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co nt e n t s

First Quarter • Winter 2019 • Volume 18, No. 1

DEPARTMENTS 06

PRESIDENT’S VIEW Keeping a Watchful Eye on the Road Ahead BY BRAD PETERSON

DIRECTOR’S DESK Providing Practical Services to Members Large and Small BY JOHN OSPINA

EDITOR’S NOTE Looking Forward to 2019

COVER STORIES

2019THE YEAR OF

BY VERONICA WESTFALL

GAWDA CONSULTANTS 12

urrent Issues – Food C and Drug Compliance

BY MICHAEL DODD

OT Wants to Study D Links Between Vehicle Maintenance and Safety

BY ALAN BEAULIEU

MEMBER PROFILE 50

I NDIANA OXYGEN COMPANY: A 21st Century Regional Gas and Welding Innovator BY AGNES H. BAKER

STAY CONNECTED

2 • Winter 2019

BY AGNES H. BAKER

WHERE WILL 2019 TAKE YOU? GAWDA Members Predict Mostly Clear Skies and Open Roads in the Year Ahead BY VERONICA WESTFALL

BY RICHARD P. SCHWEITZER, ESQ.

ITR FIRST-QUARTER OUTLOOK: Rising to the Challenge of 2019 and Early 2020

GAWDA GIVES BACK

BY THOMAS L. BADSTUBNER

hecking Your Score C Using the Safety Management System

PAGE

RICHES IN THE NICHES Cryotherapy Remains Hot BY VERONICA WESTFALL

PAGE

GUEST VIEWPOINTS 56

SALES AND MARKETING Every Business Needs a Marketing Plan BY JOHN TAPLEY

SALES AND MARKETING If Only I Had Known BY ART WASKEY

BEST PRACTICES Regulatory Issues to Watch BY RICH GOTTWALD

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co nt e n t s

First Quarter • Winter 2019 • Volume 18, No. 1

THE TEAM

PAGE 68

SPRING MANAGEMENT CONFERENCE PREVIEW

EXECUTIVE EDITOR

John Ospina jospina@gawda.org PUBLISHER

Bill Brod billb@gawdamedia.com EDITOR IN CHIEF

Veronica Westfall veronicaw@gawdamedia.com

Saturday, May 4 – Monday, May 6, 2019

PAGE

MINNEAPOLIS, MN

CONTRIBUTING EDITOR

Natasha Alexis nalexis@gawda.org CONTRIBUTING WRITER

Agnes H. Baker CREATIVE DIRECTOR

Robin Barnes robinb@gawdamedia.com VICE PRESIDENT, SALES

Tim Hudson timh@gawdamedia.com RELATIONSHIP MANAGER

Hannah Gray hannahg@gawdamedia.com

NEWS ROUNDUP 68

We’ve upgraded our website! Visit it today at GAWDAMEDIA.COM

SMC PREVIEW May 4 – 6, 2019 Minneapolis, MN

NEW MEMBERS

SAVE THE DATE! Upcoming Industry Events

INDUSTRY NEWS

IN MEMORIAM

MERGERS & ACQUISITIONS

100

NEW OFFERINGS

104

ADVERTISERS INDEX

Welding & Gases Today (USPS 22-975) is published quarterly: Winter, Spring, Summer and Fall, with additional publications in Spring and Summer. • Non-member subscription rate is $195 per year. • GAWDA members (key contacts and branch locations) receive the magazine as part of their dues. • GAWDA members can order additional yearly subscriptions (4 issues) for $40. • Welding & Gases Today is published by Data Key Holdings, LLC. on behalf of the Gases and Welding Distributors Association. • Periodicals postage paid at Ft. Lauderdale, FL, and at additional mailing offices (ISSN 1558-5344). • Editorial correspondence should be sent to Editors c/o editorial@gawdamedia.com • Advertising correspondence and materials should be sent to William Brod, Data Key Holdings, LLC., 1415 W. Genesee St., Syracuse, NY 13204; telephone (315) 445-2347, fax (315) 422-1721. • Postmaster: Send address changes to Welding & Gases Today, Gases and Welding Distributors Association, One Oakwood Blvd, Suite 195, Hollywood, FL 33020 • Welding & Gases Today is the official journal of the Gases and Welding Distributors Association (GAWDA) and carries news and announcements concerning GAWDA. • It is not responsible for contents or opinions other than association activities. • Contents are copyright ©2019 Data Key Holdings, LLC. • All rights reserved. • Nothing may be reproduced in whole or in part without written permission of the publisher. • Questions and comments can be sent via e-mail to Editors, c/o editorial@gawdamedia.com. • Data Key Holdings, LLC. reserves the right to print portions of all or any correspondence mailed to the editors without liability on its part and no such correspondence will be returned. • Visit Welding & Gases Today Online at www.gawdamedia.com.

4 • Winter 2019

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P RESIDENT’S VIEW

Keeping a Watchful Eye on the Road Ahead by brad peterson

T Brad Peterson is GAWDA’s 2018–2019 president, as well as chairman and chief acquisition officer of family-owned Mississippi Welders Supply Company, Inc. He also serves on the board of the Independent Welding Distributors Cooperative (IWDC) and the board of Absolute Air. He can be reached at 800-657-4422 or bradp@mwsco.com.

6 • Winter 2019

here have been a lot of twists and turns on the road heading into 2019, but I feel certain that the future bodes well for the welding and gases industry and I will do my best to steer the organization in a direction that provides the maximum benefit to its members. Looking out my window at the road and viewing the sights, I see: The Linde-Praxair merger has brought with it some uncertainty about the economic impact and market arrangements. With Messer entering the equation, it only gets more complicated. Distributor members will want to know what their relationship will be with the finally settled companies, and are watching closely to see how this plays out. Their concerns revolve around pricing, supply security and personal connections. Members are also concerned about tariff issues, with both pricing changes and surcharges occupying an inordinate amount of time for purchasing managers, salespeople and business owners. The sooner clarity and finality are achieved, the easier it will be to return to more normal operations. The economic outlook is projected by some advisers to slow down in 2018; however, most members are making hay right now as the sun shines brightly. We will all be watching the economy very closely as we move further into the New Year. If there is a slowdown, we hope that the advisors are further correct in their assessment that it will be short lived. Topics to watch include the following: • Automation – As manufacturers and other businesses find it difficult to hire employees with the necessary qualifications, they are

turning very rapidly to automation. Any repetitive task is subject to this evolution, and it’s allowing distributors with this capability to help customers improve their operations and bring more value and opportunity to the relationship. • Argon and Helium Scarcity – Argon is in tight supply in some areas, and helium is tough all over. Members will be watching for new sources and more secure supply arrangements. • CO – On the supply side, it’s always tight 2 in the summer. On the distribution side, many will be grappling with compliance in the food gas arena. Overall, CO2 will be another area that challenges us to keep customers in product. For my part, I will continue to be an attentive driver and will do everything possible to ensure the strength and security of GAWDA members, keeping us all on the road to prosperity. I firmly believe that service is the key to our success as we head down that road. If we continue to bring value with our service, customers will further rely upon and reward us with their continued business and trust. Service will continue to be a major theme of the year for me, and I hope to discuss it with you at our next opportunity, the Spring Management Conference in Minneapolis. I think we’ve got a great meeting lined up, and I hope to see you there. Thank you all for your support and words of encouragement as I continue with the responsibility of leading our great organization. Best wishes for a peaceful and prosperous year!

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DIRECTOR’S DESK

Providing Practical Services to Members Large and Small by john ospina

G 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 2019

AWDA’s mission has focused on two areas for the past 74 years, “To promote the safe operation and economic vitality of distributors of industrial gases and related equipment manufacturers.” What are some of the things we do to fulfill this mission, and how can you capitalize on these benefits? We talk a lot about the “economic vitality” portion of the mission. Our national and regional meetings provide valuable insight from both members and guest speakers. The contact booth programs provide networking opportunities between the distributor and supplier members. What if you’re a small company and can’t get away to participate in these meetings? How can you stay up to date and informed? Our publications do a great job of highlighting important messages and concepts that are discussed at the national meetings. Many of our speakers often have YouTube videos that touch upon core concepts in their presentations. Presenters are also given the opportunity to write guest articles for our magazine. Our publications also provide a wealth of information related to the economic direction of our industry. Once a year, ITR holds a webinar to talk about the economic reports and how to get the most out of the information it provides. That webinar is available in our members-only site. So, what do we do to ensure the “safe operation” of your business? Well, our number one resource is our consultants. What if you don’t need to talk to anyone, and just want some training for you and your employees? We provide several free training opportunities that you and your employees can take advantage of without ever leaving your workplace. For example, GAWDA consultant Tom Badstubner lists a suite of free

medical and food gas training videos available to members in his column in this issue (page 12). GAWDA University provides over 43 online employee training courses that cover subjects related to OSHA, DOT, FDA and general safety topics. Each year, GAWDA member employees complete close to 4,400 of these free courses. Information on GAWDA University can be found at www.gawda.org/gawda-university. Our Safety Committee has developed many best practices that can be downloaded and shared with employees. These files can also be found on our members-only site. If you have any questions about how to access the members-only portion of our website, please contact Stephen Hill at 844-251-3219, x220. The Safety Committee will also be working with the Compressed Gas Association on the development of a new series of short e-learning videos. These videos will include a test section to ensure that the participant fully understood the video concepts. The first three videos will be launched in the very near future. So, keep an eye out for the announcement. More videos will be added to the program over time. The CGA publications program will also continue to be available to GAWDA distributors. If you are a small distributor (with fewer than 10 employees) and are not subject to maintaining an OSHA 300 log, you can participate in the publication program and e-learning videos without having to turn in any incident reports to the CGA. If you have any questions about this, feel free to call me at 844-251-3219, x240. As always, thank you for your continued membership in GAWDA and your support of the industry.

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FROM THE EDITOR

Looking Forward to 2019 by veronica westfall

2 Veronica Westfall has over 25 years of writing experience and is the author of more than two dozen textbooks for the construction trades. She can be reached at veronicaw@ gawdamedia.com.

019 has been declared the Year of Service for GAWDA, with a renewed focus on all aspects of service as noted by GAWDA President Brad Peterson: customer, country and community. This year, each issue of the magazine will carry a nod to this theme. In the forecast article, many of our members pointed out that in an uncertain economy, there is no better way to shore up your customer base than by providing outstanding customer service. We also focused on community service in this issue, with an article on the impact of GAWDA Gives Back over the years. Through the generosity of GAWDA members, this organization has provided $2.3 million dollars in donations to dozens of worthy charities across the country. The gases and welding world is unique in the way that it embraces evolving technologies and the changing times while providing a solid backdrop of traditional values, including family, service and philanthropy. It truly is an amazing industry. I am so thankful for the learning opportunities I have been afforded as your editor. Every member I speak to has something to teach me about this industry, and you have all been so patient during the learning process. This month I am

particularly grateful to the dozens of member companies who participated in the 2019 Business Forecast article. Thank you for taking the time out of your hectic days as actual captains of industry to share your predictions for the coming year and help uncover potential new markets for GAWDA members. I am pleased to report that the overwhelmingly optimistic response indicates another year of strong business for the gases and welding industry. Our Riches in the Niches article in this issue focuses on cryotherapy, a growing market in sports rehabilitation for cold therapy and the medical community in terms of cryosurgery and cryoanalgesia. We also have guest articles on marketing and sales, a profile on Indiana Oxygen Company and an article from CGA President Rich Gottwald on regulatory issues to watch in the coming year. As always, please feel free to reach out to me with comments, tips, story ideas or anything else you’d like to share. I can be reached at 315-4452347 or veronicaw@gawdamedia.com. I look forward to getting to know more of you at the Spring Management Conference and will strive to contribute value to your GAWDA membership.

Are you getting THE CONNECTION? SUBSCRIBE

Sign up for GAWDA’s Member Newsletter and stay updated on the latest from GAWDA and news about Members. Published on the 1st and 15th of each month. Subscribe for yourself or your team by visiting: bit.ly/gawdaconnection

10 • Winter 2019

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CONSULTANTS FDA & MEDICAL GASES

Current Issues – Food and Drug Compliance by thomas l. badstubner

WHAT IS THE LATEST FDA THINKING ABOUT EXPIRATION DATES ON MEDICAL GASES?

GAWDA’s FDA and Medical Gases Consultant Thomas L. Badstubner is president of AsteRisk, LLC in Lewisville, TX. Members can reach him at 508-883-0927 and tom@asteriskllc.com.

12 • Winter 2019

21 CFR 211.137(a) clearly states that drugs must bear an expiration date. However, this does not represent the latest agency thinking or enforcement regarding expiration dating of medical gases.

ENFORCEMENT DISCRETION We have three recent examples of FDA communication regarding expiration dates: • In a message from the FDA to a medical gas firm, the agency stated: The agency is currently developing guidance pertaining to stability testing and expiration dating of medical gases. Pending publication of FDA guidance on this subject, our policy has been to use enforcement discretion with respect to the requirement in 21 CFR 211.137 that medical gases, as drug products, bear an expiration date. Please be aware, however, that if a manufacturer chooses to apply an expiration date to a medical gas, it must be supported by a stability study as required by 21 CFR 211.166. If the choice is made to label the product with an expiration date, it could be on a separate sticker in a manner similar to the lot number. • In the FDA’s Compliance Program Guidance Manual (Program 7356.002E Part V Regulatory/Administrative Strategy) (3/15/2015), Page 26, the agency instructs its investigators: If a firm chooses not to include expiration dating (21 CFR Part 211.137) on the label, no action will be taken. If a firm labels a gas

•

with an expiration date it must be supported by data (stability studies), which is subject to review during a site inspection. In the most recent Draft Guidance – Current Good Manufacturing Practice for Medical Gases Guidance for Industry (6/29/2017), Page 16, the FDA formally ratified the agency’s latest thinking on expiration dates for medical gases: Medical gases have unique stability characteristics. Accordingly, FDA does not intend to object if manufacturers of designated medical gases do not comply with the expiration dating requirements in § 211.137(a) for those gases.

RECOMMENDED PRACTICE AsteRisk recommends that you not use an expiration date on designated medical gases (drugs) and medical gas mixtures. We have a sample letter available if you have customers who wish written clarification the FDA’s position on expiration dating for medical gases.

WHAT CGMP TRAINING IS NEEDED FOR NON-OPERATIONS PERSONNEL? The drug, food and device regulations are clear that personnel who produce or test medical and food/beverage gases must be qualified. Here is the regulation from the drug regulations (similar provisions are found in the food and device regulations): 21 CFR 211.25(a) Personnel qualifications. Each person engaged in the manufacture, processing, packing, or holding of a drug product shall have education, training and experience, or any combination thereof, to enable that

CONSULTANTS FDA & MEDICAL GASES

person to perform the assigned functions. Training shall be in the particular operations that the employee performs and in current good manufacturing practice (including the current good manufacturing practice regulations in this chapter and written procedures required by these regulations) as they relate to the employee’s functions. The required training includes current good manufacturing practice (CGMP) and also function-specific training. It is clear that pumpers need to be trained in the regulations (annual CGMP training) and also how to fill and test cylinders. But, what training, if any, is required for drivers, counter sales personnel and administrative personnel? • Drivers – Distribution personnel also need to receive the appropriate CGMP and function-specific training for their job. The CGMP and function-specific training for drivers will look different from the training for pumpers. The following elements are typically included for driver CGMP training: Lot number recordkeeping, complaint procedures, recordkeeping and labeling. In addition, drivers must also be trained about special cryogenic container labeling and connection fitting requirements (NEVER change a cryogenic medical gas fitting). • Administrative and Counter Sales Personnel – These non-operations personnel should also receive basic CGMP training to properly report complaints and to appropriately handle lot number records. This training is a small fraction of the training that is needed for pumpers.

Scanning QR Codes with a Phone Camera 1. Open the camera app. 2. Focus your device on the QR code you want to scan and hold it for 2 to 3 seconds. 3. Click on the notification to open the QR code link. Note: Some phones may require that you download a scanner app in order to read QR codes.

•

TRAINING SOLUTIONS In addition to GAWDA University, CGA training and other valuable resources, we offer the following free training suite available to GAWDA distributor members: • Food Gas: Qualified Facilities and Submitting the FDA Attestation – This 15-minute video discusses the FDA Qualified Facility exemption and how to submit the Attestation. The two sales criteria for a Qualified Facility are discussed as well as the alternate Qualified Facility requirements and meaning of the Attestation. Note: Scan the QR codes shown here to go directly to each link.

•

Food Gas: CGMP Training for Pumpers – This 28-minute course describes the FDA food regulations (21 CFR 117), allergen training, sanitation training and includes a quiz and certificate of participation. Food Gas: For Owners and Managers – This 62-minute video is designed for food/beverage gas company owners and managers and discusses how to set up a compliant food/beverage gas program. Medical Gas: CGMP Training for Pumpers – This 25-minute course describes the FDA medical gas (drug) regulations (21 CFR 211) that a medical gas pumper should understand and includes a quiz and certificate. continued on next page

Winter 2019 • 13

CONSULTANTS FDA & MEDICAL GASES Medical Gas: CGMP Training for Drivers – This 23-minute course describes the FDA medical gas (drug) regulations (21 CFR 211) pertaining to medical gas container deliveries, recognizing medical gas labels and medical gas tamper-proof connections. It includes a quiz and certificate of participation. • Food and Medical Gas: CGMP Training for Administrative Personnel – This 11-minute course describes the essential FDA regulations pertaining to non-operations personnel. It also includes lot number tracking and complaint procedures. A quiz and certificate of participation are available. Over 2,000 GAWDA member employees have taken these training courses. Contact tom@asteriskllc.com if you would like to receive the links to receive these training resources. •

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CONSULTANTS DOT, SECURITY, OSHA & EPA

Checking Your Score Using the Safety Management System by michael dodd

H GAWDA DOT, Security, OSHA and EPA Consultant Michael Dodd is president of MLD Safety Associates in Poplar Bluff, MO. Members can reach him at 573-7182887 and at MLDSafety@ hotmail.com.

16 â&#x20AC;˘ Winter 2019

ave you received a warning letter from the DOT asking you to review your record and improve your overall score? Several of our members have received such letters. This is not a letter that you want to get. It is a warning letter that, in so many words, means that if you do not improve your score, then you may be visited â&#x20AC;&#x201D; another way of saying that you may get an audit. You may look at your overall record and review your score by going to the Safety Management System (SMS) website at this address: ai.fmcsa. dot.gov/SMS/. This site allows you to check your company record for accidents and inspections, and then investigate the details of items such as your roadside inspections.

Type in your USDOT number or your company name, and your profile will come up after selecting your company. If you need a PIN, you can obtain one by following the links on the SMS website. If you cannot locate your PIN or were never assigned one, please go to the link below and follow the instructions to request a new one: fmcsa.dot.gov/ registration/request-pin-number. Once you complete the PIN registration process, you will receive your PIN immediately by email or by mail based on which method you requested. Assistance with PIN issues can be obtained by calling the Federal Motor Carrier Safety Administration technical support line at 1-800-832-5660 during normal business hours.

In addition to the publicly available BASICs, users can also view additional detailed information on roadside inspections and crashes that are not available to the general public, such as driver names and other carrier-specific details.

Please note that you need a USDOT Number PIN, not the Docket Number PIN. From your carrier information page, you can get additional details by clicking on either “View Complete Measurement Profile” or any of the “BASIC” items shown going across the page (blue rectangles). Be sure to look under the tab even if it says “Inconclusive.” You will only see information if they have entered something into one of the BASIC items. This is one of those “no news is good news” things. If there is no information under an item, that is great! You have not been written up in that area. If there is information in one of the BASIC items, then you can see more details by clicking on the “+ Inspection History” link found along the left side of the page. This will let you see the actual items that were written up on the inspection. If you logged in with your PIN, then you can see the driver name as well. This is very useful for tracking driver performance and identifying potential training issues.

WHY SHOULD A MOTOR CARRIER LOG IN TO THE SMS? Logging in to the SMS provides additional functionality. Motor carriers that log in can view their Cargo-Related and Crash Indicator BASICs measurements and assigned percentiles. In addition to the publicly available BASICs, users can also view additional detailed information on roadside inspections and crashes that are not available to the general public, such as driver names and other carrier-specific details. If you received a warning letter from the DOT and would like me to help you review the data, please send me an email or give me a call. I would be happy to help you through the websites and the data.

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Winter 2019 • 17

CONSULTANTS GOVERNMENT AFFAIRS & HUMAN RESOURCES

DOT Wants to Study Links Between Vehicle Maintenance and Safety by richard p. schweitzer, esq.

T GAWDA’s Government Affairs and Human Resources Legal Consultant Rick Schweitzer is president of Richard P. Schweitzer, PLLC in Washington, DC. He is also GAWDA’s general counsel. Members can reach him at 202-223-3040 and rpschweitzer@ rpslegal.com.

18 • Winter 2019

he Federal Motor Carrier Safety Administration has submitted an Information Collection Request to the Office of Management and Budget seeking approval to conduct a study on truck and bus maintenance requirements and their impact on safety. The FMCSA notice states the goal of the study is to determine what improvements, ranging from better compliance interventions to better vehicle maintenance requirements, would enhance motor carrier safety. A 2014 study by the DOT’s Volpe National Transportation Systems Center on the effectiveness of the FMCSA’s Safety Measurement System in identifying the highest risk motor carriers to be targeted for interventions found that motor carriers targeted for intervention due to “vehicle maintenance” issues (i.e., violations) had a 65 percent higher crash rate compared to the national average. The study objectives are as follows: 1. Develop an operational definition of “systematic maintenance” as required in 49 CFR 396.3(a). 2. Evaluate whether current regulations and the intervention process could be modified to improve compliance with vehicle maintenance requirements. Examples of such requirements include: (i) Preventative maintenance intervals, (ii) preventative maintenance inspections with adequately trained/ equipped mechanics, and (iii) adequacy of motor carriers’ maintenance facilities. 3. Gather information to assist in establishing minimum standards for inspection intervals, mechanic qualifications and training and certification of maintenance facilities.

If the study is completed, the results of the analysis might be used to develop new areas of policy guidance and training and potentially new regulatory standards for motor carriers (although the Trump administration is committed to reducing the regulatory burden on companies). Although the regulations state that every carrier must have a program to “systematically inspect, repair, maintain or cause to be systematically inspected, repaired and maintained, all motor vehicles … subject to its control,” there is no definition or guidance on what constitutes a “systematic” program that meets this requirement. The FMCSA notice states that this lack of specificity regarding standard intervals for preventive maintenance makes it difficult for safety enforcement personnel, and for carriers themselves, to evaluate effectiveness and compliance with a carrier’s maintenance program. If conducted, the study will be in two phases. First, the agency will recruit study participants using a voluntary, seven-question online survey. For those carriers selected to participate, phase two will involve a 106-question Carrier Maintenance Management Survey about demographics, maintenance practices, intervals, personnel and facilities. The results of this information collection will be documented in a technical report to be delivered to and published by FMCSA. In addition, the results will be used to create a “recommended best practices” report that will outline minimum standards for inspection intervals, mechanic qualifications and training and certification of maintenance facilities. Regardless of whether the study is conducted, GAWDA members would be well advised to review their vehicle maintenance and inspection

CONSULTANTS GOVERNMENT AFFAIRS & HUMAN RESOURCES practices. According to a report recently released by Motus, a vehicle management and reimbursement platform, motor vehicle accidents cost employers nearly $57 billion in 2017. These costs include medical expenses for employees and others involved in an accident, insurance increases, leave wage replacement and property damage costs. Ensuring that your company vehicles are properly maintained and serviced is critical in mitigating the risk of an equipment-based accident. Additional findings in the 2018 Motus Report include: • U.S. collision insurance claims remain at the highest levels of the past 10 years and have steadily increased over the past five years. • 53 percent of vehicle crash injuries cause employees to miss work.

•

When an employee has an accident that includes damage to both a person and a vehicle, their annual insurance rates typically increase by about 33 percent. Accidents without any injuries increase insurance annual rates by about 23 percent. That means that an accident could increase an employee’s average auto insurance costs by $350 to $515 a year.

Winter 2019 • 19

2019: THE YEAR OF SERVICE

GAWDA

Gives Back by agnes h. baker

he GAWDA mission is to promote the safe operation and economic vitality of distributors of industrial gases and related welding equipment and supplies. The association carries this out in many ways, but central to the group’s effectiveness has always been an open sharing of ideas among its membership in support of each other. In 2000, GAWDA’s acting president, J. David Mahoney, and his wife, Donna, suggested that GAWDA might extend this notion of sharing to the communities that host their annual event, coining the initiative as GAWDA Gives Back. Nearly 20 years later, the program has donated over $2.3 million to local charitable causes.

FRAMED FOR FUTURE SUCCESS In addition to the continued generosity of its members, the enduring success of GAWDA Gives Back has a lot to do with the foundation that the Mahoney’s helped to establish so many years ago. As readers know, GAWDA’s Annual Convention features a series of business meetings set in beautiful surroundings with time built into the schedule for people to enjoy what each locality has to offer. When David was planning for an especially nice event in Hawaii, Donna introduced the idea of leaving something positive behind. She reasoned that convention attendees enjoy all the benefits 20 • Winter 2019

of the local resources and proposed a way to thank each host community in a meaningful way by supporting a local nonprofit. David agreed and lobbied his committee members, who unanimously voted to establish the annual GAWDA Gives Back charitable fund. The vote was actually the easy part. Setting up a sustainable and effective process to raise and disperse funds required a very specific skill set. With a master’s degree in social work and experience in the community planning division of The New York Council of Nonprofits, Donna understood the ins and outs of how to effectively identify and support community-based nonprofits. She created the mission statement for GAWDA Gives Back, including the guidelines for safely choosing a charity. Donna also developed the timeline for each incoming president to follow and the process for choosing the recipient organization. So complete was her approach to establishing the GAWDA Gives Back program that Donna also drew up templates for press releases with guidance on how to notify and apprise local and state dignitaries of the gift for their communities. She even defined the process for the check presentation at the Annual Convention that both attendees and recipients have come to love. At the time Donna was framing the program, the executive director at

GAWDA Gives Back initiators Donna and David Mahoney.

NYCON, who was a past president of the National Association of Planning Council board, noted that, as far as he knew, the GAWDA Gives Back program was the first of its kind for a national trade association. There was no model to follow. GAWDA was breaking new ground, and it was Donna’s expertise that enabled the group to set up the proper framework, which remains the basis of the program today. Donna maintained her involvement with GAWDA Gives Back for at least five years after David’s term ended by assisting each president and their spouse in locating and vetting potential eligible nonprofits and to ensure safe giving

2019: THE YEAR OF SERVICE practices remained in place. She also ensured that the GAWDA Gives Back donation was gifted in alignment with required federal government practices when the GAWDA convention was held in the Bahamas.

GAWDA Gives Back CONTRIBUTIONS

YEAR

PROGRAM TOTAL

CONVENTION COMMUNITY

FUND DESIGNATIONS AND USE

2000

$36,000

Maui, HI

Maui Adult Day Care Centers / Hawaii Alliance of Nonprofit Organizations

Once the ground rules were established, the next hurdle was organizing the fundraising effort. David Mahoney took this on in a big way, personally calling on members to make sure there was plenty of support for the new program. In its first year, GAWDA raised over $36,000 for the Maui Adult Day Care Centers and the Hawaii Alliance of Nonprofit Organizations. David continued to lead the fundraising efforts for many years thereafter. His steadfast support of GAWDA Gives Back was considered so important that in 2009, eight years after its founding, he received the GAWDA Award of Excellence for his role in developing this program. To the credit of its membership, the level of giving has steadily risen over the years. To date, the program has donated over $2.3 million to 27 local charities. The organization continues to introduce new ways to build support, including the ability to contribute to GAWDA Gives Back when members register for the annual meeting.

2001

$69,000

San Francisco, CA

Lincoln Child Center / Students Rising Above

2002

$102,000

Orlando, FL

Princeton House Charter School

2003

$137,000

Vancouver, BC, Canada

St. James Community Service Society

2004

$194,000

Las Vegas, NV

Golden Rainbow

2005

$271,000

Maui, HI

Armed Services YMCA

2006

$362,000

Orlando, FL

Community Vision

2007

$451,000

San Francisco, CA

Hamilton Family Center

2008

$579,000

Paradise Island, The Bahamas

Ranfurly Homes for Children

2009

$734,000

San Antonio, TX

WINGS

2010

$924,000

Maui, HI

Community Closet

2011

$1,124,000

New York, NY

FDNY Fire Family Transport / PENCIL Fellows Program

2012

$1,293,000

Colorado Springs, CO

Partners in Housing / Peak Parent Center

2013

$1,457,000

Orlando, FL

Camp Boggy Creek / Give Kids the World Village

EMBRACING THE PROGRAM

2014

$1,612,000

San Diego, CA

Support The Enlisted Project (STEP) / Warrior Foundation – Freedom Station

2015

$1,800,000

Scottsdale, AZ

Camp Soaring Eagle / Ryan House

2016

$1,989,000

Maui, HI

Boys and Girls Clubs of Maui / Neighborhood Place of Wailuku

2017

$2,164,000

New York City, NY

Candlelighters NYC / Headstrong

2018

$2,318,000

Seattle, WA

Ronald McDonald House / Mary’s Place

THE TRAJECTORY OF GIVING

The president-elect and his/her spouse select the charity(s) each year under the guidance of the GAWDA Gives Back framework. David reported, “Every incoming president has embraced the program, often choosing charities that are meaningful in some personal way to them. They all become well acquainted with the chosen charity’s mission, and this enables them to become great advocates for raising funds.”

Winter 2019 • 21

2019: THE YEAR OF SERVICE

Seattle Ronald McDonald House kids sharing the pumpkin harvest with Ronald!

Doug Morton of Eleet Cryogenics gets the bidding started for a GAWDA Gives Back auction as part of the Gettysburg Regional Meeting.

Most recently, Ned Lane, GAWDA’s 2017 – 2018 president, and his wife JoAnn, had the honor of selecting the charities. Lane described the process as a humbling one: “We researched nonprofits while in Seattle at our planning meetings, often asking local people what groups were best at addressing Seattle’s needs. When we met with charities to discuss possible support, they were all extremely grateful and often very surprised that an out-of-town association had an interest in helping a local nonprofit. GAWDA Gives Back is a really unique program in that regard.” As the Lanes discovered, Seattle has a very large homeless problem, with low-wage earners being severely impacted by the city’s escalating real-estate market. One of the charities they chose was Mary’s Place, which provides housing for families that are struggling. Personal connections often steer the planning committee to worthy programs. A close friend of the Lanes’ had a very positive experience with a Ronald McDonald House, which led them to

need for an ongoing organization that is otherwise self-sustaining,” Peterson said.

22 • Winter 2019

look into that organization. The Ronald McDonald House in Seattle supports seriously ill children and their families and has its own local budget. Their facility, which serves over 450 families annually, was in need of a new commercial kitchen. “We thought helping to make that capital improvement happen would be a wonderful way for GAWDA to serve this community,” reported Lane. Dianna Finnerty, executive director of Ronald McDonald House Charities Western WA & AK, said their group was thrilled to receive this year’s donation and surprised by its generous amount. She reports the money is currently earmarked for a commercial kitchen to serve dinner groups in their Seattle facility. This year, Brad Peterson, current GAWDA president, and his wife Gaby, will be reviewing charities that serve Washington, D.C. Peterson anticipates it will be hard to choose from many worthy causes. “GAWDA Gives Back looks to work with grassroots organizations where we can make a meaningful impact. Ideally we would like to fund a capital

RAISING THE BAR “It is the sincere dedication to sharing our good fortune with others that drives the continued success of GAWDA Gives Back,” related David Mahoney, “and it’s been a team effort, with both supplier and distributor members being generous contributors.” As an example, Eleet Cryogenics has sponsored a special fundraising effort for the GAWDA Gives Back program for many years. Gary Sears, Eleet’s president, and Doug Morton, vice president of sales, began with the auction of a cryogenic bulk tank to support this program at a GAWDA Regional Meeting in Gettysburg 10 years ago. That event has grown over time and today, in addition to the Eleet tank, the Gettysburg auction includes many other goods and services donated by both individuals and companies. Morton estimates that this fundraiser has generated well over $15,000 each year.

2019: THE YEAR OF SERVICE Top: 2016 recipient Neighborhood Place of Wailuku with John Ospina and Debbie Visintainer, wife of 2016 GAWDA President Bill Visintainer. Bottom: 2018 recipient Mary’s Place with 2018 GAWDA President Ned Lane.

“We are grateful to be able to have hosted this event for so many years,” Morton related. “There is a lot of great networking and information presented at this meeting, but the GAWDA Gives Back auction is always the highlight. When it’s over, I call my wife on the way home and ask her to guess how much money was raised. We try to outdo ourselves every year!” Bob Roberts, president and CEO of Roberts Oxygen, believes the program that David and Donna Mahoney initiated truly highlights the values of GAWDA members, and he likes that it is easy to immediately understand and support. Commenting on the success of the program, Roberts related: “The charities chosen by the GAWDA president and spouse are always organizations that are doing tremendous work for people in need in the host city. Their work, effort and results are amazing. The constant increase in the giving amount from inception to the level where it now stands is confirmation of the importance and support that GAWDA members put into this program.”

THE RECIPIENTS The 27 charities supported by GAWDA Gives Back represent the spectrum of need across the country — from helping the very young and the very old, to assisting the sick and those recovering from illness, to supporting those in service to our country and the families coping with their absence. In 2011, GAWDA Gives Back had a landmark fundraising year, taking in nearly $200,000 in donations. Then GAWDA president Lloyd Robinson reported, “That year our annual convention was held in New York City. It was the 10th anniversary of 9/11, so the GAWDA Gives Back program was an ideal way for many to mark the occasion in a meaningful way.”

The FDNY Fire Family Transport Foundation was one of the charities Robinson chose. “The injured first responders had medical coverage for healthcare, but often there was no mechanism for them to get to their doctor’s appointment. With GAWDA Gives Back funding, the Foundation was able to purchase a transport van to get patients to their medical providers,” Robinson explained. GAWDA presidents often select charities that strike a special chord personally. The other charity Robinson chose in 2011 was the PENCIL Fellows Program, which AWISCO had participated in. At the time, pencil.org was a relatively new program that was developing a network of education and business professionals to work together to improve Winter 2019 • 23

2019: THE YEAR OF SERVICE health clinic. Today that facility serves approximately 2,250 clients a year and is vital to serving the local community’s most vulnerable. Ring explained that GAWDA funding many years ago was a big part of enabling this service to continue and expand. And what of the first recipient, Adult Day Care Centers of Maui? Eighteen years later, GAWDA’s donation is still appreciated and in use, according to Executive Assistant Margie Bela Cruz, who has been with the organization for 24 years. She reported, “In 2000, the Center was in the process of settling into a brand-new facility, and GAWDA’s donation helped us buy furnishings. Today, the group operates four facilities on Maui and continues to serve the region’s seniors.”

THE REWARDS

Top: The GAWDA Gives Back donation in 2011 supported the purchase of a FDNY Fire Family Transport Foundation van. Bottom: GAWDA donations helped buy necessary furnishings for the new Adult Day Care Center in Kahului.

student outcomes. In the case of the PENCIL Fellows Program, the “giving” has worked both ways for Robinson and his team. He explained, “We bring in juniors from New York City public high schools who are often the first in their family to be on track to graduate from high school. We mentor them on how to sit for an interview, write a resume, be part of a work environment, etc. We also participate in PENCIL’s summer internship programs for 16- to 17-yearold students. Most of these kids go on to college, but in between high school 24 • Winter 2019

and college graduations they are often found in our employ while they work their way through school. The PENCIL relationship has been a rewarding one for AWISCO.” In 2008, GAWDA Gives Back provided the funds to keep a mobile medical service operating that served nine rural communities in Osceola County, Florida. Sue Ring, associate director of community vision, remembered GAWDA fondly and was excited to let us know that the Mobile Medical Express has grown to become a free, permanent

As all annual meeting attendees will attest, the GAWDA Gives Back award ceremony is always the highlight of each convention. Ned Lane related: “I have watched these awards being given out for many years and am always amazed at how grateful — and surprised — the recipients are of our donations. The thank you’s just keep coming.” Lane continued, “GAWDA Gives Back is a wonderful way for our association to show our appreciation to convention host cities, but it is also serves to unite our membership in a very unique way. Distributors and suppliers rally all year to raise funds for this cause. It’s not the association that makes this program great, but the individual members who make the contributions.” Bob Roberts agreed and added: “Any contribution from an association member, however small or large, helps bond us together and showcases our association and industry.”

2019: THE YEAR OF SERVICE

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GAWDA MEMBER INPUT 2019 BUSINESS FORECAST

WHERE WILL

2019 GAWDA Members Predict Mostly Clear Skies and Open Roads in the Year Ahead by veronica westfall

t’s that time again. 2018 is behind us, and we approach the new year with a sense of optimism and renewed energy. It’s also time to ask our GAWDA members what they expect in 2019. This year, we asked members what they envision for their companies, the industry and the emerging marketplace. Read on to see what your fellow GAWDA members anticipate on the road ahead.

26 • Winter 2019

THE QUESTIONS: What do you expect in the coming year at your company? Are you celebrating an anniversary, opening a new branch, opening a new line of business or transitioning to new ownership? Where do you see the industry going in 2019? (Positive/Negative/Neutral Outlook) Do you see any new markets on the horizon for GAWDA members?

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST

DISTRIBUTORS `` GAWDA President Brad Peterson, Chairman and Chief Acquisition Officer, Mississippi Welders Supply Company, Inc. We expect a busy year. We’re looking at a lot of initiatives and evaluating in what order we’ll develop them. We’re looking at IT infrastructure and fill plant improvements, to mention just a couple. Overall a positive outlook for the nimble and independent operator. The marijuana market will continue until it reaches a tipping point. It feels like a boom-time right now, but we all know that booms are followed by busts. Another area that seems to be in real growth mode is dry ice.

`` Lloyd Robinson, President, AWISCO No major plans, but there is always the potential for acquisitions on the horizon. Looking at small growth in the next year, maybe in the 3 to 5 percent range, mostly via investment in automation. It’s not exactly new, but we are seeing growth in cryotherapy. One concern we have is that this is a different type of customer and it takes a lot of handholding. It’s important to remember that you need to train the customer on both the safety component and how to operate the gas equipment.

`` Parker Dillard, Co-President, Arc3 Gases, Inc. Nothing big on the books for 2019 — we’ll continually be on the lookout for growth opportunities and hopefully continue to benefit from what has been a very strong economy of late. Overall a positive outlook. People are optimistic and confident about startups and expansions.

WHAT ARE SOME APPLICATIONS OF DRY ICE? Dry ice has many commercial and industrial applications. In addition to its use as a coolant when shipping perishables, it is also used in flash freezing, meat processing, dry ice blasting, creating theatrical effects, fire-fighting, metal fabrication, removing floor tiles, ice branding cattle and purging flammable vapors from tanks. Since it leaves no residue and does not affect product taste or quality, it can be used to clean food processing equipment and prevent insect activity in enclosed containers, such as in grain shipments. It is also an environmentally friendly way to bait mosquitoes, bed bugs and other insects. Some funeral homes are now using dry ice to preserve bodies until the service as an alternative to traditional embalming fluids. In addition, dry ice can be used in fire restoration to remove soot, char and odors from structural members, a task that had previously required a much more laborious process of scraping, wire brushing and sanding or a secondary-waste process such as bicarbonate soda or sand blasting. It is used in a similar way for mold remediation.

WHAT IS CRYOTHERAPY? Cryotherapy is the use of very cold temperatures to provide therapeutic benefits. It was first popularized by elite athletes, who began using it as an alternative to post-workout ice baths, and is now springing up in spas and sports rehabilitation centers around the country. The most common type of equipment is an opentopped cryotherapy chamber in which a user submits to a brief blast of super-cold air. Safety concerns for this equipment include educating equipment operators on the safe handling and use of nitrogen. It is also essential that the skin and any articles of clothing be completely dry to avoid frostbite. For more information on cryotherapy, see the article on Page 44.

Winter 2019 • 27

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST

WHAT IS DRAGON’S BREATH? Dragon’s Breath is a novelty dessert typically consisting of fruit-flavored puffed cereal balls to which liquid nitrogen is added right before consumption. The extremely cold temperature causes the user to breathe out a dragon-like vapor when consuming the product. Similar products include liquid nitrogen poured over cheese puffs, popcorn, marshmallows, meringue or other light and airy foods. It is also used to frost glasses for both alcoholic and nonalcoholic drinks and to create novelty cocktails since the temperature of liquid nitrogen is low enough to freeze alcohol. Sold with names like “dragon’s breath,” “heaven’s breath” or “nitro puff,” these products are available in malls, fairs, bars and ice cream shops where both the operator and the consumer are often unaware of the safety hazards. Liquid nitrogen can cause severe damage to the skin and internal organs if handled improperly. Inhaling nitrogen vapor can cause respiratory problems, especially for those with asthma. It is critical that there be no liquid nitrogen remaining in the serving container when the customer receives it. In addition, it should be eaten very slowly and never by hand, only with the stick provided or another non-metal utensil. The hazards are significant enough that the FDA has issued a warning advising people to avoid any food or drink with liquid nitrogen added at the point of sale. 1

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`` James Earlbeck, President, Earlbeck Gases & Technologies 2019 will mark our 100-year anniversary, so we will be celebrating that as we make our move to go another 100 years. We plan to add additional staff and resources to position us for growth. Hopefully we can also find additional acquisitions that work in the best interests of all parties. Even though the economy is cooling down, we believe that it is necessary to keep growing in order to remain relevant to our customers and vendors. We think the two larger mergers will create a certain level of chaos that will provide opportunities for us. 1. For the full text of this FDA safety alert, see https://www.fda.gov/Food/ RecallsOutbreaksEmergencies/ SafetyAlertsAdvisories/ucm618058.htm.

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There are more and more non-welding markets in the gas world. Some of them are pretty risky, like the retail liquid nitrogen trade. Safety concerns include customers potentially ingesting liquid nitrogen; operators handling liquid nitrogen without gloves, sleeves or eye protection; and users in a mall environment being completely unaware of the potential hazards. We have turned down business based on safety concerns. You’ve got a mom with a baby in a carriage ordering ice cream four feet away from a liquid nitrogen cylinder being operated by a teenager — the risks just aren’t worth it for us. Then you have Dragon’s Breath — this scares the entire distributor community. It’s like the Wild West out there. There are plenty of good opportunities though: cannabis farms, microbreweries, bevcarb CO 2 and of course medical oxygen, to name a few.

12/6/2018 8:20:07 AM

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST Still feeling very bullish for the independents. Overall the industry remains robust. We have our supply chain problems — specifically, helium — that present a concern. Independents may decide that it makes sense to consider building their own air separation plants or partner with other distributors to share ASPs. The industry is also working on alternatives to the helium supply. For example, different shielding gas mixtures that use little or no helium are growing in popularity now. The welds may not be as shiny, but the joints are just as strong and in applications where the weld appearance is not a high priority, it doesn’t really matter. For me, this is the power of a brickand-mortar distributor — we can offer our customers alternatives because we understand their business. One thing distributors may have to consider is the need to change their product offerings. The margins on hard goods are decreasing, so distributors may need to look elsewhere for a source of profit. If the margins get too low, consider alternatives. You get to the point where the juice just isn’t worth the squeeze. For example, we recently began offering a new line of welders because the equipment has better margins. Why sell things that do not have a reasonable return on your investment? Nothing new has popped up since cannabis that’s unexpected or unusual. I do see distributors pulling back from the Dragon’s Breath types of products where you have a lot of risk and not much gain. You have to consider the transactional costs — retail businesses that are out of the norm tend to have higher liability and training issues. The industry is flush with opportunities, so we do not need to chase risky business.

`` Matt Winkle, President, Weldstar Company e are opening a new branch in Indiana and hope to add another someW time in 2019. We are also planning a major upgrade to our specialty gas facility that will increase our in-house capabilities. ased on most economic predictions, we are anticipating modest growth B of the economy, but expect higher growth from new markets and market share gains. Given the labor shortages, we would expect an increased focus on automation and welder training and qualification.

`` James Kissler, CEO, Norco, Inc. e will be opening two new stores in 2019, brand-new facilities being W constructed in exisiting Norco markets: Wenatchee, Washington and Walla Walla, Washington. Solid industrial expansion in the 6 to 8 percent range. Expecting further growth in the manufacturing segment, which requires additional automation. Solid organic growth in existing markets.

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GAWDA MEMBER INPUT 2019 BUSINESS FORECAST `` Bruce Cook, Vice President, Humphries, Inc. We have opened two new stores in the past few years and are looking to grow in the areas of bulk and specialty gases. We’ve been more on the industrial side of things and have now set our sights on expanding more into the medical and scientific gas markets. We are already in most of these buildings anyway, so the goal is to continue to build on that, and the way we accomplish it is by providing exceptional service. The customer needs to know that you will make each delivery on time and as promised without any extra charges. The focus used to be on price, but now it is on service — remember, people buy from people. Honesty and integrity matter more than ever before. The industry is a little volatile in terms of tariffs and supply issues, but it’s still strong. We are seeing price increases on everything — both gases and hard goods — so we need to take a hard look at where our supply is coming from and what all of our options are before we make any purchasing decisions. I don’t see a lot of new markets on the horizon, just opportunities to expand into markets we haven’t considered before. In the tech industry, we have quite a few subcontractors coming in and out, so we need to stay on top of that and let them know we are available. We have also expanded our presence on social media, so that helps pull us to the top of internet searches.

`` Abydee Butler Moore, GAWDA President-Elect, President and COO, Butler Gas Products

2019 marks our 71st anniversary at Butler Gas. We are in a family ownership succession between the second and third generations. In 2015, I bought out my aunt, Debi Butler, at her retirement. Since then, we have been active in a long-term succession plan, which will continue in 2019. Not only at the ownership level but throughout the entire company we are engaging next-generation associates. Our General Manager of Operations Joe Wilhelm’s daughter, Chelsea Smilak, is a leader in customer service, and our Vice President of Services Sandy Gobrish’s daughter, Hayley Gobrish, is an administrative intern. These are exciting times in the gas business, and we are fortunate to play the game of business. Change means evolution, so we welcome changes

30 • Winter 2019

in consolidation, emerging markets and new technologies. Our industry touches so many applications and the more diversified our customer base, the more resilient and poised we are to weather the storms. 2019 will be the best year yet. We focus on the gas markets and are amazed with the diversity of applications for argon, helium, nitrogen and CO2. Butler Gas manufactures as well as distributes, so we watch the wholesale and retail markets. Some new consumer applications make us nervous from a safety standpoint, so we are cautious and strictly follow CGA guidelines. On any new application, our first question is “Is it safe?” If the answer is no, we don’t do it. Regardless of profit; it’s that simple.

`` Jana Nelson, President, OXARC OXARC is looking at expanding our hydrogen services in the Pacific Northwest. We now have the capabilities to fill UHP hydrogen up to 6,000 psi. As we see hydrogen fuel cell technology growing in forklift and robotic material handling applications, we believe our new production capabilities will provide OXARC with a competitive advantage over our competition. With the lack of helium in the market combined with severe price increases on helium molecules, distributors are being forced to analyze their continued service of balloon helium customers. We know that several distributors have fired all of their balloon helium customers for lack of molecules in the marketplace. Typically, balloon helium customers are a high-service customer with low profit margins. With the continued lack of helium molecules and ever-increasing costs, I believe you are going to see many of the small mom-and-pop party stores go out of business, as we know balloons are one of the highest profit products they sell. Distributors are being forced to pass on significant price increases on helium products, which will force customers to either accept the increase or look for services from another supplier. This will be a problem for them, because distributors are just trying to service the customers they currently have. Distributors will be looking at ways to convert customers that use a helium-weld blend over to a different blend of gas, in combination with new equipment that will allow them to produce their products without using helium. This will allow the distributor to free up helium molecules to be used for potential new customers, or it will provide relief with current helium customer demands.

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST We have experienced a slowdown in the economy during the last two quarters of FY18 as compared to the first two quarters. I believe the industry is going to be very flat in FY19. The helium situation, in combination with a new political atmosphere generating fear about the economy, will also contribute to a flat FY19 performance. Although OXARC has been servicing the cannabis industry in the Pacific Northwest for 3 1/2 years now, many states currently have the legalization of cannabis for recreational purchases on the docket for approval. This will be a very profitable market for distributors to service if and when those states approve cannabis for recreational purposes.

`` Charlie Wright, CEO, Wright Brothers, Inc. We’re continuing to focus on growing our business using our Vendor-Managed Gas (VMG) telemetry system. In addition to supplying this service to

our own customers, we also supply it to other distributors and Airgas in an effort to help move the entire industry forward in the Internet of Things. It’s important to us that our industry not be left behind while the rest of the world is moving forward. For example, Sears could have been Amazon — back in the day, it offered even more than Amazon does now, you could buy a house or a car from the catalog. They also had the brick and mortar in place and could have leveraged off of that, but they didn’t embrace the technology quickly enough, and now Sears has filed for bankruptcy. Telemetry is the same thing in our industry and those that embrace the technology quickly enough will succeed. Our VMG telemetry system uses radio frequency (RF) transmissions and uploads data to a cloud-based service through a cellular network. We pioneered this telemetry for cylinder gases and made it affordable using RF, similar to unlocking your car using a key fob. We are starting to see it on microbulk and beverage gases, and we also have it in Procter and Gamble’s research labs, where we can have a few hundred cylinders that send consolidated data in one cellular transmission.

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GAWDA MEMBER INPUT 2019 BUSINESS FORECAST There’s a lot of doom and gloom out there, but as far as I’m concerned, the industry outlook is positive for those who are willing to embrace change. You’re going to see a big growth in manifolds. We’ve installed more manifolds in the last 2 1/2 years than we did in the first 65 years. The manifold is rented to the customer along with the telemetry. A common application is in beverage gases, where users don’t have the volume for microbulk or where it would be inconvenient to pipe it.

`` Jonathan (COO), Christine (CEO) and Bob Balbi (Owner), AirGenics, Inc.

Jonathan: The coming year, at least for operations, poses a few challenges at our company. We have more large and small delivery vehicles on the road this year and are getting at least one more outfitted for emergency deliveries. We also just bought a ProMaster and retrofitted it for cylinder delivery and on-site repairs for our customers. We are also directly in the middle of a much-needed upgrade. We have just started putting in a new 100-cylinder filling manifold for helium, nitrogen and N2CO2 filling to keep up with demand that has outpaced our current setup. For the cylinder requalification division, we also did an entire overhaul for every machine we have. We’re getting ready for a busy 2019 on the retest side. Off site from our Newark location, we hope to be rolling out some new products soon. We are looking at a few companies that want to sell that will go hand-in-glove with the engineering and fabrication division of the business. Mostly this will revolve around cylinder filling for small to mid-sized companies. Bob: J.R. (Jonathan) is filling cylinders faster than most people with less labor. Right now, just him and his brotherin-law Winston (Christine’s husband) fill about 1 million feet of helium, 60 thousand feet of nitrogen, 12 tons of CO2 and about 300 N2CO2 cylinders. It works, and it’s fast. Christine: Following all the markets it is hard to get a solid grasp (if one even exists) on the 2019 prospects, at least for us. So many questions have yet to be fully answered. Our main product is helium and regardless of if the prices are being jacked up for purchasers such as ourselves, supply is limited. A decent amount of dominoes fell the wrong way in 2018 for the helium market and its supply. Helium-free MRI’s are going to be a huge impact in freeing 32 • Winter 2019

up product. MRI use is a flat 20 percent of demand, and once that winds down the supply should become more stable. Gas chromatography is also starting to use hydrogen as opposed to helium, and although it isn’t a free atom, it is still effective. Fiber optics can rely on other cryogenic gases, and as quantum computing becomes more refined, the need for processors to be so cold will give way to the expense of helium. Christine: Being early out of MRI helium supply contracts and into electronics supply and UHP helium, even liquid He for the beginning of quantum computing and hard-drive manufacturers will be big. Eventually the solid-state drive will leave magnetic discs behind, but for right now, server farms certainly require it. Hydrogen fuel cell markets are going to boom along with H2 filling stations, maybe not in 2019 but 2019 is the beginning. Look at the majors and how much they are investing in H2 production and CO2 distribution in North and South America — they definitely know something. Jonathan: 2019 will be the year of maintenance and packaged gas container overhaul. Out with the new and in with the old. Retrofitting older tanks for a CO2 or nitrous service, taking spare assets and banking them up for hydrogen production plants that are 100 percent green — it’s time to make sure your assets are making you maximum dollars per liter of empty space.

`` Bill Proctor, President, nexAir, LLC For 2019, we have budgeted for a refresh of several of our branch retail facilities as well as efficiency upgrades at a few production plants. We will continue the rollout of several major operational initiatives that leverage technology and improve the overall customer experience with nexAir. We have finished construction and moved into a new facility in West Palm Beach, Florida. We expect to have a continued positive business environment in 2019. Our customers are investing in their businesses and have a positive outlook on 2019. There is some uncertainty that is concerning; however, the fundamentals appear positive for at least the first half of the year. Distributors will have to navigate some supply challenges and be prudent in identifying and managing cost drivers in their business. There will continue to be pressure on distribution cost and COGS (cost of goods sold) in all revenue categories. The challenge will be to have systems in place to measure those and act accordingly. No

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST

SUPPLIERS `` David Bell, President, WITT Gas Controls We moved to a new location in 2018.

Positive — we are looking at double-digit growth. Food processing using modified atmosphere packaging is growing at 20 percent plus in the U.S.

`` Matt Boettner, CEO, All Safe Global, Inc.

WHAT IS MAP? Modified atmosphere packaging uses a variety of methods (vacuum sealing, gas flushing or controlled packaging permeability) to alter the atmosphere surrounding perishable products in order to avoid the use of chemical preservatives and retard product spoilage or degradation. Increasing demand for fresh, ready-made packaged food has produced tremendous growth in the MAP market. Common MAP gases include carbon dioxide, nitrogen and argon. According to the website Markets and Markets (www.marketsandmarkets.com), the global MAP market is expected to be worth $13.78 billion by 2020.

We will be adding additional sales personnel and warehousing. We are also looking for geographic expansion opportunities. Positive, with 3 to 5 percent overall growth. No

`` Chet Reshamwala, CEO, DataOnline Our teams are working on a lot of cool stuff — we have a deep curiosity, creativity and burning ambition to deliver our customers a competitive advantage through smart, robust technology solutions. We have a deeply experienced and growing engineering team, and we are continuously investing in R&D. I can’t speak in detail about projects under development, but some areas where we are focused on innovation include communication technologies, sensors, user experience, customer insights, deep learning and non-gas applications. On the installation side, many of our newest devices are paired with mobile apps that accelerate the installation process. DataOnline will celebrate its 30th anniversary in November 2019, a very exciting milestone. With respect to new lines of business, we’re committed to developing products for ISO tank containers that offer the highest level of continuous monitoring — not just location, but level, pressure, temperature and other parameters. Both our helium ISO and LNG ISO tank container solutions have been extremely well-received and provide asset visibility in the deep ocean, over-the-road and remote environments. We’ve also been able to immediately demonstrate real savings and a better end-user experience with the use of our Microbulk Scheduler solutions that have been praised by our

customers that had little to no logistics software. Now they are scheduling routes and managing their drivers like major producers. With these apps, mid-tier and smaller companies can now differentiate themselves within their market segments. This is just the start of a multi-app solution set aimed at helping customers gain better insights into their logistics systems and the performance of their mobile and remote assets. One of our recently acquired lines of business is our WESROC LPG/ propane portfolio, where our residential and commercial tank monitors with customer-facing mobile apps have experienced tremendous success. Our customers are increasing their needs and usage of our monitoring solutions, and we see significant digitization growth maximizing our customers’ resource efficiency. Advancements in monitoring and communications technologies, as well as data analysis, will also drive expansion of remote monitoring into applications and markets that were previously too expensive to monitor or effectively serve. For example, monitoring beverage CO2 tanks in conjunction with using our software and mobile apps provides CO2 suppliers complete visibility of their tank levels, allowing them to minimize deliveries, runouts and overall logistics costs. here is a lot of opportunity for GAWDA members T as our industry digitizes. We will not only help you do that, but also ensure we demonstrate real savings for you. Winter 2019 • 33

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST

WHAT ARE HYDROPONIC SYSTEMS? Hydroponic systems are soilless indoor gardens that bathe plant roots in a nutrient-rich fluid in order to facilitate growth. Carbon dioxide is essential to plant growth and production. The atmospheric level of CO2 is about 400 ppm, but it can quickly drop in a nonventilated space,

`` Gayle Smith, Content Strategist/ Marketing Department, Computers Unlimited We just celebrated our 40th anniversary. We have many long-term employees who continue to work at the highest level possible, year after year, to develop our software to suit the needs of this industry. We have a variety of new products we’re rolling out, including many mobile apps for smartphones or tablets developed for delivery, as a sales tool or in the plant for asset management. We are developing a streamlined contract management system as well as a bulk gas management system. The bulk gas system includes propane and will integrate with leading telemetry providers. There is definitely a positive vibe in the air. Because of our customers’ increasing needs to be competitive in their markets, technology is writing the playbook for next year as well as the years to come. Mobile applications will streamline processes, taking mundane and archaic tasks and making them simple, straightforward and transparent. 34 • Winter 2019

resulting in plant damage. In addition, studies have shown that increasing CO2 above the outdoor ambient level (between 800 and 1,000 ppm) enhances plant growth and production. Supplementary CO2 is supplied using gas burners or emitters attached to cylinders or microbulk tanks.

From what we’ve heard from our customers, there continues to be growth opportunities with CO2 in the beverage/microbrew industry, the medical sector in laser dermatology and especially in hydroponic systems.

`` Jim Johnston, Executive Vice President, Kaplan Industries We will be expanding this year and building an additional paint line on our 16-acre site in Ohio. I’m feeling very positive, but it’s going to be a different type of year. Last year, there was a huge market for larger asset cylinders. This year, I expect to see the market shifting toward the smaller cylinders in the resale market. We are predicting 5 to 7 percent growth in the smaller cylinder sizes and on the maintenance side. Before they go out and buy anything new, distributors will be looking at what they already own, focusing on the service and maintenance of existing assets and also making sure they aren’t storing any out-of-date cylinders in the yard.

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST I expect many new markets to emerge as both science and industry are constantly finding new uses for specialty gases. More of our customers should be looking at the legalization of cannabis in the United States — this is an area that will become a big market in our industry due to the gases required to support the growth and extraction processes.

`` Hector Villarreal, President, Weldcoa As you know, we just celebrated our 50th Anniversary in 2018. As a special gift to ourselves, we finished 2018 with the best sales year in the history of the company. As such, we are entering 2019 with incredible forward momentum. Due to the amount of orders and projects that we have to deliver in the second and third quarters, we are very confident that 2019 is going to be strong, across the board, for Weldcoa. We are proud to announce that in 2019 we are going to offer a class on industrial gas filling. We’ve been training people on safe and proper filling practices for well over two

decades, but typically this training only occurred when we installed a new system. For the first time ever, we will hold a standalone class that is open to everyone. This came about because several clients had asked us if we offered this type of training. Once we understood the need, we invested in building both a traditional linear fill station and a pallet fill station at our Precision Training facility. I think the industry will be very impressed with the training area when they see it. There’s literally nothing else like it in North America. I see positive growth in 2019 for our industry. Like everyone else, I’ve been hearing and reading that the sky is falling. You hear it so much that it’s easy to believe until you walk outside and see that the sky is still up there. I personally see all of the signs lining up for a consumer lull and possibly a brief downturn. But on the industrial side of the aisle, it’s a different story. According to the American Chemistry Council, total chemical production rose by 3.1 percent in 2018 and they believe that it will grow another 3.6 percent in 2019. That is excellent news for our industry. Another segment of the market that affects our indus-

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GAWDA MEMBER INPUT 2019 BUSINESS FORECAST try is the U.S. oil business. The U.S. oil rig count was down eight rigs from December 2018 to January 2019, but still up 151 rigs over the previous year. If you look at the U.S. Crude Oil Production Index, it still looks incredibly strong. For more information, visit https://tradingeconomics.com. No

`` Lucas Mitchell, Vertical Marketer for Metal Working, 3M Company 3M Speedglas looks to launch their generation five line of welding helmets, featuring two welding helmets with new-to-the-market technology, in 2019. The G5-01 and G5-02 are the next generation of helmets from the inventors of the auto darkening filter (ADF). Advancing the world of welding safety, the G5-01 helmet will bring welders choice and weld type selection flexibility for the first time. The G5-01 will be offered with the world’s first variable color ADF, including cool blue, warm gold and natural color shades. The G5-02 helmet will have the world’s first curved ADF in a slender design, featuring a 100 percent larger viewing area than our existing products.

Positive In 2019, 3M will continue to work with distributors to build and bring awareness to the hazards that welders face. While most welders are accustomed to needing eye and face protection, 3M will also look to help raise awareness of welders’ potential need for proper respiratory and hearing protection. 3M has dedicated a web page to help bring awareness to the safety challenges faced by welders. We encourage you to share this information with your customers by visiting 3M. com/metalworkingsafety.

`` Frank Salvucci Jr., President, Anthony Welded Products, Inc. We are changing with the times and investing in technology and methods of streamlining our processes. Our goal is to make it easy for the customer to make a decision by providing everything they need at the point of sale, without the distributor needing to call back and forth for additional information. We are also rolling out a new line of our patented Load-n-Roll carts. Unlike a traditional cylinder cart that allows movement in a single direction, our carts have spinning front wheels that allow for tight turns in enclosed spaces. They also allow you to move the cart with the cylinders secured in a fully upright position. Very positive. Our business never slows down. We are well diversified and serve medical, industrial and oil-related customers. Despite the shortages, we are still seeing a growing market for helium. We are also seeing a big market for dry ice.

36 • Winter 2019

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST `` Sam Fatoohi, Head of Business Development, Pulsa Sensors We’re working on some major product updates, with global cellular connectivity and weight scale (for liquified gases and other consumables) support coming in the early part of 2019, and additional gas distributor-focused features coming throughout the year. We’ll also be growing our team, specifically in engineering and sales. Positive. In particular we’ve been hearing about many distributors making investments in their specialty gas capabilities.

development and innovation in water technology, food processing, dry ice and transportation. Despite some signs of a larger economic slowdown, we maintain an optimistic outlook for the industry in 2019. While tariffs and global trade tensions may put downward pressure on the market, reshoring and manufacturing growth initiatives domestically are positive drivers of growth for industrial gas. Versatility and adaptability are critical strengths of our regional gas companies nationally and we anticipate that flexibility to enable additional growth in new and disruptive liquid and gas applications. By diversifying the industries that we serve, we minimize impacts of economic fluctuations. Absolutely — more than any other time I can recall, in fact. We continue to innovate products focused on growing demand for liquid and gas by displacing traditional solutions in existing market segments. These new and disruptive systems can be found in greenhouse yield enhancement, cannabis oil extraction, craft brew, cryotherapy and food processing. Additional advancement in water treatment and dry ice applications will further elevate both demand and visibility for GAWDA members.

We expect GAWDA distributors to see increased growth from providing value-added services to their end customers. Distributors can differentiate themselves, provide value to customers and improve their internal operations by offering real-time inventory visibility, predictive inventory replenishment and leak detection services.

`` Lindley Hewatt, Marketing Manager, TOMCO2 Systems

We expect 2019 to be an exciting year for TOMCO2, with continued organic and inorganic growth expected as we approach the company’s 50th anniversary in 2020. The expanded product offering resulting from our partner company Taylor-Wharton’s continued expansion, along with our joint venture partnership with Dohmeyer, will drive expansion into our unique customer base. This growth is further complemented by increased investments in new product

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GAWDA MEMBER INPUT 2019 BUSINESS FORECAST `` Dino D’Onofrio, Vice President, Generant Company, Inc. We will continue to grow, and Generant’s growth is primarily a function of new product solutions. Neutral at best. The tariffs, trade issues and overall economic uncertainty are presenting real challenges to this industry. Even though we had a record sales year in 2018, that sales growth occurred with significantly less profit. One of the best opportunities is in customer service and education. Don’t focus on price and price alone. There is measurable value in being a technical resource for the customer.

`` Daniel Grantham, Vice President of Sales, CGW Abrasives, Inc. We have changed our name to CGW Abrasives. The name change makes it easy to tell everyone what we’re all about — abrasives! The new name and identity/logo remind people what makes us great; CGW Abrasives is the place where quality, performance and value come together. Throughout the year, you will see our new name and logo making a splash in the marketplace. One of the things we have always focused on at CGW is continuous innovation — we added 141 new SKUs in 2018 with more coming in 2019. We are constantly improving our flap disc program, and in 2019, we will also be introducing new packaging that will improve the lifespan of resin-bonded wheels. Our distribution centers in Niles, Illinois, and Buena Park, California, have the products that our customers need ready to go. I feel very positive. There’s a lot of negative buzz out there and much of it is media-driven, but we are very optimistic that 2019 will be a good year. Our focus is to continue to build CGW brand awareness in the market and focus on growing our top line sales. We have over 5,000 active SKUs available in the marketplace. Along with wide belts, narrow belts and a variety of sanding discs for the woodworking and metalworking markets, CGW offers a complete precision vitrified grinding program. One thing distributors might want to consider is exploring other types of customers. Instead of 38 • Winter 2019

just providing service to the welding customers, consider the needs of woodworking, glass manufacturers and metallurgical customers. There are some great opportunities available in parallel markets.

`` Eric Wise, CEO, Wise Telemetry, LLC We hired a new vice president of business development and operations whose job will be helping customers determine how telemetry can help them meet their operational goals. We plan to have additional hires on the operating and technical sides as well as updates to our software. Positive. Overall we see optimism in general throughout the industry. In our sector, we are seeing customers increasingly adopt telemetry as the price comes down. It’s a great way to improve the bottom line as it avoids wasted stops, and it also helps to win accounts because it provides improved customer service. The bulk gas industry has come to expect telemetry, and now that is trickling down to smaller-size assets like microbulk, dewars, manifolds and cylinder packs. One of the markets where we are seeing increased growth is CO2 for beverage gases. We are also seeing growth in international markets.

`` Chip Prinz, Director of Corporate Services, Hobart Institute of Welding Technology We will be introducing a new entry-level aerospace manual welding course. It will be focused on stainless steel, both tubes and sheets. Positive. We are very busy on both the Corporate Services training and the Skill Welding Program training sides. The only issue we see is the lack of welders in the industry and the demand for more. Our students come out with minimal debt, a set of tools and the opportunity for a good living on day one. The goal is to get more young people to see what a great opportunity they have in this industry. I see a lot of growing markets in this industry, including semiconductors, cryo, aerospace, pipeline, construction and rail.

GAWDA MEMBER INPUT 2019 BUSINESS FORECAST `` Chris Librock, Marketing Communications Manager, Dynabrade, Inc.

Positive. We are anticipating steady growth, assuming that the tariff situation is resolved in a favorable way in March. If an agreement is reached, we’ll be in good shape. If there’s a 25 percent tariff, that will have a big impact.

This year Dynabrade plans on continuing the momentum from a banner year in 2018 into 2019 as we celebrate 50 years of providing industrial manufacturers with the highest-quality pneumatic tools. The introduction of Dynabrade Nitro Series presents an exciting opportunity for welding and grinding technicians to become familiar with Dynabrade quality at an entry-level price point. Dynabrade Nitro Series tools are a complementary family of tools to the over 800 tools Dynabrade proudly manufactures in the U.S. just outside of Buffalo, New York. Cost savings realized by means of process optimization is a central focus for Dynabrade in 2019. By consulting with expertly trained Dynabrade field representatives, manufacturers have reduced production cycle times, increased technician productivity, optimized abrasive usage and instituted certified clean air solutions on production floors worldwide.

One new market our distributor customers may wish to consider is our portable track system. It provides a way to get into the automated cutting market without making an enormous investment.

Positive No

`` Kevin Bonneau, President, Thermacut, Inc. We will be continuing new product development with fiber-related laser cutting consumables. We have a new fiber laser head that was first released in Europe that should be available in the U.S. before the end of the year. We also introduced a portable track system at Fabtech that should be available by the second quarter.

`` Tanner Hansen, Product Manager, Sumner Manufacturing: A Southwire Equipment Products Co. Sumner will continue to expand its line of pipe handling equipment and will be filling in the gaps with pipe stands and pipefitting products. We recognize that there are fewer craftspeople in this industry today and in response to this, we will continue to innovate in order to allow these craftspeople to both accomplish more and to do it more rapidly. Our communications with those on the jobsites remains positive. There’s more work than people to do it. We have opened our eyes more to the data center market.

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GAWDA MEMBER INPUT 2019 BUSINESS FORECAST `` Soumitra Mukherjee, President, Trendex, Inc. Trendex will be celebrating its 35th year in business in 2019. We also have a new product we expect to release this year, and to that end, we will be hiring a new programmer to assist in the final development. We are very excited about this product — this one will be a game changer in the industry. Positive. I know everyone is talking about an economic slowdown, but this is not something we have seen in our own business or with our customers. We are expecting moderate growth in 2019. It may not be as much as we saw in 2017 or 2018, but it will be a growth year. One area of growth and diversification for the distributors would be the international market and the internet market. The most important difference between the online sales from a reputable distributor and other online sales outlets is the experience at the other end of the line. GAWDA members can help their customers achieve the best use of the product — they don’t just sell the product and disappear.

Another important market consideration is the full utilization of existing assets that a distributor already owns. Our corporate philosophy at Trendex has always been to continuously evaluate our processes for improvement and when we find methodologies that work, we pass them along to our customers. This is one of them. We recommend that customers examine all assets, not just cylinder assets but accounts receivable, inventory, dead stock, personnel efficiencies — everything the company owns or has the ability to control is continuously monitored. This process can unearth both real waste and real gains. For example, we had one customer who continued to order the same product continuously without taking note that it did not sell and they were only adding to the dead inventory. We have other customers who let account receivables go out to 120 days. This could lead to the company going under and never collecting the money. You must analyze the tasks being performed by your personnel. Are they working in the most efficient manner? It’s important to monitor all assets in order to ensure that the work you put in is rewarded and your bottom line is profitable. The profits you could have realized can be quickly eroded if these practices and methods are not strictly followed.

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GAWDA MEMBER INPUT 2019 BUSINESS FORECAST `` Jack Walters, President, American Torch Tip Company e always have new products. Any good company W is going to continuously innovate and improve their offerings. Watch for a new product release at Fabtech this year. Positive. We saw a slow recovery in the first half of 2018 with a more robust recovery in the second half, so I feel confident that this will continue into 2019. No

grinding, combination and RightCut cut-off wheels all now available, it is hard for an end-user to go wrong in their fabrication process. You will also see the New BlazeX fiber discs, which are 50 percent better than the existing Blaze on carbon steels. On the carborundum side, you can expect to see a complete change in our product mix, including a new line of CarboFire flap and fiber discs, and new product tiers making it easier to select the right abrasive for the job. We’re dedicated to providing grinding, sanding and cutting solutions to you and your customers. Positive

`` James O’Connor, Director, National Distribution, Norton Abrasives 2019 comes at a good time for the abrasives industry. Last year we introduced the new merchandising systems for walk-in trade — three different versions available through your sales person, but this year we want to focus on providing members the right bonded and abrasives mix to help them sell more. With Norton QUANTUM3

`` Dave Wedge, Inside Sales and Marketing Manager, ArcOne ArcOne has always been at the forefront of safety and innovation in the welding industry by consistently bringing new products into the scene. As a result, we have brought about positive change in both eye and

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GAWDA MEMBER INPUT 2019 BUSINESS FORECAST respiratory protection. We have several new products that are being introduced this year. The BFF auto-darkening filter will be released by ArcOne. This product will greatly increase and enhance a welder’s view of their work area and will be available in the next two to three months. We are also expanding our AirPlus powered air-purifying respirator (PAPR) line with two new headtops. Our Eagle flip-front welding helmet for the AirPlus system provides great respiratory and eye protection along with a large-view grinding shield. Additionally, our new AirShield for AirPlus is a full grinding shield with respiratory protection at an economical price. Both of these products are NIOSH approved. As brand awareness spreads regarding ArcOne products and the consistent quality and technical innovation provided, we anticipate a higher demand for our products within the welding industry and in turn are optimistic that sales will reflect that. ArcOne has always designed products to increase the protection of welders. As awareness increases in the industry as to the extreme importance of

respiratory protection, we anticipate that we will see more of a demand for respiratory systems like our AirPlus and SR 500 PAPR systems.

`` Jim Norris, Vice President of Sales and Marketing, Control Devices, LLC We bought Harrison Valve and this acquisition has helped us to expand into the gas distribution space. Since we are now able to approach the market from three different areas (specialty gas, medical and industrial), it is providing many new opportunities for us. Positive. Our domestic economy is the strongest in the world and I don’t see why that wouldn’t continue. We have more work than people to get it done and it would take a black swan event to change that. I’m cautious about making predictions in a market that is new to me, but if I had to hazard a guess I’d say that we are looking at huge growth in specialty gases and the applications in technology will be tremendous.

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RICHES IN THE NICHES C RY O T H E R A P Y R E M A I N S H O T

Riches Niches in the

un an internet search for cryotherapy and you will see many celebrities and pro athletes touting the benefits

of this treatment. From athletic recovery to anti-aging, the adver-

tised benefits keep growing, and it seems the whole country has now hopped on the arctic bandwagon. While it sounds exotic, cryotherapy is simply the use of low temperatures to provide physiological benefits. In the 1970s, whole body cryotherapy (WBC) was developed

A cryotherapy operator switches tanks between sessions. Cryotherapy tanks must be able to maintain the correct pressure and be equipped with a gauge that is easy to read.

in Japan as a method of treating rheumatoid arthritis and multiple sclerosis. It involves the immersion of the body in a cryotherapy unit, with only the userâ&#x20AC;&#x2122;s head outside of the chamber. The chamber is then cooled using refrigerated air or liquid nitrogen. Popular in Europe for several decades, this treatment first gained acceptance in the U.S. about 10 years ago, when elite athletes began using it as a less painful alternative to ice baths to reduce muscle aches and speed recovery. Cryotherapy has now entered the mainstream and is widely available at health spas and sports rehabilitation centers across the U.S. 44 â&#x20AC;˘ Winter 2019

RICHES IN THE NICHES C RY O T H E R A P Y R E M A I N S H O T

Cryotherapy Remains Hot by veronica westfall

WBC treatments occur at temperatures as low as -300 degrees Fahrenheit and last from one to four minutes. The extreme cold activates the central nervous system and results in the release of adrenaline and endorphins, leaving users reportedly feeling refreshed and re-energized.

THE EQUIPMENT WBC equipment consists of a standalone chamber attached to a DOT4L liquid nitrogen cylinder or microbulk vessel. The nitrogen enters the chamber/coolant system in its gaseous state and is used at a rate of about 8 to 10 liters per session, including the unit precool/pressurization period. WBC hoses should be vacuum jacketed to avoid condensation puddling and maximize equipment efficiency during the cooldown period. In addition, the use of liquid nitrogen in an enclosed space requires the installation of an exhaust fan ventilated to the outdoors. A typical ventilation rate is 1 cubic foot per minute per square foot of room size.

PRESSURE CONSIDERATIONS The unit must maintain pressure within a given range in order to operate. A typical operating pressure range is 18 to 60 psi, depending on the equipment manufacturer. A typical DOT4L liquid nitrogen cylinder is equipped with a pressure relief valve that is set to open when the

system exceeds the maximum safe operating pressure. “A traditional safety relief device will relieve the excess pressure rapidly, causing a decline in pressure, and then the tank has to build back up to the desired set pressure, which will result in a pressure fluctuation that is outside of the prescribed pressure range,” said Brent Lockhart of Ratermann Manufacturing. To counter this issue, Ratermann offers DOT4L liquid nitrogen cylinders and microbulk tanks that have been customized to meet the needs of WBC systems. These tanks include secondary overpressurization regulators and pressure-building regulators that work in unison, and are plumbed and preset to deliver pressure according to the specifications of the cryotherapy equipment manufacturer. The overpressurization regulator allows the system to slowly weep excess pressure as it ramps up, rather than dumping it all at once when it exceeds the system’s maximum pressure setpoint. “For example, if we have a pressure-building regulator set at 18 psi and the pressure-reducing regulator set at 25 psi, we will then supply a constant pressure that is between these two pressure settings,” Lockhart explained. Careful pressure regulation also helps to optimize nitrogen use. Operators charge between $40 and $90 per treatment, depending on the market area and/or subscription pricing, resulting in large margins that contribute to the popularity of this enterprise. Most operators complete about Winter 2019 • 45

RICHES IN THE NICHES C RY O T H E R A P Y R E M A I N S H O T

This WBC unit incorporates safety features such an indirect cooling system and stateof-the-art biometric monitoring.

20 to 25 sessions per day, so that amounts to a nitrogen use of 160 to 250L per unit each day, or approximately 4,000L per month (or more), making cryogenic operators a significant customer.

On July 5, 2016, the Food and Drug Administration (FDA) released a consumer update warning that WBC poses potential health risks, including frostbite, burns and eye injuries.1

NOT WITHOUT RISKS

Cryotherapy equipment manufacturers have responded to safety concerns by installing a number of new safety features in the equipment. These include dual-fingerprint operating systems that require both the operator and the user to scan his/her fingerprints in order to run the equipment, user pulseoxygen sensors and head sensors that turn the unit off if the user’s head enters the chamber. Some manufacturers have gone a step further by eliminating the asphyxiation hazard entirely. Rather than exposing the user to liquid nitrogen, the chamber air is refrigerated using an indirect liquid nitrogen coolant system. Karl Benn, director at Cryopod, Inc., spoke of the steps his company has taken to ensure the safety of users. “We have partnered with world-class engineers with the aim of eliminating the safety concerns of cryotherapy,” Benn said. “Unlike direct cryosaunas that use nitrogen to cool users

Exposure to the extreme temperatures in cryotherapy chambers has resulted in several cases of frostbite injuries (typically as a result of damp skin or clothing) and one reported death. In October 2015, a Nevada cryotherapy spa operator was found dead in a cryotherapy chamber after apparently using the equipment by herself after hours. The coroner ruled that she died from asphyxiation. “When in use, oxygen levels inside the chamber can drop to less than 5 percent,” the coroner said. “Breathing air with this low level of oxygen can quickly result in unconsciousness and then death.” Following this incident, the state of Nevada released safety recommendations for the use of WBC equipment, including hazard communication training for operators, nitrogen monitors in treatment rooms and waivers for users outlining the risks and contraindications. It has not been established how compliance will be monitored or whether other states will establish similar guidelines. 46 • Winter 2019

NEW SAFETY FEATURES

1 To read the FDA statement in its entirety, visit www.fda.gov/ForConsumers/ConsumerUpdates/ucm508739.htm.

RICHES IN THE NICHES C RY O T H E R A P Y R E M A I N S H O T

directly, Cryopod utilizes a heat exchanger, thus the client is only ever standing in super-cooled breathable air.”

CRYOTHERAPY FACIALS In addition to WBC, cryotherapy facials are becoming increasingly popular at cryotherapy centers and spas. These portable units typically house a small nitrogen tank and include a handheld wand that is used to apply vaporized liquid nitrogen in circles around the face and neck. Purported benefits include reduced inflammation, exfoliation and increased collagen production. Potential hazards include frostbite due to the proximity of liquid nitrogen to delicate mucous membranes.

FROTOX ANYONE? There’s also a cryotherapy wrinkle treatment known as Frotox that is gaining popularity. Advertised as a toxin-free alternative to Botox, which is an injection of the neurotoxin botulinum to temporarily paralyze the nerve cells that reveal wrinkles, Frotox uses a highly pressurized stream of liquid nitrous oxide through a closed-end needle. The liquid changes

into a gas at the needle tip, and this change of state absorbs heat energy and freezes the nerves for up to four months. Because the tissue is exposed only to the cold and not the introduction of a toxin, Frotox is considered less hazardous than other wrinkle-fighting injections.

DISTRIBUTOR CONSIDERATIONS Cryotherapy is a retail market that has special considerations for gas distributors. Unlike industrial users, who are likely to have extensive safety training in gases and equipment, retail operators are often unaware of the precautions for the safe use of liquid nitrogen and other gases. AWISCO President Lloyd Robinson discussed some of the important considerations when serving cryotherapy businesses. “It’s incumbent on us as distributors to train end users,” Robinson explained. “Don’t expect the equipment manufacturer to train on our products — the manufacturer just wants to sell the equipment. Our job is to make sure that the tank gets delivered and the operator knows how to hook it up properly and safely in a well-ventilated area.” continued on next page

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RICHES IN THE NICHES C RY O T H E R A P Y R E M A I N S H O T

MEDICAL APPLICATIONS OF CRYOTHERAPY

Other common forms of cryotherapy include cryosurgery and cryoanalgesia, both of which are FDA approved and widely used in the medical profession. CRYOSURGERY Cryosurgery, also known as cryoablation, is the selective destruction of tissue using extremely cold temperatures. It is less invasive than traditional surgery and produces minimal scarring. It is also less expensive and can often be done on an outpatient basis. Some of the applications of cryosurgery include the following: • Liquid nitrogen is used to remove warts and skin tags. • Cryosurgery is used for surgical procedures of the eye, such as retinal detachment repair, cataract extraction and glaucoma. These machines use either carbon dioxide or nitrous oxide. Nitrous oxide is considered more effective, but carbon dioxide is less expensive and more readily available. • Liquid nitrogen is also used for in situ (in place) freezing of abnormal tissues, including many types of cancer and precancerous lesions. (Argon and carbon dioxide are also used to a lesser degree in specific applications.) For internal tumors, the gas is circulated through a hollow instrument called a cryoprobe, which is guided to the tumor using ultrasound or magnetic resonance imaging. This procedure allows the surgeon to destroy the tumor while limiting damage to adjacent tissues. • A special type of cryoablation known as cryoballoon ablation is used to create circumferential lesions around a patient’s pulmonary vein treat in order to treat atrial fibrillation.

CRYOANALGESIA Another medical application of cryotherapy is used in pain management. Cryoanalgesia, also known as cryoneuroablation or cryoneurolysis, is the reversible destruction of the signal-carrying parts of a nerve and can be used for providing both short-term and long-term pain relief. On May 17, 2017, the FDA approved the use of Iovera, a specific type of cryotherapy equipment used to temporarily block pain for patients suffering from osteoarthritis. Carbon dioxide and nitrous oxide are used in these systems. This innovative treatment is being hailed as an alternative to prescribing highly addictive opioid painkillers. More information on these and other medical applications of cryotherapy can be found at the National Center for Biotechnology Information section of the National Institutes of Health, U.S. National Library of Medicine website at www.ncbi.nlm.nih.gov. 48 • Winter 2019

Another important area of concern is educating cryotherapy customers on expected usage rates. WBC units use nitrogen during both the precool process and the actual therapy session. While the session usage remains relatively constant regardless of how much time has passed since the previous session, the precool time and nitrogen usage varies significantly based on the time between sessions, a fact that can confuse new cryotherapy customers. For example, a typical cryotherapy unit has a posted usage rate of 1.5 liters for the unit precool, but that data assumes only 5 minutes between sessions. It’s important to let customers know that the same unit might require 3.5 liters for precool if the sessions are spaced at 30 minutes apart, a much more likely scenario. The longer precool is required to cool the supply hoses and hardware back down to cryogenic temperature and supply a liquid rather than a gas. The product will remain a gas until the temperature drops back down to -320 degrees F, and the amount of time this takes will vary depending on how long the liquid cylinder has been idle, the ambient temperature, the type and length of supply hose and other variables. In addition to the chamber cooldown, cryotherapy chambers must maintain a specific operating pressure, resulting in additional nitrogen use between sessions. “If the equipment is off for a few hours between customers, it loses pressure and you sacrifice some product to bring it back up,” Robinson explained. “We try to let customers know that nitrogen use may be 30 to 50 percent higher than stated by the manufacturer to account for the equipment cycling between uses. You need to train the operating techs to turn the pressure builder off when the equipment is not in use.”

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MEMBER PROFILE

INDIANA OXYGEN COMPANY A 21st Century Regional Gas and Welding Innovator by agnes h. baker

ver a hundred years ago, two entrepreneurial brothers, Walter and John Brant, recognized the need for a gas supplier to serve the state of Indiana and neighboring communities. Together they founded Indiana Oxygen Company (IOC) in 1915, which initially supplied products to the local automotive industry including the famed Indianapolis Motor Speedway. According to Wally Brant, chief executive officer and grandson of founder Walter Brant, Indiana Oxygen was not only the first oxygen manufacturer (through electrolysis) and distributor in Indiana, it remains the oldest surviving gas and welding supply distributor in the 50 • Winter 2019

nation. Being the first in the state, Indiana Oxygen had no direct competitors, only blacksmiths who had to be won over to welding as a new innovation. Working on the principles of compassion, integrity and quality, the Brant family has developed the business into a 21st century regional gas and welding innovator. Expanding beyond its headquarters in Indianapolis, IOC now has 10 locations throughout Indiana, two in Ohio and customers in neighboring Michigan, Illinois and Kentucky. The company’s growth has been carefully planned and executed, always with the customer in mind. IOC’s mission is to serve its customers so well, and with such a high

level of product and service, that they have no interest in the competition. Given its current geographic reach and the diversity of its markets, this approach seems to be working well for IOC.

LEADERSHIP Family owned and led, Indiana Oxygen takes great pride in its success and in continuing the legacy of its founders to provide quality products and unparalleled customer service. In addition to Wally Brant as CEO, Wally’s son Jay Brant currently serves as vice president/chief information officer and his daughter Anne Hayes is the company’s vice president/chief financial officer.

MEMBER PROFILE

Left: IOC consistently places among the Top 100 best companies to work for in the state of Indiana. Below: IOC headquarters in Indianapolis, Indiana.

Gary Halter has served as president for four years and is the first person outside of the Brant family to hold that office. “It is an honor to be part of the leadership of this family-owned business. I take responsibility for continuing to build the company in the tradition of the Brants,” said Halter, who has been part of the company for over 10 years. Working as a team is at the heart of IOC’s business approach. “I recently completed my Executive MBA degree a mere 47 years after earning my undergrad degree,” said Wally Brant, “which required considerable time out of the office. I also regularly attend meetings, which are often halfway around the globe. Because we are a team at Indiana Oxygen, I am 100 percent confident when I am away that the company is in safe hands.” Halter focuses on team building as well: “We stress the need to use the resources of each department, each team member, and our strategic partners whenever we can, to bring the best service to our customers and to earn the business of our valued clientele.”

SERVING DIVERSE MARKETS IOC services the full range of industrial gases and welding markets including fabrication, manufacturing, food and beverage, healthcare, life sciences, pharmaceuticals, universities and labs, and government and municipalities. Halter related that big or

small, supplying each market is important to the company’s full-service approach to the gases and welding business. Fabrication markets are the lifeblood of Indiana Oxygen, and it provides a complete array of gases as well as welding products, from plasma cutting machines to consumables. “For over 100 years, we’ve worked with thousands of manufacturing clients,” reported Halter, “and today fabrication markets represent more than 50 percent of our gas sales.” IOC has been supplying the automotive industry since cars became accessible to the public. It provides industrial gases, equipment, welding goods, EPA protocol

gases and bulk gas systems to Tier I, II and III automotive suppliers. To insure its success in this competitive segment, IOC provides best-in-class service with state-of-the-art technology, like its automated gas-filling facility, the only one of its kind in Indiana. Within IOC’s region is Elkhart, Indiana, the recreational vehicle (RV) manufacturing capital of the world. In 2012, Indiana Oxygen had the opportunity to buy a Matheson branch in Elkhart, and by focusing its sales efforts on RV manufacturers was able to quadruple sales at that location. Supplying power plants with EPA protocol gases and with help during Winter 2019 • 51

MEMBER PROFILE shutdowns is another major market for IOC. “We serve the majority of the power plants in Indiana and Ohio in one way or another,” Halter said. After 104 years, IOC still works with one of its original customers, the Indianapolis Motor Speedway. Halter explained, “We supply a large portion of the teams with nitrogen for inflating tires and pneumatic tools and supplies for welding. While business at the speedway is a now a small part of our total spend, it’s a big part of our company’s legacy.”

EXPANDING HORIZONS Halter reported that since 2010, IOC’s business has more than doubled, with the company’s gross margins and profit now at an all-time high. “Market consolidation has helped us, and we have a great sales team who has led us in setting new business records every year,” Halter said. “We are good at prospecting and we are strategic in our planning. We’ve also invested heavily in automated filling for both industrial and specialty gases and in assets for bulk supply.” Part of IOC’s steady march forward has been the opening of three new branches in the past six years. As noted, the Elkhart branch has generated new business for IOC, particularly in the RV fabrication market. IOC believes that customers who have been serviced well by an independent distributor tend to want to remain with one. So when a local independent in Fort Wayne, Indiana, was acquired by one of the majors in 2016, IOC scratch-started a branch there. According to Halter, the move is paying off: “We did a tremendous amount of business in our first year there.” This past August, IOC opened a branch in Dayton, Ohio. The company had been developing its marketing plan for that area for some time. When fellow independent Weiler Welding was sold to a major, IOC saw another opportu52 • Winter 2019

nity. Jerry Yarger, area manager for IOC’s Ohio business, explained: “We get calls every day from people looking for a more personalized type of service and easier transaction processes. As an independent distributor, we are able to provide those things.”

DISTRIBUTION CAPABILITIES IOC is a full-service independent gases and welding distributor with the capabilities to support its diverse customer base. With 12 facilities, the company is able to service customers ranging from small businesses to multimillion-dollar corporations. With its roots in fabrication markets, IOC has been supplying acetylene to both end users and other independent distributors since 1925 from its Indianapolis plant. It is one of the few independent gas distributors in North America that manufactures acetylene. Bulk gas is another very important segment for IOC. The company has two bulk trucks for nitrogen and argon supply, as well as a large transport unit and three bobtails for propane. This type of capacity allows IOC to capture the small and mid-sized bulk business in its region. Recently, IOC got serious about the propane business. “When circumstances led us to believe that having our own propane supply was a value proposition, we decided to make a big investment in it,” Halter said. This included investing in everything, including cylinders, transport, bulk tanks and staff training. Automated filling and specialty gas production enable IOC to blend gases to the precision levels demanded by its important customers. To that end, it recently made two large investments. It built a new and fully upgraded Weldcoa automated specialty gas lab in Indianapolis. Production began in June and the company can now supply everything from spec gas lecture bottles to 6,000 psi cylinders.

With big pharma like Eli Lily and Pfizer in its backyard, as well as many R&D labs and power plants, the specialty gas business is important to IOC from a growth perspective. IOC also installed a fully automated Weldcoa production and fill plant at its Cincinnati location. This, together with IOC’s fill plant in Indianapolis, which was upgraded five years ago, enables the company to provide excellent service to its customer base and keep up with growing demand. Yarger reported that the Cincinnati plant has been a big boost to the company’s Ohio business. Customers appreciate the quicker turnaround time enabled by the new facility and, given Ohio’s weather, also like the assurance of local filling. “The Cincinnati fill plant is a great sales tool,” said Yarger, “and has really helped us respond to the new business being generated by the Dayton branch.” IOC’s distribution capabilities extend beyond brick-and-mortar facilities. Led by IOC’s Chief Digital Officer, Justin Yoder, its ecommerce site, www.weldingsuppliesfromioc.com, has been live since 2000 and has created enough business to require its own warehouse for stocking the inventory. Halter attributes the company’s strong hardgoods business, which represents about 60 percent of its total revenue, in large part to the success of its ecommerce program.

EFFICIENCY AND QUALITY IOC places a lot of emphasis on efficiency. Mike Gunnels, vice president and chief operating officer, has overseen the company’s continuous improvement process, known as War on Waste (WOW),

MEMBER PROFILE

for seven years. “The WOW program has definitely made us more efficient and improved profitability,” Gunnels said. For safety and compliance matters, IOC relies on the expertise of B&R Compliance and is a member of the Compressed Gas Association. GAWDA consultants also play a role in maintaining the highest level of operations. GAWDA’s Tom Badstubner is consulted on specialty and medical gas questions, Mike Dodd for DOT-related issues and Rick Schweitzer for government and HR legal matters. IOC is a member of B.I.G., a best-practices information sharing forum, and is also a member of the Independent Welding Distributors Cooperative and is working toward becoming an approved supplier of its PurityPlus brand of gases this year. Keeping current on its computer systems is also important to IOC. The company has recently installed a new ERP software operating system, NetSuite, and is adopting TrackAbout as its cylinder tracking software. Gunnels sees the new cylinder tracking system as a huge benefit to the company. While it just went live for the entire cylinder population six months ago, Gunnels is confident that

Top: IOC has invested heavily in assets for bulk supply. Middle: IOC opened its latest branch in Dayton, Ohio, in August 2018. Bottom: IOC’s new specialty gas lab blends gases to precision levels. Winter 2019 • 53

MEMBER PROFILE knowing where the company’s cylinders are will lead to better quality of service and increased revenues.

CULTURE OF COMMUNICATION IOC consistently places among the Top 100 best companies to work for in the state of Indiana, according to the Indiana Chamber of Commerce. Jamie Freije, IOC’s human resources manager who has been with the company for 24 years, attributes much of this to the culture the Brants have created. “Having a ‘family-owned’ business means we strive to treat our entire team as such,” said Wally Brant. “We have bonus programs for managers and salespeople, and we share the company’s financial success by passing along a determined percent of our net profits to our employees. We encourage advancement and each person’s potential and strive to provide the means for all IOC associates to own a home, educate their children and invest in their retirement.” In addition to offering these benefits, the company has created a culture of open communication. Quarterly meetings keep management up-to-date, and annual Town Hall style meetings at each branch help unite the team. Held at each location in a relaxed setting and after regular business hours, Town Hall meetings enable branch employees to meet with the executive team for open discussion. “Branches can feel like islands,” said Freije. “These events bring us together as one strong company.” Training for both old and new employees is also important at IOC. The company 54 • Winter 2019

uses its vendors, such as Linde (now the Messer Group), Matheson, Miller, Lincoln, ESAB and Hypertherm, to keep staff up to date on product training and enlists consultants and other outside programs for further sales education as needed. GAWDA’s online training programs are used extensively for general education on the gas distribution business. With over 35 course offerings, IOC employees can take a

do better and its investment in propane paid off. The company quadrupled that business in five years. “Our short- and long-term vision is to continue to remain the No. 1 company in our marketplace,” explained Halter. “We will keep living this vision by taking great care of our customers and our people in the belief that the customer doesn’t care how much you know until they know how much you care. We continue to provide

IOC’s annual Town Hall style meetings at each branch help unite the team.

GAWDA class on gases, proper safety procedures, loading and off-loading techniques and even proper ergonomics for the office worker. IOC requires that its employees take the GAWDA courses appropriate to their position every three years.

FUTURE FORWARD In the rapidly changing and consolidating world of industrial gases and welding, IOC’s overall strategy for success going forward is to become more independent. The development of IOC’s propane business is a great example of that approach. When its propane supplier was acquired by a large national conglomerate, prices went up and customer care went down. IOC determined they could

superior service by keeping communication channels open and flowing, and by building relationships internally and externally with our vendors and strategic partners. By bringing on the best talent we can find, people with highly developed customer service skills, and retaining these employees over the long term, we also strengthen our ability to service our customers. As we strive to execute the above, we will continue to grow as a company and support all of the communities in which we have a presence.” Agnes H. Baker is a freelance writer with 20 years of experience covering the industrial, medical and specialty gas industry. Based in Massachusetts, she can be reached at: agnes.h.baker@gmail.com.

SALES & MARKETING

Every Business Needs a Marketing Plan by john tapley

R John Tapley is a business management consultant and entrepreneur with expertise in new business startup, innovative business growth and marketing strategies and digital/ social media marketing. He has significant experience in all facets of the industrial gas industry, both domestic and global. He is also a mentor at the Entrepreneur and Innovation Institute, Georgia State University and can be reached at John.Tapley@itbpartners. com and 404-314-8106.

eally? Every business? This will seem obvious to larger companies with skilled marketing teams and dedicated resources, but to the small, independent business owner, along with a small staff of do-everythingevery-day employees, it might not strike a chord. As a matter of fact, it could probably come off as being a nuisance, but stay with me here and I’ll explain why and provide a clear and simple means to get there. Ask yourself a few questions first: • What is my brand or identity? • Where is my business today? • Who is my ideal customer? • What is my competition doing? Look around and evaluate social media strategies that others like Sidney Lee Welding are using. Consider your own version of a Demo Day similar to what WestAir has been so successful with. The list goes on. See how these activities and programs might be a fit in your strategy. • Are there any new trends, products or services in the welding equipment and gases industry that I’d like to pursue? Anything you can get out in front of before everyone else notices? There is a sense of pride and motivation in thinking about your business as unique and special with a loyal following. That’s your brand, all yours and no one else’s. Use it to your advantage, go forth and conquer.

DEVELOPING AN OUTLINE If you don’t have a plan or aren’t using the one you have, let’s go simple first and you can build onto it later on. It doesn’t have to be lengthy or complicated, but you do need something to guide 56 • Winter 2019

your efforts and stay focused on your goals. Here are the steps you can take to get started and work into the outline included below: 1. Define your mission statement or vision, a clear and concise statement about what your business is all about and developed from a customer’s perspective. Keep this in mind, you do exist for your customer. Define what you do, how you do it and for whom. 2. What are your goals, what do you want to accomplish? 3. Who is your ideal customer? What problem(s) do they have that you can solve and any opportunities for additional services overlooked by others? Establish yourself as an expert. 4. What makes you different, why do your customers do business with you? 5. Understand your competition, what are their strengths and weaknesses?

BRAINSTORMING Now what? How about a brainstorming or ideation session with one or more of your key employees, or even by yourself? There’s something invigorating about free thinking without limitations on what you could be doing with your business. Imagine the possibilities. Try a few of these ideas for starters: • Technology advances that differentiate and/ or make your customer’s life easier such as cylinder tracking and/or gas monitoring • Welding equipment supply chain advances that translate to productivity improvements for your customer • Delivery business model improvements — for example, expanding the volume range on your microbulk business either

SALES & MARKETING

Sample Marketing Plan Outline 1.0 Marketing Vision 1.1 Goals 1.2 Purpose 2.0 Ideal Customer 2.1 Market Description 3.0 Remarkable Difference 3.1 Differentiators 4.0 Core Strategy 4.1 Core Branding Elements 5.0 Product/Service Innovation 5.1 Price Rationale 6.0 Marketing Materials 7.0 Lead Generation Plan 7.1 Advertising 7.2 Referrals

8.0 Service Experience 8.1 Loyalty Product/Service Offerings 8.2 Customer Retention 9.0 Marketing Calendar 9.1 Monthly Table: Milestones 10.0 Critical Numbers 10.1 Sales Forecast Table: Sales Forecast Chart: Sales Monthly Chart: Sales by Year 10.2 Marketing Expense Budget 10.3 Key Marketing Metrics Table: Sales Forecast Table: Marketing Expense Budget Table: Key Marketing Metrics

up or down to make it easier for customers to operate continuously with no downtime • Using social media to reach and remain current with your customer base and the business community If you have anything that sticks, include it in your marketing plan as a new strategy to pursue in addition to your existing business model.

CREATING A MARKETING PLAN Marketing is not just for larger businesses, it’s for every business. Go simple when creating your first marketing plan — the goal is to get something in place. A good plan range is three to five years out with an annual action plan you can manage to every year. Be disciplined in using it to guide you, but remain flexible if you feel the need to alter the course or pull back. With a plan, you have the means to set goals and establish priorities and a foundation for success. And you have given yourself a solid vision for an all-important management strategy, when to say no.

very low ppm & ppb calibration

Winter 2019 • 57

SALES & MARKETING

Sample Marketing Action Plan ADVERTISING Name me Other

Start Date

End Date

Budget

Manager

Department

12/5/2018 12/5/2018

1/4/2019 1/4/2019

$0 $0

ABC ABC

Department Department

PR Name me Other Total PR Budget

Start Date

End Date

$0 Budget

Manager

Department

12/5/2018 12/5/2018

1/4/2019 1/4/2019

$0 $0 $0

ABC ABC

Department Department

DIRECT MARKETING Name me Other

Start Date 12/5/2018 12/5/2018

End Date 1/4/2019 1/4/2019

Budget $0 $0

Manager ABC ABC

Department Department Department

WEB DEVELOPMENT Name me Other Total Web Development Budget

Start Date 12/5/2018 12/5/2018

End Date 1/4/2019 1/4/2019

Manager ABC ABC

Department Department Department

OTHER Name me Other Total Other Budget

Start Date 12/5/2018 12/5/2018

End Date 1/4/2019 1/4/2019

Manager ABC ABC

Department Department Department

Total Advertising Budget

Total Direct Marketing Budget

TOTALS

MONTHS

January February March April May June July August September October November December

SAMPLE MARKETING THEME CALENDAR

Safety Equipment Promotions Specialty Gas Applications Marketing Materials/Kit Microbulk Campaign CO2 Beverage Campaign PR/Referrals Welding Machine Promotions Website/Blogs/Direct Mail Torches/Tips/Regulators Social and Search Bulk Gas Promotions Audio/Video Podcast

There are boundless templates available for organizing your plan from off-the-shelf software programs to simple formats you can find in any Google search. You can follow along with the outline shown here and pick and choose what’s right for your business. It can be overwhelming trying to select the perfect fit, but the important lesson is to find a suitable format and go. You can always adjust as you gain experience in this area — there is no harm in starting and changing course later, just start. 58 • Winter 2019

$0 Budget $0 $0 $0 Budget $0 $0 $0

PUTTING YOUR PLAN INTO ACTION Now that our marketing plan is complete, do we file it away and feel good that it’s done? No, we support it with a measurable marketing action plan to drive results from our strategy. There are a few basic steps when putting your marketing plan to work: 1. Define priorities. 2. Assign resources. 3. Establish events and campaigns. 4. Set target dates for completion. Connect each task to a calendar and content plan. The timing can be quarterly or yearly. If you are new to this, a shorter quarterly outlook may be advisable, giving you time to learn and flex before trying to plan an entire year of events and activities. Staying the course with your action plan reduces the likelihood of random activities and haphazard results. It’s vitally important for all businesses to recognize the link between establishing marketing goals and strategies and business success. We are all invested heavily in our businesses and understand the best path forward is achievable through planning and follow through … with a touch of flexibility and course change if the need calls.

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If Only I Had Known by art waskey

I Art Waskey has been in the gases and welding industry for his entire career. For speaking, consulting or mentoring, contact him at Impact Speaking Dynamics, www. impactspeakingdynamics. com, or artwaskey@ ispeakd.com.

60 • Winter 2019

n 1972, I graduated LeTourneau College (now LeTourneau University) with a degree in welding engineering and began working for a small manufacturing firm as part of its five-person engineering group. My fellow team members were over 40 years old, which seemed ancient to me at the time. However, I found it rewarding to introduce them to the exciting new ideas I had learned in college, which made the experience enjoyable. Over time, I noticed I did not share the enthusiasm my colleagues had for the work we performed, and this made me anxious. Eventually I approached my manager with a letter of resignation. He was surprised and noted that upper management was impressed with my work and my ability to stimulate those around me to a higher level of productivity. He offered me an incentive to stay. If I would continue for the balance of six months at my current pace, the company would send me to an executive MBA program in management. Upon completion, I could expect to go into training for his job as he was moving up the ranks. I thanked him but knew that sitting behind a desk solving engineering problems was not the future I wanted.

As a college senior, I was told I would make a good salesman by a perceptive job recruiter. He recognized that I had a personality well suited for building relationships and offered me a position with a starting salary higher than I could get in engineering. My response, “I just crammed five years of engineering studies into four, and you want me to be a salesman!” After my unsatisfactory try at being a welding engineer, I called him back and he had a job for me. That was how I began a satisfying 46 years in technical sales and management. And that first professional relationship I sparked so many years ago as a college senior continued until he passed away at the age of 96.

WHO YOU ARE What enables someone to become a superior engineer, teacher, accountant, doctor, lawyer, business owner or, yes, even a salesman? That’s a question that has been around for a very long time. As far back as 400 B.C., Empedocles and Hippocrates were observers of behavioral patterns in people. More recently, in 1921, Carl Jung identified “Psychological Types.” In 1928, building on Jung’s work, William

SALES & MARKETING Moulton Marston published “The Emotion of Normal People” in which he described humans as behaving along two axes: (1) their actions tending to be either active (extrovert) or passive (introvert), and (2) their view of activity as either preferring to work alone (antagonistic) or preferring to work with others (favorable). Many behavioral tools that help improve human interactions have been introduced because of Marston’s analyses. In your career, as in life, a good understanding of your personal characteristics helps you navigate relationships. Which of the following four behavioral styles best describes you? Dominant – These extroverts are task-oriented and like problems and challenges that produce immediate results. Dominants are lions — follow their lead or get out of their way. They are decisive and only need the short Reader’s Digest version of your pitch. They welcome challenging questions and are not afraid of pressure or confrontation. When you give a Dominant individual information, be sure it is correct — they do not suffer fools gladly. Influencing – These extrovert enthusiasts enjoy being around other people and socializing. They are future-focused networkers, great at motivating others to action, but with a tendency to avoid conflict. Influencers tend to gloss over the fine print and are susceptible to peer pressure. They need clarity and consistency. Steady – These easy-going introverts like being part of a team where pace and consistency are important. They are as loyal as golden retrievers, sharing a deep need to please others. With hearts full of compassion, they define the word adaptable and have a strong need for close relationships. Steady people often react to sudden changes by holding on stubbornly to what they feel is right. They need careful explanations. Compliant – These analytical introverts operate with concern for procedure, so provide them with data in a well-organized manner, using as few words as possible, and focus on service. With a tendency to keep emotions in check and to be fearful of mistakes, the Compliant person makes decisions carefully. They like to get it right the first time and often harbor anger regarding past mistakes.

SALES SCENARIOS Being aware of different behavioral types helps a salesperson approach a customer in a manner best suited to obtaining a positive result. Here are some examples: Scenario 1: The direct business owner is a Dominant. You need to stay business-like. Don’t over-promise or joke. Be

The salesperson that is aware of his behavioral style and learns to “blend” it with his customer’s style will be successful. Knowing who you are not only helps you decide which job is best for you, it helps you be the best you can be in that job. direct and make him believe he is the winner. Never let him overpower you. Close with confidence. Scenario 2: The talkative, self-confident restaurant manager is an Influencer. Clearly present the tasks for completion and the steps for accomplishment. This people-focused decisionmaker can easily get off track. Keep time management from becoming a problem by setting strict schedules and deadlines. Scenario 3: The quiet, friendly construction project manager is a Steady. Keep your approach to this sale slow and friendly. Earn his trust by letting him talk. Take whatever time is necessary before closing the deal. Scenario 4: The withdrawn purchasing agent is a Compliant. He is looking for information, so give him facts and figures. Answer all his questions, and then close.

IF I HAD ONLY KNOWN I wish I had access to this type of behavioral information earlier in my life. I could have avoided a lot of anxiety and problems in personal relationships. The salesperson that is aware of his behavioral style and learns to “blend” it with his customer’s style will be successful. Knowing who you are not only helps you decide which job is best for you, it helps you be the best you can be in that job. For each of us, life is a journey of exciting realization. Jim Collins in his masterful work, Good to Great, talks about being “the right person, on the right bus, in the right seat.” Through personal reflection and great mentoring, I was able to realize that my combination of Influencing and Dominant enabled me to be a persuading collaborator. This led me to a fulfilling career in sales management with a focus on public speaking, teaching and writing. How about you? Are you an introvert or extrovert? Do you prefer to work alone or with other people? Knowing who you are is the first step to seeking work that is satisfying and to establishing relationships. Do a little self-assessment now and avoid the “if only I had known.” Winter 2019 • 61

BEST PRACTICES

Regulatory Issues to Watch by rich gottwald

I Richard Gottwald is President and CEO of the Compressed Gas Association (CGA). He can be reached at 703-788-2748 or rgottwald@cganet.com.

n 2018, the Compressed Gas Association celebrated a number of regulatory successes, including the adoption of CGA recommended practices for GHS-compliant labeling, design aspects of cylinder and valve packages, requalification of manifolded cylinders and several other issues. As we look forward to 2019, there are several key areas of regulatory activity to monitor for impacts to our industry. We will continue to collaborate with our members, partner organizations like GAWDA, and our regulatory stakeholders to promote acceptance of industry positions on these issues and others that come up throughout the year.

CONSUMER SAFETY As our industry’s products become more common in the consumer landscape — in beverages, food presentations, spa therapies and other applications that put them directly in contact with the public — we expect that there will be continued regulatory activity to ensure consumer safety. The industry saw a clear example of this activity in 2018 when the U.S. Food & Drug Administration issued an alert advising consumers to avoid eating, drinking or handling food products prepared with liquid nitrogen at the point of sale. Reflecting this changing landscape, CGA’s board of directors approved a modification of our scope to include the development of basic safety considerations for end use. This will allow CGA to focus more on near consumer safety issues. In 2019, we plan to augment our safety materials with the development of additional safety posters, eLearning modules and other materials designed to communicate critical safety concepts to some62 • Winter 2019

one new to handling our industry’s products and related equipment. We will also continue to issue safety alerts to provide timely warnings about industry safety issues to the public.

MEDICAL GAS REGULATIONS In 2018, the FDA held a series of public workshops to solicit stakeholder input for the development of separate regulations for medical gases. Separate regulations are needed to prevent our industry from being subjected to ineffective requirements intended for traditional pharmaceuticals. CGA and GAWDA worked together to develop and submit input to the FDA, provide verbal comments on behalf of the industry during the public workshops and respond to FDA inquiries resulting from the workshops. As a result of these public meetings, we anticipate that the FDA will propose revisions to certain medical gas regulations in the second quarter of 2019. These proposed revisions are anticipated to include specific changes to current good manufacturing practice (cGMP) regulations in order to align the cGMP with CGA positions on appropriate and effective regulations for medical gases. The regulatory revisions are also expected to address updated requirements for security and environmental conditions at medical gas wholesale facilities, changes to general labeling requirements and clarifications to post-market reporting regulation applicability to medical gases. Acceptance of the CGA/GAWDA proposals will result in more appropriate and effective medical gas regulations and less controversy during FDA and state agency inspections with increased patient and public safety.

BEST PRACTICES

UNIQUE DEVICE IDENTIFIER REQUIREMENTS In September 2013, the FDA published a final rule instituting unique device identifier (UDI) requirements for medical devices. As originally written, the UDI requirements extended to a number of products in our industry such as calibration gases, laser gases, pressure regulators, cylinders, valves, gas pressure transducers, hoses, yokes, flowmeters and more. CGA and GAWDA have reached out to the FDA numerous times since these rules were introduced to request that our industry’s Class 1 and Unclassified products be exempt from these requirements on the basis that they represent a low risk to patient safety. Although the final UDI compliance phase does not become effective until 2020, CGA and GAWDA are collaborating to provide comments on the FDA’s interpretation of what medical devices are subject to these regulations. We have requested meetings with the FDA to clarify that plain cylinders and cylinders with plain valves are not medical devices, and should not be subject to UDI requirements. Without this clarification, many in the industry will be subject to unnecessary marking and tracking requirements. CGA and GAWDA are also seeking to resolve confusion around the application of UDI codes to valve integrated pressure regulators (VIPRs).

UPDATES TO U.S. HAZARDOUS MATERIAL REGULATIONS The UN Sub-Committee of Experts on the Transportation of Dangerous Goods (SCETDG) has completed their 2017–2018 biennium and is expected to publish the 21st revised edition of the UN Recommendations on the Transport of Dangerous Goods – Model Regulations (known as the UN Orange Book) in the first quarter of 2019. It has been the DOT’s practice to propose changes the U.S. Hazardous Material Regulations based on the revised Model Regulations, as well as on revisions to modal regulations such as International Civil Aviation Organization or International Maritime Dangerous Goods codes. Changes to the UN Model Regulations that will impact our industry include:

• Adoption of several ISO standards on the inspection and testing of various cylinders, containers and pressure drums. • Change of the LC50 values for various toxic gases, which could affect their transport classifications. • Prohibit the manufacture and use of two-part composite cylinders and tubes but without liners, such as certain two-part propane cylinders. • Adoption of the 2017 edition of ISO 10156, Gas cylinders – Gases and gas mixtures – Determination of fire potential and oxidizing ability for the selection of cylinder valve outlets, which establishes required valve outlet connections for flammable gas mixtures.

UPDATES TO HAZARD COMMUNICATION STANDARDS The U.S. Occupational Safety and Health Administration is considering updating its Hazard Communication Standard in order to align it with the seventh edition of the UN’s Globally Harmonized System of Classification and Labeling of Chemicals (GHS). The current OSHA Hazard Communication Standard references the third edition of the UN GHS. Aligning with the seventh revised edition will add pyrophoric gases and chemically unstable gases as separate entries under flammable gas and will require revisions to precautionary statements and some first aid statements. Aligning OSHA’s Hazard Communication Standard to the seventh edition will necessitate changes to CGA C-7 and cylinder GHS labels. A proposed rulemaking could be published this year.

REGULATORY ACTION ON CGA PETITIONS CGA is awaiting regulatory action on 18 previously submitted petitions and is actively working with our technical committees to develop additional petitions. These petitions request the incorporation by reference (IBR) of CGA publications or the adoption of industry positions on a specific issue. The table on the next page summarizes our current pending petitions. continued on next page

Winter 2019 • 63

BEST PRACTICES PETITION NUMBER

AGENCY

TOPIC

P-1626

DOT

IBR of CGA C-1, Methods for Hydrostatic Testing of Compressed Gas Cylinders

P-1628

DOT

IBR of CGA C-3, Standard for Welding on Thin-Walled Steel Cylinders

P-1499

DOT

IBR of CGA C-6, Standard for Visual Inspection of Steel Compressed Gas Cylinders

P-1694

DOT

IBR of CGA C-6.1, Standards for Visual Inspection of High-Pressure Aluminum Alloy Compressed Gas Cylinders

P-1679

DOT

IBR of CGA C-6.3, Guidelines for Visual Inspection and Requalification of LowPressure Aluminum Allow Compressed Gas Cylinders

P-1521

DOT

Allow the use of labels described in CGA C-7 2004, Appendix A on cylinders that are overpacked.

P-1693

DOT

IBR of CGA C-11, Recommended Practices for Inspection of Compressed Gas Cylinders at the Time of Manufacture

P-1629

DOT

IBR of CGA C-14, Procedures for Fire Testing of DOT Cylinder Safety Relief Device Systems

OSHA

IBR of CGA P-1, Standard for Safe Handling of Compressed Gases in Containers

P-1592

DOT

IBR of CGA S-1.1, Pressure Relief Device Standards – Part 1 – Cylinders for Compressed Gases

P-1680

DOT

IBR of CGA S-7, Method for Selecting Pressure Relief Devices for Compressed Gas Mixtures in Cylinders

P-1519

DOT

Request to amend 49 CFR 173.314(c) to reflect concerns about carbon dioxide railcars going liquid filled before the regulating valve setting is reached.

P-1540

DOT

Response to PHMSA proposal to require cylinders to be marked with tare weight and water capacity.

P-1501

DOT

Proposal to modify Series 4 cylinder specifications.

P-1701

DOT

Request for import and export of DOT and European cylinders and pressure receptacle packages.

P-1714

DOT

Request for rulemaking on UN seamless steel pressure receptacles in the transport of CNG.

Not Assigned

OSHA

IBR of CGA G-7.1, Commodity Specification for Air

Not Assigned

CPV

Letter to the Association of Chief Boiler and Pressure Vessel Inspectors of Canada (CPV) requesting the development of a common quality control manual to be recognized by all provinces and territories in Canada.

Not Assigned

64 • Winter 2019

BEST PRACTICES and competency requirements for technicians to be certified for bulk CMG supply system work but does not establish technical requirements for system design or maintenance. The adoption of CGA M-1 as a certification standard provides bulk CMG system installers with an alternative to ASSE 6015 that specifically addresses the unique considerations and hazards of the medical gases industry. In 2018, the CGA Certification Board LLC (www. CGACB.org) launched a certification program to address this requirement. The CGA M-1/ASSE 6015 certification has been developed by subject matter experts with practical experience in designing, locating, installing, commissioning, maintaining, testing, removing and documenting work for bulk CMG supply systems. The exam covers all applicable standards, codes and regulations, including CGA M-1, ASSE 6015, NFPA 55, NFPA 99 and elements of the FDA regulations for medical gases found in Title 21 of the Code of Federal Regulations. The CGACB will be offering the CGA M-1/ ASSE 6015 certification exam throughout the U.S. in 2019.

Personnel who install and maintain bulk compressed medical gas (CMG) supply systems must be certified to CGA M-1. BULK MEDICAL GAS SUPPLY SYSTEMS CERTIFICATION

Recent changes to NFPA 55, Compressed Gases and Cryogenic Fluids Code, include a requirement for personnel who install and maintain bulk compressed medical gas (CMG) supply systems to be certified to CGA M-1, Standard for Medical Gas Supply Systems at Health Care Facilities. Previously, installers were required to be certified to ASSE 6015, Bulk Medical Gas Systems Installers, which defines training

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info@mcdantim.com 888-735-5607 Winter 2019 â&#x20AC;˘ 65

BEST PRACTICES

300 CGA SAFETY PUBLICATIONS – FREE

ince 2012, GAWDA and the Compressed Gas Association (CGA) have maintained a partnership that allows GAWDA U.S. and Canadian distributor members free access to CGA’s library of more 300 electronic safety publications. These CGA electronic publications are available to one person per location from each eligible GAWDA distributor member company. In addition, CGA offers discounts on hardcopy publications, the CGA Handbook of Compressed Gases, as well as safety videos. “This is a fantastic program for our distributor members,” said Michael Dodd, GAWDA DOT, OSHA, EPA and Security Consultant. Many of the CGA publications are regulations that gas distributors are required to have on hand, and for some smaller member companies, the savings from getting those publications for free more than covers the annual cost of GAWDA dues!

CGA produces a variety of industry standards that provide guidance on many topics of compliance for GAWDA members. Examples include guidance on general topics, such as cylinder filling or establishing evidence of ownership of compressed gas cylinders, as well as guidance on specific applications, such as the safe storage, handling and use of electronic specialty gases packaged in containers. If you have any questions, please contact your consultant, Michael Dodd, at MLDSafety@hotmail.com or 573-718-2887.

RED HOT PROFITABLE ABRASIVES SOLUTIONS

www.carbo.com | 800.231.4145 66 • Winter 2019

The GAWDA Buyers Guide is now available in a searchable database.

buyersguide.gawdamedia.com Save this URL as a favorite for quick access. Share it with your staff!

KEY FEATURES: Category Listings

Find active GAWDA suppliers by category.

See ALL GAWDA suppliers by clicking the category “supplier.”

Events

Find events related to supplier members.

Supplier Articles

Read articles from supplier members about new products, case histories, troubleshooting and more.

Used Equipment

Have extra equipment, ﬂeet or excess inventory? Sell it to fellow GAWDA members through this forum.

Job Postings

Did you know you can post jobs on GAWDA.org? Click the job postings tab to see how.

For more information contact Tim Hudson timh@gawdamedia.com | gawdamedia.com

Full Conference Schedule Page 70

SPRING MANAGEMENT CONFERENCE PREVIEW Saturday, May 4 – Monday, May 6, 2019

HYATT REGENCY MINNEAPOLIS 1300 NICOLLET MALL MINNEAPOLIS, MN 55403

It’s All About Service World Class Products. First Class Service. ™ • DOT / TC / ISO / UN Approvals • Specialty & Calibration Gas • Industrial Gas • Alternative Fuels • Beverage C02 • Aerospace • Medical Oxygen • SCUBA • Fire & Rescue • Nitrous Oxide

68 • Winter 2019

MEET THE SPEAKERS Craig MacFarlane

Thomas Elliott

Despite being totally blind since the age of two, Craig MacFarlane has become a master in many fields including becoming widely recognized as the World’s Most Celebrated Totally Blind Athlete. His list of athletic accomplishments is lengthy and impressive. He has succeeded in wrestling, track and field, snow skiing, water skiing, water ski jumping and golf. He has won more than 100 gold medals, the majority against sighted competition. He has won multiple national championships in two countries. He has represented two countries internationally, and won on the world stage too. He has set records, and then exceeded them. He has even performed as a professional athlete, being the only totally blind person to ever achieve such success.

Tom is the owner and president of A-OX Welding Supply, and the third generation to run the family business. In the beginning, Tom’s grandfather sold supplies out of his truck, and now 69 years later A-OX Welding Supply has grown to include seven stores with a large cylinder stock, a bulk tanker fleet, delivery trucks and on-site bulk tanks. Since 2004, when Tom took the reins of the family business in Sioux Falls, SD he’s made countless moves to ensure its success for the years and generations to come. Today, A-OX Welding Supply has the fourth generation working in the business and in addition to its traditional work, handles a wide array of medical and scientific gases, specialty gases for lasers and other modern manufacturing processes, gases for emissions testing, and robotic equipment. Tom will share his story of a recent fire at their main facility. He will expand on a presentation he made at an IWDC meeting in October. DO NOT miss this session even if you heard Tom at IWDC. He will cover safeguards and policies put in place since then.

INSPIRATION LEADERSHIP INSIGHT

A-OX WELDING SUPPLY (Owner and President)

Traci and Lori Tapani

WYOMING MACHINE, Inc. (Co-Presidents and Sisters)

Lori and Traci Tapani are both graduates of the Carlson School of Management at the University of Minnesota and hold Bachelor of Science degrees in business. Upon graduation, Lori went on to work as a certified public accountant and Traci worked in banking operations and international trade finance. In 1994, Lori and Traci became the owners of Wyoming Machine, Inc. located in Stacy, MN. Wyoming Machine is a precision sheet metal fabrication company specializing in CNC punching, laser cutting, forming and welding. Wyoming Machine was founded in 1974 and serves a wide variety of companies and industries throughout the area making products such as heavy equipment, retail store fixtures and electronic enclosures.

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CONFERENCE SCHEDULE

Rely on Reelcraft TIME

MEETING

LOCATION

Friday, May 3, 2019 12:00 pm – 6:00 pm

Most Popular

Registration and Badge Pickup

Saturday, May 4, 2019

1/4” I.D. x 50’ TW7450 OLP

7:00 am – 6:00 pm

Conference Registration

8:00 am – 9:00 am

For the GAWDA Executive Committee only

Executive Committee Meeting

Complete line of welding reels ü Profitable sales ü Excellent quality and service ü Strong brand preference ü Most complete ü On-time delivery product line

9:00 am – 12:00 pm 1:00 pm – 5:00 pm 1:00 pm – 2:00 pm 2:00 pm – 3:00 pm

Board of Directors Meeting

Most Compact p

1/4” I.D. x 25’ TW5425 OLP

Exhibitor Move-In

Hyatt Exhibit Hall

Regional Chairs Meeting

Regency Room – 2nd FL

For Chairs of Regional Meetings

Industry Partnering Committee Meeting

2:00 pm – 3:00 pm

Gov. Affairs and Safety Committee Meeting

2:00 pm – 3:00 pm

Insurance Trustee Committee Meeting

2:00 pm – 3:00 pm

Member Services Committee Meeting

For Committee members only

For Committee members only p

3:00 pm – 4:00 pm

Lakeshore B – 1st FL Lakeshore A – 1st FL Lakeshore C – 1st FL Regency Room – 2nd FL Regency Room – 2nd FL

First Timers’ Reception 4:30 pm – 5:30 pm

Rated up to 700 amps

Most Robust

5:30 pm – 9:30 pm

WCH80001

ATTIRE 800-444-3134

Welcome to all first-time attendees of the GAWDA Spring Management Conference! We want to personally welcome you to your first SMC.

(Offsite – Nicollet Island)

President’s Welcome Reception & Dinner

NEW!

70 • Winter 2019

Young Prof. Steering Committee Meeting For Committee members only

1/4” I.D. x 150’ T-1225-04-100T

Regency Room – 2nd FL Regency Room – 2nd FL

For Committee members only

Longer Lengths

Nicollet Ballroom Promenade

For the GAWDA Board of Directors only

For Committee members only

www.reelcraft.com

Nicollet Ballroom Promenade

GAWDA President Brad Peterson welcomes attendees to the Spring Management Conference in Minneapolis at the Welcome Reception & Dinner. No need to leave early. Plenty of time to catch up with old colleagues and friends. The Welcome Reception & Dinner will include dinner, drinks, live music and lumberjack show. Join us! Wear your flannels and jeans.

(Offsite – Nicollet Island)

Attire for all meetings and events during the Spring Management Conference is business casual. Special attire for the President’s Welcome Reception and Dinner – flannels and jeans.

It’s All About

Service

TIME

MEETING

LOCATION

ABRASIVE PRODUCTS FOR THE PROFESSIONAL

NEW PRODUCT!

Sunday, May 5, 2019 6:00 am – 12:30 pm

Exhibitor Move-In

Hyatt Exhibit Hall

7:00 am – 5:00 pm

Conference Registration

Nicollet Ballroom Promenade

7:00 am – 8:00 am

Networking Breakfast

Nicollet Ballroom CD and Lakeshore

8:00 am – 11:30 am

Speakers: • Thomas Elliott • Traci and Lori Tapani

General Business Session

Nicollet Ballroom AB

A New Take on Angle Grinder Wheels

CONTACT BOOTH PROGRAM HOURS EXTENDED NEW!

Sunday, May 5, 2019 | 12:30 – 4:30 pm

E.T 11:30 am – 12:30 pm

Group Lunch

Nicollet Ballroom CD and Lakeshore

12:30 pm – 4:30 pm

Contact Booth Program

Hyatt Exhibit Hall

4:30 pm – 11:00 pm

Industry Hospitalities By invitation only

Monday, May 6, 2019 7:00 am – 12:00 pm

Conference Registration

Nicollet Ballroom Promenade

7:00 am – 8:00 am

Networking Breakfast

Nicollet Ballroom CD and Lakeshore

8:00 am – 12:00 pm

Speaker: Craig MacFarlane Industry Panel Discussion

APP

General Business Session

Nicollet Ballroom AB

Download the GAWDA 2019 Spring Management Conference App for a full list of events and attendees, direct attendee messaging and social media access, maps and much more!

20°

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1305 Eden Evans Center Rd Angola, NY 14006 Winter 2019 • 71

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

ITR First-Quarter Outlook:

Rising to the Challenge of 2019 and Early 2020 by alan beaulieu

EXECUTIVE SUMMARY RISE TO THE CHALLENGE “I do not mistrust the future. I do not fear what is ahead. For our problems are large, but our heart is larger. Our challenges are great, but our will is greater.” – George H.W. Bush

SHORT-TERM UPDATE

long-term Treasury Yield Curves inverting. Many of the news agencies are correctly pointing out that the inversion is sometimes a warning sign of slowing economic activity after an indefinite lag time. That Treasury Yield Curve per se is not terribly useful. Other yield curves are more valuable from our perspective. They show a flattening out of the Yield Curve, as opposed to an actual inversion. One issue with Yield Curves is that lead times vary considerably from one cycle to the next, and recessions happen without an inversion occurring. We tend to look at the difference in risk assessment as measured by the spread in yields between Corporate BAA–rated and AAA–rated Bonds. This isn’t a yield curve but a measurement of perceived risk. The risk rate-of-change, shown in the chart below, is currently a negative leading indicator signal for the general economy in 2019. This is consistent with the other leading indicator inputs we provide in the GAWDA report. Our analysis suggests that we are on track for business-cycle decline in 2019 and early 2020. Some segments of the economy will be hit harder than others. By extension, not all parts of the economy will contract. Our outlook for 2019 and 2020 is unchanged.

This content is exclusive to GAWDA Members.

The leading indicator signals have generally deteriorated in recent months. Especially disconcerting is the weakness apparent in Housing Permits, Housing Starts and Nondefense Capital Goods New Orders (excluding aircraft). Consider these trends in the context of the probable weakness in Retail Sales (as evidenced by the new “Google Interest” leading indicator developed by ITR Economics and shown at our ITR Economics presentations), and you have a scenario that is more and more convincingly pointing to a fundamental shift in the business cycle, from rise to decline, for 2019. Beyond the traditional leading indicators, the trend in stock prices is noteworthy. Share prices are not a reliable leading indicator (they lead about 50 percent of the time), but the dramatic activity in October, November and at least early December warrants comment because of the volatility and magnitude of change. The sources of conventional wisdom seem to ascribe different reasons for the gyrations and magnitude, depending on the week. The thought du jour centers on the short- and

For more information on GAWDA and association membership, contact: Stephen Hill, GAWDA Membership Services Manager 954-367-7728 x 220 / shill@gawda.org

72 • Winter 2019

Production 15

U.S. Industrial Production Index to Spread Between U.S. Corporate BAA and AAA Bonds

Spread 150

12/12 Rates-of-Change 100

4.0%

-16.1% -50

-5

-10

Production

-100

Spread -15

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

-150

ITR FOR GAWDA THE LONGER TERM The chart to the right illustrates for the first time our outlook for the economy through 2023 as measured by U.S. Total Industrial Production. Keep in mind that 2023 is five years out; however, we are reasonably confident that the business cycle concluding with the 2023 low will be the most difficult business cycle since the 2008–09 Great Recession. To be clear: 2022–23 is not the Depression decade we are projecting for circa 2030–2040; the cycle ending in 2023 is a normal business cycle. But it will present the most challenging economic conditions in about 14 years. We thought you should know about it. The first question people tend to have is, “What will cause the decline?” It is too early to get into causal factors beyond some broad-brush trends that we will share down the road. For now, suffice it to say that ITR Economics’ business-cycle theories, which provided insight into the severity of the 2008–09 Great Recession beginning in the fourth quarter of 2003, are now giving us guidance regarding 2022–23. We will delve into the “whys” of the downturn at a later date.

U.S. Industrial Production Index

Rates-of-Change

-5

-10

3/12

-15

12/12 12/12 Forecast

-20

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18

'19

'20

'21

'22

'23

-20

For now, we think the more pertinent question(s) revolve around “What does this mean for my business and my investments?” 1. Start developing new products/services now to gain market share and/or move into new markets come 2022. 2. Weak(er) parts of your businesses need to be tuned up and made profitable before 2022, or consider divesting yourself of them before 2022. 3. Grow your margins between now and then because margins tend to compress in downturns. 4. Invest in your business now and you will be less prone to do it at the top of the cycle in 2021. (Does anyone not know of an expansion that happened at the very top of a cycle?)

This content is exclusive to GAWDA Members.

For more information on GAWDA and association membership, contact: Stephen Hill, GAWDA Membership Services Manager 954-367-7728 x 220 / shill@gawda.org CORE ECONOMY AT A GLANCE 12/12

12MMT/A CURRENT 2018 2019 2020

HIGHLIGHTS

U.S. TOTAL INDUSTRIAL PRODUCTION

4.0

3.9

0.5

0.7

Activity will rise through the first half of next year before declining into early 2020.

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS

6.7

7.4

-0.6

4.4

Slowing growth will persist through the first half of 2019 before contraction takes hold.

U.S. PRIVATE SECTOR EMPLOYMENT

1.9

2.0

1.6

1.3

Employment will rise through 2020, although the pace of growth will slow through much of this time.

U.S. TOTAL RETAIL SALES

5.4

5.6

3.9

3.6

Retail Sales will rise throughout the length of this forecast. Slowing growth will take hold by the second half of 2019.

U.S. WHOLESALE TRADE OF DURABLE GOODS

9.1

8.3

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The pace of rise for Wholesale Trade will slow through 2019.

U.S. WHOLESALE TRADE OF NONDURABLE GOODS

7.9

8.4

3.5

8.4

Activity will rise through 2019 at a diminishing pace.

Note: Forecast color represents what Phase the market will be in at the end of the year. Winter 2019 • 73

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

5. The stock market is likely to go through a real bear market trend in association with the 2022–23 recession. 6. Isolationist tendencies/nationalistic fervor increase in this type of cycle, so invest more domestically than abroad if you believe our conclusions that the U.S. will remain the world’s dominant economy.

ITR CONSUMER ACTIVITY LEADING INDICATOR™ INDICATOR SUGGESTS RETAIL SALES WILL GROW AT A SLOWING PACE INTO AT LEAST MID-2019 In November, the ITR U.S. Consumer Activity Leading Indicator was virtually even with the October level. The Indicator suggests U.S. Retail Sales will grow at a slowing rate into at least mid-2019.

7. Raise prices now and keep doing so through 2021.

8. Real estate will likely take a “hit” in 2022–23, but it won’t be anything like 2007–09; continue to invest into positive demographic trends for the longer haul. 9. Be “cash heavy” in 2021 to capitalize on buying opportunities in 2022–23. 10. This will be a global business-cycle contraction.

11. It is more important to protect your profits in the 2022–23 business cycle than it is to worry about your “top line.” 12. Selling your business or retiring in 2021 is a great way to avoid the recession. To borrow from George H.W. Bush, the challenges associated with 2022–23 are formidable, but our will, our ability and our imagination are greater, and you can overcome the cycle.

ITR Consumer Activity Leading Indicator™ Rates-of-Change

Production

Leading Indicator

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For more information on GAWDA US Industrial Production - 12/12 -10.0 and association membership, contact: Leading Indicator - Monthly Stephen Hill, GAWDA Membership Services Manager -15.0 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 954-367-7728 x 220 / shill@gawda.org U.S. TOTAL INDUSTRY CAPACITY UTILIZATION RATE UTILIZATION RATE TENTATIVELY SIGNALS INDUSTRIAL ECONOMY COULD TRANSITION TO SLOWING PACE OF GROWTH IN EARLY 2019 The U.S. Total Industry Capacity Utilization Rate 1/12 ticked down in October. If the tentative September peak holds, it supports our outlook for an early-2019 cyclical peak in U.S. Industrial Production.

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Production

Rate

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US Total Capacity Utilization Rate - 1/12

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ITR FOR GAWDA U.S. CONFERENCE BOARD LEADING INDICATOR INDICATOR 1/12 DROP STEEPEST SINCE 2008 The October U.S. Conference Board Leading Indicator 1/12 fell 1.3 percentage points from the September reading, marking the largest month-to-month percentagepoint drop since 2008. We are watching closely to see if this means September is the peak or if October was noise. Whether the downward movement holds or not, the Indicator 1/12 presents an upside risk to our U.S. Industrial Production 12/12 outlook.

U.S. Conference Board Leading Indicator Rates-of-Change

Production

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U.S. ISM’S PURCHASING MANAGERS INDEX

Rates-of-Change Production For more information on GAWDA 15.0 and association membership, contact: 10.0 StephenMana Hill, GAWDA Membership Services Manager The U.S. Purchasing gers Index (PMI) 1/12 ticked up 954-367-7728 in November. 4.0 5.0 x 220 / shill@gawda.org

Index

PRODUCTION RATE-OF-CHANGE DESCENT STILL LIKELY INTO THE SECOND HALF OF 2019

Historically, some volatility is normal in the PMI 1/12. We are monitoring this series closely for signs of a sustainable trend reversal. Regardless of whether the generally declining trend persists or a trend transition is in the works, the PMI 1/12 indicates that the U.S. Industrial Production 12/12 is likely to decline into at least the second half of 2019.

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ITR Economics for GAWDA | Q1 Report 2019 | Welding & Gases Today ITR ECONOMICS | P: 603-796-2500 | www.itreconomics.com

Winter 2019 • 75

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

GAWDA EXECUTIVE SUMMARY/DASHBOARD GAWDA-SPECIFIC INDICATORS INDICATORS

CURRENT GROWTH PHASE RATE (12/12)

HIGHLIGHTS

U.S. INDUSTRIAL PRODUCTION INDEX

Production is growing at the fastest pace in over seven years. However, declining leading indicators signal caution is prudent when planning for 2019.

4.0%

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

The Price Index annual growth rate ticked down in November; more data is needed to confirm a transition to a slowing growth trend. Carefully monitor your profit margin.

5.5%

U.S. CRUDE OIL FUTURES PRICES

Oil Prices dove in October and November on oversupply concerns. Be prepared for the Prices three-month moving average to decline into late 2019.

28.2%

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS WITHOUT AIRCRAFT

Annual New Orders are at a record high but have transitioned to Phase C. Ensure your budget reflects slightly lower New Orders in 2019 than 2018.

6.7%

U.S. ELECTRICAL EQUIPMENT NEW ORDERS

Trends in the Trade-Weighted U.S. Dollar Exchange Rate suggest an imminent transition to Phase C. Avoid overexpansion at the top of the business cycle.

3.2%

U.S. FABRICATED METAL PRODUCTS NEW ORDERS

Annual New Orders are expected to peak in early 2019. Look for ways to automate and improve efficiencies ahead of the next accelerating trend in New Orders.

9.9%

This content is exclusive to GAWDA Members.

For more information on GAWDA Trends in U.S. Corporate Profits indicate that New Orders could resume U.S. DURABLE GOODS NEW ORDERS and association membership, contact: Phase B. The current New Orders trajectory suggests inventory turns 7.8% WITHOUT AIRCRAFT may slow during 2019. Stephen Hill, GAWDA Membership Services Manager The Indicator had the largest month-to-month drop from October to ITR LEADING INDICATOR 954-367-7728 x 220 / shill@gawda.org November since early 2014. The Indicator suggests near-term Phase C 1.8 (Monthly) (MONTHLY)

RECOVERY 76 • Winter 2019

for U.S. Industrial Production.

Multiple GAWDA indicators are at record highs, including U.S. Durable Goods New Orders and U.S. Fabricated Metal Products New Orders. However, the majority of indicators included in the dashboard have transitioned to Phase C, Slowing Growth. The ITR Leading Indicator™ points to a near-term transition to slowing growth in U.S. Industrial Production. This is further corroborated by trends in the ISM’s U.S. Purchasing Managers Index and the U.S. Business Confidence Index. Do not expect the current

ACCELERATING GROWTH

pace of growth in GAWDA markets to persist next year. Slowing growth in U.S. Industrial Production will likely progress into mild contraction during the second half of 2019. Make sure your business is right sized based on expectations for your markets. Utilize the time you have during the slowing growth and mild recessionary environment to improve efficiencies in preparation for the subsequent growth expected in U.S. Industrial Production beginning around mid-2020.

SLOWER GROWTH

RECESSION

ITR FOR GAWDA U.S. INDUST PROD: U.S. INDUSTRIAL PRODUCTION

B - ACCELERATING GROWTH 2018 3.9% 107.7* 2019 0.5% 108.2* 2020 0.7% 109.0* * Index based to 2012 = 100. HIGHLIGHTS: ◼◼ Production was up 4.0 percent from the

Index

U.S. Industrial Production Index Data Trend

120

Index 120

12MMA Forecast 12MMA 3MMA 107.3

110

year-ago level. ◼◼ Activity

will rise through the first half of next year.

◼◼ Production

will decline in the latter half of 2019 in conjunction with slowing growth in Retail Sales.

U.S. Total Industrial Production during the 12 months ending in October was up 4.0 percent from the same period a year ago. Production will rise into mid-2019. We expect Production will then decline mildly into early 2020 before growth resumes through the remainder of that year. The U.S. industrial economy is benefiting from growth in the consumer sector. U.S. Total Retail Sales were up 5.4 percent from one year ago and are rising at an accelerating pace. However, the pace of growth for Retail Sales will slow in the latter half of next year. This will contribute to downward pressure on Industrial Production. Use growth through the first half of 2019 to prepare for the mild recession expected in the second half of next year and into 2020. Increase your reserves of cash to better position your company to invest for the next growth trend.

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Management Note: Ensure you know which of your markets are going into recession and which will just grow at a slower rate next year.

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THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

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

C - SLOWER GROWTH 2018 7.4% $830.5 billion 2019 -0.6% $826.0 billion 2020 4.4% $862.3 billion

HIGHLIGHTS: Orders were up 6.7 percent from a year ago.

◼◼ New

◼◼ Activity

will rise at a slowing pace into mid-2019.

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

Bils of $ 1200

300 12MMT Forecast 12MMT 3MMT

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1000 814.6

200

800

150

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◼◼ New Orders will decline in the latter half

of 2019 and in early 2020. U.S. Nondefense Capital Goods New Orders during the 12 months through October totaled $814.6 billion, up 6.7 percent from the year-ago level. The business-to-business sector will expand at a diminishing pace through the first half of 2019. New Orders will then decline into early 2020. Activity will then rise through the remainder of that year. The U.S. Purchasing Managers Index 1/12 has generally declined since an August 2017 peak. This indicator typically leads New Orders by about a year, which supports our expectation for rate-of-change descent into at least the second half of next year. The PMI 1/12 ticked up in the most recent month of data, but volatility is normal during a declining trend. We will monitor the PMI 1/12 further, as a sustainable rising trend would provide approximately one year’s advance notice for the New Orders trend.

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Management Note: Build up your reserves of cash while activity is still rising to better position your company to weather contraction in the latter half of next year.

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

C - SLOWER GROWTH Dec 2018 $58.14 per barrel Mar 2019 $55.97 per barrel Jun 2019 $61.12 per barrel Sep 2019 $55.32 per barrel

U.S. Oil Futures Commodity Prices Data Trend

$/bbl.

$/bbl. 120

120 3MMA Forecast 3MMA Actual

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HIGHLIGHTS: ◼◼ We revised our forecast for Prices down-

80 63.16

ward. ◼◼ The

Prices 3MMA was up 15.9 percent from one year ago.

◼◼ Prices

will generally decline into late

2019.

We revised our forecast for U.S. Crude Oil Futures Prices downward in response to changes in the World Oil Supply/Demand Gap. Robust Oil Production is coinciding with concerns over slowing growth in World Industrial Production. Less robust demand and more supply will lead to lower Prices. Prices during the three months ending in November averaged $63.16 per barrel, up 15.9 percent from the same period one year ago. Although Prices are above the year-ago level, they have declined in recent months. We anticipate that lower prices will generally persist into late 2019. OPEC members are discussing supply cuts that could ease the declining trend, but Prices could fall much further than anticipated if these cuts do not occur.

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THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

STEEL PRICES: U.S. STEEL SCRAP PRODUCER PRICE INDEX

C - SLOWER GROWTH Dec 2018 537.04* Mar 2019 571.92* Jun 2019 545.21* Sep 2019 510.80* * Index based to 1982 = 100.

HIGHLIGHTS: ◼◼ The Prices 3MMA was up 8.5 percent from a year ago. ◼◼ The Prices 3MMA will peak in early 2019.

Primary Metals Leading Index suggests cyclical decline in Prices.

$/GT

U.S. Steel Scrap Futures Commodity Prices Data Trend

900

3MMA Forecast 3MMA Actual

700

$/GT 900

700 488.0

500

300

◼◼ The

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U.S. Iron and Steel Scrap Producer Prices during the three months through October were up 8.5 percent from one year ago. The Prices 3MMA declined in recent months but will likely rise and peak in early 2019. Prices will then decline through at least the majority of next year. The U.S. Primary Metals Leading Index 3/12, which typically leads Prices by about six months, is in a declining trend. This indicator supports our expectation of further downward pressure on the Prices rate-ofchange during at least the next two quarters. With Prices expected to fall through much of next year, take caution not to lock in costs at the top of the price cycle.

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ITR FOR GAWDA FABR NOs: U.S. FABRICATED METAL PRODUCTS NEW ORDERS

C - SLOWER GROWTH 2018 10.0% $402.9 billion 2019 -0.3% $401.7 billion 2020 4.4% $419.4 billion

U.S. Fabricated Metal Products New Orders Data Trend

Bils of $ 150

600

12MMT Forecast 12MMT 3MMT

125

500

HIGHLIGHTS: ◼◼ Annual New Orders are at a record high.

Bils of $

395.5 100

400

◼◼ Annual

New Orders will rise into the first half of 2019 and then decline for the remainder of the year.

300

Annual U.S. Fabricated Metal Products New Orders in October totaled $395.5 billion, a record high. The pace of year-over-year growth has diminished from a peak of 11.9 percent in May down to 9.9 percent in October. Plan for annual New Orders to peak during the first half of 2019 and then decline for the remainder of the year. Rise will return during 2020. Results through the third quarter were 0.1 percent below the forecast range, due to an abnormally weak second-to-third-quarter percent change. This deviation is mild, and projections suggest New Orders will likely return within range by early 2019. Our long-term outlook is supported by our expectations for business-to-business activity. Furthermore, the U.S. Purchasing Managers Index monthly rate-of-change, a historically reliable one-year leading indicator, points to rate-of-change descent in New Orders into at least the fourth quarter of 2019. Recent accelerating growth in U.S. Metal Cutting Machine Tools New Orders poses a potential upside risk to our outlook. Recent decline in commodities prices, including steel and oil, could pose a downside risk to our outlook.

◼◼ Year-over-year growth in New Orders has

slowed from 11.9 percent to 9.9 percent.

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Winter 2019 • 81

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

CMACHNO: CONSTRUCTION MACHINERY NEW ORDERS C - SLOWER GROWTH

U.S. Construction Machinery New Orders Data Trend

Bils of $ 15

12MMT

HIGHLIGHTS: ◼◼ New Orders were up 5.2 percent from a year ago. ◼◼ Decline

Bils of $

3MMT

in the Caterpillar Stock Prices quarterly rate-of-change suggests further New Orders rate-of-change descent ahead.

U.S. Construction Machinery New Orders during the 12 months ending in October totaled $35.3 billion, up 5.2 percent from the same period one year ago. The New Orders 12MMT declined in October, but more data is needed to confirm if this is the beginning of a declining trend. Our expectations for macroeconomic, machinery and construction markets suggest you should be prepared for declining New Orders in at least a portion of 2019. The Caterpillar Stock Prices 3/12, which typically leads New Orders by about six months, is declining. This indicator is signaling that the New Orders 12/12 will likely decline further during at least the next two quarters. Rate-of-change descent in New Orders during the coming quarters would be consistent with ITR’s expectation of mild decline in annual U.S. Housing Starts in the first half of 2019. However, upward momentum in U.S. Corporate Profits poses an upside risk to our near-term expectations for New Orders.

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For more information on GAWDA 12/12 50 and association 3/12membership, contact: Stephen Hill, GAWDA Membership Services Manager 25 5.2 954-367-7728 x 220 / shill@gawda.org

Management Note: Make sure you know what your clients value so you can market accordingly.

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ITR FOR GAWDA ITR ECONOMICS – METHODOLOGY MOVING TOTAL/MOVING AVERAGE:

12MMT/A:

Moving totals/averages are used to smooth out the volatility inherent to monthly data at the product/company level.

A 12-month moving total (12MMT) or average (12MMA) is the total (or average) of the monthly data for the past 12 months. The 12MMT(A) removes the seasonal variation in order to derive the underlying cyclical trend. It is also referred to as the annual total or average.

MONTHLY MOVING TOTAL (MMT) VS. MONTHLY MOVING AVERAGE (MMA): There are times when it is desirable to calculate a monthly moving average instead of a total. Averages are used when the data cannot be compounded such as an index, percent, price level, or interest rates. Totals are used for things where it makes sense to add the data together (for example, units sold or total dollars spent).

3MMT/A: A three-month moving total (3MMT) or average (3MMA) is the total (or average) of the monthly data for the most recent three months. Three-month moving totals (3MMT) or averages (3MMA) illustrate the seasonal changes inherent to the data series.

RATE-OF-CHANGE: A rate-of-change figure is the ratio comparing a data series during a specified time period to the same period one year ago. Rates-of-change are expressed in terms of the annual percent change in an MMT or MMA. Rates-of-change reveal whether activity levels are getting progressively better or worse compared to last year. Consecutive rate-of-change illustrates and measures cyclical change and trends. ITR Economics’ three commonly used rates-of-change are the 1/12, 3/12, and 12/12, which represent the yearover-year percent change of a single month, 3MMT(A), and 12MMT(A), respectively. A rate-of-change above zero indicates a rise in the data relative to one year prior, while a rate-of-change below zero indicates decline.

This content is exclusive to GAWDA Members.

For more information on GAWDA and association membership, contact: BUSINESS CYCLE POSITIONS: The data trends and rates-of-change identify positions in the business cycle. Those positions are: Stephen Hill, GAWDA Membership Services Manager 954-367-7728 x 220 / shill@gawda.org

RECOVERY

ACCELERATING GROWTH

12/12 is rising below zero and the data trend is either heading toward a low or is in the early stages of recovery.

12/12 is rising above zero, data trend is accelerating in its ascent, and growth is occurring above year-ago levels.

This is the first positive phase of the business cycle.

This is the second positive phase of the business cycle.

SLOWER GROWTH

RECESSION

12/12 is declining but remains above zero, data trend is decelerating in its ascent or has stopped its rise, but it is still above last year.

12/12 is below zero and the data trend is at levels below the year-earlier level.

This is the first negative phase of the business cycle.

This is the final phase and second negative phase of the business cycle.

ITR Economics for GAWDA | Q4 Report 2017 | Welding & Gases Today ITR ECONOMICS | P: 603-796-2500 | www.itreconomics.com

Winter 2019 • 83

he following businesses recently joined the Gases and Welding Distributors Association. For more information about the benefits and services available to members, please contact the Association at 844-251-3219 and Stephen Hill, membership services manager, or visit www.gawda.org.

DISTRIBUTOR MEMBER

SUPPLIER MEMBERS

A+ DISTRIBUTING, LLC

TRANSMET CORPORATION

313 Oak St. (POB 609) Strawberry Point, IA 52076-9612 563-933-6463 FAX 563-933-2131 Robert Maker, owner aplusdistributing@yahoo.com Diane Maker, bookkeeper diane_maker@hotmail.com

A+ Distributing sells and distributes liquid carbon dioxide.

4290 Perimeter Dr. Columbus, OH 43228-1036 614-276-5522 FAX 614-276-3299 www.transmet.com Tom Fee, senior sales engineer t.fee@transmet.com Justin Clarke, general manager j.clarke@transmet.com

Transmet Corporation manufactures and supplies rapidly solidified metal products, including cast zinc shot, which is five times more durable than steel shot for removing paint and rust from gas cylinders and will not damage blast equipment.

WIKA INSTRUMENT, LP

1000 Wiegand Boulevard Lawrenceville, Georgia 30043 1-888-945-2872 www.wika.com Scott Bruce, OEM sales manager scott.bruce@wika.com Jeff Christian, director of sales jeff.christian@wika.com Anthony Corrao, sales engineer anthony.corrao@wika.com

WIKA is a global manufacturer of instrumentation for pressure, temperature, level, flow, force and calibration measurement.

4725 Piedmont Row Dr. Suite 600 Charlotte, NC 28210

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INSURANCE PROGRAM

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84 • Winter 2019

Now offering Cyber Liability coverage in Package!

Bill McCloy 704.749.2730 Ashley Morrow 704.749.2721

Family Owned & Operated

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www.californiacylinder.com | Toll Free: 866-442-7295

INDIVIDUAL

MANUFACTURERâ&#x20AC;&#x2122;S REPRESENTATIVE

SUPPLIER

DISTRIBUTOR

Member Benefit Chart PROFESSIONAL CONSULTANT SUPPORT FDA and Medical Gases (Thomas Badstubner) DOT, Security, OSHA & EPA (Michael Dodd) Government Affairs & Human Resources (Richard P. Schweitzer) Economic Analysis and Forecast (Dr. Alan Beaulieu)

EVENTS AND MEETINGS GAWDA Annual Convention & Spring Management Conference (AC/SMC) Contact Booths at AC/SMC Hospitality Opportunities at AC/SMC GAWDA Regionals Sponsorship Opportunities at AC/SMC/Regionals Education Offerings

RESOURCES Copy of Buyers Guide Listing in Buyers Guide Copy of Member Directory SOP, Safety & Reference Materials Online Career Center CGA Safety Documents GAWDA Scholarships Discount Business Services

KNOWLEDGEABLE COMMUNICATIONS Quarterly Welding & Gases Today Subscription

Twice-Monthly GAWDA Connection Monthly Safety Bulletin Advertising in GAWDA Publications * (one copy)

To learn more about other benefits of joining the Gases and Welding Distributors Association call Membership Services Manager Stephen Hill at 954-367-7728 x220.

u p c o m i n g industry events Here are some of the events scheduled for 2019 and beyond. Check the EVENTS tab on the GAWDA website at www.gawda.org for more information. APRIL 2019

APRIL 14, 2019 – 17, 2019

SEPTEMBER 2019 GAWDA Annual Convention Washington, DC SEPTEMBER 28 – OCTOBER 1, 2019

CGA Annual Meeting Palm Beach Gardens, FL APRIL 14 – 17, 2019

OCTOBER 2019 IWDC Owners Meeting Manalapan, FL OCTOBER 22 – 25, 2019

MAY 2019 GAWDA Spring Management Conference – Minneapolis, MN MAY 4, 2019 – 6, 2019

NOVEMBER 2019 IOMA Annual Meeting Bangkok, Thailand NOVEMBER 2 – 6, 2019

IWDC Sales & Purchasing Convention Pittsburgh, PA MAY 14 – 16, 2019

FABTECH – Chicago, IL NOVEMBER 11 – 14, 2019

AIWD Convention Austin, TX

JUNE 2019 GAWDA Regional Meeting Seven Springs, PA JUNE 17 – 19, 2019 JULY 2019 GAWDA Regional Meeting Stevenson, WA JULY 17 – 19, 2019 AUGUST 2019 GAWDA Regional Meeting Mashantucket, CT AUGUST 6 – 7, 2019 GAWDA Regional Meeting Ypsilanti, MI AUGUST 19 – 20, 2019 86 • Winter 2019

APRIL 2020 GAWDA Spring Management Conference – Austin, TX APRIL 5 – 7, 2020 SEPTEMBER 2020 GAWDA Annual Convention Phoenix, AZ SEPTEMBER 25 – 28, 2020 MARCH 2021 GAWDA Spring Management Conference – Nashville, TN MARCH 29 – 31, 2021 OCTOBER 2021 GAWDA Annual Convention Colorado Springs, CO OCTOBER 6 – 9, 2021

INDUSTRY NEWS Absolute Air, LLC Announces Plans to Build Air Separation Plant

Absolute Air, LLC has announced plans to build a merchant air separation plant (ASP) to serve its partners and customers in the upper Midwest area. The plant will be located in the Minneapolis metropolitan area and is expected to be online in 2020. Absolute Air, LLC is a partnership of five locally owned independent gas and welding supply distributors, as well as the Independent Welding Distributors Cooperative (IWDC). The five distributors involved in the project are: Mississippi Welders Supply, Toll Company, Minneapolis Oxygen, A-OX Welding Supply and Huber Supply Company. All are located in the upper Midwest area to be served by the plant and together represent 30 business locations with over

50,000 customers in a seven-state region. The partners view the investment as a proactive move to assure an ongoing and economical supply of oxygen, nitrogen and argon against the backdrop of continuing consolidation of international industrial gas producers.

Cyl-Tec Hires New Sales Specialist A n d r e w Krupnicki has joined Cyl-Tec as their inside sales specialist for North, Central and South America. He has a master’s Andrew Krupnicki degree from the University of Rochester and is fluent in English, Spanish and French.

Air Liquide to Build First World-Scale Liquid Hydrogen Production Plant in Western U.S. Air Liquide has announced plans to build a liquid hydrogen plant in the Western United States that will have a capacity of nearly 30 tons of hydrogen per day — enough to supply 35,000 fuel cell electric vehicles (FCEVs). The company has signed a long-term agreement with FirstElement Fuel, Inc. (FEF) to supply hydrogen to FEF’s retail liquid hydrogen fueling stations in California. Air Liquide expects construction of the $150 million plant to begin in early 2019. Through this investment, Air Liquide will enable the large-scale deployment of hydrogen mobility on the west coast, providing a reliable supply

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INDUSTRY NEWS solution to fuel the 40,000 zero-emissions FCEVs expected to be deployed in the state of California by 2022. The plant will also support other fuel cell vehicle and transportation markets in the region, such as material handling equipment, forklifts and heavy-duty trucks. The new plant is the first large-scale investment into the supply chain infrastructure needed to support hydrogen energy solutions for the energy transition. Michael Graff, CEO of American Air Liquide Holdings, Inc., said: “This new investment in hydrogen production and our collaborative relationship with FirstElement Fuel, further demonstrates our long-term commitment to the development of hydrogen energy for mobility, and accelerates the deployment of new hydrogen fuel cell electric vehicles — cars, trucks, buses — planned by au-

88 • Winter 2019

tomotive manufacturers like Toyota, Honda and other leading OEMs. We are convinced that hydrogen is an essential sustainable energy vector of the future and a cornerstone of the energy transition.”

Weiler Abrasives Appoints New Abrasive Specialists W e i l e r Abrasives has announced two n ew p o s i t i o n s within the company to serve key metal fabrication David Jescovitch industries. David Jescovitch has taken on the role of abrasive specialist manager, and Ron McCarthy is now an abrasive specialist.

Jescovitch has worked with Weiler Abrasives for over 34 years in various roles, most recently serving as senior Ron McCarthy district sales manager. Now Jescovitch will manage a team focusing on customers in the metal fabrication market. “We are pleased to have David in this new role,” said Jason Conner, vice president of sales – U.S. and Canada. “He has demonstrated the dedication, technical acumen and knowledge to succeed at working with customers in our target end markets, as well as having decades of experience with our distributor partners.” In his new role as abrasive specialist, McCarthy will support Jescovitch and

INDUSTRY NEWS other team members in their efforts to bring abrasive solutions to the market and grow Weiler Abrasives’ presence. McCarthy was formerly a Weiler district sales manager for over 10 years. “Ron is an expert at providing valueadded solutions to our customers and is a true partner who can help welders and fabricators solve their toughest surface conditioning challenges,” Conner said.

Butler Gas Names ThirdGeneration President The Butler Gas Products Company board of directors has elected the company’s chief operating officer, Abydee Butler Moore, to the office of president effective January 2019. She purchased minority shares of the business in 2015 and has been in the role of executive

vice president since 2016. She serves as the company’s third president in its 71-year history. A s t h e Abydee Butler Moore third-generation owner of Butler Gas, Abydee grew up around the business and has been full-time with the company for 10 years. Abydee is the granddaughter of founders Jack and Millie Butler, and daughter of chief executive officer Jack Butler and treasurer Elissa Butler. Abydee graduated from Clemson University in 2009 with a Bachelor of Science degree in marketing. Continuing her business education, Abydee became a graduate of the Entrepreneurial Fellows Class of 2010, awarded through the

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INDUSTRY NEWS Left: Luke Lundquist and dad Eric cross the finish line of the ISF 10K race. Below: Airweld race participants at the ISF 10K race included (l to r) AR Manager Angela Failla, President Eric Lunquist and AR Manager Celena Blanch.

Airweld Sponsors Charitable Child Fitness Organization

Airweld, Inc. is a proud corporate sponsor of Inclusive Sports and Fitness of Holbrook, New York, a nonprofit organization whose mission is to provide skilled therapeutic, fitness and habilitation services that maximize a child’s capacity to play sports and recreational activities. They work with children on the autism spectrum, hoping to level the playing field for all. One of ISF’s fundraising activities is an annual 10K race. “I am delighted to report that in conjunction with select sponsors and individual race participants, we’ve raised more than $50,000 over three years in support of ISF’s mission,” said Airweld President Eric Lundquist. “Airweld has an active community outreach program and strives to support organizations like ISF that help children with developmental challenges,” he added. Airweld race participants included Lundquist, his son Luke, AR Managers Angela Failla and Celena Blanch and Celena’s sister, Celeste. 90 • Winter 2019

Metallica Awards Job Training Grant to Community College Legendary heavy metal band Metallica is awarding Grand Rapids Community College a $100,000 grant to connect more nontraditional students to in-demand welding jobs. GRCC is one of 10 colleges selected nationwide for the Metallica Scholars grant. The band’s All Within My Hands Foundation has teamed up with the American Association of Community Colleges on the project, aimed at providing workforce training for community college students and reinvesting in cities where the band has toured. “All of us in the band feel fortunate that music has provided us the opportunity to be successful doing something we are passionate about,” said Lars Ulrich, Metallica’s co-founder and drummer. “We want to share our success with others so that they can find a job where they can do the same.” GRCC will use the funding to launch an intensive welding program targeted toward nontraditional students

that takes less time to complete than traditional courses. It will also feature smaller class sizes with flexible scheduling options and career preparation assistance. Grand Rapids Community College is joined by colleges in North Carolina, Oregon, Illinois, Maryland, Wisconsin, Texas, Idaho, Washington and Kansas in receiving the grants.

Weiler Hires New Director of Sales Weiler Abrasives has announced the promotion of Jennifer Hawkins to director of sales – West. Hawkins has been employed with Weiler Abrasives since August 2013 when she joined the company as a district sales manager covering Houston and the surrounding areas. Since then, she has served in Jennifer Hawkins

INDUSTRY NEWS additional sales capacities of increasing responsibility at the company. In her new position, Hawkins will lead a team of district sales managers that are focused on executing the Weiler Vision and Strategy with distributor business partners at the local level. She will also be responsible for delivering the Weiler Value Package in a way that creates mutually beneficial growth for Weiler Abrasives, distributors and end users by providing value-add solutions, innovative new products, marketing support and training focused on safety and the proper use of Weiler products. “Jennifer understands the needs of our distributor business partners, and she has seen the challenges that our end users face every day,” said Jason Conner, vice president of sales – U.S. and Canada. “We are very excited and fortunate to have such a strong, experienced leader like Jennifer in this important role.”

Fourth Generation Joins Goss Gas Products R.N. Goss Gas Products is pleased to announce that Monika Goss has joined the company as the new purchasing and inventory manager. She is the fourth generation to work in the family business, which was started by her great-grandfaMonika Goss ther, R.N. Goss, in 1934. Her role at the company involves anticipating and responding to customer needs and the coordination of many aspects of the business including sales, operations and delivery. Primarily, she works directly with the sales team and suppliers to ensure inventory is optimized to meet market demand.

“I always knew I wanted to join the family business and play a bigger role in the company,” Goss said. I couldn’t pass up an opportunity to be a part of the next chapter for Goss Gas. Not many businesses have this level of succession and it’s exciting to look at the business with fresh eyes and to create opportunities for improvement along the way.” Starting from a young age, she has worked part time for the family business. Goss graduated from Case Western Reserve University in 2015 with a master’s degree in biomedical engineering. She worked in the neural engineering field for several years before returning to the area with her husband this past spring. Dave Goss, who joined the business in 1974 and has been president since 1989, said: “Monika is committed to improving our focus on customer needs and all of our internal processes. She is learning every facet of the operation and finding ways to make meaningful contributions. I’m absolutely delighted to have someone as conscientious as she is in such a key position. The future looks bright.” As part of her training, Goss interacts with every department and has worked in various capacities company-wide to get an overall sense of how the organization interacts. “For me, it’s about experiencing every role within the company to understand and improve our processes, customer service and efficiency,” she said.

Wise Telemetry Adds VP of Business Development and Operations

Wise Telemetry is pleased to announce the addition of Nick Marco as vice president of business development and operations. Marco will be responsible for helping customers identify how telemetry can help them reach their operational and financial goals while maximizing

customer service. Marco comes to Wise Telemetry from Linde, where he had three years of experience as a project manager in Nick Marco bulk gases overseeing storage and application equipment system installations. During his time there, Marco worked on projects throughout the eastern United States as well as the Caribbean. He also is a graduate of Linde’s “LEaD” leadership development program. “I am thrilled to join the Wise Telemetry team,” Marco said. “Wise is in a unique position to help accelerate the gas industry’s shift into the IIoT space. I look forward to helping this dynamic company grow, and most importantly, serving our customers.” As Wise Telemetry continues to expand its product offerings and industry partnerships in 2019, Marco will also be focusing on providing customers with a seamless transition from legacy telemetry systems through Wise’s various platform transfer programs. Marco holds a double major bachelor’s degree from Carnegie Mellon University in materials science and engineering as well as engineering and public policy.

New WIKA USA President Focuses on Product Innovation and Customer Service Named the President and Head of Americas at WIKA Group a few months ago, Todd Gardner began his tenure by emphasizing the importance of bringing even greater value to current and future customers. To do that, he plans to steer the company to provide more solutions that blend instrumentation, automation and digitalization. Winter 2019 • 91

INDUSTRY NEWS Gardner oversees the U.S. operations of a multinational group based in Klingenberg, Germany. His preTodd Gardner vious role was that of a vice president for Siemens, another global conglomerate with headquarters in Berlin and Munich. “Everywhere I’ve been, in both Europe and the U.S., I’ve noticed right away that WIKA employees are proud and excited to work here,” he said. “The feeling of a privately-owned company is different from that of a public one. People have a definite sense of ownership, and I’m thrilled to be part of the organization.” “As employees know full well, many customers see us as a gauge company — and not even digital pressure gauges, but just mechanical ones,” he said. “We need to get the message out there that WIKA is an instrument company with a full portfolio of products and solutions.” Gardner plans to keep investing in employees, machinery, processes and facilities. “I come from product sales, so I understand full well the importance of training not only our salespeople, but also the factory floor. It’s a constant reinvestment. We’re not cutting corners in this area.” Specifically, he is focused internally on improving WIKA’s processes by investing in automated assembly, harnessing the latest in CNC (computer numerical control) machining technology and moving toward paperless manufacturing.

Pulsa Hires Head of Product Design Pulsa has recently hired Mike Dillingham as the head of product design. Dillingham will be responsible for the in92 • Winter 2019

dustrial design of Pulsa’s hardware and software, and also driving a roadmap to ensure Pulsa meets the usability needs Mike Dillingham of its customers. “We couldn’t be more excited to have Mike join the Pulsa team,” said David Wiens, CEO of Pulsa. “Mike brings user-centered design expertise from top technology companies. We have been focused on building an enterprise-grade product that works out of the box. With the addition of Mike, we can now focus on communicating more value from the data we collect and making the product easier to use.” Dillingham was most recently responsible for host-related product design at Airbnb, after gaining broad experience in the field at design agencies like Huge, Code & Theory and Big Spaceship. He holds a B.A. in design from UCLA.

Weiler Abrasives Raises Over $68,000 to Support United Way

Weiler Abrasives has raised over $68,000 to support the United Way of Monroe County, PA. During a threemonth long company campaign, running from September to November 2018, employees pledged $38,296, and the campaign received a $30,000 corporate match. The donations will serve to support key local United Way programming initiatives for local residents facing poverty. These initiatives include access to healthy food and programming for working families, as well as critical housing services and more. Weiler Abrasives reports that 24 percent more employees donated compared to the 2017 campaign, and they exceeded

their fundraising goal by 6.3 percent. “The United Way of Monroe County offers services that have such a positive impact on those in need,” says Cristina Matos, Weiler Abrasives Sales and Marketing Analyst and United Way committee chairperson. “We are so excited that we can work together with this great organization to help make the community a better place.” Matos led a United Way committee of 14 employees from key departments at Weiler Abrasives, allowing employees direct access to representatives most familiar with the organization’s mission and programming. According to Matos, this provided employees greater insight to the value of the United Way programs serving their community. The committee also hosted the Weiler Abrasives Fourth Annual Golf Tournament in September at Skytop Lodge in Skytop as a means to fundraise for the campaign, while October featured a variety of raffles to support it. Weiler Abrasives held its pledge month in November, with the majority of contributions collected directly during this time and by way of raffling larger, donated items. Weiler Abrasives has been a supporter of the United Way of Monroe County, PA since 2002.

CryoWorks Adds 10,000 Square Feet of Manufacturing Space

CryoWorks has added 10,000 square feet of space for manufacturing vacuum-jacketed hoses. “We are very grateful for the opportunity to expand our offerings and look forward to providing even better customer service with the increase in our manufacturing capacity,” said CryoWorks CEO/President Tim Mast, Sr.

INDUSTRY NEWS Roberts Oxygen Company Elects New President

Roberts Oxygen Company, Inc. has elected Will Roberts as president effective February 1, 2019. Will succeeds his father, Bob Roberts, and his grandfather, Bill Roberts, as the third-generation president of the family-owned company in its 53-year history. Bob Roberts retains the dual role of chairman and chief executive officer of Roberts Oxygen. Will began working full-time for Roberts Oxygen Company, Inc. on May 1, 2012. Since joining Roberts Oxygen Company, Inc., Will has worked in various jobs of increasing responsibility including the last three and a half years as corporate vice president. “We are pleased to announce Will’s election to

president,” said Bob Roberts, chairman of the board. “His skills and results have contributed to our growth and efficiency over the last six years, and will ensure continuity and leadership for our continued customer focus and growth.” Will graduated from Cornell University in 2006 with a B.S. in computer science. He joined Raytheon Solipsys as a software engineer in 2006 where he worked on geographic information systems for commercial and military customers. In 2009, he co-founded WonderProxy, an internet company that helps companies do localization testing of their websites. He joined Roberts Oxygen in 2012 and began his training in all operations of the company. He was appointed as the corporate vice president in August 2015.

Horton’s Ken Tidwell Announces Retirement

Ken Tidwell, senior vice president and national program director of The Horton Group, has announced that he Ken Tidwell will be retiring this year. Tidwell founded Horton’s welding practice and has been serving the industry for over 30 years. “I am leaving you in good hands,” Tidwell said. “Will Cray and our new practice leader, Tony Hopkins, are active GAWDA members and serve on the Member Services and Safety Committees. They are both dedicated, focused and committed to the industry.”

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In Memoriam Center; Kevin (Patty) Giesen of New Prague; Andrea Hall of Springfield, Missouri; Daniel (Deneen) Giesen of Mohnton, Pennsylvania; Leo (Jodi) Giesen of New Prague; and Helen (Skip) Hawn of San Antonio, Texas. He is preceded in death by his parents and his brother-in-law, Ernie Hall. Condolences may be shared with the family at www. bruzekfuneralhome.com.

RONALD L. GIESEN Ronald L. Giesen, age 59, of New Prague, Minnesota, died suddenly with his family at his side on Thursday, Nov. 1, 2018, at Mayo Clinic Health System – St. Mary’s Hospital Campus in Rochester, New York. Ron was born the ninth of 11 children on Jan. 14, 1959, in New Prague to William F. and Helen M. (Maguire) Giesen. He was raised in the Union Hill area, graduated from New Prague High School and went on to attend NEI College of Technology. Ron started with MVE and continued on when it became Chart Industries. He had just celebrated his 40th year with the company and currently served as senior service technician – microbulk mobiles & meters. He was also a proud and dedicated public servant for almost 30 years as an EMT with New Prague Ambulance. Ron was a member of the St. John’s Church Choir. He was very active in youth sports and was a wonderful mentor to countless young people while coaching baseball, hockey and basketball. His love of sports saw him playing Union Hill baseball his entire life, most recently with the Union Hill Pitbulls. He enjoyed all Minnesota sports teams, but the Gophers held the number one spot in that category! The greatest joy in his life, however, came from his children and grandchildren; he was so proud of all their accomplishments and activities and could easily have been given the grandpa of the year award! Ron is survived by his fiancé, Debe Bohnsack of New Prague; children Brent (Lydia) Giesen of Duluth, Eric Giesen & fiancé, Krysten Heaslip of Waconia and Madison Giesen of New Prague; step-children Jessica Bohnsack (Bryan) of Mineral Point, Wisconsin; Ashlee (David) Bernau of Fountain, Minnesota; and Brittany (Brett) Johnson of Elko New Market; grandchildren Bryden, Rylie, Brianna, Reid, Addison, Miles, Carter, Trevor and Devin; siblings Joan (Larry) Kitlen of Temple, Texas; William (Noreen) Giesen of New Prague; Edward (Linda) Giesen of Shakopee; Gary (Sonie) Giesen of Lagrangeville, New York; Dolores (Kenny) Kalina of Le 94 • Winter 2019

CHARLES KEVIN LADUE Kevin LaDue passed away in Dallas, Texas, on Monday, Oct. 29, 2018. Kevin was born in Dallas on Feb. 15, 1961, attended St. Rita Catholic School, graduated from Jesuit College Preparatory School ’79 and obtained a B.A. in psychology from Southern Methodist University in 1983. He was a member of the Alpha Tau Omega fraternity and was honored to be the “Peruna Runner” for SMU during the successful 1981 and 1982 football seasons. Kevin devoted his entire professional career to Rochester Gauges, Inc. and Gas Equipment Company of Dallas, Texas. Along with his father, Jack, brother, Rick, and cousin, Skeeter, Kevin continued as one of the third-generation family members to provide high-quality measurement devices and other related products for the petrochemical market. RGI/Gas Equipment is a worldwide manufacturing company with locations in Dallas, Mexico, Belgium and China and distribution points throughout the United States. Kevin was specifically involved with operations for Rochester Gauges and continued the development of the Mexico City manufacturing division. Kevin’s love for the family business increased with each passing year and he devoted himself to leaving behind a successful and stable organization for the future. Kevin adored his wife, Amy, and children, Katie and Jack LaDue. Despite his fading energy as he battled leukemia, he made every effort to be involved in his twins’ activities. He

In Memoriam assisted Katie and her friends in establishing an independent robotics team, The Undergraduate School of Carrots, and he also sponsored Jack’s team, The Dallas Rowing Club, by purchasing a truck for transporting food and supplies to rowing events. The family enjoyed spending time together at their favorite vacation spot in Crested Butte, Colorado, and they were always amused by the antics of their small pack of Jack Russell terriers. Kevin was an ardent football fan, rooting for his Dallas Cowboys and SMU Mustangs, and he was a deadeye with a shotgun and rifle. He enjoyed skiing, golfing and scuba diving with his best friends. Amy remained steadfast by his side throughout his many medical challenges. Kevin and Amy’s everlasting love for each other will live on through their children. The final two years of Kevin’s life, though physically challenging, were deeply enriched by the loyal friendship of the men of 3041 Joint Venture. Other dear friends from business as well as family members comforted Kevin during very difficult and long days in the hospital. Kevin also extended his life with the help of Dr. Brian Berryman by receiving a stem cell transplant. Thanks to an anonymous stem cell donor, Kevin gained precious time with his family and friends. Kevin was preceded in death by his father, Jack Whyte LaDue. He is survived by his mother, Dorothy Demarest LaDue; his wife of 22 years, Amy Burt LaDue; and his children, Mary Katherine “Katie” LaDue and Jack Richard LaDue. He is also survived by his sister, Suzanne LaDue; brother, Jack Richard LaDue; nephew, Chase LaDue; niece, Parker LaDue; sister, Barbara LaDue; nephew, Matthew Nitishin and wife Brooke; nephew, Luke Nitishin; cousin, M.J. “Skeeter” LaDue and wife Cheryl, and their sons, Mason, Clayton and Justin LaDue. DKMS is an organization committed to increasing stem cell donors worldwide in the fight against blood cancer. In lieu of flowers, please see Kevin’s special link at dkmsgetinvolved. org to make a contribution or join the registry of potential stem cell donors.

THOMAS KENNETH “T.K.” SLAUGHTER Thomas Kenneth “T.K.” Slaughter, age 54 of Charleston, Illinois passed away at 9:51 A.M., Friday, October 12, 2018 at Sarah Bush Lincoln Health Center in Mattoon, Illinois surrounded by family. T.K. was born on January 31, 1964 in Bloomington, Illinois the son of the late John T. and Linda L. (Gano) Slaughter. He is survived by his two children; one daughter Sarah Slaughter of Oak Creek, Colorado, one son Matthew Slaughter-Katz and wife Keziah of Cambridge, Massachusetts; one brother, Patrick Slaughter and wife Jane of Charleston, Illinois; one niece, Jenna Slaughter and two nephews, Levi and Frank Slaughter, all of Charleston, Illinois; numerous aunts and uncles; and his beloved dog, Bella. T.K. was co-owner and operator at Gano Welding Supplies in Charleston, Illinois. In his younger years, he played the cornet and tuba in the high school band, which lead to his love for music. With his inquisitive nature and interest in science, T.K. wanted to know how all things worked. He was outgoing, friendly and enjoyed good conversation; if he ever met a stranger, they were not one for long. He will be missed. Memorials in his honor may be made to American Diabetes Association, P.O. Box 15829, Arlington, VA 22215 or Coles County Animal Shelter, 6818 N. Co. Rd 1120 E, Charleston, IL 61920. Please visit www.mitchell-jerdan.com to share a memory with the family.

Winter 2019 • 95

M&A SCORECARD Weiler Abrasives Group Expands Brand Globally Weiler Abrasives Group has announced the rebranding of the European division of the company. SWATYCOMET d.o.o. in Maribor, Slovenia, is now Weiler Abrasives d.o.o., and Toroflex GmbH in Bindlach, Germany, is now Weiler Abrasives GmbH. The rebranding reinforces the vision, mission and values of Weiler Abrasives in the global market, joining all regions in their focus to build lasting partnerships with customers and deliver innovative cutting, grinding and finishing solutions worldwide — under a unified corporate brand. “We are excited about our recent global rebranding and have undertaken this transition to benefit both our customers and our employees,” says Chris Weiler, CEO, Weiler Abrasives Group. “We want them to see us as one company with common values and common goals. It is our vision to be a market leader and to differentiate the Weiler brand through innovation and trusted global leadership.” The acquisition of the European division in 2015 expanded Weiler’s global reach and added a larger offering of organic and vitrified abrasives to its product lines to serve the welding, metalworking and general industrial markets. With the corporate rebranding, all product brands offered by the companies will remain the same, as will the location of the current head offices and business units. This rebranding comes only months after Weiler announced the expansion of its Cresco, Pennsylvania, global headquarters facility as it continues to invest in lean manufacturing and factory automation. This location, together with its facilities in Europe and South America, will work to forge growth, operational excellence, innovation and global leadership in the abrasives market. 96 • Winter 2019

Hypertherm Introduces New Corporate Venture Capital Arm to Support Emerging Advanced Manufacturing Technology

Hypertherm has announced the formation of Hypertherm Ventures, a new corporate venture capital (CVC) arm, to foster greater interaction with the technology venture community. Encompassed by a goal of helping advanced manufacturing deliver positive change to the world, Hypertherm Ventures is seeking partnerships with universities, startups, entrepreneurs and early-stage companies to commercialize advanced manufacturing technology in strategic interest areas. Those areas include industrial cutting, welding and thermal processing; robotics and automation; machine learning and augmented intelligence; industrial Internet of Things; additive manufacturing/3D printing; and nanotechnology. “Just as we began 50 years ago with an invention that made plasma cutting commercially viable for the first time ever, we look forward to supporting other entrepreneurs as they work to bring their inventions to life,” said Nathan

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Pascarella, Hypertherm Ventures’ business development manager. “If you are an entrepreneur or leading an early-stage company in advanced manufacturing within our strategic interest areas, Hypertherm Ventures would love to hear more about you and your business.” Hypertherm believes its experienced leadership team, combined with a wide range of advanced manufacturing process experts proficient in lean, Six-Sigma and similar methodologies, will benefit entrepreneurs and early-stage companies. In addition, Hypertherm can support venture partners through its expertise with advanced technology development, engineering, complex supply chain management, global service and distribution networks, as well as a track record of marketing and selling new products.

Central Welding Supply Announces the Acquisition of AXIUM Gases Northwest Dale Wilton, CEO of Central Welding Supply, has announced the acquisition of AXIUM Gases Northwest, establishing a new location for Central Welding Supply in the Medford, Oregon, area. Effective Nov. 4, 2018, the new

M&A SCORECARD expanded its Equipment Repair Division location at 1322 Antelope Road, White with another service location dedicated City, Oregon, expands Central Welding solely to gas apparatus repair and custom Supply’s reach of service to the Rogue torch fabrication. River Valley in southern Oregon. AXIUM Gases Northwest was esCPV Manufacturing tablished by Bruce and Colleen Tozer Announces Recent and had been a distributor of Central Partnerships with Global Welding Supply gases and hardgoods. Distributors “We’re pleased to add the AXIUM Gases 106-8212 1/4 pg. 4C _3.375 x 4.375_Welding & Gases Today_Jan. 2017 Northwest team, including prior owner CPV Manufacturing recently anBruce Tozer, to the Central Welding nounced several new partnerships with Supply team, and we are looking forglobal distributors to increase the availward to providing AXIUM customers ability of their products worldwide: • Prochem Pipeline Products Pty with a broad basket of our products and services — it’s a great fit for our Ltd. is now CPV’s authorized repcompany,” Wilton said. resentative in Australia and New Medford becomes Central Welding Zealand. Prochem will represent Supply’s 23rd retail outlet throughout the entire CPV product line for the Washington, Oregon and Alaska. compressed gas industry, the petroIn addition to hard goods and gases, chemical industry, the oil and gas Central Welding Supply has also recently industry and both the commercial

•

and DoD shipbuilding industries. According to David London, president of CPV, “Prochem is a PON Company and a sister organization to our Master Distributor in the United States, W&O Supply. We expect that Prochem will exhibit the same market leadership in Australia and New Zealand that we have seen with W&O in the USA. That savvy and market presence will allow us to better service the needs of our customers there.” JRE Private Limited is now CPV’s authorized representative in India. JRE will represent the entire CPV product line for the compressed gas industry, the petrochemical industry, the oil and gas industry and the commercial shipbuilding industry. “JRE Private Limited is

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FOR ALL OF YOUR GAS HANDLING NEEDS H&H delivers the gas handling equipment you need to reduce labor, increase safety & save money. HAUL IT— The EW Series truck body features a modular design with your choice of steel treadplate or bar grate flooring for confident transport. H&H can provide the optimum lift gate for your loading/ unloading operation. STORE IT— Our Cylinder-Stor Cabinets set the mark for convenience and secure outside storage. Both single and double section models are furnished with tamper-proof padlock hasps, keyed padlocks and bolt-down features for the best in safety and security.

MOVE IT— H&H Kaddy-Karts are small enough to get through doors and traffic lanes yet large enough to carry plenty of cylinders. Palletstyle bottoms for easy movement and alignment. Some models offer casters, tow hitches or crane lifting eyes. You’ll find the model you need to improve your operation. Get H&H to help you today to safer and easier cylinder handling.

16339 Lima Rd., P.O. Box 686 • Huntertown, IN 46748-0686 Phone: 260-637-3177 • 800-551-9341 • FAX: 260-637-6880 E-mail: hhequip@frontier.com • Web: www.hhsalescompany.com

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Winter 2019 • 97

M&A SCORECARD

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a third-generation, family-owned business that is well-respected within the industrial manufacturing base of India,” London said. “India has one of the fastest-growing global economies and the pipe, valve and fitting market is expected to have double-digit growth over the next five years. We are excited to have such a strong partner in the Indian marketplace that will allow us to better service the needs of our customers there.” Diekson Valve and Diekson Industrial Co., Ltd. is now CPV’s authorized representative in Taiwan (R.O.C.). Diekson will represent the entire CPV product line for the compressed gas industry, the petrochemical industry and the oil and gas industry. “Diekson is well-positioned to grow our presence in the Taiwanese market,” London explained. “They are an established solutions provider to the petrochemical market, and the CPV product line will fit nicely with their existing offerings of pipe, valves and fittings.” Exion Asia Pte Ltd (a registered company in Singapore) and Encord Sdn Bhd (a registered company in Malaysia) are now CPV-authorized representatives in the countries of Singapore, Malaysia, Vietnam, Thailand, Laos, Cambodia and Indonesia. The companies will represent the entire CPV product line for the compressed gas industry, the petrochemical industry and the oil and gas industry. “Exion Asia and Encord are both part of the PON Asia group of companies, which is an organization that we are very familiar with,” London said. “We have every confidence that this partnership is the right move for our companies and our customers.”

98 • Winter 2019

Acme Cr yogenics, Inc. Acquires Cr yogenic Experts, Inc.

Acme Cryogenics, Inc. has announced the acquisition of Cryogenic Experts, Inc. (CEXI). Located in Southern California, CEXI designs, engineers, manufactures and installs a full line of vaporizers and accessories for all types of cryogenic and non-cryogenic specialty fluids. “Adding the CEXI product line to Acme’s already broad range of offerings creates significant value for all our customers,” said David Fritz, president & CEO of Acme Cryogenics. “Additionally, this gives Acme a West Coast presence which will provide significant advantages for our customers going forward.” Rob Worcester, president of CEXI, added, “We are enthusiastic about the partnership and look forward to continuing our tradition of excellence on the West Coast.”

Tech Air Announces Acquisition of Scully Welding Supply and Propane Ser vice Tech Air announced that it has acquired Scully Welding Supply Corporation and Scully Propane Service Corp (together, “Scully”) of Collingdale, Pennsylvania. Scully is a distributor of propane, industrial and welding supplies and industrial gases servicing the greater-Philadelphia region from its four locations. This is the 27th add-on acquisition for Tech Air under the ownership of CI Capital. Founded in 1947, Scully serves Southeastern Pennsylvania with residential and commercial propane, industrial gases and welding supplies, as well as installation and repair services. Scully’s large and diverse customer base across a broad region provides Tech Air with an attractive opportunity to achieve scale

and synergies with its existing business in surrounding areas. “We are excited to gain the assets, resources and expertise of a group with such a strong and well-established reputation,” said Myles Dempsey, Jr., Tech Air chief executive officer. “We welcome the team to Tech Air and look forward to sharing success as we continue to build our business together.” Joost Thesseling, managing director at CI Capital, said, “We are pleased with the progress that Tech Air continues to make as it builds a truly national business with significant gas distribution and welding supply operations from its beginnings as a regional company. The acquisition of Scully represents another high-quality transaction for Tech Air as the company executes its growth strategy.”

DataOnline and Computers Unlimited Establish Partnership for the Industrial Gas Market DataOnline and Computers Unlimited have announced a new partnership focused on the industrial gas marketplace. This partnership offers customers an automated integration between DataOnline and CU solutions to optimize the delivery process and minimize road miles, all while helping ensure product availability. DataOnline gathers and manages tank monitoring data (including volume, temperature, pressure and other parameters) and offers this operating information to CU and its industrial gas customers via a secure and highly reliable connection. Robert Barnacle, DataOnline president, commented, “DataOnline is always looking to expand the capabilities of our industrial IoT platform for the benefit of our customers. By offering this integration, our customers can eliminate runouts and needless deliveries, speed

M&A SCORECARD responsiveness and more tightly manage their industrial gas tank fleets.” David Schaer, Computers Unlimited president, added, “Our customers have been asking us to automate the process of gathering and integrating tank monitoring data to drive cost savings on tank management and deliveries. By integrating DataOnline tank data with the TIMS Bulk Gas Manager module, they will realize significant savings in logistics, processing time and labor costs.” As customers drive to streamline the monitoring of industrial tanks and other industrial assets, the highly collaborative DataOnline and Computers Unlimited technical partnership offers significant operational savings and customer satisfaction improvements.

SureWerx Acquires Jackson Safety and Wilson Brands from Kimberly-Clark Professional SureWerx has acquired the Jackson Safety and Wilson Safety brands from Kimberly-Clark Professional. The acquisition includes the industrial welding business along with select portions of the industrial personal protective equipment (PPE) businesses. Together, these comprise welding helmets, welding accessories, welding powered air-purifying respirators (PAPR), welding barriers, industrial respiratory, face protection, head protection and hearing protection categories. “We are very excited to welcome Jackson Safety and Wilson to SureWerx’s growing portfolio of world-class brands,” said Bill Jeffery, senior vice president of corporate and brand development at SureWerx. “We know that our customers appreciate the rich history behind both of these brands, along with the high standards of quality and safety that they represent. We are delighted to

take another step forward in our goal to become a global leader in worker safety and productivity.”

Eleet Cryogenics, Inc. acquires West Cryogenics, Inc. Eleet Cryogenics, Inc., has acquired West Cryogenics, Inc. in Willis, Texas, which provides a variety of services, including liquid cylinder and bulk tank rehab, manufacturing of portable cryogenic trailers and transport rehab. This expansion is instrumental to the continued growth of Eleet Cryogenics and builds upon the solid foundation that West Cryogenics has established since their inception in 1985. Both family-owned companies have shared the same core values and focus. This creates a stronger, more integrated provider of superior products and services. Eleet Cryogenics reports that many customers have requested that Eleet expand into the Southern portion of the United States and they are excited about the opportunity to be of service in this region. Eleet now has stocking locations in Ohio, Georgia, and Texas for new TaylorWharton bulk and microbulk tanks.

DataOnline Teams Up with Chart Industries DataOnline has announced a formal agreement with Chart Industries to convert and upgrade all of Chart’s onsite telemetry customer accounts to their platform. Chart customers will experience a high level of engineering, reliability and associated product offerings with the DataOnline system for all their telemetry needs. “The best-in-class for cryogenic equipment and the leader in tank monitoring have come together,” said Chet Reshamwala, DataOnline’s chief executive officer. “Our collaboration will enable customers to more easily digitize

their supply chain and take advantage of the Industrial IoT technologies that are transforming our industry. DataOnline is incredibly excited about the value this industrial IoT agreement with Chart Industries provides both companies and Chart customers.” “We are excited to partner with DataOnline and look forward to working with them to provide our customers with the very best in telemetry services,” commented Grady Walker, President of Distribution and Storage, Western Hemisphere at Chart Industries, Inc.

Airgas to Acquire Tech Air Air Liquide has announced that Airgas has signed a definitive agreement to acquire Tech Air. Founded in 1935, Tech Air is headquartered in Danbury, Connecticut and serves more than 45,000 customers at 50 locations. Airgas serves more than 1 million customers at over 1,400 locations. According to Airgas, this acquisition will continue to further strengthen its distribution network, enabling more proximity to local customers. Leveraging Air Liquide’s integrated model, the acquisition is expected to deliver significant efficiencies. Moreover, customers will benefit from an expanded offering as well as a wider distribution network and a leading digital platform. “Growth through acquisition has been a key component of Airgas’ business model and remains a core part of our long-term strategy,” said Pascal Vinet, Airgas chief executive officer. “We look forward to welcoming the Tech Air team to Airgas, and integrating their complementary capabilities and resources to enhance service for our customers.” Subject to the approval of U.S. antitrust authorities, the transaction is expected to close in 2019. Winter 2019 • 99

NEW OFFERINGS

PRODUCTS | SERVICES | TECHNOLOGIES 1

1. Hypertherm Releases New

Version of Rotary Tube Pro Software

Hypertherm has announced the release of a new version of its Rotary Tube Pro software that makes it easier to design and cut tube and pipe parts with no 3D CAD experience required. The new update includes a number of new features designed to speed the programming process. For example, automatic nesting is now standard, allowing software users to nest multiple quantities of the same part or different parts on stock tube. Users can add parts to the part list and build a stock list for nesting, maintain the seam orientation during nesting, add part spacing and choose how the software selects stock. Other new features include the ability to store multiple parts and nests, plus an advanced edit feature that allows users to manually adjust preferences such as the lead size, position and cut sequence. The software also includes features that allow users to pin commonly used lead styles to the top of the list for quick access and offers more powerful reports to better track nests and stock usage. “Instead of moving tube and undertaking multiple steps — measuring, sawing, drilling, etc. — Rotary Tube Pro really streamlines the production process,” ex100 • Winter 2019

plains Tom Stillwell, a project manager for Hypertherm’s CAD/CAM software team. “And though it is already easy to use, the enhancements introduced with this minor update of Rotary Tube Pro make the process of programming and completing jobs even easier than before, giving fabricators and manufacturers the ability to work more efficiently, boost productivity and reduce operating costs even further.” By drawing on years of research and development, Hypertherm software developers were able to deliver optimal outcomes based on factory-tested and proven job parameters including leads, separations, kerf, feed rate and cutting techniques. Plasma, laser, waterjet and oxyfuel cutting processes for virtually all brands of tube cutting machines, including stand-alone units and cutting table add-ons, are all supported. In addition, the software supports perpendicular cutting as a standard feature and bevel cutting as an optional module.

2. Saint-Gobain Abrasives

Introduces New Norton QUANTUM3 RightCut Wheels

Saint-Gobain Abrasives has introduced its new Norton QUANTUM3 RightCut Wheels, adding cut-off capability to its Norton QUANTUM3 (NQ3) line,

which also includes Depressed Center Grinding Wheels and Combination Wheels. The new Norton QUANTUM3 RightCut wheels are designed with the operator in mind, with a more rounded grain than precision-shaped ceramic grains found in the market today. Being rounded allows for faster cutting action, with less vibration, which is instrumental in reducing operator fatigue when cutting metal all day. When working on thinner materials, or when operators need to get the job done quickly, the 0.045" NQ3 RightCut wheel is ideal. Due to the proprietary grain, the wheel cuts through the workpiece quickly, increasing efficiency and saving time. “The bond system of the NQ3 technology allows for better mix control during the manufacturing process. This better mix keeps the individual grains from clumping together, for a more even wear of the cut-off wheel,” said Alicia Castagna Ph.D., Norton | SaintGobain Abrasives, Product Manager Thin Wheels. The Norton QUANTUM3 line of RightCut wheels are offered in four Type 01/41 and three Type 27/42 cutting application SKUs. These wheels are available in 4-1/2", 5" and 6" sizes and are made in the USA.

NEW OFFERINGS 3 4

3. Fluoramics Introduces Premium Full-Density PTFE Tape

Fluoramics, Inc., has introduced a line of Premium Full-Density PTFE Tapes that are ideal for sealing large-diameter and high-pressure fittings. The tapes are available in ½" and ¾" widths and are designed to seal fittings up to 6" in diameter with just two to three wraps of the threads. Approved for use in oxygen service, the highly versatile tapes are green in color and can be used in tandem with Fluoramics LOX-8 Paste to handle the toughest thread-sealing challenges, including chlorine, fluorine, anhydrous ammonia, urea, hydrogen sulfide, natural gas, argon, helium, oxygen and propane. Unlike standard-density tapes that are often difficult to apply and prone to shredding, Fluoramics Full-Density PTFE Tapes provide bulk fill that stays in place as it seals large metal and plastic fittings.

4. American Torch Tip Co. Receives Patent for CleanCut Nozzle Technology

American Torch Tip Company has announced that the United States Patent and Trademark Office has issued a patent for their CleanCut Nozzle Technology.

ATTC’s CleanCut Nozzles feature a smooth-bore configuration that reduces turbulence, pressurizes and accelerates cutting gases to produce ultra-smooth cuts. American Torch Tip originally announced the launch of its CleanCut Nozzle and Electrode combination in mid-2017. Combined with the CleanCut Electrode, American Torch Tip has found a minimum of a 30 percent increase in consumable life in one-to-one testing versus competitive products. “This patent marks a new innovation and evolution in plasma cutting consumable technology,” said Matt Merrill, ATTC engineering director. “We’re excited to apply this patented design to more plasma cutting nozzles in order to provide the benefits to even more of our customers worldwide.”

5. Saint-Gobain Abrasives Offering New Line of Norton Carbide Burrs

Saint-Gobain Abrasives has introduced a new line of Norton Carbide Burrs designed for surface removal on demanding production runs with less changeovers. The hardness of a tungsten-carbide substrate, stronger tooth formulation due to a decreased tooth wedge angle and numerous cutting edges,

all provide the new Norton DoubleCut Carbide Burrs with a significantly extended life and better stock removal performance. “Our Double-Cut Carbide Burrs can be used longer with fewer changeovers on challenging production applications as to compared to other double-cut burrs,” said Patrick Carroll, Norton | Saint-Gobain Abrasives senior product manager. “Operators will achieve high stock removal and smaller, granular chip-break on hard-to-grind work pieces.” The Norton Double-Cut Carbide Burrs are ideal for efficiently removing surface stock and weld splatter, deburring and chamfering applications, along with medium to light cleaning. Specially designed tool geometries are ideally suited to meet the growing demands of stainless steel, steel, cast steel and composite applications. The new burrs perform well at higher temperatures and can be used longer than high-speed steel tools. These burrs can be used on handheld tools such as the new Norton Pneumatic Die Grinder or on automated CNC machines. A kit is also available, including the five most popular burr types for smaller job requirements. continued on next page

Winter 2019 • 101

NEW OFFERINGS 8 6

6. Fluoramics Formula-8 Now Available in 15-Gram Tube

Fluoramics, Inc., has introduced a new 15-gram tube of Formula-8 thread sealant, which was first introduced by Fluoramics in 1967. This smaller-sized packaging will appeal to occasional users of Formula-8 and those who are applying thread sealants on fine threads or in harder to reach locations. In addition, manufacturers will find it easy to include a 15-gram tube of Formula-8 with their product or kit shipments. Formula-8 (the original PTFE thread sealant) is a shear-sensitive paste that sheets out into PTFE strings when torqued and delivers exceptional sealing performance on all sizes of threads. Formula-8 is ideal for use in oxygen and fuel systems, hydraulic cylinders and natural gas applications. Formula-8 has been oxygen tested and certified by BAM and has been approved for use in food processing and handling facilities by NSF International. It maintains stability in environments of -400 to +500 degrees F and is solvent-free and non-hazardous.

7. Weiler Abrasives Expands

Offering of Small-Diameter Cutting Wheels

Weiler Abrasives has expanded its offering of small-diameter cutting 102 • Winter 2019

and snagging wheels for high-speed die grinders to include Tiger AO, Tiger Zirc and Tiger Ceramic. These 2" to 4" diameter wheels are designed for long life and fast cutting and join the Wolverine value wheels already offered in this category. The 38-item expansion provides end users in the metal fabrication and ship building industry with increasing levels of cutting performance to meet their needs. Weiler Abrasives will offer the Tiger wheels with 1/4" and 3/8" arbor hole sizes. Weiler’s Tiger AO cutting wheels feature an aluminum oxide grain and provide even, sharp, clean cuts along with a hard bond to extend wheel life when cutting steel. Like the Wolverine wheels, Tiger AO wheels are available in thicknesses of .035", 1/16", 1/8" and 1/4". The Tiger Zirc cutting wheels are available in .035" thickness. These wheels feature sharp, aggressive zirconia alumina grains that retain a high cut rate throughout the life of the wheel, making them an ideal choice for cutting steels, including structural and cast iron. For maximum cutting performance, even on stainless steel and hard-to-grind metals, the Tiger Ceramic cutting wheels provide superior life. The self-sharpening grains reduce discoloration by cutting

at lower temperatures with less friction and require less effort to use, minimizing operator fatigue. The wheels are available in 1/16" thickness. Weiler Abrasives’ small diameter wheel offering also includes Type 1 Tiger AO and Wolverine AO snagging wheels for die grinders, as well as Type 27 Tiger AO wheels.

8. voestalpine Böhler Welding

Introduces Weather-Resistant Cored Wires

voestalpine Böhler Welding is now offering weather-resistant seamless cored wires, including three FCAW wires and one SAW-FCW wire, in combination with two different fluxes designed for use with weather-resistant steel. Weather-resistant steel includes alloys that form a protective oxide layer on the base metal. Applications of weatherresistant steel include bridges, containers, tanks, chimneys, industrial filters and architectural elements.

9. American Torch Tip Announces SureLok-Style Consumables

American Torch Tip Company has introduced a new line of consumables. SureLok-style consumables are suitable for use with 1Torch by Thermal Dynamics and other plasma torches.

NEW OFFERINGS 9 10

10. CGW Abrasives Offering New

11. Abicor Binzel Launches Hard

CGW Abrasives is now offering a new G3 Ceramic Grinding Wheel in a variety of sizes. These wheels have a high-performance ceramic grain that provides for a longer service life as well as extremely fast stock removal. The high-density, uniform grain structure is self-sharpening and also produces a cooler cut. The wheels are designed for use on steel, stainless steel and other high-tensile metals, and are an excellent choice for heavy metal removal.

Abicor Binzel has announced the launch of their first welding tractor product. ABI-CAR Tractors will initially come in three models (including one with an oscillator feature), boast a durably constructed carriage design and include an easy-to-use interface. A strong magnet base lets the ABICAR be used for horizontal and vertical welding positions. The tractors come with a variety of cross-support and clamping options for user-specific product customization based on the application.

G3 Ceramic Grinding Wheel

Automation Product Line

This is the first product rollout for Abicor Binzel in the hard automation welding space, with several additional hard automation products set to be introduced over the next couple of years, including additional features and models to the ABI-CAR lineup. Binzel USA North America President John Kaylor said, “We are proud and excited to release a new range of hard automation products starting with welding tractors. Growing this product line now and in the near future is an exciting endeavor that we feel will further expand our ability to meet growing market demands.”

Know Someone Who Ought To Join GAWDA? Membership application forms are available online for completion here:

www.gawda.org/join

Anyone interested in additional information about membership may get in touch with GAWDA’s membership services manager Stephen Hill. Phone: 954-367-7728 ext. 220 Toll free: 844-251-3219 Email: shill@gawda.org

Join Us! Winter 2019 • 103

ADVERTISERS INDEX

Acme Cryogenics.....................................................36

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

Ameritanx, Inc..........................................................89

McDantim................................................................65

AmWINS Program Underwriters.................................84

Mercer Industries.......................................................3

Anthony Welded Products, Inc...................................19

NorLab Calibration Gases.........................................29

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

Norton Abrasives......................................................40

ASM/American Standard Manufacturing....................25

ORS Nasco..............................................................39

Bug-O Systems International.....................................28

Radiac/Tyrolit Industrial Abrasives.............................14

California Cylinder Corporation..................................84

Reelcraft..................................................................70

Carborundum Abrasives...........................................66

Rotarex...................................................................31

Catalina Cylinders....................................................68

SafTCart, Inc..............................................................5

Chart, Inc.................................................................11

Select-Arc, Inc........................................................ BC

Control Devices........................................................43

SureWerx USA, Inc...................................................49

Controlled Efficiencies..............................................17

Tech Air...................................................................41

Cryoworks...............................................................87

Thermacut, Inc.........................................................69

Exocor.....................................................................97

Thermco Instrument Corporation...............................47

FIBA Technologies, Inc..............................................42

Tier 5 Labs..............................................................57

Flexovit USA, Inc......................................................71

TOMCO2 Systems Company......................................15

Gas Innovations.......................................................89

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

Generant Company, Inc.............................................88

voestalpine Böhler....................................................93

Genstar Technologies Company, Inc.............................9

Watson Coatings, Inc................................................37

H & H Sales Company, Inc.........................................97

Weldcoa..................................................................55

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

Weldship Corporation...............................................35

Hobart Institute of Welding Technology.......................87

Winton Products Co..................................................93

Kaplan Industries.....................................................59

Wire Wizard—ELCo Enterprises................................88

104 • Winter 2019

MAKE 2019 YOUR BEST YEAR YET.

ASK YOUR LOCAL DISTRIBUTOR FOR SELECT-ARC WELDING ELECTRODES.

800-341-5215 | WWW.SELECT-ARC.COM