new AWS credentials include the Certified Resistance Welding Technician (CWRT) and the

2021 BUSINESS FORECAST AMERICAN WELDING SOCIETY

WPQ1, or Welder Qualifier Performance Endorsement, a supplemental credential available to CWIs and Senior CWIs. “Building up stacked credentials is a trend that cuts across all industries,” says Gayler. “And state and federal workforce initiatives have been emphasizing certification more and more. AWS is aligning its efforts by designing stand-alone certification and endorsement programs focused on industry-specific needs. Modularizing certifications addresses the professional development needs of specific industries, such as pipeline, piping, construction, transportation and aerospace.”

EDUCATION In response to COVID-19 travel limitations, AWS Education & Training launched a two-week online CWI seminar to prepare attendees for each of the three parts of the CWI exam virtually (AWS also offers an eight-week online CWI seminar). Each attendee receives a replica set of welds, a visual inspection tool kit, study guides, and relevant welding codes and standards (e.g., D1.1). The course instructor augments their computer camera with an overhead camera, allowing participants to follow along at home. “If you don’t want to participate in a synchronous online training with a live AWS instructor, you can purchase the AWS CWI Pre-Seminar package or an online code clinic to study for Parts A and C of the exam, respectfully,” says Alicia Garcia, Director of Education & Training, AWS. “The online seminars appeal to those who can’t afford the travel costs, can’t take time away from their household or need the flexibility of taking a course during the workday or in the evening.” New seminars launching in 2021 include an 80-hour (two-week) in-person CWI program. New training releasing in the coming year include a course

Our industry successfully controlled its destiny by ensuring that welding, cutting and related companies were deemed “essential businesses.”

focused on solution selling, designed to teach sales representatives how to identify and reconcile a potential client’s needs by using a problem-led approach to the sale of products and services, as well as courses on career readiness for those entering the field and a training to support the new ISO Endorsement are also set to roll out in 2021.

THE NEXT GENERATION In the first quarter of 2021, AWS will begin a recruitment campaign targeted at 18- to 34-year-olds. “The Take the Torch campaign creates a new membership option targeted at young professionals,” says Cassie Burrell, Senior VP, Marketing & Membership Development, AWS. “Our messaging focuses on a path for growing their skills, connecting with peers on the AWS Member Network and receiving career and technical guidance from industry veterans.” To promote AWS corporate membership, AWS will add more benefits for sustaining companies. Currently, bonus benefits include choosing an additional 10 individual memberships or access to the eLibrary, which has roughly 160 standards. “Beginning in February, sustaining companies will have the option to pay $2,020 for a hard copy of the eLibrary,” says Nici Banks, Director of Membership, AWS. “We are also launching a series of invitation-only virtual round-tables.

Available to sustaining companies, the first round table, held in Q1 2021, focuses on the current state-of-the-industry.”

EVENTS After a more than year of social distancing, the welding industry is ready for in-person events. The first AWS event will be FABTECH Mexico, which has been moved out to June 8 to 10. New for 2021, FABTECH shows in Chicago will be held in September instead of in November. The move provides more time to close deals in the calendar year, eliminates Thanksgiving and hunting season conflicts and provides a chance to enjoy warmer weather. “We are confident about FABTECH 2021 because the introduction of a vaccine was a City of Chicago prerequisite for holding conventions,” says Matthew Rubin, Director of Expositions, AWS. “That said, transparency and flexibility are king in times of uncertainty. Last year we gave customers the option to receive a full refund or the ability to transfer their money to a future year show, and we plan to implement assurances for FABTECH 2021.” Perhaps because AWS depends on the contribution of volunteer members who are giving by nature, our organization maintains a positive outlook. We see the first rays of light shining with the vaccine introduction and look for our industry to return to pre-pandemic levels of activity beginning in the second half of 2021. Winter 2021 • 57

2021 BUSINESS FORECAST COMPRESSED GAS ASSOCIATION

Compressed Gas Association Looks Forward to 2021 BY RICH GOTTWALD, CGA PRESIDENT & CEO

n response to the ongoing impacts of the COVID-19 pandemic, the Compressed Gas Association (CGA) continues to shift how we operate. We are committed to meeting our members where they are in this moment – whether they’re working from home, in the office, on the road, or on the manufacturing floor. As we move into 2021, we will continue to focus on providing industry leadership in support of our safety mission, while adopting new ways to effectively get our work done and best serve our members, our valued partners including GAWDA, and the compressed gas industry as a whole.

THE FIGHT AGAINST COVID-19 CONTINUES We at CGA continue to take action, coordinating with our members as well as government agencies in the U.S. and Canada, and sharing new resources to aid in our industry’s ongoing response to COVID-19. We remain committed to working with all members of the industry to aid in efforts to serve the needs of customers, while striving to keep employees, vendors, end users, and all others across our supply chains, safe.

DRY ICE SUPPLY FOR COVID-19 VACCINES Some COVID-19 vaccines require storage and transportation at extremely low temperatures. Dry ice (solid carbon dioxide) is needed to reach and maintain those temperatures. The majority of carbon dioxide (CO2) and dry ice in the U.S. and Canada is produced by member companies of the Compressed Gas Association (CGA). According to CGA members, the current production capacity for carbon dioxide and dry ice is expected to be sufficient to meet anticipated demand from vaccine manufacturers. There is also potential capacity to increase production and distribution of dry ice for COVID-19 vaccines, if needed. Our industry is committed to supporting the need for dry ice in the U.S. and Canada, due to the COVID-19 pandemic. To help spread the word about dry ice availability for COVID-19 vaccines, CGA published the article, Compressed Gas Industry Expects Sufficient Dry Ice Supply for COVID-19 58 • Winter 2021

Vaccines in U.S. & Canada, and the related Dry Ice Fact Sheet in November 2020. We have since fielded extensive media inquiries about this issue. CGA will work closely with our members to monitor this developing situation, and may publish additional resources as more information about demand and supply of dry ice for COVID-19 vaccines becomes available.

WE CONTINUE TO UPDATE OUR ONLINE COVID-19 INDUSTRY TOOLKIT The industry toolkit we launched in Spring 2020 to aid in the industry’s COVID-19 response, continues to be updated (see https://bit.ly/CGACOVID-19Toolkit). In this toolkit, we provide news, resources, links, and other critical information related to COVID-19, to assist all members of the industrial, medical, and food gases industry in your response efforts during the pandemic. In the toolkit, we publish content focused on U.S. and Canada government news and resources at the federal, state/ province, and local levels, as well as CGA news and resources. We will continue updating the toolkit in the coming months, as critical information becomes available. One key resource remains available to all, free of charge: CGA P-83, Guidelines for Cleaning Externally Contaminated Medical Gas Containers. As healthcare providers around the world continue working to assist patients affected by the Coronavirus Disease 2019 (COVID-19), medical gas containers can become externally contaminated due to their use in healthcare facilities. It is important that these cylinders are cleaned in a manner that removes contaminants, does not cause damage to the cylinder, valve, or gas product, and does not lead to a hazardous situation during the use of the container’s contents. It is the customer’s responsibility to return to the gas supplier medical gas containers that are free from contamination. CGA P-83, Guidelines for Cleaning Externally Contaminated Medical Gas Containers, provides guidance on considerations

2021 BUSINESS FORECAST COMPRESSED GAS ASSOCIATION

required to avoid compromising medical gas containers during cleaning and disinfection procedures. In order to facilitate safe cleaning of medical gas containers, CGA is providing P-83 at no charge during the COVID-19 pandemic (all CGA Safety Alerts are also available for free). To make CGA P-83 more readily available for all, we have published it directly to our public website, where it can be easily downloaded (see https://bit.ly/CGAP-83Info). We also provide this related safety alert: CGA SA-35, Safety Alert, Cleaning of Cylinders Returned from Healthcare Facilities During a Pandemic

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We’re Developing an Extensive Line of Safety DRY ICE CAN CAUSE DIRECT CONTACT WITH LESIONS, BURNS, SEVERE FROSTBITE, SKIN E. Posters DEEP FREEZING OF TISSU OR ATE PRI WEAR APPRO SUCH AS E PROTECTIVE GLOVES TIV USE YS TEC ALWA PRO PERSONAL LE DRY ICE. In order to provide new industry WORK GLOVES TO HAND E) (PP EQUIPMENT employees and end users with the S (CONVERTS TO AS DRY ICE SUBLIMATE PRESSURE BUILD-UP information they need to safely inCARBON DIOXIDE GAS), IGHT CONTAINER TO CAN CAUSE AN AIR-T RUPTURE OR EXPLODE. teract with our members’ products, NEVER STORE IN AN CONTAINERS DESIGNED USE WELL INSULATED R BUILD UP TO STORE AIR-TIGHT CONTAINE TO PREVENT PRESSURE we continue to expand our series of DRY ICE. free safety posters and related product DRY ICE CAN CREATE IMPROPERLY DISPOSED SPHERE, CAN POSE A HAZARDOUS ATMO information. ANIMALS, AND AND NS HUMA TO THREATS TS. CAN ATTRACT INSEC In 2020, we published new end user ENSURE PROPER ORATE (SUBLIMATE) ALLOW DRY ICE TO EVAP D, IN A WELL-VENTILATE DISPOSAL OF DRY ICE TO THE ATMOSPHERE . AREA RED safety posters and related online safety SECU information on the topics of home oxyCGA G-6.9 gen safety; safe use of liquid nitrogen in CGA G-6 food and beverage service environments; safe handling of dry ice; and the mediAccess and download cal oxygen supply chain. In December, CGA’s safety posters: we began work on a new series of communications tools on www.cganet.com/resources/safety-posters/ the safe use of compressed gases in the cannabis industry, as well as a new poster on precautions for liquid nitrogen use in cryogenic therapies. In 2021, we will continue expanding this Access CGA’s Online COVID-19 library of safety resources for end users on additional topics. Industry Toolkit: CGA also offers an expanding set of industrial safety posters https://bit.ly/CGACOVID-19Toolkit aimed at explaining basic safety concepts to anyone new to SCAN HERE FOR MORE INFORMATION OR VISIT

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handling compressed gases and related equipment. Winter 2021 • 59

2021 BUSINESS FORECAST COMPRESSED GAS ASSOCIATION

Each poster is provided as a scalable PDF file, enabling users to print the size they need. The posters are also designed for easy co-branding: GAWDA members can add your company information to the “supplied by” box at the bottom of each poster, then share this valuable training resource with your customers. We encourage all GAWDA members to take advantage of these invaluable free resources, to help ensure that all those who come in contact with our industry’s products, may do so safely. For more information and to download these safety posters, see: https://www.cganet.com/resources/safety-posters/. We’ve Added More Titles to Our eLearning Library Our eLearning library also continues to grow. In August 2020, we published 2 new training modules: • CGA TM-7, eLearning: Introduction to Compressed Gas Cylinder Valves • CGA TM-8, eLearning: Oxygen Safety These training modules joined 6 existing titles in the CGA eLearning library: • CGA TM-1, eLearning: Safe Handling and Storage of Compressed Gases • CGA TM-2, eLearning: Safe Handling of Acetylene Cylinders • CGA TM-3, eLearning: Safe Handling of Cryogenic Liquids in Portable Containers • CGA TM-4, eLearning: Filling of Uninsulated Carbon Dioxide Cylinders • CGA TM-5, eLearning: Filling of High Pressure Medical Oxygen Cylinders • CGA TM-6, eLearning: Filling of High Pressure Industrial Gas Cylinders Each of these innovative training modules is designed to provide a helpful resource for employees who may need more coaching in how to safely handle and work with compressed gases. We will continue adding new titles to this library in 2021. As a reminder, these training modules are included as a benefit in the CGA-GAWDA partnership. Participating GAWDA members gain free access to this eLearning library for their employees.

SERVING OUR INDUSTRY’S MEETING NEEDS – VIRTUALLY By mid-2020, in response to the challenges and risks of the COVID-19 pandemic, we transitioned all CGA meetings, seminars, and other historically face-to-face events to an online format. In early July, we launched CGAConnect 2020 – of60 • Winter 2021

According to CGA members, the current production capacity for carbon dioxide and dry ice is expected to be sufficient to meet anticipated demand from vaccine manufacturers. fering a full slate of online webinars, meetings, and seminars through the end of the year. From mid-August through late September, we partnered with GAWDA to co-host the innovative 2020 Young and Emerging Professionals Summit – a series of 10 online events that drew record-breaking numbers of industry participants from around the globe. We also transitioned the long-running CGA Safety & Reliability of Industrial Gases, Equipment, and Facilities Seminar into a highly successful online event that drew almost twice as many participants as its equivalent in-person seminar in 2019. CGA staff are developing another full calendar of virtual events for CGAConnect 2021, which will continue to offer technical and professional development content in a virtual format. These events will again focus on advancing participants’ technical knowledge, while fostering cross-industry collaboration and networking. Making Progress on the New Online Handbook of Compressed Gases In order to best serve industry members’ needs in as flexible and responsive a manner as possible, CGA continues in our effort to transition the CGA Handbook of Compressed Gases from a traditional textbook to an interactive online tool. The Handbook includes 13 chapters on topics such as gas safety, regulations, valves, cylinders, containers, bulk shipments, and delivery system equipment as well as monographs for more than 60 gases. Each monograph includes chemical information, physical constants, vapor pressure curve, description, uses, physiological effects, methods of shipment, containers, and other important information on compressed gases. Through late 2020 and early 2021, CGA members will continue working in focus groups to define the features and content for the newly re-envisioned online Handbook tool. Their primary mission is to identify critical functionality and characteristics for an online tool. Specific updates to text content for Handbook chapters and gas monographs will be developed at a later stage of the project.

2021 BUSINESS FORECAST COMPRESSED GAS ASSOCIATION

OUR ESSENTIAL WORK IN SAFETY PUBLICATIONS DEVELOPMENT CONTINUES The essential work of our committees remains strong. Safety standards development continues at a pace on par with previous years’ production – and CGA’s total library of safety publications has now grown to almost 360 titles. In 2020, we also submitted 10 new petitions to regulatory authorities in the U.S. and Canada to align regulatory requirements with industry best practices.

WE’RE EXPANDING OUR ROLE IN THE HYDROGEN ENERGY REVOLUTION In recent years, climate change and the growing need to decarbonize the global economy have increased the importance of hydrogen as it moves from primarily industrial uses to more consumer level applications. In response, CGA’s expanding our leadership role in hydrogen to focus not only on industrial uses, but also at the near-consumer level, including on hydrogen mobility. CGA members are global leaders in the production, storage, distribution, and application of hydrogen and other industrial

gases. And while we have an extensive library of hydrogen-related safety publications, we are bringing our unique expertise to the development of new standards for emerging applications in the hydrogen-powered transportation space to ensure our members are at the forefront of this energy revolution. CGA will increase our thought leadership and technical expertise in transportation, particularly hydrogen fuel cell electric vehicles (FCEVs). Senior level personnel from CGA member companies, together with CGA staff, are assessing existing hydrogen safety information and regulations, identifying gaps where current literature is inadequate to address hazards in the production, storage, transport, and use of hydrogen, or where regulations impede its expanding use – and implementing plans to fill those gaps. We invite companies operating across the hydrogen supply chain – in the production, transport, storage, and use of hydrogen – to consider joining CGA. Come work alongside your industry colleagues, as we help write the future of the hydrogen revolution, while preserving the safety of our employees and communities.

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2021 BUSINESS FORECAST VACCINE DISTRIBUTION

Operation Warp Speed & Dry Ice BY JOHN CAMPBELL AND MAURA GARVEY

e all experienced hardship and some real loss during 2020 with COVID-19. However, our industrial gas business pitched in to the treatment of COVID with strenuous efforts by providing significantly increased O2 to hospitals during the surges in cases and hospitalizations. That additional O2 assisted in treatment of the terrible patient breathing affliction with increases in O2 respiratory therapy and with higher volumes softening the very difficult intubation procedures. That O2 service will continue with the second surge well into 2021. In mid-December, the fast development of the first COVD vaccines by Pfizer-bioNTech (Pfizer) and Moderna became reality as part of Operation Warp Speed (OWS) with the rollouts of the two mRNA vaccines. The challenge of those vaccines was that both were to be produced and distributed through a Cold Supply Chain; Pfizer’s ultracold at -94 F and Moderna’s at -4 F. In addition to O2, the industrial gas industry includes CO2 and Dry Ice and many other gases in our industry scope. Dry Ice has a working temperature of -109 F and excellent heat absorption attributes that fits nicely into Pfizer’s refrigeration plans. Coincidently, Ken Thompson is joining Intelligas Consulting as part of the expansion of our Gases & Welding Distributor supply chain activity. Because 62 • Winter 2021

the U.S. Distributor Type Business (DTB) is an increasingly important part of merchant U.S. CO2 and Dry Ice supply, our team decided to focus on the Pfizer Cold Supply Chain’s requirements for Dry Ice. Part of that was to understand the whole supply chain and to develop and document as much detail on Dry Ice demand and supply requirements. We have gained a good understanding of the demand and are now developing Dry Ice sourcing detail expecting that intelligence to be of value in the first and second quarter of 2021 when the complexities of the Pfizer Cold Supply Chain become more apparent in serving the U.S. hinterland. As part of Welding & Gases Today’s 2021 Forecasting Issue, we thought it useful to describe the Cold Supply Chain from a Dry Ice perspective in case that background would be useful to the DTB’s participation in Dry Ice supply. OWS is a government-private sector enterprise under the overall direction of the U.S. CDC and DHS that has been planned and is being executed as if it were a military campaign. In fact, four-star Army General Gustave Perna is the chief operating officer of OWS. The development and testing of both mRNA vaccines took place at a speed few thought possible in the beginning of 2020. Those developments are quite complex and the supply chain of the vaccine production materials and support

equipment and systems is a big story itself. We will discuss the Cold Supply Chain of the vaccines and the huge supply of vaccination “kit” from production to vaccination sites. Those points of use (POU) started out as major hospitals, nursing homes and other sites of critical health care providers, plus patients and residents of those sites and older folks of over 65 to 75 depending on the State. While the responsibility for the supply chain to the state is planned and allocated federally by OWS, the supply chain within the state is planned and executed by the state in concert with the individual state’s transport system. The vaccine production from Pfizer includes the mRNA genes from Andover, MA, and other production materials from St. Louis, MO, with assembly, testing and freezing of high quality glass vials of vaccine in Kalamazoo, MI. The kit to support the vaccination includes needles and syringes, saline solutions, alcohol swabs, and gloves. The Pfizer vials of vaccine contain 5 doses at -94 F, with 17-21 days required between the first and second dose. As agreed with OWS, Pfizer is handling the planning and execution of its supply chain from production all the way into the POU’s because of the challenges of controlling the ultracold vaccines and managing that difficult Cold Supply Chain. Maintenance of the -94 F temperature is critical, and any warming of the vaccine leads to

2021 BUSINESS FORECAST VACCINE DISTRIBUTION

rapid deterioration. The basic hold time at -94 F is 30 days. If a container of the vaccines is opened, the vaccines can be maintained in the box for up to 5 days. Without make-up Dry Ice to maintain the ultracold temperature, the vaccines spoil. The initial Pfizer rollouts of December 19, 2020 were by truck to aircraft to truck delivery to 635 POU’s with 2.9 million doses into all 50 states, a few territories, and some critical major cities, all in three days. The Moderna vaccines are produced in MA and NH with packaging for delivery performed in Bloomington, IN. The Moderna vials hold 10 doses. The first and second doses have an 18 day separation. An important point is that the hold time in standard drugstore type refrigeration at 36 to 46 F for 6 months, a distinct advantage for the Moderna vaccine. On the distribution supply chain, Moderna and OWS agreed that Moderna’s vaccine would be managed by McKesson, the largest middleman in the pharmaceutical business. Later vaccine producers would also be managed by McKesson. Moderna was considered too small to handle the complexities of a large supply chain project. Also, the staging of additional vaccine players to the advanced Pfizer and Moderna programs would require complex real-time communications and management. McKesson has handled routine and emergency pharmaceutical supply chains for years and planned and managed the semi emergency of the last H1N1 flu vaccine distribution in 2009/10. That experience and a comprehensive existing contract with McKesson resulted in the OWS award to McKesson. Both the combination of OWS, Pfizer, and McKesson chose FedEx, UPS, and DHL to handle the primary trucking and air transport through their company owned truck and aircraft fleets. FedEx will handle the Western U.S. and UPS the East. Primary supply to

large POU’s (hospitals, federal penal institutions, pharmacy chains of CVS and Walgreens, etc.) will be direct by FedEx and UPS. Secondary supply from the primary hubs of FedEx and UPS will be contracted to other experienced secondary trucking firms. The several FedEx and UPS supply chain hubs are equipped with and manage advanced remote communications systems that track delivery conditions and locations and temperatures by container. Several UPS hubs now have Dry Ice making machinery for loading and make up of Dry Ice when needed and to supply customer requirements when useful. While FedEx currently sources hub Dry Ice requirements, they are planning for production of Dry Ice. Both player hubs are considering more advanced

containers for handling ultralow temp refrigeration requirements. All of this planning and performance of advanced technology was originally planned for rollout in 2025 but has been accelerated because of COVID requirements. The Supply Chain for both the Pfizer and Moderna vaccines from to POU’s uses specially designed thermal containers to contain the vials of the vaccines. The vaccination kits are assembled and delivered separately from their assembly points to the same POU’s. Detailing Pfizer and its requirement for Dry Ice, each vaccine special glass vial contains five doses at -94 F. The vials are packed into trays about the size of a pizza box, with the tray containing up to 195 vials. Five trays are packed into a specially designed highly insulated carton packed

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with about 50 lbs. of refined dry ice. That provides a max capacity per Pfizer shipping carton of 4,850 doses, or about .0105 lbs/dose (.164 oz/dose) for a shipper volume of DI. That equates to roughly 5 tons of Dry Ice per 1 million doses of Pfizer vaccine. If Pfizer could supply all of its commitments of 600 million doses in the U.S., including its purchase volume options, in 2021, that would represent a carton packing requirement of 3,000 tons of Dry Ice. Let’s assume that the initial real Dry Ice volume requirement were to need a total round up system volume of three times that initial volume to handle losses and spoilage, refrigeration make-up at hubs and POU’s, and other supply chain inefficiencies. If that were true, that would require a total Dry Ice supply of 9,000 tons and a requirement two times that volume or 18,000 tons of LCO2 to feed that Dry Ice production, including conversion losses. Over a 250 day year, that would amount to 70 – 75 tons/day of LCO2 which is a small fraction of estimated U.S. total deliverable production of 25,000 tons per day (tpd). Note that UPS has hub Dry Ice capacity of 14 tpd of Dry Ice making capacity, requiring purchases of 26 tpd of LCO2. If the whole requirement were 10 times the above model’s requirement for the U.S. COVID rollout, that would amount to a 750 tpd total LCO2 required for COVID vaccine or 3% of U.S. production.

U.S. LCO2 AND DRY ICE BUSINESS At the end of 2020, U.S. nameplate (NP) LCO2 capacity from about 118 plants reached 36.4 thousand tons per day (ktpd), an increase of 1% from 2018, but only about 0.5% per year over the past five years. This capacity growth is not keeping up with CO2 demand, which is growing closer to 2.5% per year in food and Dry Ice applications. Annual 64 • Winter 2021

FIGURE 1 U.S. CO2 DEMAND BY APPLICATION – 2020 Oil Fracture 6%

H2O/Waste Treatment 8% Dry Ice 4%

Fire/Other 4%

Welding 8%

Chilling 27%

Dry Ice (Food) 9%

Freezing 20%

Beverage 14%

production of liquid CO2 (LCO2) is about 10.2 million tons per year. The result is tight supply, with an 86% capacity utilization due to times of planned and unplanned plant outages and seasonal demand spikes and price increases. Five new sources with a total of 1,600 ktpd came onstream in 2019 and 2020. However, since 2018, several sources were idled, shut down, or had reduced feedstock due to COVID. In late spring 2020, with the economy shut down and less automobiles on the road, 40% of Ethanol plants were idled. A small percent of those plants were supplying CO2, causing a sudden tight supply situation in April that had LCO2 suppliers and the food processors struggling to ensure food processing plants had enough supply to keep operating. That foreshadowed the concern for the Dry Ice in the planning of the Pfizer vaccine distribution, then forecast for early 2021. The merchant CO2 market is serviced by a complex supply chain where some companies are fully integrated in the CO2 supply chain from crude to pure to liquid

distributed to end-users and distributors. Other companies buy crude from crude suppliers to produce and deliver LCO2 with some producing Dry Ice. Many are strictly distributors. As a product, CO2 is delivered in several forms, including as compressed gas in cylinders and liquid as bulk by tanker and micro-bulk, and a significant volume as solid Dry Ice. In terms of the U.S. markets for all modes of CO2 supply, food and beverage comprises almost 70% of the higher purity merchant CO2 supply as shown in Figure 1. This segment includes beverage carbonation and chilling, freezing and transport of food products. Dry Ice falls into this category in the form of blocks, pellets, and snow. The industrial sector takes about a 30% of the U.S. market, for welding, water treatment, fire systems, blast cleaning, production of legalized cannabis, and oil field services like well workovers. Growing cannabis is a new fast-growing market, legal in 11 states and the District of Columbia for medical and recreational use. Similar to helium, CO2 is a byproduct

2021 BUSINESS FORECAST VACCINE DISTRIBUTION

of a main supplier’s operations, so understanding the dynamics of the industries supplying the feedstock is critical to understanding CO2 supply. The majority of U.S. merchant CO2 is sourced from hydrocarbon conversion facilities where the primary product is ethanol, ammonia, hydrogen, and Wells/EOR as shown in Figure 2. This makes sourcing risky due to supplier planned and unplanned maintenance, supplier market conditions, and weather. The acquisition of Airgas by Air Liquide in 2016 and the acquisitions of non-industry players EPCO by Air Products and Continental Carbonic by Matheson have made the major industrial gas players the dominant U.S. capacity shareholders of the merchant segment. Airgas and Matheson are the largest producers and suppliers of U.S. Dry Ice. Non-industry players have increased their share of the merchant CO2 business over the past 5 years from a 9% share to a 13% share. Reliant has a 7% share of CO2 production capacity after their acquisition of Flo CO2 and 2 spin-off plants from the Air Liquide acquisition of Airgas. Poet acquired Ethanol Products and has a 5% market share. Other small companies account for another 2% share. We expect to see growth in the non-industry players going forward in this very important and profitable CO2 market. Current CO2 production of Dry Ice from primary producers of LCO2 and Dry Ice manufacturers is 1.2 million tons per year (tpy), requiring 2.0 million tpy of LCO2 because of the loses in conversion from LCO2 to ice. As shown in Figure 3, the primary U.S. producers of Dry Ice are Airgas (Air Liquide) and Continental Carbonic (Matheson), with Reliant and numerous distributors of varying size also producing Dry Ice from their own LCO2 production or from purchased LCO2. The

FIGURE 2 U.S. CO2 CAPACITY BY SOURCE – 2020 Other/Cogen 4%

Ammonia 22%

Ethanol 35%

Wells/EOR 25% H2/Refining 14% Merchant CO2 NP Capacity = 36.40 ktpd

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2021 BUSINESS FORECAST VACCINE DISTRIBUTION

FIGURE 3 INTELLIGAS CONSULTING ESTIMATE OF U.S. DRY ICE PRODUCTION AND SERVICE LOCATIONS DRY ICE LOCATIONS COMPANY

PRODUCTION

SERVICE

Industrial Gas (IG) Industry Matheson (CC)

Airgas (AL)

Reliant

Others (small/medium)

200

350

Subtotal

245

470

Non IG Others

230

Total

320

700

LCO2/DI supply sides of the industrial, medical and specialty gases distributors supply bulk and cylinder CO2 and DI to a wide variety of Dry Ice users. In addition to the primary producers of the industrial gas industry where Dry Ice is produced and delivered from LCO2, there are many sources of Dry Ice from non-Industrial Gas (IG) companies including: • Specialized Medical and Specialty products distributors supplying the Healthcare and Institutional Medical, Food Processing and Delivery, R&D, Laboratory, etc. businesses, • Refrigeration requirements of many recreational activities, and • Transportation distribution companies such as UPS and FedEx that will be significantly involved in the distribution of Covid-19 vaccines. We expect to have a more detailed view of Dry Ice availability from the industrial gas DTB players and the dry ice providers in more specialized businesses like medical materials & equipment suppliers, those in specialty R&D supply, entertainment systems, etc. in early 2021.

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2021 BUSINESS FORECAST ITR ECONOMIC OUTLOOK

A Year of Recovery Leading to More Growth on the Horizon The U.S. is poised to recover from the economic fallout caused by COVID-19 BY STEVE GUGLIELMO AND BRIAN BEAULIEU

AWDA Chief Economist Brian Beaulieu is renowned throughout GAWDA for his clear-eyed forecasting and straightforward presentation. As CEO of ITR Economics, his track record for forecasting our industry is unmatched. At GAWDA Conventions and SMCs, his presentations are widely anticipated and GAWDA members have spoken at length about how they use the reports from ITR Economics in their own company projections. Throughout this year, which will come to be remembered for the havoc that COVID wreaked on our economy, Brian and his team have said at every turn that our businesses would recover quickly. His message for 2021 is one of optimism, as Brian expects to have a year of recovery, followed by a return to growth in 2022. Brian was gracious enough to be interviewed for the Forecast Issue and share his insights about the state of the economy and its impacts on GAWDA members.  Welding & Gases Today: It has been a difficult year. Can you talk about some of the things you will be discussing at Convention, next year, if you can plan that far ahead? Brian Beaulieu: We will be continuing to track COVID, and most importantly the economic fallout from COVID. That will vary from Governors who are reticent about opening up their economies further, to states that have really seen a significant decline in their revenues, and that will have a local impact as well as having industry-wide impacts in terms of construction and infrastructure. For most of us, though, the bottom line is that as long as they let us move about the country, to borrow a Southwest Airlines expression, the economy is poised to go. Right now, today, all the leading indicators are pointing upward. Retail sales are running above year ago levels. The only thing holding us back is fear of COVID or Governors shutting us down. So, the sooner we can get a viable vaccine 68 • Winter 2021

out there and into people’s hands, the sooner we’re really going to know what normal feels like again. But we think that won’t be until 2022. We have recovery until 2022, but we don’t see real growth in the economy at large until 2022. WGT: You said in a presentation this year that the forecast was “assuming, and contingent on, not having a second prolonged shut down.” So, now that we’re kind of going into that second wave period that you just mentioned, more restrictions are being put in place, but not quite to the level where were in April, does that change the calculus for next year? BB: It does not change the calculus because there was a word in the mix that you just mentioned and that was “prolonged.” The headlines say, “Michigan shuts down!” or “New Mexico shuts down!” But when you read the articles it’s for two weeks. There is no prolonged about it. We’re just trying to get through Christmas. We shut down until mid-January. And also, we’ve all learned how to do business without being in the office, to varying degrees, of course. So, it doesn’t change the calculus yet because we’re not seeing the same draconian steps, and we’re not seeing that they are prolonged closures. WGT: There is a phrase that has become popular during the pandemic that I was hoping you could put into some perspective. That is, “The stock market is not the economy.” Can you explain what that means and if you agree with that line of thinking? BB: I don’t agree with it in that the stock market is reflecting economic realities. To the extent that people don’t understand that or can’t see that, it’s because they’re looking at the wrong

2021 BUSINESS FORECAST ITR ECONOMIC OUTLOOK

realities. Where I can agree with that statement, though, is that you and I might go about living our lives no matter what the stock market did today or did last week. It doesn’t have a big impact on the vast majority of us. We’re going to do what we want to do, when we want to do it, regardless. So, to that extent, it’s not the economy. WGT: I don’t want to beat a dead horse, but every four years we talk about how the elections don’t really matter. This year, though, it seems like with the COVID crisis, there are really divergent opinions on the best course of action between the two candidates, as far as restrictions. Do you feel that this year it matters more than most or is it still overblown? BB: I do think that this year it does matter more than most for the reason that you stipulated. Here is the thing, though. The President does not have the constitutional authority to shut down state economies. The Governors only have that authority. So, there will be more pressure coming from Washington. And Washington can surely influence the decision making. But a President Biden could not enforce his will across the states. And even when it comes to a mandatory mask rule for the country, he can’t enforce that. He does not have that power. The Governor of Missouri has already said, “With all due respect, Missouri will decide if it wants to participate in that and we are not inclined to do so, right now.” So, there is a lot of bluster and maybe hope, but the ultimate reality is far from clear. I think a lot of our members can breathe a sigh of relief with what we call an “unaligned Congress.” We’ll have a Blue oval office and a Purple Congress. (Editor’s note: This interview took place before the Georgia runoff elections.) That means a lot of the tax changes that the Biden team campaigned on probably won’t come to fruition for at least two years. That increases a sense of stability. It’s almost business as usual. And that’s good for all of us. WGT: After the 2008 Recession, there was all of this talk about a “New Normal” and best practices that were put in place during that time that really, with the benefit of hindsight, we ended up being better off for having implemented them. Do you see something similar happening once this is behind us? That there will be best practices that were put in place during COVID that will end us benefiting us down the line? BB: I really do. They range from the simple, like, “Gosh, Mom was right. I should wash my hands and not sneeze on people.” But also, COVID has really accelerated the e-commerce trend.

It was obviously alive and well before then, but my charts show that it has clearly been accelerated because of COVID. And some industries will clearly gain from that phenomenon. That is going to become very apparent, just in the next two years. Overall non-residential construction is about to enter its own decline that will last well into 2022. But warehouse construction and other logistics type construction is beginning a brand-new rising trend. Two starkly different outcomes. And so, it depends on which side of the “new norm” you are on. I wouldn’t want to be owning an office building, but I sure would want to be involved in storage facilities, warehousing, etc. WGT: I spoke with a member who phrased it in a way that I thought was interesting. He said it, “Just accelerated trends that were already going to happen. So, things that might have happened in five years are happening now.” He mentioned e-commerce, like you did, as well as automation. So, these are all things that you expect to continue and accelerate? BB: Expect them to continue, yes. But the distributed workforce, I’m not sure that’s going to accelerate. I’m not sure we’ll see e-commerce continue at the same pace that we’ve seen in 2020. When a natural disaster changes a trend, it can leave a lasting mark that you can’t extrapolate from what happened during that national disaster. WGT: We always talk about potential growth markets in the next five years. Obviously, this year being one for the record books, has that introduced new potential growth markets that maybe you didn’t think about prior to 2020? BB: Yes. And I’m not sure how much it’s related to simply COVID. COVID seems to have been an additional impetus. We did a lot of work on onshoring or reshoring. That trend is very real. Seeing companies shorten their supply chains and that means bringing more of their supply chain, not all of it, back into the United States is real. Between the Trump tariffs, Obama tariffs, COVID-19 and Biden’s attitude toward it all, those trends are probably going to accelerate over the next several years. That’s an area that will be laden with opportunities for people who are aware of it and constantly scanning for that in their industry and in their locale, as long as they have it on their radar. It’s not a one-off when it happens. It’s part of a bigger trend. continued on next page

Winter 2021 • 69

2021 BUSINESS FORECAST ITR ECONOMIC OUTLOOK

WGT: You mentioned the tariffs. Do you foresee a Biden administration continuing or abiding by the trade deals that were negotiated under the Trump administration? BB: We are assuming that for the big ones, like the one with China, it’s pretty much going to remain as is. If you’re talking about our trade relationship with Iran, that’s likely going to change. One matters a whole lot more than the other, obviously, in terms of near-term economics. Just looking at the Biden platform, he’s determined that environmental issues and human rights are going to be a factor in all of his decisions. And on those two scores, for instance, China does very poorly. So why would he want to change what President Trump has set in motion? I don’t know that he would want to. WGT: You said last year that he might be a little bit less bombastic about it, but you still expect some of those barriers to continue to be erected. BB: Yes. Certainly, less bombastic, but yes.

I would say, stay U.S.-focused, U.S.-centric, and bet on the U.S. to continue to carry the day. WGT: The USMCA, that is one that shouldn’t be impacted? BB: I don’t think so, at all. It’s really a well-done treaty. We see no economic reason or political reason to pull out of that. WGT: I like to finish each interview with an elevator pitch. If you were in an elevator with one of our members and you had 30 seconds to give your best piece of advice, what would it be? BB: It would be an overarching thought and it would be this. The U.S. isn’t done being number one. Our ascendency is not finished. We’ve got the tools to make this happen for a lot longer. Demographics, rule of law, natural resources. China is going

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through the zenith of its time in economic history. It will be increasingly dependent on being a military power rather than an economic power. Everything that we see going on here that we’ve been talking about does not bode well for China. But it does bode well for the United States. I would say, stay U.S.-focused, U.S.-centric, and bet on the U.S. to continue to carry the day. WGT: Anything we didn’t touch on that you think is important to mention? BB: Just one more brief thing that I learned when doing the research for a webinar we hosted yesterday. It feels like we’re an extremely divided nation ready to tear each other apart. I think a lot of that has to do with social media. When you as the everyday person out there, which is what Pew Research Center has done, that animosity isn’t any more amped up than it has been over the last 10 to 11 years. It’s just louder because of social media. But I don’t think the hardcore feelings are there for ordinary people. And I take great comfort in that.

Winter 2021 • 71

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

ITR FIRST QUARTER OUTLOOK

Why We Prefer Looking at the Economy “By the Numbers” BY BRIAN BEAULIEU

sychologists have a term that explains why bad news seems to fill the media bandwidth and capture our attention. It is called “negativity bias” and it includes our collective hunger to hear and remember bad news. A study done at McGill University in Canada demonstrated this trait exists in people that report they prefer “good news.” The negativity bias is thought to be present because we are wired to be ever mindful of threats and have a need to react. The need to assess risks and react accordingly is certainly a trait of business leaders. However, managing for the future with this negativity bias and the always present cacophony of media inputs can result in delays, missed

opportunities, loss of market share, and/ or loss of profits. Taking emotion and emotional bias out of the analysis yields improved results. The outlook for 2021 is one of rise. That is what the data is telling us.

DISPOSABLE PERSONAL INCOME Disposable Personal Income (DPI) is the total after-tax income received by persons; it includes transfer payments. The data charted below is adjusted for inflation. It is fundamental to the economy because, after paying taxes, it is what we have left to spend, save, invest, and give away. The trend segments highlighted by the

two circles show the dramatic difference between our current circumstance and the Great Recession. The chart shows that the economy is in a totally different position now than it was at the time of the Great Recession. We don’t need to wait for DPI to begin rising again; this time it is already elevated. Notice also that the DPI trend pre-Great Recession was relatively flat. The pre-COVID trend was above the long-term trendline. This economic fundamental was in a superior trend before the pandemic struck. We are not in the post-recession period of needing to refill the coffers. This puts us in a fundamentally better position to see the overall economy improve in 2021.

This content is exclusive to GAWDA Members. For more information on GAWDA and association membership, contact Andrea Levy: (844) 251-3219 / alevy@gawda.org U.S. Disposable Personal Income TRILLIONS OF 2012 CHAINED USD

18.000 17.000 16.000

15.000 14.000 13.000

12.000 11.000

10.000 9.000 8.000

'00

72 • Winter 2021

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ITR FOR GAWDA U.S. Unemployment Rate (NSA)

0.064 5

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Job Gap Vs. Pre-Covid SECTOR

JOB GAP VS. PRECOVID (THOUSANDS)

% OF TOTAL GAP

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all of them are already coming up from the depths of 2Q20 lows. The pain felt in the Restaurant and Retail sectors was expected; the large percentage attributable to Professional and Business Services was somewhat surprising. There are also 1.077 million fewer jobs under the heading of Total Government. The rest of the recovery in employment will take time. But the numbers show that the supply of talent in key markets is likely already tighter than you may think. Assess your people needs in light of a recovering economy and make your move accordingly.

This content is exclusive to GAWDA Members. -1,973

Restaurant

41.4%

-891 18.7% For more information on GAWDA and association -672 14.1% membership, contact Andrea Levy: -472 9.9% (844) 251-3219 / alevy@gawda.org

Professional & Business Services Retail Trade Healthcare Education

UNEMPLOYMENT This aspect of the economy seems to be particularly laden with emotion, with a strong negativity bias. The numbers are sobering, but unemployment has passed through the worst part of the trend, based on leading indicators, rising incomes, and the retail data presented below. The Unemployment Rate for November was 6.4%. That is down from a peak of 14.4% in April 2020. As encouraging as the latest number is, it is perhaps even more encouraging to see the slope of the trend and how it favorably compares to the last two post-recession periods. This is a strong indication that the economy is fundamentally healthier than it was coming out of those prior recessions. We think this means that concerns regarding a potential

-283

5.9%

“relapse” in the consumer’s ability and desire to spend are overstated. There frequently seems to be some confusion over the number of people unemployed. There are presently 10.264 million people who are unemployed (November monthly data, using the government’s standard U3 measure). This is down from the COVID peak of 22.505 million people. That is significant progress. The context for understanding the number is incomplete without a pre-COVID perspective. Using prior to COVID as a baseline (a time the economy was deemed to be at full employment) shows that there are effectively 4.761 million people out of work because of COVID. Many slices of the labor market are down from pre-COVID levels, but nearly

RETAIL SALES It is no surprise that Retail Sales are in a cyclical recovery/growth trend, given the positive movement in after-tax income and the declining level of unemployment. The chart below illustrates the rising trends in the 3/12 and 12/12 rates-of-change. The 3/12 ascending above the 12/12 is a positive ITR Checking Point™ signaling additional rise is probable. That outlook is confirmed by our system of leading indicators. The Retail Sales Table below shows that different aspects of Retail Sales are in different stages of cyclical recovery. Department Stores, the weakest sector on the table, Winter 2021 • 73

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. Retail Sales

are still in 12/12 Phase D (12/12 rate-of-change is below zero and trending lower). However, note that the Department Stores 3/12 is rising in Phase A, and the 3/12 level is above the 12/12. The momentum of decline is dissipating. The other segments are in varying stages of rise, with 3/12 rates-of-change running above zero.

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12/12 3/12

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This content is exclusive to GAWDA Members. SECTORS For more

12/12 PHASE 3/12 information on GAWDA and association membership, contact Andrea Levy: TOTAL RETAIL SALES 0.8% 4.8% B (844) 251-3219 / alevy@gawda.org

PHASE B

DEPARTMENT STORES

-14.2%

-11.9%

AUTOMOBILE DEALERS

-1.4%

5.5%

FURNITURE STORES

-4.2%

6.1%

WAREHOUSE CLUBS/SUPERSTORES

5.3%

5.7%

E-COMMERCE

28.0%

37.1%

AMAZON SALES

27.7%

40.2%

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ITR FOR GAWDA

SUMMARY CONCLUSION We have an economy poised to rise. We understand that there are hurdles to overcome in the timeline concerning COVID, disseminating the vaccines, and tamping down our innate negative biases. Given the economic trends developing, if the economy were to falter at this point, it would be due to COVID and not due to

a breakdown in economic fundamentals. But it won’t be the economy’s fault per se if rise is not part of your future for 2021. Some folks, in some markets, will need to pivot or fight for share in lagging, downward-trending markets. Challenges are ahead, but fortune favors the bold. Economically speaking, 2021 should be a Happy New Year!

CORE DASHBOARD 12/12 U.S. INDUSTRIAL PRODUCTION

12MMT/A

CURRENT 12/12

2020

2021

2022

-6.4

-8.0

4.8

2.5

HIGHLIGHTS The 3MMA is in its fourth month of rise. The 12MMA will commence rise in the first half of 2021.

This content is exclusive to GAWDA Members.

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS

-3.6

-2.6

6.5

2.6

We revised the forecast upward. Positivity is stemming from electronics and communications; machinery is down year-over-year.

For more information on GAWDA and association membership, contact Andrea Levy: Employment is recovering on a U.S. PRIVATE SECTOR monthly and quarterly (3MMA) basis -5.6 -6.6 2.9 2.8 EMPLOYMENT US Real Gross Domestic Product (844) 251-3219 / alevy@gawda.org asrises. U.S. TOTAL RETAIL SALES

0.8

-0.8

6.2

3.7

Retail Sales are running above the forecast range. Plan for overall rise in the Retail Sales 12MMT through at least 2022.

U.S. WHOLESALE TRADE OF DURABLE GOODS

-3.9

-5.6

5.6

Expect the Wholesale Trade 12MMT to be relatively flat in the near term, with sustained rise beginning in the first half of 2021.

U.S. WHOLESALE TRADE OF NONDURABLE GOODS

-4.9

-6.1

4.8

4.1

Wholesale Trade will decline into early 2021, then rise through at least year-end 2022.

U.S. REAL GROSS DOMESTIC PRODUCT (3/12)

-2.9

-2.2

1.3

The GDP 3MMA was revised upward for 2020 and 2021 and little changed for 2022.

Note: Forecast color represents what Phase the market will be in at the end of the year.

Winter 2021 • 75

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

LEADING INDICATORS ITR LEADING INDICATOR™

ITR Leading Indicator™

INDICATOR RISE PORTENDS 2021 UPWARD MOMENTUM FOR INDUSTRIAL SECTOR The ITR Leading Indicator™ rose in November, marking the fifth consecutive month of rise. The Indicator includes components from various sources; since the last update, one of those sources issued a revision to its historical data. This changed the amplitude – but not the timing – of the Indicator’s most recent low. Given a normal lead time, the Indicator’s trajectory suggests the U.S. Industrial Production 12/12 will reach a low in early 2021 and then rise into at least the second half of that year, in line with our forecast.

Production

Rates-of-Change

Leading Indicator

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This content is exclusive to GAWDA Members. For more information on GAWDA and association

U.S. TOTAL INDUSTRY U.S. Total Industry Capacity Utilization Rate membership, contact Andrea Levy: CAPACITY UTILIZATION Rates-of-Change Production RATE (844)15.0251-3219 / alevy@gawda.org UTILIZATION RATE 1/12 RISE RESUMED IN OCTOBER

Following two months of relative flatness, October marked a return to rise for the U.S. Total Industry Capacity Utilization Rate 1/12. Persistent rise in the Rate 1/12 bodes well for rise in the U.S. Industrial Production 12/12 starting early next year. The potential reinstatement of broad-based, state-level shutdowns and stayat-home orders continues to pose a downside risk to our expectations for Industrial Production.

76 • Winter 2021

Rate

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THE CONFERENCE BOARD’S U.S. LEADING INDICATOR INDICATOR 1/12 RISE SIGNALS INDUSTRIAL PRODUCTION CYCLICAL RISE INTO MID-2021 The Conference Board’s U.S. Leading Indicator 1/12 rose further in October, marking the sixth consecutive month of rise. The April low in the Indicator 1/12 will likely hold, barring a second wave of widespread shutdowns. The Indicator suggests the U.S. Industrial Production 12/12 could reach a low by early 2021, with the subsequent rising trend extending into at least mid-2021.

U.S. Conference Board Leading Indicator Production

Rates-of-Change

15.0

Leading Indicator

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U.S. ISM PMI (PURCHASING MANAGERS INDEX)

OVERALL PMI 1/12 MOVEMENT SUGGESTS 2021 RECOVERY TREND FOR INDUSTRIAL PRODUCTION

The U.S. ISM PMI (Purchasing Managers Index) 1/12 ticked down with November data. Such downward movement within an overall rising trend is not uncommon for the PMI. The previous six consecutive months of PMI 1/12 rise suggest that the U.S. Industrial Production 12/12 will rise from an early-2021 low into at least the second half of 2021, as forecasted.

Index

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Winter 2021 • 77

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

GAWDA EXECUTIVE SUMMARY/DASHBOARD GAWDA INDUSTRY INDICATORS CURRENT GROWTH PHASE RATE (12/12)

INDICATORS

HIGHLIGHTS

U.S. INDUSTRIAL PRODUCTION INDEX

Quarterly Production is rising; leading indicators herald sustained rise during 2021. However, Production won’t return to its prior peak level through at least 2022.

-6.4%

U.S. PROCESSED GOODS FOR INTERMEDIATE DEMAND PRODUCER PRICE INDEX

Barring widespread shutdowns, Prices will likely generally rise through the coming quarters as demand from the industrial sector picks up.

1.8%

U.S. CRUDE OIL FUTURES PRICES

Prices will generally rise into the latter half of 2021, though this sector’s competitive landscape will keep Prices relatively muted during that time.

-28.9%

Annual New Orders will generally rise through at least yearend 2022. Positivity is stemming largely from computers, electronics, and communication devices.

-3.6%

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS WITHOUT AIRCRAFT

This content to willGAWDA Rising is Copperexclusive Prices indicate that New Orders likely transition Members. D

U.S. ELECTRICAL EQUIPMENT NEW ORDERS

to Phase A, Recovery, in the first half of 2021.

-8.2%

For more information on GAWDA and association Forecast revised upward. contact Expect New Orders to begin rising in membership, Andrea Levy: U.S. FABRICATED METAL -4.4% the near term as the US macroeconomy recovers and prices PRODUCTS NEW ORDERS (844) 251-3219 / alevy@gawda.org generally rise.

U.S. DURABLE GOODS NEW ORDERS WITHOUT AIRCRAFT

New Orders transitioned to Phase A, Recovery in July. Leading indicator evidence suggests further cyclical rise is likely in the coming quarters.

-3.4%

ITR LEADING INDICATOR (MONTHLY)

The ongoing rising trend in the Leading Indicator signals that the US industrial sector will transition to business cycle rise in early 2021.

2.0 (Monthly)

Sustained economic recovery for the U.S. industrial sector is on the horizon. Leading indicator trends suggest that the majority of segments of the industrial sector will transition to Phase A, Recovery, within the next one to two quarters. Some, including U.S. Nondefense Capital Goods New Orders without Aircraft, have already made the transition and are gaining steam. We expect 2021 to be characterized by recovery. Though several European countries have reinstated shutdown orders (to varying degrees) in response to rising COVID-19 case numbers, U.S. governors

78 • Winter 2021

are generally prioritizing keeping state economies open; to date, only eight states have significant business closures. The COVID-19 vaccine may bolster U.S. businesses’ confidence in the bourgeoning economic recovery and incentivize investment in the new year. With the industrial economy on the brink of Phase A, Recovery, ensure your business is prepared for rise in 2021; acquire the capital and labor necessary to accommodate higher levels of activity next year.

ITR FOR GAWDA U.S. INDUSTRIAL PRODUCTION

U.S. Industrial Production Index Data Trend Index

Index

120

RECESSION

2020 2021 2022

-8.0 4.8% 2.5%

100.6 105.5* 108.1*

120

12MMA Forecast 12MMA 3MMA

110

* Index based to 2012 = 100. HIGHLIGHTS: ◼ We revised the forecast upward to account for stronger-than-expected performance in the third quarter ◼

Expect Production 12MMA rise by the first half of next year

◼

Leading indicators are in consensus for business cycle rise next year

The U.S. Industrial Production 3MMA rose for the fourth consecutive month in October but was 6.6% below the year-ago level. ITR Checking Points™ are signaling an approaching transition to Phase A, Recovery. As more data has emerged, and with businesses becoming more adept at operating in a COVID-19 world, we have seen a slightly stronger-than expected performance from the economy and are raising the outlook accordingly. We expect Production 12MMA rise will commence in early 2021 and extend through at least 2022. However, the 12MMA will remain below the pre-pandemic peak throughout that time. A myriad of leading indicators – including the ITR Leading Indicator™, purchasing managers indexes, utilization rates, and financial indicators – suggest likely Production business cycle rise by early next year. Downside risks include the potential widespread reinstatement of restrictions by state governors, some of whom have already moved in that direction. However, the FDA has approved a vaccine for COVID-19, suggesting that the need for such measures may soon be diminished.

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Management Note: Ensure your business is rightsized for 2021, as Production will be around mid-2018 levels.

Winter 2021 • 79

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS (EXCLUDING AIRCRAFT)

RECOVERY

2020 2021 2022

-2.6% 6.5% 2.6%

$723.7 billion $770.8 billion $790.8 billion

HIGHLIGHTS: The New Orders 3MMT was up 7.8% year over year

◼

We revised the forecast upward

◼

Positivity is being driven by computers/ electronics and communications; machinery is down year-over-year

Bils of $

U.S. Nondefense Capital Goods New Orders (excluding aircraft) Data Trend

300

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Please note: The way the U.S. Census Bureau has been accounting for the extraordinary, pandemic-related rise in canceled aircraft orders resulted in a disconnect between New Orders movements and what our clients in this space are experiencing. We adjusted the data internally in order to better reflect market conditions faced by GAWDA members. The most recent three months of U.S. Nondefense Capital Goods New Orders (excluding aircraft) came in 7.8% above the same three months in 2019. Our analysis suggests that the tentative July 2020 lows in the New Orders 12/12 and 12MMT will likely hold despite the downside threats to the capital goods sector. We revised the forecast upward to reflect our adjustment to the data and the likelihood that the tentative low will hold. We expect general 12MMT rise will persist through at least 2022. Our investigation into the component-level data isolated the most robust positivity to the computers/electronics and communications segments. Computers/ electronics are getting a boost from telework and remote schooling, while the

New on Orders (excluding aircraft) Rate-of-Change For more information GAWDA and association 20 membership, contact Andrea Levy: (844) 251-3219 / alevy@gawda.org

80 • Winter 2021

0 -3.6

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communications segment is benefiting from 5G-related investment. Conversely, U.S. Machinery New Orders are down 0.6% year-over-year on a 3MMT basis. Management Note: Due to the divergence in trends within the capital goods space, keep a close eye on end-market-level data in order to accurately assess your performance relative to your markets.

ITR FOR GAWDA U.S. CRUDE OIL FUTURES COMMODITY PRICES

U.S. Oil Futures Commodity Prices Data Trend $/bbl.

$/bbl. 120

120 3MMA Forecast 3MMA Actual

RECESSION

Dec 2020 Mar 2021 Jun 2021 Sep 2021

$43.08 per barrel $47.38 per barrel $52.41 per barrel $54.76 per barrel

HIGHLIGHTS: ◼ Prices rose a record 26.9% over the course of November

100

40.43

40 20

◼

Expect Prices to generally rise into at least 3Q21

◼

A relatively balanced supply-demand dynamic next year will likely keep the rise in Prices mild

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U.S. Crude Oil Futures Prices rose a record 26.9% over the course of November, ending the month at $45.34 per barrel. As of mid-December, Prices were generally hovering in the mid to upper $40s, slightly above our forecast range. Our forecast is unchanged. Expect Oil Prices to generally rise into at least the third quarter of next year. The Energy Sector SPDR ETF also posted a record increase in November, rising 28.0% as investors digested the potential impact of COVID-19 vaccination rollouts on oil demand and, ultimately, suppliers’ profits. At a December 3 meeting, members of OPEC+ agreed to a January output increase of 500,000 barrels per day, demonstrating confidence in the market’s ability to absorb such an increase. We expect that the oil production sector’s competitive landscape will keep Prices rise relatively muted as producers meet strengthening demand with additional supply.

Rate-of-Change For more information on GAWDA and association 80 membership, contact Andrea Levy: 12/12 Forecast Range (844) 251-3219 / alevy@gawda.org 12/12 40

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Management Note: Ensure you are well-positioned for generally rising commodity prices next year.

Winter 2021 • 81

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. STEEL SCRAP PRODUCER PRICE INDEX

U.S. Steel Scrap Futures Commodity Prices Data Trend $/GT

$/GT

900

RECOVERY

Dec 2020 347.00* Mar 2021 408.00* Jun 2021 422.08* Sep 2021 450.94* * Index based to 1982 = 100. HIGHLIGHTS: ◼ In October, monthly Prices were up slightly from September, and Phase A is holding ◼

Quarterly Prices will rise for most of 2021

◼

Rising Iron Ore Prices are contributing to upward momentum in Steel Prices

900

3MMA Forecast 3MMA Actual

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For more information on GAWDA and association Rate-of-Change U.S. Steel Scrap Producer Prices rose 100 membership, contact Andrea Levy: for a third consecutive month in October. 12/12 Forecast Range The Prices 3/12 was above zero for the (844) 251-3219 / alevy@gawda.org first time since early 2019. This signals that Prices 12/12 rise will continue, and that ongoing Phase A, Recovery, will segue into Phase B, Accelerating Growth, next year. The Steel Prices 3MMA will generally rise through the majority of 2021. Iron ore is a primary raw input for steel, and ore price swings can influence Steel Prices. U.S. Iron Ore Prices were not significantly disrupted by the global macroeconomic recession this year; the 3MMA is rising and in October was at its highest level in more than seven years. Rising input costs are contributing to Phase A, Recovery, in Steel Prices, which is occurring despite downward pressure on the trend from decreased industrial activity.

82 • Winter 2021

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Management Note: Pandemic-related restrictions are influencing the pace of global manufacturing recovery. Ensure your raw materials suppliers are geographically diversified in order to minimize disruptions and capacity constraints in the coming year.

ITR FOR GAWDA U.S. FABRICATED METAL PRODUCTS NEW ORDERS

U.S. Fabricated Metal Products New Orders Data Trend Bils of $ 150

$362.5 billion $377.8 billion $393.2 billion

HIGHLIGHTS: ◼ The forecast was revised upward ◼

The timing of the New Orders trough and subsequent peak are unchanged relative to the prior forecast

◼

Expect sustained rise in annual New Orders to begin in early 2021 and last into the second half of 2022

600

12MMT Forecast 12MMT 3MMT

RECESSION

2020 4.6% 2021 4.2% 2022 4.1%

Bils of $

125

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U.S. Fabricated Metal Products New Orders during the three months through October were down 2.3% from the same three months of 2019. Results were 4.0% above the forecast range in the third quarter due to stronger-than-expected recovery in this industry. We revised the forecast to account for the deviation, as well as for the upward revisions to our macroeconomic forecasts and commodity price outlooks. We revised the New Orders forecast upward by 9.3%, 12.4%, and 13.4% for 2020, 2021, and 2022, respectively. Annual New Orders will decline into early 2021 and then rise into the latter half of 2022. A number of leading indicators, including U.S. Small Business Expenditures Plans and U.S. ISM PMI (Purchasing Managers Index), suggest Phase A, Recovery, in New Orders will take hold in early 2021. Macroeconomic recovery next year will drive expansion in New Orders into late 2022.

U.S. Fabricated Metal Products

For more information on GAWDA and association New Orders Rate-of-Change 30 membership, contact Andrea Levy: (844) 251-3219 / alevy@gawda.org 20

30 20

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Management Note: Look to expand your market share by promoting your competitive advantage.

Winter 2021 • 83

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. Construction Machinery New Orders Data Trend

U.S. CONSTRUCTION MACHINERY NEW ORDERS

Bils of $ 15

Bils of $ 60

12MMT 3MMT

RECOVERY

HIGHLIGHTS: ◼ The New Orders 12MMT in October was 9.1% below the year-ago level ◼

We expect 12MMT rise to commence in the first half of 2021

◼

Upward momentum in mining utilization rates and oil prices bodes well for New Orders in the coming quarters

The U.S. Construction Machinery New Orders 12MMT came in 9.1% below the year-ago level in October. The 12MMT will decline into early 2021 before rising to a peak in the latter half of 2022. Subsequent decline will persist through at least the end of that year. Surface mining machinery is a component of New Orders; therefore, upward movement in the Support Activities for Mining Utilization Rate, taken in tandem with cyclical rise in U.S. Crude Oil Futures Prices, bodes well for New Orders in the coming quarters. In the most recent elections, voters approved a record 94% of state and local ballot initiatives for transportation improvements, amounting to an overall countrywide commitment of $14 billion. This bodes well for construction in the coming years, and thus for cyclical rise in New Orders.

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This content is exclusive to GAWDA Members. U.S. Construction Machinery New Ordersand Rate-of-Change For more information on GAWDA association 75 12/12 membership, contact Andrea Levy: 50 3/12 (844) 251-3219 / alevy@gawda.org

Management Note: Be on good terms with a banker; you need cash in this phase of the business cycle.

84 • Winter 2021

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SALES & MARKETING

Where is the Money in Your 2021 Business Plan?  BY MIKE MARKS, INDIAN RIVER CONSULTING GROUP

A Mike Marks is co-founder and managing partner of Indian River Consulting Group, a consulting firm to distributors and manufacturers. He specializes in helping distributors and manufacturers accurately diagnose problems and identify risk-bound alternatives. Contact him at mmarks@ircg.com or visit ircg.com.

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s the global pandemic marches on, small business owners might be looking at their 2020 business plan and wondering if it’s even worth putting a plan together for 2021. It’s tempting for business owners to want to stay light on their feet and be ready to pivot as things change. But companies that are accountable to shareholders can’t get away with that. Shareholders need to know what to expect and understand the risks they face in 2021. Despite the uncertainty of the markets, uncertain supply chains, massive changes in customer sourcing behaviors, and teams that are stressed and stretched, executives are responsible for getting the board a clear answer to maintain confidence in their executive team. Now is the time to return to the basics of planning: • Allocate resources as effectively as possible toward both threats and opportunities • Build numerical plans on resource deployments and expected returns • Review the period-ending results to measure variance to the plan Traditionally, planning for the year takes place annually in the fourth quarter. But making 2021 forecasts right now is as good as guessing and likelier to generate sizable variances that will only consume management attention for new action plans down the road as priorities change and the plan doesn’t. Extraordinary times sometimes call for unusual solutions. It’s time to consider scrapping tradition and replacing it with a rolling four-quarter business planning process. Here are two ways to implement a rolling plan for 2021:

THE TOP-DOWN 12-MONTH ROLLING PLAN The top-down plan is agreed upon in December for the next four quarters in 2021. Generated by executives by making a high-level best guess at the probable revenue and margin levels, the plan works in a couple variable scenarios by adding or subtracting value of about 20%. This plan varies from the traditional method because at the end of March 2021, the balance of the year is re-forecast and this becomes the updated plan. The values change based on circumstances and resources are reallocated based on results and market changes. Another high-level forecast is built and added for the first quarter of 2022, the subsequent year. The high-level plan is always looking 12 months out, but should remain flexible.

THE QUARTERLY ACTION PLAN Using this method, P&L managers create a plan for the upcoming quarter during the fourth quarter of 2020, rolling it up to the enterprise level. The two-part plan includes a 90-day forecast of the firm’s projected P&L results and an action plan detailing a series of measurable objectives, tasks and action items. This differs from the top-down plan by incentivizing those working directly with customers, understanding they will have more clarity around pending activities like the short-term order flow and forecasting revenue of their top customers. The action plan may allow up to three objectives per quarter. Objectives can last for multiple quarters and include actions such as: improving a financial metric, expanding the customer base, or launching a new product or service. Action plans

SALES & MARKETING with assigned tasks track small deliverables every month to mark achievement toward the objective. In March of 2021, managers will submit second-quarter plans for executive review and based on the achievements of

FEATURES

BENEFITS

the objectives from the previous quarter, may be forced to a decline in revenue. This plan requires the executive team to frequently make small, difficult decisions around resource deployments, like adding or reducing staff.

TOP-DOWN 12-MONTH ROLLING PLAN

QUARTERLY ACTION PLAN

A high-level plan developed in the executive office

Completed by P&L managers before sending up to executives

Makes a best guess at probable revenue and margin levels

Makes an action plan with measurable objectives, tasks and due dates

Tests boundaries with multiple scenarios with revenue value varying by positive and negative 20%

Projects a 90-day revenue forecast of expected P&L results

Analyzed by operating P&L managers and reviewed with owners for reasonableness tests

Differences between managers’ and executives’ plans are reviewed and resources are shifted to offer better returns

Incentives for leaders aren’t based on achieving planned results

Incentives for leaders are tied to achievement of numerical results and leadership must make difficult decisions around reducing staff and resources

Quick resource re-allocation based on quarterly results and market changes for a competitive advantage

SMART goals measure tasks and the success of objectives for leaders make a series of small decisions every quarter around resource deployments

Promotes sustainable growth rates and manages cash

Forecasts detailed revenue of top customers and suppliers by month

Protects covenants

Both executives and managers collaborate in designing the plan

Both the top-down and quarterly-action plans create frequent opportunities for a firm to cut their losses if needed. It may quadruple the planning work but will more quickly inform how to invest resources to generate returns that will pay off in competitive advantage.

PLANNING IS EVERYTHING Now, more than ever, is a moment for strong leadership. Leveraging this nontraditional framework of planning quar-

terly instead of yearly often means making hard choices and acting urgently when recognizing changes must be made. But shareholders deserve to know that although no one can predict what will happen in 2021, leaders are doing all they can to double-down on the planning process, ensuring resources are being allocated responsively to emerging opportunities and threats. Stay light on your feet but have a plan. As Dwight D. Eisenhower said, “Plans are worthless, but planning is everything.” Winter 2021 • 87

SALES & MARKETING

SEARCH ENGINE TRENDS

art of developing a comprehensive digital marketing campaign is understanding how customers and potential customers are using the Internet to find your products and your website. The graphs and information below all come from Google Trends, which analyzes the popularity of search queries in Google Search across various regions and languages. The graphs scale “Interest Over Time” which represent search interest relative to the highest point in the chart for the given region and time-period. So, a value of 100 is the peak popularity for the term.

for the Gases & Welding Industry BY STEVE GUGLIELMO

Another alternative is “Google Keyword Planner.” To use this tool, you must have a Google Ads account. The Keyword Planner lets you search keywords and suggests other words or phrases related to your products and services. It lets you research the trend information for how often certain words are searched and how those searches have changed over time and also gives you suggested bid estimates for each keyword so you can determine your advertising budget. In today’s digital environment, we strongly encourage members to capitalize on this growing trend and ensure that your company is visible in the place where people search the most.

DRY ICE

TOP RELATED SEARCH QUERIES • Average Search Volume has increased 210.5% YoY • Average Search Volume has increased 194.7% over the past 5 years

88 • Winter 2021

1. 2. 3. 4. 5.

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SALES & MARKETING PRICE OF STEEL

• Average Search Volume has increased 27.3% YoY • Average Search Volume has increased 17.2% over the past 5 years

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TELEMETRY

• Average Search Volume has increased 74.5% YoY • Average Search Volume has increased 82.2% over the past 5 years

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WORK FROM HOME

• Average Search Volume has increased 85% YoY • Average Search Volume has increased 236.4% over the last 5 years

TOP RELATED SEARCH QUERIES 1. 2. 3. 4. 5.

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SALES & MARKETING

Deliver a Better User Experience Through Your Website Amazon is killing it. Adapt these tips so you can too. BY BRIAN BLUFF, SITE-SEEKER, INC.

T Brian Bluff is the president and cofounder of Site-Seeker, Inc., an Internet marketing firm specializing in SEO, SEM, social media and web development, with a strong focus on the B2B manufacturing and distribution arena. Together with his brother, Eddie Bluff, vice president of key accounts, Brian has grown the company into a successful source of search engine and social media marketing solutions.

90 • Winter 2021

hroughout the pandemic, some companies have thrived, while others have struggled; but one thing is certain, the case for a better user experience has been given a shot in the arm. Outside sales teams have become inside sales teams; and customers that continue to work remote will help to keep it that way. Whether or not it’s logical that your business transact online, prospects expect to find the information they need on your website - without your help. The ability to advance the sales process toward, and perhaps including, completing an online transaction is now a requirement.

PEOPLE WANT E-COMMERCE/ONLINE OPTIONS The big e-commerce sites have a huge advantage when it comes to delivering a great user experience. They have access to the best technology and an endless sea of developers. However, that doesn’t mean that you shouldn’t try to put your best foot virtually forward. While the likes of Amazon are reaping the largest gains from this phenomenon, they are not capturing 100% of the increased ecommerce activity. People are looking for alternatives. If you are a gas and welding supply distributor, their customer, their supplier, or someone like you and me that want choice; recognize that as the pie gets bigger, the crumbs get bigger - and those crumbs are getting pretty big. Google Trends, one of my favorite data sources for recognizing change, shows that as the pandemic took hold in March 2020 and people were

forced to buy more online, a small, but growing portion of those people searched for alternatives to Amazon. In fact, that number has grown in nine of the past ten years.

WEBSITE USER EXPERIENCE - THE BAR HAS BEEN RAISED While consumers demand choice, most of us are not tolerant of a poor user experience. We use websites and apps in every aspect of our lives - checking the weather, getting news, buying groceries, and watching TV. We all know a good interface from a bad one, and the worst are tossed aside never to be used again. As an example, I recently regretted the purchase of an LG TV because I couldn’t add my favorite apps like HBO Max. My solution was to buy an Apple TV and completely bypass the LG interface. Because of LG’s failure to meet my expectations, they’ve lost the ability to monetize my TV experience through the showing of ads, purchasing of movies and subscriptions to different services. Before the pandemic, many of us had learned to live with flaws in our own site’s user experience. Broken links, clumsy navigation, inadequate content and features that didn’t quite work were common. Today, these deficiencies are not okay. They are literally deal breakers. Prospects rely on your website to describe your offering in enough detail, to allow them to make the decision to either place an order or reach out via live chat, a completed form, or by phone. To avoid death by back button consider the tips on the next page.

SALES & MARKETING

7 Ways To Improve Your Website’s

USER EXPERIENCE

Eliminate movement that doesn’t convey a key message. After nearly 20 years building websites, I believe that many developers build things because they know how to build them rather than because those elements are helpful to the mission of the company. Rotating banners are a great example. More often than not, a company’s banner is set to rotate every 5 or so seconds. This causes confusion when they rotate too fast, pull a user’s attention away from key navigation paths, or send mixed messages about what you do. If used, make sure they support the buyer’s journey. Host a fast loading website. Do you remember those old Heinz ketchup commercials where consumers struggle to get ketchup out of the bottle as Carly Simon’s song “Anticipation” plays in the background? While that famous commercial sold lots of ketchup, I can guarantee you that a slow loading website WILL NOT sell more widgets! Today, especially when it comes to mobile devices, your website needs to load fast. Use Google’s PageSpeed Insights to see if your website is too slow.

Don’t over use pop-ups, flyins and pop-unders. Anyone that reads news on their phone has experienced the growing number of overlays that obscure content with distracting messages. These ads or

invitations to subscribe are so annoying that I won’t read articles by certain outlets - it’s too much work. My advice is that these pop-wherever tools can be effective, but use them with caution; and track their impact on your website’s overall conversion rate.

Fix broken links 404 Errors. Have you clicked on a link and ended up on a page that says something like “Oops, page not found?” When this happens, it’s generally because the developer coding the link made a mistake, or because the page no longer exists. This is called a 404 error. To see if your website has any broken links, which you should do quarterly, use Link Integrity, a free downloadable tool.

Responsive design. Website content needs to scale to the size of the consumers’ screen. It should look appealing on both large desktop monitors and small mobile devices. The accepted way to do this is by using responsive web design. To tell if your website is responsive, grab the lower right side of your browser window and drag it to the left to make it narrower. As you do this, you should see content being rearranged. Navigation will begin to wrap and then turn into the familiar hamburger (that small icon made up of 3-4 horizontal stacked lines). Similarly, images and blocks of text will begin to stack from top to bottom.

SUMMARY

Limit the use of stock photos Photography can be expensive, but nothing screams phony like too many beautiful people. Instead of your typical stock photography, either create your own images or when searching for images to buy, search for “real people.”

Small chunks of text. I once worked with a smart guy, but when he put his thoughts to “paper” it looked like one big blob of text - unreadable. Text should be broken down into bite size pieces with bold headings, bulleted or numbered lists and one to three sentences per paragraph max.

The pandemic has raised our expectations for online user experience. We want intuitive and easy to use, and the ability to find what we want without human interaction. The big players in any industry, and ecommerce in general, have the advantage of deep pockets. This makes it easier for them to earn our loyalty. Still though, people want choice and as the ecommerce (online in general) pie gets bigger, there is more opportunity for the rest of us. Your job is to focus hard on improving your website’s user experience. Following the above tips and studying your website’s performance data is a must. As always, if I can help, please reach out. Winter 2021 • 91

SALES & MARKETING

The Non-negotiable Traits of a Successful Salesperson BY JAY SPIELVOGEL, VENATOR SALES GROUP, LLC

“T Jay Spielvogel is CEO of Venator Sales Group (GAWDA member), a sales consulting and training firm specializing in boosting Welding and Gas distribution sales performance. Contact him at: Jay@ venatorsalesgroup.com

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he greatest sales call our new reps make is on us during the interview. Everything goes downhill once we hire them.” “At best, our new salespeople are glorified pre-sales relationship managers. They deliver quotes and proposals without any qualifying or critical thinking.” Unfortunately, these are all too common complaints we hear from sales managers across the globe. In truth, very rarely is the interview a “great” sales call on the part of the sales rep. More likely, it was simply the culmination of a “bad” buying process, where we end up getting exactly what we are asked for. The solution is to develop a list of non-negotiable traits for any prospective new sales rep hire. Consider the short list of traits most companies have for new sales hires: technical knowledge, experience in the industry, professionalism, and follow-through. These attributes are, without question, important. And yet, they are a blueprint for a “pre-sales relationship manager.” In order to hire the best sales reps who can generate new business and be successful in today’s complex, multi-constituent selling environment, we need to revise the way we search for and screen prospective new salespeople. Most companies have a clear set of expectations for new sales reps: 1. Targeting and penetrating new strategic accounts 2. Digging deeper into the business drivers behind the technical needs 3. Executing coaching direction 4. Navigating and negotiating access to key stakeholders

5. Carefully managing a pipeline of opportunities to closure However, these expectations are not taken into account when hiring and interviewing. Finding reps that can execute these behaviors requires a very specific list of traits and characteristics. These should be non-negotiable; all the traits must be present. The four most critical, non-negotiable traits necessary to be a successful salesperson, regardless of industry, are Coachability, Aptitude, Fearlessness, and Engaging; an acronym we call CAFÉ.

COACHABILITY Gone are the days where being a great rep was based solely on the strength of the salesperson’s relationship with technical and purchasing people. Today, there are many environmental changes affecting every sales team—the least of which is global competition and more complex purchasing processes. In order to drive consistent revenue in this ever-changing selling environment, a professional salesperson must be able to receive and execute guidance and mentoring. This new environment demands a team effort with strong “sideline” coaching from sales management. This shift is away from the “lone ranger,” ego-driven salespeople that resist any form of coaching or accountability and dismiss it as unnecessary micro-management.

APTITUDE Besides needing to absorb technical data, a salesperson must have an aptitude for assimilating a tremendous amount of information related to the constantly shifting client business and operational environments. Successful selling requires

SALES & MARKETING the ability to link the economic value of your company’s solutions to operational results. Many salespeople with strong technical backgrounds lack the competency or desire to integrate the non-technical value messaging into their sales process. Unfortunately, when the aptitude for “business-drivers” is lacking, a salesperson will simply pass along their proposals to the technical champion, hoping they will be successful at gaining the necessary internal approvals.

FEARLESSNESS A successful salesperson must be fearless. They must be comfortable executing any sales process that requires a complex, multi-stakeholder selling strategy. Regardless of training, many salespeople still lack the assertiveness and conflict management necessary to execute. Typically, most salespeople can perform well in training but then falter when executing in the field. When questioned by their managers about their lack of performance, they justify non-action with a lack of time or a fear of overstepping and upsetting their main contact. Effective salespeople are able to overcome their fear and break out of their comfort zone. They are willing to ask the tough questions, negotiate for high-level access and maintain control of the sales process.

ENGAGING A successful salesperson must have an engaging personality, not to be confused with the “gift of gab” or being a “presentation guru.” An engaging salesperson is one with the ability to draw others into a dialogue with a steady two-way flow of information. An engaging salesperson will have a strategy for asking guided questions and “pivoting” appropriately to the other person’s answers regardless of

whether the meeting is with a lower-level manager, director, VP, or a member of the C-suite. A salesperson that lacks this ability will tend to lull their prospect into a passive listening mode while they present features, benefits and pricing. A non-engaging salesperson will come away from a sales call feeling confident that they’ve made a strong case and that they were well received as a result of their knowledge. Conversely, a strong salesperson with an engaging communication style will exit every meeting with detailed information uncovered during the meeting including a well-defined set of next steps and action items. The better approach to finding sales professionals who will be successful is to reconsider the non-negotiable traits. The

four traits listed above – Coachability, Aptitude, Fearlessness, and Engagement – are vital when recruiting new salespeople if we are to break the frustrating and tiresome six-month cycle of hiring and firing. Venator Sales Group is a Sales Consulting, Optimization, & Training firm with a laserfocus on improving every aspect of a client’s sales culture and sales performance. Founded over a decade ago by high-performing, professional sales practitioners, Venator combines a strategic sales management approach with real-world understanding of the factors necessary for success in today’s selling environment. Venator helps companies turn around inconsistent or lackluster sales performance by infusing a sales culture based on accountability, compliance, and critical thinking.

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Winter 2021 • 93

BEST PRACTICES

The Shared Traits of All Great Leaders Common traits among leaders that people love going to work for. BY RANDY SQUIBB

I Randy Squibb is available for Customer Relations presentations and can be reached by email at crsquibb@aol.com.

94 • Winter 2021

have had the opportunity to travel all over the country during my 50 years in the welding supply business. And I consider myself fortunate to have seen just about every kind of leader/boss you could possibly imagine. I have seen some extraordinary leaders, the kind that people want to run through walls for, and I have also seen my fair share of bad leaders, as well. You can usually tell the quality of a leader without even having to meet them. You can tell within minutes of walking through the door. Are the employees courteous, upbeat and generally happy to be there? Or are they disengaged, rude, and overall unhappy looking? In my experience, no two leaders are exactly alike. But I have noticed that all of the great leaders have some similar traits. Two of my business heroes and men who I modeled my career and leadership style after are my dad, Charlie Squibb, and the founder of Southwest Airlines, Herb Kelleher. And the thing I noticed about both of them is the way they were genuinely loved and respect by their employees. The people on the “front lines” would do anything for them. And the reason they felt that way is that both of these men, and really, all great leaders, had an

uncanny ability to ensure that the whole team was all pulling in the same direction. One of my most famous Squibbisms is that “You can’t sink half a boat.” We either all go down together, or we’re successful together. Put another way, one bad apple can spoil the whole bunch. So how do great leaders ensure that the boat stays above water and pulls in the same direction?

1. EXCEPTIONAL BOSSES ALWAYS DEVELOP THE “WE” INSTEAD OF THE “ME.” When I was at Welders, you would never hear me say, “XYZ works for me.” It was extremely important to me, that I always said, “XYZ works WITH me.” That one word makes such a huge difference and completely changes the dynamics of the conversation. No leader is successful on their own. A company’s most important asset doesn’t show up on the P&L. It’s about the people. And when an employee feels like they’re a valued member of a team, and not some nameless and faceless drone who exists solely to do the work that makes the boss look good and for which the boss will take credit, they will always give that extra effort.

2. HIRE THE BEST TALENT AVAILABLE. This sounds like common sense, doesn’t it? But I’ve seen all too often, leaders will shy away from hiring the most qualified candidate for fear of some kind of conflict for leadership down the road. They would rather hire the order taker who won’t rock the boat, than the ambitious person who might outshine them. I can’t tell you what a mistake that is. Before I became president of NWSA, I always used to wonder how the men who came before me managed to juggle the time commitment of the association, while still successful running their business? It’s because they hired the best people, who could step up and seamlessly run the business during those times. Would you rather hire the right person and see that person succeed or would you rather hire someone who isn’t as qualified, because you’re afraid that person might outshine you? If you choose the latter, all you have done is waste the company’s money and, ultimately, made more work for yourself. Always surround yourself with the best talent you possibly can.

you want I’m going to do. It’s 8:30 right now. I’m going to call back this afternoon at 5:00. Either you fire this employee or I’m going to fire you.” Sure enough, I got a call at 4:30 saying the employee had been terminated. And that day, almost every employee in the branch went into the branch manager’s office and said, “It’s about time.” It’s all about creating an atmosphere in your organization that everybody is on the same team.

4. A GOOD LEADER NEVER ASKS THEIR PEOPLE TO DO ANYTHING THEY WOULDN’T DO THEMSELVES.

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You should be not only able, but willing, to do anything that any of your employees do. It helps contribute to that sense of team and, even more, it proves that you can empathize with the struggles that they might face in their day-to-day job. Every so often, I would do a shift on the cylinder truck. I was sore by the end of the day, but I learned more in that 8-hour shift than I could learn in a year behind the desk.

3. REMOVE THE DEAD WOOD.

5. THE LITTLE THINGS MAKE A BIG DIFFERENCE.

Remember earlier when I said that one bad apple can spoil the bunch? You don’t want to get yourself in a situation where one bad employee manages to bring down all of the other good ones in a branch. We’ve all seen these employees. They’re the ones who are not happy, that will tell you they’re not happy, and might even tell the customer they’re not happy. Employees notice these things. Customers notice them too. It’s up to you, as the leader, to do something about it. I had a situation once in a branch where one employee kept coming up over and over again in area management meetings. Finally, I got a call from a customer that was the last straw. I called my branch manager and said, “I’ll tell

I’ve mentioned this in previous articles, but I believe it bears repeating. People want to know they’re appreciated. And the best way to know they’re appreciated is for you to tell them. Call them on their birthday and on their date of hire. Tell them how lucky you are to have them on the team. I can’t tell you how that little bit of effort on your part can make such a huge difference. It’s up to you to be the kind of leader that people enjoy coming to work for. There will be times where you have to make tough or unpopular decisions. But those should be the exception and not the rule. And when those times come, if you’ve been a good leader until then, your people will understand.

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BEST PRACTICES

Reorganizing your Workforce BY ART WASKEY

T Art Waskey has over 45 years’ experience in the welding and industrial gas industry. He travels across the country consulting and giving seminars on business skills and has published 3 books of sales skills stories. He holds a BS in Mechanical Engineering, a Master of Ministry in Leadership Development, and is currently pursuing a Doctor of Ministry. You can subscribe to Art’s weekly sales tips and monthly articles on his website. Also, check out his Posts on LinkedIn. For services, contact Art at 720-341-9405, artwaskey@ ispeakd.com, www. impactspeakingdynamics. com

96 • Winter 2021

here is good news on the horizon and companies find themselves gearing up to bring back employees and hire additional staff. As the vaccines for COVID-19 are approved and people are immunized, we look forward to getting back to work on a broader scale. The pandemic, however, has left a lot of upheaval in its wake. I recently spoke to a newly appointed VP of Sales who said his first challenge was to replace 4 of the 6 regional sales managers at his company. Imagine the cost and emotional impact of such a dramatic transition. It is expensive to find and train new managers, and painful and disorienting for the existing staff to see their former colleagues sent adrift.

KEY CHARACTERISTICS Employee transitions are never easy but there are ways to make the process less painful and more effective. Start with a prioritized list of the key characteristics you look for in an employee and give them precedence in your reorganization or hiring plan. Cultural fit – It is vitally important that any new recruit fits into your company’s culture. Be sure he or she shares your values. The right person is someone who can build trust with clients, engage in healthy conflict, make real commitment, hold people accountable, and focus on the team’s results. In his 2016 book, The Ideal Team Player, Patrick Lencioni illustrates this point with the story of a company looking to add to its executive team. During interviews with a well-qualified candidate, it was brought to light that he lacked humility, possessed an underlying indifference

to people and felt staff were there to serve him, not the company. These characteristics were anathema to the company’s culture. In Lencioni’s example, the right person had to be someone who could easily build trust, not a self-centered egotist. Uncovering this lack of cultural fit saved the company from bringing on a well-qualified but ill-suited executive. Jim Collins, in his epic work, Good to Great, referred to the practice of finding a cultural fit as, “Getting the right people on the bus, and in the right seats.” What are the specific virtues and kinds of behavior and moral standards your company values? Make sure your next hire shares those. Humility – The best team members are humble and keep their egos in check. They share credit, emphasize team over self, and operate collectively rather than as individuals. These leaders will ask good questions, listen to others, and stay engaged in conversations. When someone comes to them with a personal problem, they listen, offer help, or recommend others that can be of assistance. As an aggressive personality type, remaining humble has been one of my greatest challenges. Fortunately, I received some painful but sage advice early in my career. A dear friend with whom I had worked pulled me aside and said, “Art, you are so focused on working hard and succeeding that you walk all over people.” He told me that he knew my heart was in the right place but that I needed to start putting my team members first. Throughout a 5-decade long career, I have had to constantly remind myself of his advice. Openness – In his book, The Advantage, Patrick Lencioni talks about the need to be open with your colleagues and describes a principle called Vulnerability-Based Trust. Lencioni believes, “A

BEST PRACTICES leadership team must be willing to be completely transparent, honest, and naked with one another, if they are to build trust.” As a consultant to a Fortune 500 Company, he was asked by its new CEO how best to get to know and establish trust with the existing team. Lencioni recommended an off campus summit where team members would be asked to share their background information, starting with their primary school days. One VP refused to participate and quit. That individual was probably part of the downfall of the previous CEO, Lencioni surmised, as he was unable to build trust. Lencioni advises, “It is amazing to witness how quickly the dynamics of a team can change after a simple twenty-minute exercise as people who thought they knew one another develop a whole new level of respect, admiration, and understanding, regardless of their job title, age, or experience.” He continues, “Willingness to share ones past personal and professional successes and failures helps each person identify their own weaknesses and opens the door to transparency.” Sharing profiles provides the background that can help explain the root cause of a colleague’s negative or frustrating behaviors, instead of just attributing them to general environmental factors. Lencioni says, “If the leader is reluctant to acknowledge his or her mistakes or fails to admit to a weakness that is evident to everyone, there is little hope that other members are going to take that step themselves.” Work ethic – You want people with a good work ethic, the types who are always asking for more to do and show interest in learning new things. Self-motivation, diligence, and the ability to take responsibility are important traits to look for in an individual. A valued employee is able to articulate next-step actions for projects and develop

ideas for new opportunities. They always work until the job is done. They do what they say they will do, in a timely manner, no matter the circumstances. Successful people are continually “sharpening their saws” and believe the harder they work, the smarter and more successful they become. Avoid those who demonstrate self-interest, individualistic, and self-important tendencies. They will not play well with their peers. Talent not aptitude – While intellectual capacity is important, common sense is a talent even more critical to success. I once worked with an executive who was excited to add a Harvard MBA in Finance to his team. The new hire was indeed intelligent, but was unable to translate his academic pedigree into practical ways of

getting the job done. You want to hire intelligent people with an ability to ask good questions, listen to what others are saying, and engage in meaningful conversations. Persons with these skills recognize the subtleties of group dynamics and recognize the impact of their words and actions. Put these attributes together with the right work ethic and you have a team builder. Caution — some of the most dangerous people in history have been interpersonally smart, so be sure the moral compass of your candidate is pointed in the right direction. A lack of aptitude can also trigger latent talents. Employees who have had to overcome challenges can be strong contributors to a company. I was born

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BEST PRACTICES with a reading disability and struggled in school. That changed in college when I was able to channel my strengths in the right direction. In his book, The Talent Code, Daniel Coyle talks about a “surge of energy” that occurs when a person reaches deep from within and affirms their struggle. For me, this happened my freshman year when I discovered that, by pacing myself through the semester, I could finish my work and receive an “A” on a project. This success set off a trigger that spoke to the core of my learning experience, and when it comes to that type of ignition, there’s nothing more powerful. Look for people who can demonstrate a struggle that resulted in talent formation. That kind of savvy will often outperform high aptitude. Attention to detail – Attention to de-

98 • Winter 2021

tail is a big part of what makes someone successful. It is difficult to delight your customers if you are disorganized. Be sure your candidate illustrates good organizational behaviors as these are some of the most important and transferable skills an employee can have. You want your new employee to be a person who can plan, prioritize, and achieve his or her goals. This saves time and the company money. Organizational skills are essential for multitasking and keeping a business running smoothly and successfully. Employers should aim to recruit applicants who can work to achieve results consistently, even when unforeseen delays or problems arise.

BUILDING A STRONG TEAM The pandemic has struck certain

sectors of the economy hard and eliminated many jobs in which the people who have lost them are entirely without fault. For companies that have been able to remain up and running, the pandemic has presented an opportunity to identify weak spots. In times of crisis, the fracture lines become crystal clear. Employees who may have been underperforming become dead weight. Others demonstrate strengths hitherto unrecognized and perhaps deserve a promotion. For company executives, there is a lot to consider as you reorganize and adjust to a new world order. Whether dealing with reorganizing existing staff, bringing on new hires, or both, focusing on the key characteristics described above will ensure you continue to develop a strong team.

BEST PRACTICES

Art Waskey’s new book, The Art of Sales is available now. This pocked-sized book is a great resource for any salesperson and features several easily digestible and highly-relatable sales stories. Visit impactspeakingdynamics.com for more information or to purchase The Art of Sales.

To Meet or Exceed the Most Rigorous Global Standards,

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2021 Spring Management Conference Preview

EYES UP

Monday, May 24, 2021 – Wednesday, May 26, 2021

AWDA leadership, after careful consideration of feedback from GAWDA members, has decided to move the 2021 Spring Management Conference from its originally scheduled dates of March 29-31, to May 24-26, 2021. With the recent launch of COVID vaccines in all states, as more population gets vaccinated, we hope to see the country get safer and travel restrictions loosen. Safety continues to be our top priority. We have ensured that enough meeting space is reserved to spread out as needed. The agenda is packed with valuable content, including great speakers and five educational breakout sessions. GAWDA leadership is fully committed to safely resuming in-person meetings, starting with our SMC in Nashville 2021. We have made the strategic decision that a small meeting is better than no meeting at all, and this 60-day extension simply increases the likelihood that a “small meeting” gets larger and more conducive to attendance. 100 • Winter 2021

NASHVILLE, TN HELD AT THE

Gaylord Opryland Resort & Convention Center 2800 Opryland Drive, Nashville, TN 37214 Phone: 615-889-1000

INDUSTRY KEYNOTE

Jens Luehring President & CEO of Messer Americas

MORE VALUE FOR MEMBERS 5 Education Tracks. Each Track will feature three presentations. Relevant & Timely topics in Safety and Operations, Human Resources and Leadership, Technology, Sales and Marketing, Family Business Valuable insight for all levels of management See page 104 for details.

Gaylord Opryland Resort & Convention Center

SCHEDULE OF EVENTS TIME

MEETING

TUESDAY, MAY 25

SUNDAY, MAY 23 12:00 p.m. – 6:00 p.m.

TIME

Early Badge Pick Up

MONDAY, MAY 24

6:00 a.m. – 12:30 p.m.

Exhibitor Booth Set Up

7:00 a.m. – 5:00 p.m.

Conference Registration

7:00 a.m. – 8:00 a.m.

Breakfast and Welcome

7:00 a.m. – 6:00 p.m.

Conference Registration

8:00 a.m. – 9:00 a.m.

Executive Committee Meeting

9:00 a.m. – 11:00 a.m.

Board Meeting 1

8:00 a.m. – 11:30 a.m.

Business Content

11:00 a.m. – 1:00 p.m.

Strategic Plan Rollout Working Lunch with Committee Chairs

11:30 a.m. – 12:30 p.m.

Group Lunch and GAWDA Presentation

1:00 p.m. – 5:00 p.m.

Exhibitor Booth Set Up

1:00 p.m. – 2:30 p.m.

Committee Meetings

12:30 p.m. – 4:30 p.m.

Contact Booth Program

2:30 p.m. – 3:30 p.m.

Board Meeting 2

4:30 p.m.

Industry Hospitalities

4:30 p.m.

Shuttle Pickup for Receptions and Dinners 3-TWO-1 Reception

5:00 p.m. – 6:00 p.m.

6:00 p.m. – 10:00 p.m.

Location: One Fourteen at The Wildhorse Saloon If this is your first GAWDA meeting, or if you or your business are new to our Association or industry within three years, please join the GAWDA Board, Past Presidents, Committee Chairs, and Headquarters Team for this special New Attendee Reception. Mix and mingle with established GAWDA members in an intimate setting prior to the President’s Welcome Reception.

President’s Welcome Reception & Dinner Location: The Wildhorse Saloon

WEDNESDAY, MAY 26 7:00 a.m. – 1:00 p.m.

Conference Registration

7:00 a.m. – 8:00 a.m.

Breakfast and GAWDA Presentation

8:00 a.m. – 11:20 a.m.

Business Content

11:20 a.m. – 1:00 p.m.

Working Lunch and Closing Session

*Please note, agenda subject to change. Make sure to check gawda.org/spring-management-conference/ for the most up-to-date information

See the next page for details on the educational session tracks

Winter 2021 • 101

2021 Spring Management Conference Preview

EDUCATIONAL TRACKS SAFETY AND OPERATIONS

TECHNOLOGY

FAMILY BUSINESS

a. K eeping Score in Distribution with Craig Harris, Red Ball Oxygen

a. Doing More with Less: Automating Administrative Functions with Will Roberts, Roberts Oxygen

a. Outside In- Running a Family Business When You’re Not In The Family with Robert Anders, Holston Gases

b. T he True Cost of an Accident with Marilyn Dempsey, Safety Dragons

b. Changing your ERP Without Taking Years Off Your Life with Dave Healzer, CeeKay Supply

b. Protecting the Golden Goose from Slaughter with Jack Butler, Butler Gas

c. Ask Anything Roundtable with Mike Dodd (DOT), Tom Badstubner (FDA), Rick Schweitzer (Legal), and Marilyn Dempsey (OSHA)

c. Plus 1 more

c. Future Planning – Employee Ownership and Shifting Generations with Nicole Kissler, Norco

HR AND LEADERSHIP a. W inning the Talent War with Bill Proctor, nexAir

SALES AND MARKETING a. We Now Get CRM with Colleen Kohler, Noble Gas Solutions

b. G etting Employees to Give a Damn with Ryan Craven, General Air

b. Playbook for Sales and Marketing Growth through Company Alignment with Allison Earlbeck, Earlbeck Gases and Technologies

c. Plus 1 more

Schedule SALES & MARKETING

SAFETY & OPERATIONS

TECHNOLOGY

HUMAN RESOURCES

FAMILY BUSINESS

8:00 a.m. – 8:50 a.m. 8:50 a.m. – 9:15 a.m. Break 9:15 a.m. – 10:05 a.m. 10:05 a.m. – 10:30 a.m. Break 10:30 a.m. – 11:20 a.m.

ATTIRE The average high temperature in Nashville, TN in May is 78 degrees and the average low is 57 degrees. Attire for the Spring Management Conference is business casual. 102 • Winter 2021

u p com i ng industry events Here are some of the events scheduled for 2021 and beyond. Check the EVENTS tab on the GAWDA website at www.gawda.org for more information.

APRIL 2021

OCTOBER 2021

GAWDA Southwest Regional Meeting League City, TX APRIL 19-20, 2021

GAWDA Annual Convention Colorado Springs, CO OCTOBER 6-9, 2021

AIWD Convention Washington D.C. APRIL 22,-25, 2022

MAY 2022

IWDC Owners Meeting Greensboro, GA OCTOBER 26-29, 2021

AIWD Convention Colorado Springs, CO APRIL 30 - MAY 3, 2021

IWDC Sales & Purchasing Convention Minneapolis, MN MAY 24-26, 2022

APRIL 2022

MAY 2021

GAWDA Spring Management Conference Indianapolis, IN APRIL 3-5, 2022

GAWDA Spring Management Conference Nashville, TN MAY 24-26, 2021

All dates are subject to change, especially in light of the COVID-19 Pandemic. For the most up-to-date information, visit gawda.org/events.

JUNE 2021 GAWDA East/Midwest Regional Meeting Seven Springs, PA JUNE 9-11, 2021 IWDC Sales and Purchasing Convention Las Vegas, NV JUNE 22-24, 2021

Transfer Hoses

JULY 2021 GAWDA Northwest Regional Meeting Sunriver, OR JULY 21-23, 2021

Our Family Business Is Here For Your Cryogenic Piping Needs: •Complex System Design & Engineering •Project Management •Turn-Key Installations •Experienced Sales Staff with Component and Systems Expertise •Onsite Design & Engineering Support

Vacuum Insulated Piping Phase Separators

Markets & Applications:

AUGUST 2021 GAWDA Central Regional Meeting Oregon, OH AUGUST 9-10, 2021

Aerospace Defense

Beverage Container

Bio-Pharma Life Sciences

Electronics Semiconductor

Entertainment Special Effects

SEPTEMBER 2021 FABTECH Chicago, IL SEPTEMBER 13-16, 2021

Alternative Fuels HALT/HASS Industrial Food Freezing (LNG/LH2) Ice Cream Environmental Test Gas Plants (ASU)

Research National Labs

Winter 2021 • 103

INDUSTRY NEWS James Murphy Joins Cyl-Tec as Regional Sales Manager of West/Southwest U.S. & Canada Cyl-Tec announced that James (Jim) Murphy has been appointed to the position of Regional Sales Manager for West/Southwest U.S. & Canada. He had worked closely with Greg Adamson, the previous manager of the region, until Greg’s retirement on August 31, 2020. This position reports directly to Thomas James (Jim) Murphy Bennett, President of Cyl-Tec. Jim will be the key sales contact for the West/Southwest U.S, & Canada Region with major responsibilities in customer development & service, product line knowledge, client training, and new business development. He brings years of experience and a professional track record of success in the industrial gas industry area, which will be invaluable in supporting established relationships with Cyl-Tec customers, as well as developing new ones.

Harris Products Group Names Kimberly Elliott VP of Strategy and Technology The Harris Products Group, a Lincoln Electric company, announced that Kimberly Elliott has joined its executive team as Vice President of Strategy and Kimberly Elliott Technology. In this role, she will support Harris’ growth strategy by expanding Harris’ market presence through innovative new products and strategic acquisitions. Elliott joins Harris after having served in several executive capacities with American Greetings Corporation, including her most recent role where she led the company’s Asian operations. Previously, she led the American Greetings account team for a leading North American retailer, where she managed commercial activities and operations associated with over $800 million in sales. In addition to having led global and cross-functional teams, Elliott has extensive experience in strategic management, manufacturing technology and engineering that is complementary to Harris’ Higher Standard 2025 Strategy goals and objectives. Elliott began her professional career as a senior metallurgical engineer with industrial giant Alcoa, where she developed manufacturing processes and oversaw critical programs. Later she managed the successful development and launch of new products manufactured in 13 international facilities. She also 104 • Winter 2021

worked for several years with Booz & Company, the global management consulting firm, where she helped clients develop comprehensive strategies for growth.

Butler Gas Products Company Promotes Smilak to Customer Service and Cylinder Tracking Manager Butler Gas Products Company announced the promotion of Chelsea Smilak to Customer Service and Cylinder Tracking Manager. Chelsea joined the 3rd generation business full-time in July 2018 after a successful customer service internship Chelsea Smilak following a part-time facilities maintenance position. Chelsea has grown up around Butler Gas. Her father, Joe Wilhelm, is the company’s General Manager of Operations with 28 years tenure. For the past two years, she has embraced and progressed the Butler Gas service culture, taking on more responsibility in asset tracking, order processing, truck routing, and collections. In her expanded role as Customer Service and Cylinder Tracking Manager, Chelsea is responsible for happy paying customers, accurate billing, and verified cylinder tracking. She focuses on working with operations to get customers what they want, when they want it. She leads reception and assists walk-in customers at Butler Gas headquarters. Chelsea reports to Sandy Gobrish, Vice President of Services.

SafTCart Scholarship Awarded The recipient of this Year’s Saftcart Scholarship through the American Welding Society (AWS) is Abigail Weaver of Columbus, MS. Abigail is attending East Mississippi Community College, and upon graduation in 2021 she plans to pursue a career in welding. The SaftCart Scholarship of $1,500 was established to support and encourage future welders. We congratulate Abigail on this achievement and look forward to this Scholarship helping welding students in the future.

INDUSTRY NEWS Weldstar Opens New Branch Location Weldstar Company, headquartered in Aurora, IL, announced their newest store in Kenosha, WI. The store is located at: 5416 46th Street, Kenosha, WI 53144 Phone: 262-771-1177 Fax: 262-771-1178

AWISCO Announces Scholarship Winner Congratulations to AWISCO’s 2020 Scholarship winner, Thomas Mckenna! Thomas attends SUNY College of Technology at Delhi. He will be focusing on Welding and Fabrication Engineering Technology. AWISCO annually offers a $1,500 scholarship through the AWS Foundation. We are proud of this partnership and our ability to help the future generations in the welding industry.

Lincoln Electric Names Steven B. Hedlund as President of Americas Welding and International Welding Lincoln Electric Holdings, Inc. announced that Steven B. Hedlund will serve as Executive Vice President and President of both the Americas Welding and International Welding segments. Regional presidents in the Americas, EMEAR and Asia Pacific will report Steven B. Hedlund directly to him. In this newly expanded role, Hedlund will lead the welding segments’ Higher Standard 2025 Strategy initiatives to advance growth and enhance margin and return performance. Strategic investments in standardized IT systems, operational processes, shared service centers, and joint product development platforms have further aligned the regional welding businesses and enable a more effective leadership structure. “During Steve’s tenure at Lincoln Electric, his valuable leadership and contributions have advanced our growth in automation and our competitive position and long-term profitable growth opportunities in international markets,” said Christopher L. Mapes, Chairman, President and CEO of Lincoln Electric. “Centralized oversight and greater organizational, system and process alignment will accelerate our Higher Standard commercial growth goals and support our operational initiatives to drive long-term value for our stakeholders.”

Washington Alloy Hires Lisa Connolly Washington Alloy Co. is pleased to announce that Lisa Connolly has joined Washington Alloy as Regional Account Manager for the Northeast. Lisa will be responsible for promoting and growing Washington Alloy’s sales and marketing efforts

in the Northeast, while managing Washington Alloy’s newest office & warehouse location just south of Boston, in Avon, MA. Lisa brings with her 30 years of experience and in-depth knowledge of the welding industry. “Washington Alloy is committed to providing the best products, services, and value to our distributors,” says Vice President, Wade Valentine. “The addition of Lisa to our team allows us to offer even greater support in the Northeast. Her customer-focused mentality along with our new location Lisa Connolly outside of Boston will bring immediate value to our distributors.”

Cee Kay Announces Retirement of Jean Lindsey and Appointment of Jim Lipsmire Cee Kay announced that Jean Lindsey, Director of Finance, has retired after 20 years. Jim Lipsmire, CMA, MBA, joins the company as CFO. During her entire time at Cee Kay, Jean held the role of Director of Finance and was also a member of the company’s leadership team. Jean also served on the board of the IWDC. Jim will be taking on the position of Chief Financial Officer, (CFO). Jim comes to Cee Kay with an undergraduate degree in Finance from Notre Dame and an MBA from Webster University. Jim previously held the CFO role at Ovation Holdings over the past seven years. Prior to that, he also had nine years of experience with Vi-Jon Labs.

Brian Cooper Promoted to Executive Vice President at Wire Wizard Wire Wizard Welding Products has promoted Brian Cooper to Executive Vice President. Brian has been with Wire Wizard since 2006 and has previously served as Vice President after holding other positions in sales within the company. Brian is the son of Wire Wizard® & ELCo Enterprises founder, Brian Cooper Edward Cooper, who continues to serve as President and CEO. As Executive Vice President, Brian will oversee day to day operations, lead in implementing & achieving strategic goals, and build strong relationships with Wire Wizard’s key customers, industry partners and suppliers. “Brian’s character, leadership style, prior experience leading sales, and his focus on profitability and attention to detail make him the ideal person to carry our organization forward into its next chapter,” says Edward Cooper, President & CEO of ELCo Enterprises. Winter 2021 • 105

INDUSTRY NEWS Wire Wizard Hires Tom Walley as Vice President of Sales Wire Wizard Welding Products is pleased to announce the hiring of Tom Walley as Vice President of Sales. Tom has over 25 years of experience in sales and marketing in the manufacturing and industrial supply sectors with an outstanding record of revenue growth driven by his strong leadership skills. He has worked for companies within the industry such as National Standard, where he held the position of VP of Sales and Marketing. His career experience also includes positions with Miller/ITW, Oshkosh Corporation and Bombardier. He graduated Magna Cum Laude from the University of Wisconsin with a degree in business management and public speaking. As Vice President of Sales, Tom will be responsible for directing global sales efforts, developing growth-driven sales strategies and collaborating with the marketing team to increase market penetration in key territories. With extensive experience working with GAWDA Tom Walley distributors, Tom will continue to build

strong channel partnerships with mutually beneficial relationships for Wire Wizard’s distribution network. On his appointment as VP of Sales, Tom commented, “I am honored to join a company with a rich tradition of innovation that consistently exceeds customer expectations. I look forward to working with the Wire Wizard team to drive sales growth and expand the reach of our product portfolio.”

Central McGowan Expands Distribution Hub in Fargo Central McGowan announced that it is expanding its Fargo, ND CO2 distribution hub to be a fully-stocked retail store and distribution site. Central McGowan’s Fargo store is located at 1226 38th St N, Fargo, ND 58102 (next to the newly painted water tower). Central McGowan has had a presence in the area since 2017, when it acquired Pro-CO2. “We believe our wide array of products and services fill a need in the Fargo market,” explains Joe Francis, CEO/President of Central McGowan. “Fargo is a thriving, growing area with a concentration of heavy industrial, automation, and food and beverage businesses. This is absolutely the right customer

SHARE YOUR NEWS If you’ve hired new people, moved your facility, acquired a company, added a product line, have new offerings or anything else newsworthy is happening at your business, please let us know. We’d like to share those updates with your fellow GAWDA members. GAWDA publishes a twice-monthly e-newsletter (The GAWDA Connection) and a quarterly magazine for its membership audience. Simply forward your information to GAWDA Media at: editorial@gawdamedia.com or call us at 315-445-2347, x120. 106 • Winter 2021

INDUSTRY NEWS base for a nimble, independent distributor and automation integrator like us.” Adjacent to Northern States Supply, the new Central McGowan store furthers a building alliance with that company. The partnership with Northern States allowed Central McGowan to repurpose 1,500 square feet of warehouse space on the back of Northern States’ building for its store. And, because the two companies serve a similar customer base and share the same service-minded culture, this creates a win-win-win for both of them and, most importantly, the customers they serve.

dry ice to maintain the very low temperatures. Dry ice is the solid form of carbon dioxide and it sublimates at -78F. The sublimation of the dry ice turns the solid into a gas that can be hazardous to humans in elevated concentrations. “CO2Meter is delighted to have the opportunity to participate in the safe distribution and administration of the COVID-19 vaccine. Keeping customers and staff safe at the administration site is not only something our business is designed to do but something we are proud of as it helps the nation overall” noted CO2Meter CEO Travis Lenander. He added “we look forward to working to outfit this partners facility as well as others.”

Lincoln Electric Promotes Peter Pletcher to Senior Vice President, President International Lincoln Electric Holdings, Inc. announced the promotion of Peter Pletcher to Senior Vice President, President International. In this role, Peter will be responsible for the Company’s business in Europe, Russia & Turkey, and will report to Steve Hedlund, Executive Vice Peter Pletcher President, President of the Americas and International Welding segments. Pletcher will also serve as a member of Lincoln Electric’s Management Committee. “Peter’s strong leadership has been invaluable in advancing key growth initiatives at Lincoln Electric,” stated Christopher L. Mapes, Lincoln Electric’s Chairman, President and Chief Executive Officer. “Today’s announcement recognizes his achievements in successfully shaping our European region for long-term, competitive growth and value creation.”

CO2Meter.com Supplies CO2 Safety Monitors for Dry Ice Vaccination Sites CO2Meter, Inc. has partnered with a national pharmacy chain to keep their customers and employees safe from the potential hazardous effects for CO2 exposure from the dry ice that is keeping the COVID-19 vaccines cold. A national pharmacy chain contacted CO2Meter on December 1st asking about devices to detect the release of CO2 when dry ice sublimates. The chain needed more than 800 safety monitors to be distributed to the first vaccine administration facilities on short notice. CO2Meter provided the chain with a CO2 safety monitor that is easy to install and that will detect the gas even at very low levels. The device will alarm and alert staff to possible CO2 exposure if the build-up of the gas exceeds the OSHA mandated set points for safety. The Pfizer vaccine must be shipped and stored near -80F for it to maintain its efficacy. To do so requires Pfizer, their shipping partners, and the administration facilities to use

American Welding & Gas Launches Strong Women of AWG Campaign During the Month of October, American Welding & Gas, Inc. launched their first annual Strong Women of AWG campaign to honor and celebrate our diverse female teammates across the country. The Strong Women of AWG are important partners to AWG’s business, customers and teammates. AWG expressed its appreciation by donating a portion of its October gas sales in the amount of $5,610.00 to Pretty in Pink Foundation. Pretty in Pink is a Raleigh based foundation that provides uninsured and under-insured breast cancer patients in North Carolina with financial assistance for quality, life-saving medical treatment. Pretty in Pink started in 2006 and has provided assistance to 286 women so far this year.

Exocor Expands in Western Canada and Southern USA Exocor announces the relocation and expansion of its Edmonton, Alberta, Canada warehouse and office. The move will double the warehouse capacity and allow for better handling of incoming containers and outbound shipments. “Our Winter 2021 • 107

INDUSTRY NEWS growth in Western Canada continues and the expansion of our facility will better serve our existing filler metal customer base in addition to providing quicker service to our growing business in in Saskatchewan and Manitoba,” says Vice President of Sales, Charlie Griffin. In addition, the company announced that it is now selling and servicing customers in the Southeast US and Gulf Coast with inventory stored closer to its growing distributor base. President Paul Kinsella comments, “as we continue to grow with our distributor partners in Canada and the U.S., we find the value of having multiple warehouses with ample filler metal inventory spread across the country provides better support for the quick shipment of product demanded by their end customers in today’s environment.”

IN MEMORIAM Jillian Brown GAWDA extends its condolences to the friends and family of Jillian Leanne Brown, who tragically passed away at the age of 16 in a car accident on October 20, 2020. Jillian worked at her father, Johnathan Brown’s, company U.S. Tank and Cryogenic. Jillian entered this world on February 26, 2004, in Sarasota, Florida to her parents Jonathan and Jennifer Brown. Jillian was a student at Central High School in Columbia. During the pandemic, Jillian began her studies in the evening with virtual learning and went to work at her father’s company U.S. Tank and Cryogenic. She was passionate about music, especially country and hip hop. She was her brother’s biggest sports fan and jealous of her sister’s dance moves and all her TikTok fans. Jillian’s family describes her smiles as infectious, she was honest, a great friend, she never met a stranger. She was a practical joker and took selfies for days. “She was all legs and a lot of Dr. Pepper.” Jillian is survived by her parents Johnathan and Jennifer Brown of Columbia; her brother: Jonathan (J.J.) Brown Jr; her sister: Jocelyn E. Brown; grandparents: Thomas (Linda) Witter, Joni (Gary) Puckett, and Linda Brown. She was preceded in death by her grandfather Jim Brown. 108 • Winter 2021

IN MEMORIAM Roger Bolenbaugh GAWDA extends its condolences to the friends and family of Roger Bolenbaugh, former CEO of IWDA/ IWDC, who passed away on October 3, 2020. He was born to the late Fred and Elaine (Blythe) Bolenbaugh in Grover Hill, OH on January 2, 1941. Roger was the Valedictorian of Grover Hill High School Class of 1958. He married Patricia Ann Ross on June 25, 1960 at the Grover Hill United Methodist Church. He was a business executive for Lincoln Life Financial, W. T. Grant, MedPro Group, and Do It Best Corporation. In 1994 he became CEO of Independent Welding Distributors Association, later merging with The Key Group to form the IWDC, the largest cooperative in the welding industry. He retired in 2004. Roger and Pat enjoyed traveling to 48 of the 50 states, along with trips to the Rain Forest of Peru, Cuba, Ukraine, Mexico, Bermuda, and Aruba. He served in various lay leadership positions at Lifeway Wesleyan Church including Youth Group Advisor, Sunday School Teacher, Superintendent, and Chairman of the Board. He was Executive Director of the Friends of the Library for the Noblesville Library. He and Pat volunteered for more than 10 years at the Fort Wayne Botanical Gardens. He also volunteered for Generosity Feeds and Coats for Kids. Roger was a member of Grace Point Church of the Nazarene. One of Roger’s greatest passions was playing softball. He has played this game competitively in every decade since the 1940s. Most recently he played with the Indianapolis Classics, where he competed nationwide and was inducted into the Indiana Softball Hall of Fame. Roger has won four National Championship rings and one National Championship watch. Roger is survived by his loving wife of 60 years, Pat; children, Gary (Cindy) Bolenbaugh, Sheri (Jim) Carteaux, Angela (Brad) Koch, and Darcy Bolenbaugh; grandchildren, Tiffany Pulkowski, Kristen Carteaux, Jason Bolenbaugh, Ashley Bolenbaugh, Jordan Riggs, Jarrad Koch, Jacob Koch, Joe Bolenbaugh, and Hannah Carteaux; great-grandchildren, Austin, Anthony, Morgan, Lukas, Brooklynn, Sawyer, Dexter, Sebastian, Wyatt, Owen, and James; and brother, Duke Bolenbaugh. He was also preceded in death by brothers, Bill and Keith Bolenbaugh.

DISTRIBUTOR MEMBERS The following businesses recently joined the Gases and Welding Distributors Association. For more information about the benefits and services available to members, please contact GAWDA at 844-251-3219 or visit www.gawda.org.

AMERICAN MEDICAL GAS RESOURCES 14915 South 49th West Ave Kiefer, OK 74041 (918) 237-1325 Calvin T. Sanders, Vice President calvin@ssmedical.com

GAS PRO LLC 551 Ashley Falls Road Canaan, CT 06018 (860) 824-7392 gasproductsind.com Martin G. Banko, General Manager/ Vice President marty@gasproductsind.com

SUPPLIER MEMBERS DDS (DISTRIBUTOR DATA SOLUTIONS)

WELDNOW AN AGONOW COMPANY

423 W Broadway, Suite 220 Salt Lake City, UT 84101 (801) 509-9900 www.distributordatasolutions.com Matt Christensen, President mattc@distdatasolutions.com

13035 East 59th Street Tulsa, OK 74134 (563) 663-0969 www.weld-now.com/ Jeff Kamentz, President jeff.kamentz@weld-now.com

AMERISURE MUTUAL INSURANCE COMPANY

CITY MACHINE & WELDING, INC

26777 Halsted Rd Farmington Hills, MI 48331 (800) 257-1900 www.amerisure.com John Scordato, Marketing Underwriter, Program Business jscordato@amerisure.com

PO Box 51018 Amarillo, TX 79159 (806) 358-7293 cmwelding.com Greg Hudspeth, VP gregh@cmwelding.com

EVOLUTIONX

18300 Hearthstone Lane Chagrin Falls, OH 44023 (440) 214-5225 Jim Appledorn, Principal jappledorn@roadrunner.com

Oak Brook Pointe, Suite 500 700 Commerce Drive Oak Brook, IL 60523 (847) 204-1868 https://evolutionx.io/ Dave Bent, President sales@evolutionx.io

ARC SERVICES

SALES-I 200 W Monroe St Chicago, IL 60606 (847) 868-8175 www.sales-i.com Alex Witcpalek, Director of Sales, North America awitcpalek@sales-i.com

INTELLIGAS CONSULTING 745 High St, Suite 201-B Westwood, MA 02090 (781) 326-3058 www.intelligasconsulting.com Buzz (J.R.) Campbell, Principal jrcampbel2@gmail.com

IMPACT SPEAKING DYNAMICS 13107 W Iliff Dr Denver, CO 80228-4908 (720) 341-9405 www.impactspeakingdynamics.com/ Art Waskey artwaskey@ispeakd.com

Winter 2021 • 109

INDUSTRY NEWS

MA SCORECARD

Lincoln Electric and PypeServer Announce Partnership with Vernon Tool MPM Pipe Profilers Lincoln Electric® and PypeServer® Inc. announced a partnership under which all newly-sold Vernon Tool® MPM® pipe profilers will come standard with PypeServer software. In addition, Lincoln Electric will support the retrofit of existing Vernon machines with PypeServer for MPM customers who wish to update their equipment with CAD import, part nesting, and advanced cutting capabilities. “The Vernon Tool MPM pipe cutting platform has a wellearned reputation as a reliable workhorse in pipe fabrication workflows,” said David Basiji, CEO of PypeServer. “With the addition of PypeServer’s advanced software features, Lincoln’s current and future Vernon products will be even more compelling pipe cutting solutions that pay for themselves quickly and save customers money for years to come.” “The combination of Vernon Tool MPM hardware, Lincoln Electric cutting tools, and the innovative workflow and cutting algorithms of PypeServer software presents the most compelling value for customers in the market,” said Matt Krueger, General Manager of Lincoln Electric Cutting Systems. “Together, we have found a solution to improve our customers’ ability to produce pipe products faster, with higher quality, and deliver maximum return on investment.”

Chart Announces Acquisition of Worthington Cryogenic Trailer and Hydrogen Trailer Business Chart Industries, Inc. completed the acquisition of the Theodore, Alabama cryogenic trailer and hydrogen trailer 110 • Winter 2021

(transport) assets of Worthington Industries, Inc. This acquisition includes ownership of the Theodore, Alabama manufacturing site, all trailer-related intellectual property, manufacturing capabilities, equipment, and repair backlog. The facility has approximately 300,000 square feet under roof adjacent to the Port of Mobile, and the associated employees will join the Chart team. This acquisition will produce strong synergies by combining Chart’s deep knowledge of cryogenics and liquid hydrogen storage and handling with the Theodore operation’s expertise and experience in the packaging and assembly of liquid hydrogen trailers. The addition of the trailer business to Chart’s hydrogen equipment and solution offering expands our mobile equipment to larger sized transports and brings another location already certified by significant hydrogen customers. Expected Chart hydrogen-related revenue from this facility in 2021 is $15 to $20 million with upside potential to $30 million in 2021.

nexAir Acquires Atlanta Medical Gases nexAir announced that it has acquired the business operations and customers of Atlanta Medical Gases, LLC (“Atlanta Medical Gases”), a medical gas supplier located in the Atlanta, Georgia area. The healthcare customers of Atlanta Medical Gases will complement nexAir’s strong medical gas presence in the greater Atlanta area and will benefit from a broad range of offerings nexAir provides to ensure the success of its customers. “The addition of the strong customer relationships at Atlanta Medical Gases to our current healthcare-related services and operations will be beneficial to everyone and expand nexAir’s customer base in the greater Atlanta area,” according to Bill

INDUSTRY NEWS Proctor, nexAir’s President. Proctor added, “nexAir is committed to a seamless transition for the customers of Atlanta Medical Gases and will provide the same high level of quality and service the customers have come to expect from Atlanta Medical Gases.”

Champion Cutting Tool Corp Acquires Mercer Industries Champion Cutting Tool Corp acquired Mercer Industries, a leading supplier of coated and bonded abrasives. Mercer’s portfolio also includes carbide blades, diamond blades, industrial files, wire wheels, and safety products. As a part of Champion Cutting Tool’s expansion, the acquisition of Mercer Industries will give Champion’s existing customers the convenience of purchasing from an even broader catalog of quality tools and a new offering of safety products. In addition, “Mercer customers will benefit from the many resources that Champion has to offer, including extremely dedicated and knowledgeable employees and some of the highest service levels in the industry. I am looking forward to joining

Team Champion as the Global Director of Sales- Abrasives Division” - Jim Wallick, Former President, Mercer Industries. Significant parallels exist between Champion and Mercer. Both companies are New York based, multi-generational family businesses, who value people and embrace family-like cultures. Mercer Industries’ namesake originates from Mercer Street in downtown New York City. Coincidentally, Champion’s headquarters once resided on Warren Street, just a few blocks away. “The synergies that exist between the two companies just make sense. We are enthusiastic to be able to offer even more value to our customers and professional tool users. Hole making tools and de-burring tools go hand-in-hand. By adding complementary cutting, grinding, and finishing tools to our line, we are truly offering complete jobsite solutions.” - Lowell Frey, President, Champion Cutting Tool Corp. As a part of the acquisition, Champion’s geographic footprint will expand to the West Coast. Champion will take over operations at Mercer’s second distribution center in Fullerton, California. continued on next page

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INDUSTRY NEWS Norco Acquires Arc Services Norco, one of the nation’s largest privately owned welding, safety, medical and gas suppliers, announces the acquisition of Arc Services in West Jordan, Utah as a strategic addition to its automation and welder services. Norco assumed ownership on November 1, 2020. Arc Services, established in 1998, is the west’s dominant regional automation and welding equipment repair facility. They specialize in the repair and service of all welding, plasma system, cutting table and automation equipment built by major manufacturers. Knowing that down time is costly, they have the manpower, knowledge, resources, and abilities to get their customers up and operating quickly. With this acquisition, Norco signals it dedication the future and gains western dominance in the automation and welder service sector. More importantly, it demonstrates their ongoing commitment to supporting and servicing customer needs from top to bottom, be it routine maintenance and repair of existing equipment or full scale, on-site automation, and technical services.

F&M MAFCO Signs Landmark Agreement with Enerfab to Manage its Internal Tooling and Equipment Program in Two Regions F&M MAFCO announced the formal signing of an agreement with Enerfab to manage the company’s tool and equipment functions in two Enerfab regional facilities – Evansville, Indiana, and Kansas City, Missouri. The turnkey tooling and equipment management program is called NEXT S.T.E.P – Strategic Tool and Equipment Partnership. According to Bill McKenna, the chief operations officer of F&M MAFCO, “This is a significant agreement for us. The Enerfab NEXT S.T.E.P program is our signature offering that leverages the full capabilities, expertise, and resources of our team to provide a comprehensive outsourced tooling and equipment management program that can significantly drive down costs and increase efficiencies for our customers. It essentially takes the hassle out of having to manage your own team and program internally.” The Enerfab agreement was spearheaded by Tim Fries, F&M MAFCO’s vice president of sales and marketing, and spans over a five-year period of time. Fries commented, “It takes a special customer relationship to make this type of program work. Total trust is required. You become an integral part of your customer’s internal team. We are excited about this partnership with Enerfab and look forward to a long and rewarding relationship in the future.” 112 • Winter 2021

Roberts Oxygen Company Acquires Atlantic States Specialty Gases Atlantic States Specialty Gases was acquired by Roberts Oxygen Company effective Friday, December 18, 2020. According to a press release, “It has been ASG’s privilege to serve your needs since 2005. We are confident Roberts Oxygen will continue to provide you with the high level of service you have come to expect from Atlantic States Specialty Gases. Roberts Oxygen is a family-owned company that has been in business for over 50 years and has serviced the New Jersey market with bulk gases and cylinders since 1990. We are the largest independently owned compressed gas distributor in the Mid-Atlantic with 50 locations including 3 locations in the Philadelphia / New Jersey market. We will continue to operate with the same employees from our same location at 114 Egel Avenue, Middlesex, NJ. Also, your account will now be honored at Roberts Oxygen locations serving nine states from New Jersey to Florida. Roberts Oxygen will begin servicing your account immediately, and all future invoices will come from Roberts Oxygen Company, Inc. We look forward to the opportunity to continue to serve you. Please call us at (973) 271-5351 if you have any questions.”

Chart Industries to Acquire Sustainable Energy Solutions Chart Industries, Inc. announced the signing of an exclusive letter of intent to acquire Sustainable Energy Solutions, Inc., subject to execution of definitive transaction documentation, for $20 million in cash and an associated earn-out. SES’s Cryogenic Carbon Capture™ (“CCC”) technology eliminates most emissions from fossil fuels while enabling better use of intermittent renewables through grid-scale energy storage. Coupling SES’s CCC technology with Chart’s air-cooled heat exchangers, brazed aluminum heat exchangers, IPSMR® refrigeration/liquefaction system and cryogenic storage and transport equipment creates a onestop full solution option for those looking for integrated technology and equipment. In addition to expanding Chart’s existing carbon capture equipment into a full solution including the process, this transaction will build upon the sustainability trends and interlinkages between clean energy, clean water, clean food, and clean industrial applications for which Chart is uniquely positioned.

NEWS FROM GAWDA

Archived Events and Webinars Available Through GAWDA.org COVID-19 Roundtables – Throughout the COVID-19 pandemic, GAWDA’s Consultants have been hosting regular webinars updating GAWDA members on regulatory updates and best practices relating to the pandemic. To view the recordings and presentations from all GAWDA COVID-19 Roundtables, visit the COVID-19 folder in the Members-Only Section of GAWDA.org. enator Sales Training (For Purchase) – HighlyV Successful three-part series “Driving Sales Success in the New Normal” is now available to view on demand. Venator Sales Group offered GAWDA Members the chance to learn from sales success best practices as we all navigate through today’s “new normal.” The cost for each individual class is $60. anaging in an Uncertain Economy – GAWDA M has partnered with other distribution associations as part of the AEA to offer a monthly series

of ITR reports and Q&A sessions to address economic trends. There is no cost for GAWDA Members to attend these webinars. Missed a session or want to hear the insights again? The archived webinars are available on GAWDA.org GAWDA Annual Industry Analysis Webinar – “Looking Past the Fear and Noise” is a webinar presented by ITR Economics Analyst Alex Chausovsky. The hour-long webinar covered GDP, stimulus packages, leading financial indicators and a review of best practices for using the GAWDA quarterly outlook report. It is available through the members-only section of GAWDA.org. 019 SMC and AC Presentations – 2 Presentations from the 2019 Spring Management Conference and Annual Convention are available through the members-only section of GAWDA. org. Relive some of the amazing speakers and presentations from the 2019 live events.

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1. SuperFlash Announces Launch of subsidiary LaserCore

SuperFlash LLC announced the launch of their new subsidiary LaserCore. With laser cutting sweeping the metal working industry, LaserCore is the destination for nozzles, ceramics, and holders. Providing high quality products and customer service with low cost. LaserCore will allow distributors to offer major fiber and CO2 laser cutting consumables to their customers at a great price without sacrificing quality. Offering everything from nozzles that are engineered to ensure geometric tolerances to provide improved gas flow, to ceramics and holders that have OEM compatibility guaranteed. LaserCore has local stock with warehouses in Florida, Ohio, Arizona, and Canada. “We have been the experts for compressed gas users and welders for so long that this was the next logical step. LaserCore is unique because it provides distributors with another item that end-users want- it’s a product that will create sales for distributors and it’s backed by our family business customer service.” says Victoria Marquard-Schultz, CEO of SuperFlash.

2. Lincoln Electric Introduces NEW Innovative App

Lincoln Electric® introduces a new innovative app that takes the guesswork out of preventative maintenance and ensures optimal performance from your Ranger® welder/generator. The NEXTime App connects to most Lincoln Electric Ranger welder generators from up to 15 feet away or more to provide real-time data and alerts for your machine. This eliminates 114 • Winter 2021

guesswork and confusion about equipment maintenance, and helps keep you prepared for the job, especially in the field. The NEXTime App performs several valuable functions: • Monitors battery and fuel status • Provides maintenance alerts • Creates maintenance logs • Provides maintenance instructions and locates service and distribution facilities • Manages a fleet of machines (unlimited number) The app can be downloaded from iTunes or Google Play, and requires install of the NEXTime Wireless Module inside your engine drive – a simple process that takes just minutes. The NEXTime App is currently compatible with Lincoln Electric’s Ranger 225, 250 and 305 models. The 260MPX and 330MPX models are currently designed with maintenance screens as part of the user interface, and will be compatible with the NEXTime App at a later date.

3. Norton Vortex Rapid Prep Non-Woven File Belts Offer Efficiency, Superb Finishes on Complex Parts

Saint-Gobain Abrasives announced the introduction of its new Norton Vortex® Rapid Prep Non-Woven File Belts which offer users an easier way to obtain superior finishes when working with tight, intricate and complex parts. A unique high-performance ceramic blend of grain cuts like a coarser grit size and delivers faster cuts, while producing finishes similar to a finer grit abrasive on a wide range of metals. The proprietary Norton Clean Bond® resin system ensures a smear-free, crisp-clean finish, improving productivity and reducing cost.

NEW OFFERINGS 4

5 “Users will enjoy improved ergonomics and greater productivity, due to the exceptionally flexible, heavy-duty resin system, in applications such as cleaning, blending, weld prep and finishing,” said Mario Davila, Product Manager, Norton/ Saint-Gobain Abrasives. “Extremely hard working, our new Norton Vortex File Belts offer superior conformability, as well as easy mounting on the tool.” For versatility, Norton Vortex Rapid Prep Non-Woven File Belts can safely be used in combination with coolants or in dry applications. The new File Belts are available in several sizes including widths of 1/4”, 1/2” and 3/4” with lengths ranging from 12” to 24” depending on the belt width. To meet application requirements, BEST tier options are offered in coarse, medium, fine and very fine grits. Applications examples include: • Restaurant/ food service: weld discoloration cleaning and surface blending on all metals • Stainless steel fabrication: scratch-blending and finishing • Aerospace: turbine blade blending and finishing • Automotive: surface prep and paint/coating removal

4. SafTCart Builds Galvanized Trailer for Butler Gas

SafTCart worked with Butler Gas to galvanize its first trailer. “They were the perfect customer, considering their weather climate in Pennsylvania,” said Jim Herring, Vice President. “There is a company that we work with in Tennessee that specializes in galvanizing, we sent them the 49’ trailer to be hot dip galvanized at 840 degrees. With a week turnaround, the trailer is sent back to us and we bolt on the landing gear, axels,

wheels, and liftgate. All wiring is wrapped in double wire loom and the lights are in sealed compartments to be protected from the weather. The only negative to doing a galvanized trailer is, it can not be painted so we must get creative in displaying your logo or color.” He added, “SafTCart adds another dimension in truck bed and trailer fabrication by galvanizing the end product for extended life in harsh conditions.”

5. Superior Products Launches Heat Shrink Tube Labels

Superior Products announces an upgraded process and labeling system for flexible and rigid high-pressure hoses. The new heat shrink tube label printed on the Cab Squix 4M printer includes part number and description, date of manufacture and a traceable lot number. This most recent innovation enhances procedures already in place including the CGA G-4.1 cleaned for oxygen service standard and high-pressure testing of each flexible hose.

6. New CErtifi™ TimeClock Ties into Compliance Software

The CErtifi TimeClock utilizes biometric fingerprint technology to track time and manage scheduling of your workforce. The system provides a definitive method to know who exactly is clocking in/out, is taking PTO or is absent. Plus, with CErtifi TimeClock you can easily designate company holidays or events with a few clicks—automatically updating company-wide schedules, as well as easily pull at-a-glance reports for employee historical data to view, share or export. Winter 2021 • 115

NEW OFFERINGS

8 Our software allows you to monitor employee scheduling, time tracking and payroll reporting across multiple devices. Managers can customize scheduling and reports, quickly and securely via Desktop, SQL Server or Cloudbased applications. With CErtifi™ TimeClock, your company is always DOLready at the click of a few buttons. Easily show inspectors company-wide timeclock status or individual employee data, sharing real-time or historical reports. Staying compliant has never been so simple. Empower your business to be more efficient and productive by avoiding fines, bad grades, wasted time and lost information because all data is managed and stored digitally by CErtifi TimeClock. Along with dynamic reporting, our technology also validates the individual’s fingerprint and stores associated information including employee classification, status, ID, DOE and employment location. CErtifi TimeClock’s modular design allows it to be utilized as a local, stand-alone application or in multi-station environments using shared file services.

7. Alumi-Furb Cylinder Requalification

Process for Medical Cylinders offered by All Safe Global

Alumi-Furb, short for “aluminum refurbishment,” this exclusive testing and refurbishing process transforms aluminum cylinders to look like new. Alumi-Furb is an extremely cost-effective approach to buying new cylinders. We hydrostatically test each cylinder, remove any labels, buff it free of the old clear coat, repaint shoulders as needed and in the correct color for the application, and finish with a fresh, durable clear-coat. You get a cylinder in like-new condition for a fraction of the price. 116 • Winter 2021

8. Lincoln Electric Announces Torchmate 4510 CNC Plasma Cutting Machine

Lincoln Electric® introduces an all new CNC plasma cutting table, the Torchmate 4510. Building on the success of the Torchmate 4400 and 4800 with years of use in the field by customers worldwide, Lincoln Electric is excited to add a new CNC plasma cutting table to the 4000 series product line – the Torchmate 4510. Built with the same proven design of the Torchmate 4000 series tables, the Torchmate 4510 is expanded to a five-foot by ten-foot (5x10) configuration and Lincoln Electric remains the single source provider of the plasma table. The new CNC machine keeps all of the premium components of the 4000 series tables, including FlexCut® plasma cutters, reliable motion controls, an easy to use touchscreen, and user-friendly Torchmate CAD software. The machine is delivered fully assembled, allowing the machine to be ready to cut within 30 minutes of delivery. Lincoln Electric designed the Torchmate 4510 table for improved production capabilities for those looking to optimize metal cutting. This machine offers the ability to accommodate a full 5x10 sheet of metal up to 1” thick when equipped with the optional FlexCut 125 power supply. Using 5x10 sheets of metal provides 36% more material capacity than a 4x8 sheet, maximizing the number of parts that can be cut out and reducing material handling time. Torchmate technology brings over four decades of research and innovation to meet clients’ unique plate cutting needs worldwide. Manufactured in Reno, Nevada, Torchmate machines offer industry-leading performance and service that delivers proven reliability, simple ease of use, and maximum production efficiency. Fabricators from every industry can rely on this machine to consistently cut accurate metal parts day in and day out.

NEW OFFERINGS 11

9 The Torchmate 4000 series is a premium line of CNC plasma cutting tables. Torchmate products are single-sourced and supported by Lincoln Electric’s high-quality technical support staff. Extensive training options, including a complete virtual training program, allow the user to begin using their new machine with confidence quickly. Torchmate 4000 series tables come with a 2-year warranty.

9. Harris Launches New Accessory Merchandising Program Harris Products Group has introduced a new accessory merchandising program featuring displays of high-demand products to help distributors achieve high volume sales, high product visibility and high profits. Harris has designed the displays to make it convenient for customers to find the products they use every day. The eye-catching 4’ and 8’ planograms provide 44 and 70 SKUs of welding tools, brushes, magnets, markers, gauges and guards, tips, chemical aids, hoses, cylinders and other Harris accessories. The steel-constructed displays, welded with a powder coat finish, are durable but lightweight and easy to move. Harris offers competitive pricing and there is a special offer available to 5-Star distributors until March 31, 2021.

10. Hypertherm Introduces Extreme Bevel

Plasma Consumables for its MAXPRO200 Air/Oxygen Plasma Systems

Hypertherm announced the release of extreme bevel consumables for its MAXPRO200® LongLife® air and oxygen plasma cutting system. The consumables, designed for mechanized, robotic, and handheld cutting, have an aggressive pointed geometry so the plasma torch can tilt to an angle of up to 66.5 degrees. This makes the consumables ideal for a wide range of jobs

including steep mechanized beveling, tube and pipe cutting, structural steel work, pressure vessel construction, and handheld cutting. In addition, it makes it easier for operators to see what they are cutting and gives them better access to beam flanges and areas with limited clearance for better cuts and fewer secondary operations. The extreme bevel consumables are available for both air and oxygen cutting at 130 and 200 amps. MAXPRO200 owners and operators can choose to purchase the consumables separately or as part of a starter kit (part 528058) that includes consumables for all the extreme bevel cutting processes available for this system. “The MAXPRO200 is a true workhorse for companies demanding great cut quality along with high productivity and low operating costs,” said Jorge Santana, a Hypertherm product manager. “It’s 100 percent duty cycle combined with 200 amps of power and the versatility offered by both hand and mechanized cutting make it an enormously popular system. The addition of these extreme bevel consumables creates new opportunities for customers around the world.”

11. Lincoln Electric Introduces VRTEX OxyFuel Cutting Feature

In collaboration with The Harris Products Group — a Lincoln Electric company and the leader in cutting — Lincoln Electric® introduces VRTEX OxyFuel® Cutting feature, bringing welding and cutting together for education by enabling users to practice torch cutting safely and virtually. From setting up the torch to executing the cut, each task is designed to simulate real-world cutting applications. Exclusive to Lincoln Electric, the VRTEX OxyFuel Cutting feature is available on VRTEX 360 and Transport models. The VRTEX 360 provides a best-in-class, advanced-level virtual reality welding simulation training experience for Winter 2021 • 117

NEW OFFERINGS 12

educational or industrial environments. It can be used for fundamental welding training, skill enhancement, diagnostic testing and instructor preparation. Virtual reality arc welding trainers provide a powerful, cutting-edge solution for cultivating welding talent quickly and resourcefully. Together with the MIG, Stick and GTAW devices, they simulate the look, feel and action of actual guns and torches. VRTEX training offers welders a variety of benefits, including: • Faster Training • Increased Certification Rate • Reduction in Training Costs • Streaming Capabilities for Remote Learning “The Harris Products Group and Lincoln Electric collaboration raises the bar by offering the best state-of-the-art welding simulations,” said Ira Bennett, Director of Marketing for The Harris Products Group. “The addition of OxyFuel to Lincoln’s VRTEX 360 and Transport models offers instructors and students an all-encompassing welding simulation experience.” Instructors can use the VRTEX OxyFuel feature for an introduction and reinforcement of cutting practices. VRTEX offers the ability to connect to the user’s fuel of choice, Propane or Acetylene, and properly set fuel and fuel pressures in proper safety sequence. Users follow a step-by-step torch lighting sequence, following safety protocols and reinforcing the importance of reading the flame, and displaying proper torch shutdown sequence. OxyFuel Cutting is also applicable for students to learn application, evaluation and improvement of cutting. Visual cues will help the learner with proper technique by indicating proper aim, angle, distance and speed. VRTEX products reinforce the importance of heating the plate and cutting accuracy with realistic separation of the cut, and provide users with feedback. “Lincoln Electric is committed to continually offering bestin-class, innovative, virtual learning experiences for new and seasoned welders alike,” said Jason Scales, Business Manager, 118 • Winter 2021

Education for Lincoln Electric. “The VRTEX OxyFuel Cutting feature allows users a lifelike simulated cutting experience that will prepare them to apply their skills in the field.”

12. CryoWorks Vent Heater The CryoWorks Vent Heater attaches onto the outlet exhaust bayonet of our Keepfull Vent Devices and Phase Separators to eliminate 1) safety hazards associated with ice buildup or moisture dripping and 2) mold growth or T-bar ceiling damage associated with moisture or ice. This device is designed with a housing that protects personnel and equipment from outlet heater temperatures. It’s also designed for outside terminations but can also be considered for inside terminations with large open areas that provide adequate air exchange rates. *Available in various bayonet connection and sizes.

13. Abicor Binzel xFume Robo Until now, fume extraction in robotic applications was achieved through hooded cells and large, costly central ventilation systems; but not anymore. ABICOR BINZEL has developed at the source fume extraction for robotic applications; the xFUME ROBO. Using a fume collector body that fits onto ABICOR BINZEL robotic torches, the xFUME ROBO is capable of capturing more than 95% of weld fumes. With various hose management options and flexible suction boot design, the xFUME ROBO will integrate into your current operations without interfering with robot flexibility or access. In most cases, no TCP changes are required to start using the xFUME ROBO. Find more details on the xFUME ROBO at www.binzel-abicor.com! The xFUME ROBO is available for all widely used robot OEMs, and fits onto existing ABICOR BINZEL robotic torches. For optimal performance, pair with ABICOR BINZEL fume extraction systems.

ADVERTISERS INDEX Abicor Binzel................................................... 71

Kaplan Industries............................................ 11

Acme Cryogenics............................................ 93

Lincoln Electric................................................. 7

AmWINS......................................................... 49

McDantim....................................................... 98

ANOVA............................................................ 61

Metal Man Work Gear................................... 113

Anthony Welded Products.............................. 35

NorLab Calibration Gases............................... 97

Arcos Industries............................................ IBC

Norton Abrasives............................................ 13

ASM/American Standard Manufacturing........ 21

Pearl Abrasive................................................. 41

Bug-O Systems International.......................... 40

Premier Cryogenic Services............................ 17

California Cylinder.......................................... 50

RegO Cryo-Flow Products............................ 111

Catalina Cylinders........................................... 54

Revco Industries............................................. 19

Chart................................................................. 5

Rotarex........................................................... 23

Computers Unlimited...................................... 38

SafTCart......................................................... 85

Controlled Efficiencies.................................... 43

Select-Arc...................................................... BC

CPV Manufacturing......................................... 67

Sherwood Valve.............................................. 25

Cryogenic Industrial Solutions........................ 49

Thermco......................................................... 53

Cryoworks.................................................... 103

TomCO2 Systems............................................. 3

Dynabrade...................................................... 39

Veite Cryogenic Equipment & Service............... 1

Eleet Cryogenics............................................. 63

Vendor Managed Gas Telemetry..................... 71

Equigas........................................................... 50

Voestalpine Bohler.......................................... 15

Exocor............................................................ 66

Watson Coatings............................................ 65

FIBA Technologies.......................................... 66

Weldcoa............................................................ 9

Flexovit USA................................................... 95

Weldship Corporation..................................... 99

Generant......................................................... 98

Winton Products............................................. 70

Genstar Technologies..................................... 55

Wire Wizard................................................... 106

H & H Sales..................................................... 70

Witt Gas Controls........................................... 51

Harris Products Group...................................IFC

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Winter 2021 • 119

bugosystems #MotivationMonday Success is the sum of small efforts repeated day-in and dayout. #BugoSystems #MadeInUSA #motivation #welding #weldporn #weldernation

AWDA members shared the below posts and pictures using Twitter, Instagram, and Facebook. We encourage GAWDA members to keep the conversation going all year long by using #GAWDA next time you post.

Be sure to follow @gawdaorg and @gawdamedia on instagram.

haunweldingsupply We are so thankful for the many organizations in our communities that are doing so much good for people! We are honored to partner with @ assumptionsyr to help feed community members during this season that is difficult for so many.

Minneapolis Oxygen Company Happy Saturday! Here’s a toast to all the progress made on our air separation unit. We couldn’t be more excited for Absolute Air!

ButlerGas Jesse celebrates 10 years with the Butler Gas Family today! Jesse is our Vice President of Finance. He works closely with our supply chain partners and across all teams at Butler Gas. Thank you, Jesse, for a great decade and counting! #ButlerGasFamily

120 • Winter 2021

completewelderssupply And I think to myself, what a wonderful weld.

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