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contents Second Quarter • Spring 2020 • Volume 19, No. 2

DEPARTMENTS

PRESIDENT’S VIEW Engagement Pays – Getting Your Return on GAWDA Membership BY ABYDEE BUTLER MOORE

DIRECTOR’S DESK New Insights at This Year’s SMC BY JOHN OSPINA

EDITOR’S NOTE A Revamped Conference

BY STEVE GUGLIELMO

COVER STORIES

SMC 2 0 2 0

PAG E 4 6

GAWDA CONSULTANTS

est Practices for Training B New Employees BY STEVE GUGLIELMO, MARILYN DEMPSEY, MICHAEL DODD AND TOM BADSTUBNER

DOT Training Requirements

edical and Food M Gases Automatic Training Resources

BY MICHAEL DODD

BY TOM BADSTUBNER

Chemical Inventory Reporting Emergency Planning and Community Rightto-Know Act (EPCRA)

BY MICHAEL DODD

hemical Safety Board C Issues Final Rule on Release Reporting

30 80

BY RICHARD GOTTWALD

I TR SECOND-QUARTER OUTLOOK: Assume 2H 20 Cyclical Rise Despite Political, Trade and Global Health Concerns

THE ORIGINS OF SOMETHING GREAT Looking back on the start of a 75-year journey

40 42 44 46 52

BY STEVE GUGLIELMO

L OOK BACK NWSA Spatter C ELEBRATE IN STYLE GAWDA 75th Anniversary Apparel A TRIP DOWN MEMORY LANE SMC and Convention Fun B IGGER AND BETTER IN TEXAS 2020 GAWDA Spring Management Conference Teamwork Over Talent BY PATRICK LENCIONI, SMC KEYNOTE SPEAKER

BY RICHARD P. SCHWEITZER, ESQ.

GA Offers Free End User C & Industrial Safety Posters

BY ALAN BEAULIEU

2 • Spring 2020

MEMBER PROFILE

W ILLARD C.

STARCHER A Distinguished History BY STEVE GUGLIELMO

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contents Second Quarter • Spring 2020 • Volume 19, No. 2

NEWS ROUNDUP

93 94 101 102

FEATURES

NEW MEMBERS

PAGE

INDUSTRY NEWS INDUSTRY EVENTS MERGERS & ACQUISITIONS

103 107

NEW OFFERINGS

108

THE LAST WORD

ADVERTISERS INDEX

THE TEAM

EXECUTIVE EDITOR

John Ospina jospina@gawda.org PUBLISHER

Bill Brod billb@gawdamedia.com EDITOR IN CHIEF

Steve Guglielmo steveg@gawdamedia.com CONTRIBUTING EDITORS

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

Robin Barnes robinb@gawdamedia.com VICE PRESIDENT, SALES

Tim Hudson timh@gawdamedia.com RELATIONSHIP MANAGER

Hannah Gray hannahg@gawdamedia.com

STAY CONNECTED

GAWDAMEDIA.COM

4 • Spring 2020

W hen Tragedy Strikes How to cope when your company has a tragic accident BY STEVE GUGLIELMO

H ow to Overcome

T he State of Digital

a Loss BY BILL MCCLOY

Marketing Among GAWDA Members BY BRIAN BLUFF

70 72

S earch Engine Trends for the Gases & Welding Industry

T here’s an App for That BY JOHN TAPLEY

D o I Need Social Media to Sell? BY ART WASKEY

T he Need for Succession Planning Don’t let a triggering event take down your family business BY CAROLINE K. REFF

D istributors: Want to Know Why Things are Getting Harder? BY MIKE MARKS

BY STEVE GUGLIELMO

Five Things to do to be Successful in the Gases and Welding Industry BY RANDY SQUIBB

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 ©2020 Data Key Holdings, LLC. • All rights reserved. • Nothing may be reproduced in whole or in part without written permission of the publisher. • Questions and comments can be sent via e-mail to Editors, c/o editorial@gawdamedia.com. • Data Key Holdings, LLC. reserves the right to print portions of all or any correspondence mailed to the editors without liability on its part and no such correspondence will be returned. • Visit Welding & Gases Today Online at www.gawdamedia.com.

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PRESIDENT’S VIEW

Engagement Pays – Getting Your Return on GAWDA Membership BY ABYDEE BUTLER MOORE

Abydee Butler Moore is GAWDA’s 2019-2020 president, as well as President and COO of Butler Gas Products Company. She can be reached at 412771-7660 ext. 316 or abutlermoore@ butlergas.com.

hen our team returns from a GAWDA Convention, we reflect on what we learned and ask ourselves, which 2-3 ideas will we implement to pay for the trip? Without taking any actions as a result, our newly acquired knowledge would be worthless. Showing up is a big deal, and engaging in the GAWDA meetings is critical. Among the Spring Management Conference (SMC), summer Regional Meetings lineup, and Annual Convention in the fall, GAWDA provides a calendar year full of opportunities to get payback on your membership. GAWDA is an investment in your business. Is your organization maximizing your return?

USE GAWDA TO TRAIN YOUR PEOPLE. Are you engaging in GAWDA University? GAWDA University has more than 35 training courses with content from forklift safety to reasonable suspicion. Create user accounts and track performance for new hires or for continual education. Print the completion certificates for job-specific training records. Is your team registered for the SMC? The new SMC format is packed with content. (See more info about the revamped SMC on page 46). Attendees will select sessions within four educational tracks: Safety and Operations, Human Resources, Sales and Marketing, and Technology. There are so many opportunities for takeaways, each company needs to register four people just to catch all of them.

o you promote the GAWDA D Scholarship among your colleagues? Not only can GAWDA train your people, but it also can help support their families’ educational pursuits. The annual GAWDA Foundation Scholarship is available to children and employees of active GAWDA member companies. Your colleague’s child can earn a $2,000 scholarship because your business engages in GAWDA. GAWDA is helping support our industry’s stewards of tomorrow.

USE GAWDA TO KEEP YOU SAFE. Are you engaging with the CGA resources? GAWDA distributors have access to all Compressed Gas Association (CGA) publications and e-learning modules. CGA develops and promotes the safety standards for the gas industry. If your business is filling cylinders, you need to know CGA. Do you call the GAWDA consultants? GAWDA members have unlimited access to our consultants. They are just a phone call or email away at any moment. This year, we are thrilled to add Marilyn Dempsey as a new consultant to our team. Seek out our consultants at the GAWDA events. At the SMC, both Marilyn Dempsey and Mike Dodd will be teaching Educational Track sessions. Marilyn is presenting on The True Cost of an Accident, and Mike is presenting a session entitled Our Story, Your Lesson. Be sure to keep an eye out for the GAWDA Compliance Seminars each year. continued on next page

6 • Spring 2020

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USE GAWDA TO BUILD RELATIONSHIPS. Do you attack the Contact Booth Program with a plan? Depending on the number of people attending from your organization, approach a GAWDA Contact Booth Program with a strategy. Perhaps you have a mental hit list of those with whom you want to connect, or a product or technology wishlist you want to evaluate. Be purposeful about your time on the Contact Booth floor and stay for the duration of the event to maximize face time with all exhibiting suppliers. Our suppliers are critical to our industry’s and association’s success. Not only is this face

time respectful to those companies supporting GAWDA, it is smart business to learn about the latest products and services. Mandate Contact Booth engagement with your team. Is your team represented at every GAWDA function? Be a GAWDA gym rat. Every function brings exclusive value and every event brings unique rapport-building opportunities with fellow GAWDA members. Humans connect when we share experiences together. Get involved. GAWDA is an independent, volunteer-driven association; we need you.

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DIRECTOR’S DESK

New Insights at This Year’s SMC BY JOHN OSPINA

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

10 • Spring 2020

e’re shaking things up at this year’s upcoming Spring Management Conference (SMC) in Austin, Texas. This year’s Conference falls over the dates of April 5-7. Austin is known for its outstanding food and great live music venues. So, in true Austin fashion, the Conference will kick off with a night of fun at the world-famous Austin City Limits, complete with the return of our very own member-based group “In a GAWDA de Vida.” You may remember them from the 2017 Spring Management Conference. In addition to the GAWDA band, there will be two additional great bands featured. There will be plenty to do and see while you say hello to industry friends and make new friends with our first-time attendees. Opening day kicks off with a new format this year. There will be 12 educational sessions with plenty of take-home content for all levels of management. The educational track presenters feature an all distributor lineup. You’ll want to attend these sessions with your key people from HR, Safety, Marketing and Technology. There’s more content that one person can take in, so share the experience with your team. Following the educational tracks, we kick off the Contact Booth Program. Our goal, as always, is to use this time to maximize interaction between our supplier and distributor members. We have more than 130 booths and tabletops packed with products and information. Stop by and visit with our GAWDA consultants, including our newest consultant, Marilyn Dempsey, specializing in OSHA, EPA, DHS and Plant Operations Safety. Visit with Richard Gottwald, President and CEO of the Compressed Gas Association (CGA) and see examples of the free safety posters he discusses

In a GAWDA de Vida REUNITES AT THE 2020 SMC

in his article on page 30. Talk to GAWDA Media about the new 75 th anniversary merchandise available through GAWDA.org. Tuesday’s General Session will feature two dynamic speakers, beginning with Patrick Lencioni, who has written a score of business management books including: Five Dysfunctions of a Team, The Advantage, Why Organizational Health Trumps Everything Else, The Five Temptations of a CEO, The Four Obsessions of an Extraordinary Executive and many more. Make sure to read Patrick’s article, beginning on page 52. Following Patrick, we’ll hear from Jens Luehring, President and CEO of Messer Americas. We’ll also announce this years GAWDA scholarship recipients and unveil a special GAWDA 75th anniversary video. As always, I look forward to seeing you at this year’s Spring Management Conference. Thank you for your continued support.

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FROM THE EDITOR

A Revamped Conference BY STEVE GUGLIELMO

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

hange is in the air at GAWDA. Even though we’re celebrating our 75th Anniversary, we’re always striving to keep improving and keep evolving. This year’s Spring Management Conference is one major example. President Abydee Butler Moore’s 2020 Vision included a revamped SMC, featuring four distinct educational tracks: Safety and Operations, Human Resources, Sales and Marketing, and Technology. This new format will allow for four-times the amount of actionable takeaways for your team to bring back to the company, assuming you are able to send somebody to every track. That format change, combined with the unbelievable keynote speakers that include Patrick Lencioni, Best-Selling Author and world-renowned speaker and thought-leader, and Jens Luehring, President & CEO of Messer Americas, ensure that attendees will definitely walk away from the SMC with ideas on how to improve their businesses. But, as anyone who has ever attended a GAWDA Convention or SMC knows, the SMC

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is about more than the educational opportunities. It provides an unparalleled networking forum for members to interact with each other and with potential distributors/suppliers. And in today’s increasingly digital world, the networking is not restricted to face-to-face. Throughout the event, be sure to use the 2020 GAWDA Spring Management Conference App to keep your calendar, see a full list of events and attendees, directly message attendees and share messages and pictures on the event’s social wall. Both GAWDA and GAWDA Media will also be using Facebook, Instagram and Twitter and using the hashtag #GAWDASMC2020. Be sure to use the event hashtag and tag @GAWDAorg and @ GAWDAmedia for a chance to be featured in the Daily SMC Connection and in the SMC Recap in the 3rd Quarter Issue of Welding & Gases Today. On page 44, you can see that GAWDA members have always had their fun at the SMC. Let’s make sure that 75 years from now, the Austin SMC has some great pictures to add to the 150th Anniversary issue of Welding & Gases Today. Can’t wait to see you all in Austin!

The GAWDA Connection is the official membership newsletter of GAWDA. It goes out on the 1st and 15th of every month. With a strong open rate of 35% and a click-through rate of 21%, it is an ideal vehicle to advertise your company and link to your website. There are two advertising options available for the newsletter. A Spotlight ad allows your company to have a 50 word description at the very top of the newsletter, as well as a logo, plus a 600x300 spotlight ad in the body of the text that can link back to your website. A banner ad is a 600x150 ad that is placed in the body of the newsletter that can link back to your website.

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CONSULTANTS ROUNDTABLE

Best Practices for Training New Employees How to stay in compliance with employee training

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

our employees are the lifeblood of your organization. In order to ensure that they can do their jobs correctly and safely, it’s vital to provide continuous training. But this can be a daunting and time-consuming task. How often does this training need to be done? When does it need to be recertified? How can the training be presented in a way where the employee can retain it? And how can this training be continually reinforced each and every day? Welding & Gases Today spoke with three of GAWDA’s Consultants to get their perspective on this important topic. Marilyn Dempsey is GAWDA’s newest Consultant, advising members on topics related to DHS, EPA and OSHA, Michael Dodd is GAWDA’s DOT Consultant, and Tom Badstubner is GAWDA’s FDA, Medical, and Specialty Gases Consultant. The following is a transcript of a conversation regarding training best practices.

WELDING & GASES TODAY: Can you describe some best practices with onboarding new employees and getting them up to speed with the respective regulations in your agencies? TOM BADSTUBNER: We do have a sample procedure in the Members-Only Section of GAWDA.org. The first thing you need to have is a list of all the training that is required for new employees and then a list for new people in each job position. The new employee and job-specific training should be predefined. You then go through the training list and have a qualified person with the trainee until they’re fully trained. MIKE DODD: We’ve got these wonderful lists. But if you try to follow the lists and you try to do it for all the agencies, this poor employee is going to be sitting in training classes for the next two weeks solid. And you will lose them. He or she will be hit with so much information so quickly, that none of it is going to stick. So, I’m somebody who likes to go back and say let’s do a little bit now. And they’re going to work with a trained employee. They need to have sort of a mentor that is with them for a week or two to show them the ropes and keep them out of trouble. And that way, they can feed it 14 • Spring 2020

to the new employee a little bit at a time and not in a massive onslaught. I know it’s not exactly how the regulatory agencies want you to do it, because most of them say “on or before exposure.” Well, that’s almost impossible. But if we just have them stick with an experienced employee who can keep them out of trouble, I’ve found that if you can get the employee through the first six months of not getting an injury, you’ve usually got it made. After that, it seems to work pretty well. WGT: So, the trick is just getting them through those first few months. MIKE: Yes, get them through the first six months injury-free by keeping a close watch on them, working closely with other employees and it seems to work. TOM: It’s important, because the first 12 months are the highest injury potential period of a person’s entire employment. MARILYN DEMPSEY: It’s funny you say that, because when I studied that with our statistics at Tech Air, I found that you’re right. It’s the very new employees and then the ones who have been there the longest. The complacent ones. So that goes into continuing training. I totally agree with everything Mike and Tom are saying. I do think it can be done, because it’s actually what I used to do. And that is, we had a schedule set out for day one, week one, month one. The first day is all about sitting down and making sure that they understand and fill out all the HR forms and you get them into their employee safety training. The very beginning of it is hazard communication. That’s how to read a label. And what our products are. Is it an oxidizer, a flammable or an inert? A lot of people come to our industry and they don’t know how to roll a cylinder or use a cylinder cart. So, you can use those first. You do the employee safety training and then you go out and practice a little bit. Do a little bit more practical stuff. The one thing I feel people get injured doing is handling the cylinders. Crushed fingers or banged fingers, strained shoulders, dropping cylinders on their feet, not strapping cylinders to cylinder carts. Those are things that you can really entrench

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buying into your safety culture. into a new employee. And the whole thing about mentoring, getting a senior person. Have the senior person and the new employee buy into having a better safety culture. The more input you can get, the more mentors you can get around this newbie, the better team you’re going to have overall. TOM: I completely agree. That’s the formula for success. For example, when I was training new employees, I found over and over that people just do not want to drop a cylinder. They don’t want to look bad in front of their fellow workers. And mishandling out-of-control cylinders is where people get hurt. So, one of the exercises I would do is tell them to drop a cylinder. We would get over the natural feeling of grabbing a falling cylinder. The cylinder is going to be fine. But if the employee chases that cylinder with his back, they won’t be fine. So, effective and safe practice can build a new habit. MARILYN: That’s so true. WGT: Once the employee is comfortable and up to speed, how do you avoid that complacency that you mentioned? “I’ve done this a million times and never gotten hurt. Why would the one million first time be different?” How do you avoid that? MARILYN: I think you have to go back to your statistics. You might not have had something happen like shearing off a valve. But you can pull up the numbers. “I know this other distributor that had this and this is what happened.” And you can show them either a piece of a cylinder that ruptured or what a bad valve looks like. What is the difference between the

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Spring 2020 • 15

CONSULTANTS ROUNDTABLE

GAWDA CONSULTANTS FDA and Medical Gases Issues THOMAS BADSTUBNER AsterRisk, LLC P.O Box 292547 Lewisville, TX 75029-2547 508-883-0927 (office) 443-255-8984 (cell) tom@asteriskllc.com

DOT & Safety Issues MICHAEL DODD MLD Safety Associates, LLC P.O. Box 93 Poplar Bluff, MO 63902 573-718-2887 MLDSafety@hotmail.com

Government Affairs and Human Resources Issues RICHARD P. SCHWEITZER, PLLC 1717 K St. NW, Suite 900 Washington, D.C. 20006-2333 202-223-3040 rpschweitzer@rpslegal.com

DHS, EPA, and OSHA Consultant MARILYN R. DEMPSEY Safety Dragons Workplace Consultants, LLC 940-999-8466 marilyn@safetydragons.com

valves or between a good and a bad strap? The more you can put the older group in the responsibility or mentoring position, the more likely you’re going to have that older group take care of the new group and change their own attitude. WGT: Does that keep them more engaged? MARILYN: It definitely keeps them more engaged because it’s not a top down mentality. It’s about saturating the entire business structure. You have to have top management walking around doing this, and you have to commend people when they stop another coworker from doing something that is not safe. Not to punish the other worker, but quietly take the person who mentioned it aside and say, “Thank you for looking out for him. That was really great.” Engage everybody. And if you can get your CEO or your CFO walking around and out there talking to people and asking, “What do you feel is your challenge?” The more engagement that you have from top management all the way through the ranks, the more likely you’re going to have people buying into your safety culture. TOM: If you have either a written procedure or a job safety analysis (JSA ... call Marilyn if you want to know about JSAs) it helps to make a copy of that written procedure/JSA. And then go out in the plant and review the that procedure with the employees who need to use it. Maybe it’s once a year or once every three years. This becomes not only a training experience, where you actually do the procedure, but it’s also a way to see how the procedure might get improved. Because they’re the experts. If they’re doing the job the right way, they’re absolutely the experts. And they might have some suggestions for ways to improve that procedure. I’ve found that taking a written procedure out and using it as a training tool accomplishes so much good. For the new guys and the experienced ones. MARILYN: It shows that you value their opinion when you’re writing a new procedure. We talk about how we’re going to engage people. There’s a positive way, which is what we’ve been talking about. But there’s also a negative way that we want to stay away from. And then there’s reinforcement. Training is not only when the inspector is knocking at the door. You have to show that you’re invested in training. You can have a monthly training session and you can get face-to-face with your employees and not only give them a safety topic but also engage them by asking, “What is going on in your job? What difficult deliveries are you having? What equipment is giving you headaches?” That way, you’re less likely to have an issue further down the line. WGT: How can the GAWDA consultants be used in this process?

16 • Spring 2020

CONSULTANTS ROUNDTABLE

MIKE: One of the things that I do a lot of for membership is a lot of initial and refresher training. Most of the DOT items, almost all of them, are set up on a required every three-year basis. A lot of times, I do a train the trainer training and then the members do their own training in the future. Or they come to our seminars and we do the train the trainer at the seminars. But most of our stuff is on some sort of a frequency. And one thing I really wanted to cover is the fact that most people will do a good job of training if they just remember to do it. And they know who needs to be trained. So, one of the things that we stress is having some sort of a spreadsheet where they keep track of all the required training subjects, the employees and the due dates. When are these next training items due? If they just look at that once per month and see where they are, it will pretty much tell them what they need to do and when they need to do it. Coming up with the materials to do the training? That’s easy. That’s where the consultants come in. And we usually bring them nice, simplified programs. If you do these things, this will accomplish your training. But we can’t be there to remind them every month: this person is due, this person is due, and this person is due. Initial is easy. There’s a list for that. It’s the

follow-up later that they need to be reminded of. TOM: That’s where we see violations from the agencies as well. The follow up training. MIKE: That’s exactly right. And it’s so easy to do if they have a system in place to remind them. MARILYN: That’s very true. One thing that I found in my previous job was that we had to define the roles that people had. You have drivers who fill cryogenic cylinders or propane or who even work in the fill plant. So, you have to be specific about where they fit in in your training matrix. And then you can plug them in. And then you look at who is due. WGT: Where do you see companies slip up most often? Any common missteps? MIKE: I see two places. I don’t see the refresher training happening on time. And I see people getting busy and sometimes they don’t do that new employee training quite soon enough. With the DOT inspections, when they walk in, I almost guarantee you that with training they will catch companies in one of two places. Either they forgot to do the refresher, or they forgot to do the new person. A lot of companies have

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Spring 2020 • 17

CONSULTANTS ROUNDTABLE

their refresher training set up on a schedule of once per year or once every two years. But they forget to do the new person. And when I’m doing my DOT audits, I’m going to walk in and say, “Let me see a list of your employees,” I’ll note their start date. And then I say, “I’d like to see the documentation for the training for this person right here.” And that’s where you’ll see people realize “I haven’t done that person yet.” WGT: You said in the last column that agencies will go out of their way to look for that, right? MIKE: Oh yeah. They know where they can catch people. And it’s usually the new employee who they haven’t gotten to yet. They do a great job on the refresher and forgot to do the new guy. WGT: When that happens, then what? Is it one of those things where you can make a good faith effort, “I’ll get them trained right away,” or is that a penalty the moment it’s noticed? MIKE: As far as from the regulatory agency? In DOT, I’ve noticed that there is an awful lot of discretion. Sometimes the inspector will say, “Just get that person trained. It looks like you’re doing a great job of training, everybody is up to date, you just forgot this one person.” You can get that kind of inspector. Or you can get the inspector who says, “Got ya!” And that’s a penalty. You might have a 99% program, but you forgot the new person. It’s still a penalty. So, you never know which inspector you’re going to get. WGT: Marilyn, as somebody who was recently on the other side of this coin, what did you find was most difficult in this regard? MARILYN: We had a very good plan on how to train people. The monthly training was simplified. Where there were issues was not in upper management or on the floor. It was middle management. It was the store manager who might have 25 orders for this one truck saying, “I don’t have any time this month to go and get this person trained.” It’s a matter of keeping up and making sure that people were actually trained. Because that’s exactly what the inspector will do. I had OSHA come in a few times and the way that I did not get cited is that they looked at our training records and our training program and they said, “Ok, thank you very much, Mrs. Dempsey.” And then they left. TOM: Because you were organized. MARILYN: That’s the whole thing. Being organized. TOM: I’d like to back up a bit. Mike identified ways for people to get trained and problems that might happen. Another problem that I see, particularly in the medical gas area, is when 18 • Spring 2020

a seasoned employee trains a new employee on something like how to fill oxygen. But they don’t train them to any written standards, they just train them as they remember being trained by the guy before him. WGT: This is how we’ve always done it. TOM: Right, this is how we do it. And then, in a couple of generations of workers, the practice is actually far away from the approved practice. By having a written procedure that you train to, you can eliminate that. It can eliminate those random innovations that always happen in the work process. WGT: Things are evolving all the time. If you have a written standard, how often does that need to be updated? TOM: The FDA requires a three-year review on certain things like risk assessments. I think a three-year review on written procedures would not be overly burdensome and I think it would help a lot. The DOT requires HAZMAT training every three years, right, Mike? MIKE: Every three years. Almost everything in DOT is every three years. TOM: So that would be kind of a perfect time to do it. I think I would train the person initially using written procedures and then review those procedures every three years. MARILYN: Tom, you hit on something that we went through, especially with FDA inspections, which is that the inspector will go out there with your SOPs and check the pumper. So, it’s very good if the manager can do an annual checkup on how everybody is following the procedures. And if they’re not, why not? Maybe it’s time to tweak the procedures. Or maybe it’s time to have a chat and say, “The reason why we do it this way is...” TOM: Yeah, the FDA treats the failure to follow your own procedures with the same amount of seriousness as not following their regulations. And there have been some very serious warning letters issued for failure to follow procedures. Even sometimes when those procedures were not perfect, the FDA still cited for failure to follow those procedures. They really didn’t cite the work being done. They cited the failure to follow procedures. MIKE: Now it’s a question of presentation of the training. We can talk about the frequency; we can talk about the follow up. But now let’s talk about how it’s actually done. So, a couple of thoughts. I’ve found that all-day training sessions, or what has come to be known as “birthday training,” every year doing a bunch of things at the same time so you can

CONSULTANTS ROUNDTABLE

get them checked off the list, that’s very ineffective, to me. It doesn’t seem to sink in or help the accident incident rate. What I’ve found is that if you can keep the training sessions short but more often, versus long and far apart, you’ll have more success. I’ve seen some very good companies with very good safety culture have what I call a “toolbox meeting” or a lunchroom meeting. First thing in the morning for about 5-10 minutes, talk about a quick safety topic and the needs for the day, and it’s a very quick way to gather everybody up and discuss. Then you’re out the door. That seems to work really well. One more thing, we’re rapidly approaching the electronic age. The days of sitting down in a classroom and having a teacher in front of you is little by little going away. It’s still very valuable. That person looking you in the eyes is very helpful. But we’re seeing a lot more online training. There are a lot of different avenues. I would just hate to see anybody get trapped into doing one kind of training. It really helps to mix it up. It keeps the employee interested to do different methods and you get more feedback, especially if you do in-person training.

TOM: Every mode has its benefits. Sometimes you’re just simply trying to pass on some information and the online meeting is good for that. Sometimes you really need to focus on a change in behavior or new competencies, and face-to-face is good for that. CGA has some amazing e-learning modules. We have GAWDA University. These have their place. They make good sense when you’re retraining people on an annual basis. MARILYN: I agree that different formats have their pros and their cons. I am not a big fan of all-day training. You generally start losing people after 20 to 30 minutes. They need a mental break from the screen or from you or from whomever. Sometimes you have to have those long training sessions. Hazard communication you can’t boil down to 20 minutes. I think one of the things that all of us do is make things as simplified and digestible as possible. And I’m so excited to be working with these guys because they have the same type of training that I want to do. Let’s demystify these things. One last thing I wanted to add is that training isn’t just a requirement. It’s an investment in your people. That’s how we’re going to keep people and grow people and keep them safe.

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CONSULTANTS DOT & SAFETY

DOT Training Requirements BY MICHAEL DODD

Editor’s Note: This column can serve as a companion

SECURITY AWARENESS (172.704)

This training must include an awareness of security risks associated with hazardous materials transportation and methods designed to enhance transportation security. A component covering how to recognize and respond to possible security threats must be included.

article for the Consultant’s Roundtable on page 14.

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

ver the years, I have written several articles and Traffic Bulletins about training and with good reason. It consistently ranks as the number one inquiry from members and continues to be one of the most cited issues by DOT inspectors who visit our members. I want to touch on the high points of the main training topics required by the DOT: function specific, HAZMAT, driver, and drug and alcohol training.

HAZMAT TRAINING (172.704)

A HAZMAT employer must train, test and certify every HAZMAT employee who has any function that directly impacts hazardous materials transportation safety.

FUNCTION-SPECIFIC TRAINING REQUIREMENTS (172.704) Each HAZMAT employee shall be provided function-specific training concerning requirements which are applicable to the functions the employee performs. Some examples of function specific training for our GAWDA members include: • Cylinder filling • Cylinder requalification • Driver • Special permits (This one has been a hot button for the past year or so. You must have trained and documented all employees affected by any cylinder special permit that you use or handle.)

20 • Spring 2020

SECURITY, IN-DEPTH TRAINING (172.704) In-depth security training must include company security objectives, specific security procedures, employee responsibilities, actions to take in the event of a security breach and organizational security structure. Be sure to cover all five components listed in 172.704 in-depth training.

DRIVER TRAINING (177.816) 177.816 says that the driver must receive training on the safe operation of the motor vehicle that will be transporting hazardous materials. Please note: 177.816 (c) states: The driver training requirements may be satisfied by compliance with the current requirements for a Commercial Driver’s License (CDL) with a tank vehicle or hazardous materials endorsement.

HAZMAT RECORD OF TRAINING (172.704(D)) A record of current training, inclusive of the preceding three years, must be created and retained by each HAZMAT employer for each HAZMAT employee for as long as that employee is employed by the employer as a HAZMAT employee and for 90 days thereafter.

CONSULTANTS

DOT & SAFETY

The record must include: • HAZMAT employee’s name • Most recent training completion date of the HAZMAT employee’s training • Description, copy or the location of the training materials used to meet the training requirements • Name and address of the person providing the training • Certification that the HAZMAT employee has been trained and tested

REASONABLE SUSPICION TRAINING FOR DRIVER SUPERVISORS 382.603 covers training for driver supervisors. Each employer shall ensure that all persons designated to supervise drivers receive training on alcohol misuse and controlled substances use. The training will be used by the supervisors to determine whether reasonable suspicion exists to require a driver to undergo testing under §382.307 (reasonable suspicion testing). The training shall include the physical, behavioral, speech and performance indicators of probable alcohol misuse and use of controlled substances.

FASTER FILLING

A record of current training must be created and retained by each HAZMAT employer for each HAZMAT employee for as long as that employee is employed by the employer as a HAZMAT employee and for 90 days thereafter. TRAINING FREQUENCY The HAZMAT (general awareness, safety, function specific – which includes driver training – and security awareness) must be done at least every three years. The supervisor drug and alcohol awareness training is only a one-time training, but I highly recommend reviewing this with driver supervisors every two to three years.

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Spring 2020 • 21

CONSULTANTS

FDA & MEDICAL GASES

Medical and Food Gases Automatic Training Resources BY THOMAS L. BADSTUBNER

Editor’s Note: This column can serve as a companion article for the Consultant’s Roundtable on page 14.

ADMIN – CGMP TRAINING – ONLINE TRAINING RESOURCES 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.

Food and Medical Gas – CGMP Training for Administrative Personnel Visit research.net/r/Quizfor GMPTrainingforAdministrativ ePersonnel or scan the QR Code to the left. • 11-minute video presentation • The essential FDA regulations for administrative personnel • Essential GMP regulations • Lot number tracking • Complaint procedures • Quiz • Certificate of participation

FOOD GAS – ONLINE TRAINING RESOURCES Food Gas – Qualified Facilities and Submitting the FDA Attestation Visit bit.ly/2T2CTGF or scan the QR Code to the left. This is the URL to the Food Gas Roundtable recording discussing the FDA Qualified Facility exemption and how to submit the Attestation. • 15-minute video presentation • The FDA regulations (21 CFR 1175(a) and 21 CFR 117.201) • Describe the Qualified Facility exemptions • Detail the two sales criteria for a Qualified Facility • Alternate Qualified Facility requirements and meaning of the Attestation • The Attestation • Where to get the form • Who must submit? • Submission schedule • How to fill out the form

22 • Spring 2020

CONSULTANTS

FDA & MEDICAL GASES

Food Gas – CGMP Training for Pumpers Visit www.research.net/r/FoodCGMPTrainingforPumpers or scan the QR Code to the left. • 28-minute video presentation • The FDA regulations (21 CFR 117) • Allergen training • Sanitation training • Quiz • Certificate of participation Food Gas – For Owners and Managers This video for food/beverage gas company owners and managers discusses how to set up a compliant food/beverage gas program. Here is the URL to the 62 minute video and other food gas resources: www.asteriskllc.com/foodbeverage-gas-resources or scan the QR code to the left.

MEDICAL GAS – ONLINE TRAINING RESOURCES Medical Gas – CGMP Training for Pumpers Visit www.research.net/r/MedicalGasOperatorCGMPTraining or scan the QR code to the left • 25-minute video presentation • The FDA regulations (21 CFR 211) • Quiz • Certificate of participation Medical Gas – CGMP Training for Drivers Visit www.research.net/r/CGMPtrainingformedicalgasdrivers or scan the QR code to the left • 23-minute video presentation • The FDA regulations (21 CFR 211) pertaining to medical gas container deliveries • Recognizing medical gas labels • Medical gas tamper-proof connections • Quiz • Certificate of participation

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. continued on next page

Spring 2020 • 23

These are the automated programs we built for training food, beverage and medical personnel. If you need the programs in other formats, just let me know.

CGA – ONLINE TRAINING RESOURCES FREE e-Learning Resources from CGA These, and other, high-quality e-Learning modules are available to GAWDA members who participate in the FREE GAWDA/CGA Safety Program. See: www.gawda.org/resources/cga-subscription-program/. You can access these, and other, programs at portal.cganet.com/Publication/ Index.aspx. Then filter by “Video & Training Materials.” • TM-4 Filling of Uninsulated Carbon Dioxide Cylinders • TM-5 Filling of High-Pressure Medical Oxygen Cylinders

GAWDA UNIVERSITY – ONLINE TRAINING RESOURCES GAWDA U is FREE to GAWDA MEMBERS! GAWDA University Online is an employee training curriculum and management tracking protocol that addresses many of your training needs in the areas of compliance with safety practices and government regulations, which are impacting your core business. Get more information at: www.gawda.org/gawda-university/. Course samples: • cGMP Training Part 1: An Introduction to the FDA • cGMP Training Part 2: Definitions and Prohibited Acts • cGMP Training Part 3: Overview of cGMPs per 21 CFR • FDA CGMPs for Clerical/Counter Positions • Nitrous Oxide Facts & Guidelines • Quality at a GAWDA Company 24 • Spring 2020

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CONSULTANTS DOT & SAFETY

Chemical Inventory Reporting Emergency Planning and Community Right-to-Know Act (EPCRA) BY MICHAEL DODD

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

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

26 • Spring 2020

BULK STORAGE TANKS OR BULK TRAILERS AT CUSTOMER SITES Do you own any bulk tanks at a customer site? An owner of bulk installations at a customer site has a duty under EPA regulations (Section 312) to notify the customer of their obligation to file Tier Form reports for each hazardous chemical that meets or exceeds the threshold planning quantities. The reminder must be mailed to an appropriate customer representative by February 15 each year. The supplier must document its efforts to notify its customers of these requirements. If the customer owns the bulk unit, then you are not required to remind or notify them on their reporting obligations. Hospitals are exempted from the notification and reporting obligations. (Section 311(e)(4) of EPCRA and 40 CFR 370.2 and 355.20 of the regulations exclude from the definition of “hazardous chemical” any substance to the extent it is used in a research laboratory or a hospital or other medical facility under the direct supervision of a technically qualified individual.) A letter from the EPA Office of Enforcement

dated March 4, 1991 states that “industrial gas suppliers who retain ownership of gas storage tanks or bulk trailers located on the premises of their customers” must make a good faith effort to notify such customer of the annual inventory reporting requirement. This language does not include notifying customers who merely store gas in supplier-owned cylinders on the customer’s property, however. Where the supplier does have a gas storage tank or bulk trailer on the customer’s property, a good faith effort to notify the customer includes the following: • Contract Language. All new, reopened, renewed, or modified gas supply contracts must explicitly state the following language: It is a responsibility of the Buyer to comply with all relevant reporting obligations under the Emergency Planning and Community right-to-Know Act of 1986, 42 U.S.C.§§11001-11049 (EPCRA, also commonly known as Title III of the Superfund Amendments Reauthorization Act of 1986 (SARA Title III)) resulting from the presence of the chemicals supplied under the agreement. Further, it is a responsibility of the Buyer to warn and protect its employees and others exposed to the hazards posed by the Buyer’s storage and use of the product.

CONSULTANTS

DOT & SAFETY

•

Customer Notification. Industrial gas suppliers must remind their customers by separate mail of the EPCRA reporting obligations the customer may incur from the presence of the chemicals supplied under the agreement, and provide in the reminder a source of EPCRA compliance information, such as the EPCRA hotline (1-800-535-0202). The reminder must be mailed to an appropriate customer representative by February 15 of each year. The supplier must also document its efforts to notify its customers of these requirements.

SARA TITLE III REPORTING March 1 is the filing deadline for your Hazardous Chemical Inventory Report. This report usually is submitted on a Tier I or Tier II Form. Keep in mind, your state may require that one of these forms be used over the other or even have its own special form. Your state may even have different reporting quantities. Check with your State Emergency Response Commission (SERC) if you have questions regarding what form to use or other possible state requirements.

Please use the following website to check on your state reporting requirements: www.epa.gov/epcra/state-tier-ii-reporting-requirements-and-procedures. If you submitted this report last year, use it as a guide. The report(s) must be submitted to your Local Emergency Planning Committee (LEPC), your SERC, and the local fire department with jurisdiction over the facility. Use the above website to see how each state wants to receive their reports and get information on the SERC and LEPC reporting procedures. Contact your SERC to find out the contact information for your LEPC: http://www.epa.gov/epcra/state-emergency-response-commissions-contacts The EPCRA hotline for free help is 800-424-9346, or you can email them by going to this website: www.epa.gov/epcra/ forms/contact-us-about-emergency-planning-andcommunity-right-know-act-epcra. Here is the EPCRA Frequent Questions website: emergencymanagement.zendesk.com/hc/en-us#_ga=1.223967193.37 7971968.1446741998. Feel free to contact me if you have any questions.

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Spring 2020 • 27

CONSULTANTS

GOVERNMENT AFFAIRS & HUMAN RESOURCES

Chemical Safety Board Issues Final Rule on Release Reporting BY RICHARD P. SCHWEITZER, ESQ.

G 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.

28 • Spring 2020

AWDA members must now comply with a new set of federal requirements. Just two months after issuing a proposed rule, the U.S. Chemical Safety and Hazard Investigation Board (CSB) has published a final rule for reporting of accidental releases of a regulated substance or other extremely hazardous substances into the ambient air from a stationary source. The rule includes releases of petroleum products, including biofuels. Stationary sources would exclude trucks or other motor vehicles. The CSB estimates that 200 releases per year will be subject to its new reporting requirements. The rule creates a new Part 1604 of title 40 CFR. It requires reporting any accidental release of a hazardous substance from a stationary source into the ambient air that causes death, serious injury resulting in inpatient hospitalization, or more than $1 million in property damage. The reporting requirements are not limited to threshold quantities of regulated substances under other EPA or OSHA regulatory schemes, however. Although the term “extremely hazardous

substance” is not defined in the CSB’s enabling legislation, the relevant legislative history provides: “The release of any substance which causes death or serious injury because of its acute toxic effect or as the result of explosion or fire which causes substantial property damage by blast, fire, corrosion or other reaction that would create a presumption that such substance is extremely hazardous.” The CSB also noted, “Although it is an important element, the specific property of a substance, such as flammability, toxicity, corrosiveness, etc., does not always determine whether a substance is extremely hazardous. For example, a substance on its own may not be considered hazardous. When combined with other substances, however, the consequences may be lethal.” The CSB final rule requires reporting of an accidental release within eight hours of the release (an increase from four hours in the proposal). If the owner or operator has submitted a report to the National Response Center pursuant to 40 CFR 302.6, however, the CSB reporting requirement may be satisfied by submitting the NRC identi-

CONSULTANTS

GOVERNMENT AFFAIRS & HUMAN RESOURCES

fication number to the CSB within 30 minutes of submitting a report to the NRC. The CSB final rule requires reporting contact information and a basic description of the accidental release, including the relevant CAS Registry Number for the chemical(s) involved in the release, and an estimate of the property damage at or outside the stationary source. The CSB began operations in 1998 and is charged with investigating the causes of chemical accidents. It is modeled on the National Transportation Safety Board (NTSB), which investigates the cause of transportation accidents. Like the NTSB, the CSB has no enforcement authority and limited regulatory authority. Congress directed that the CSB’s investigative function be completely independent of the rulemaking, inspection, and enforcement authorities of the Environmental Protection Agency (EPA) and the Occupational Health and Safety Administration (OSHA). Congress recognized that Board investigations would identify chemical hazards that were not addressed by those agencies. The legislative history states: The investigations conducted by agencies with dual re-

sponsibilities tend to focus on violations of existing rules as the cause of the accident almost to the exclusion of other contributing factors for which no enforcement or compliance actions can be taken. The purpose of an accident investigation (as authorized here) is to determine the cause or causes of an accident whether or not those causes were in violation of any current and enforceable requirement. Although the CSB was created to function independently, it also collaborates with EPA, OSHA, and other agencies to investigate chemical incidents through a series of memorandums of understanding. The CSB’s release reporting rule was mandated by Congress in the 1990 Clean Air Act Amendments; when the Board failed to issue the rule as required, a federal court in February 2019 directed the CSB to publish a final rule within 12 months. Because the CSB has no regulatory enforcement authority, it will refer any cases of failure to report a release to the EPA for enforcement. The new requirements will become effective 30 days after the rule is published in the Federal Register.

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Spring 2020 • 29

MEMBER BENEFIT

CGA Offers Free End User & Industrial Safety Posters BY RICH GOTTWALD, CGA PRESIDENT & CEO

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

istorically, the compressed gas industry’s products have been used in industrial, food and medical settings where employee safety and training have long been a priority. As the industry evolves, the same products are being increasingly used in new applications by new users – including by consumers. The safety standards published by the Compressed Gas Association consist primarily of high-level technical documents written by and for senior level engineers, but we recognize that CGA has a social responsibility to provide users – from new industry employees to consumers – with the information they need to interact with our members’ products safely. To that end, we’ve been publishing a series of free safety posters targeted toward new industry personnel as well as end users. We encourage all GAWDA members to take advantage of this invaluable free resource to help ensure that all those who come in contact with our industry’s products may do so safely.

END USER SAFETY POSTERS This year, we are launching a new product line of posters and safety campaigns targeted to users who are new to interacting with our industry’s products, as a means of communicating basic safety information on topics such as home oxygen safety, safe use of liquid nitrogen in food and beverage service environments, safe handling of dry ice, safety considerations for the products used in cannabis operations and more. We are using a multi-faceted approach to distribution, including publishing product-specific webpages, or “Safety Resource Centers,” 30 • Spring 2020

You can access and download all of CGA’s free safety posters from our public website: www.cganet.com/safety-posters/ with additional information and resources for each topic. Posters will be available in hard copy and as electronic downloads, which are fully scalable, allowing users to print in multiple sizes. Companies can also add their own contact information and branding to the posters before distributing. In addition, the posters will include a QR code, enabling viewers to quickly access supplementary information on-demand. Electronic downloads of the posters are free. The first two online Safety Resource Centers and related posters have been published and may be found on CGA’s public website at the following: Home Oxygen Safety Resource Center www.cganet.com/home-oxygen-safety/ Liquid Nitrogen Safety Resource Center www.cganet.com/liquid-nitrogen-safety/ Each online Safety Resource Center is comprised of a set of essential safety information about the topic. Using Home Oxygen Safety as our example, the Safety Resource Center includes the following: • Safe Use – reviews hazards of home oxygen use and emphasizes that it is extremely important for home oxygen users to take precautions to prevent oxygen fires and

MEMBER BENEFIT

•

use their oxygen equipment safely. Reminds individuals using home oxygen therapy to read and follow all instructions and safety precautions provided by their home oxygen supplier. Poster Download – posters offered as a free safety resource; not intended as a substitute for reading and following codes and regulations, industry standards, and supplier instructions. Additional Resources – highlights relevant items from CGA’s extensive library of safety publications; for example, for oxygen: CGA P-45 – Fire Hazards of Oxygen and Oxygen-Enriched Atmospheres and CGA G-4 – Oxygen Product Information – this section provides the following information about the compressed gas (in this case, oxygen): y General Information y Safe storage, handling and use y Leaks & spills: Advises readers what to do in the case of an oxygen leak or liquid oxygen spill y First-aid: Suggests course of action in case of frostbite from contact with liquid oxygen y Physiological effects: Reviews some of the physiolog-

ical effects of pure oxygen, as well as high pressure oxygen environments Physical constants: Lists oxygen’s physical constants

INDUSTRIAL SAFETY POSTERS We have also redesigned and/or created new industrial safety posters aimed at explaining basic safety concepts to someone new to handling compressed gases and related equipment. Our series of Industrial Safety Posters provide basic safe handling information on a variety of topics (see next page for a complete list of current posters). These posters can be printed and displayed wherever compressed gases are used to provide a visual reminder of important safety practices in the workplace. Each poster is provided as a scalable PDF file, enabling users to print the size they need. The posters are also designed for easy co-branding: GAWDA members can add their company information to the “supplied by” box at the bottom of each poster, then share this valuable training resource with your customers. All posters are available in English and French. continued on next page

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Spring 2020 • 31

MEMBER BENEFIT

HOME OXYGEN SAFETY O

You can access and download all of CGA’s free safety posters from our public website: www.cganet.com/safety-posters/

CGA SP-C – Safety Poster: Valve Protection Caps • •

Released: September 2018 (2nd Edition) Depicts when valve protection caps should be removed.

CGA SP-D – Safety Poster: Securing Cylinders by Nesting • •

Released: September 2018 (2nd Edition) Reminds employees of good safety practices; illustrates the correct way of securing cylinders by nesting.

CGA SP-E – Safety Poster: Oxygen and Oil Don’t Mix 32 • Spring 2020

• •

Released: September 2018 (2nd Edition) Cautions viewers that oxygen contact with oil, grease, or other hydrocarbon materials is dangerous.

CGA SP-F – Safety Poster: The Sleeping Giant • •

Released: September 2018 (2nd Edition) Portrays the potential dangers involved with compressed gas cylinders and serves as a workplace safety reminder.

CGA SP-H – Safety Poster: Transfilling Cylinders •

Released: September 2018 (2nd Edition)

MEMBER BENEFIT Highlights the fact that transfilling cylinders can be dangerous and should be performed by professional gas companies.

CGA SP-I – Safety Poster: Separating Incompatible Gases

•

Released: June 2019 (2nd Edition) Cautions that incompatible gases shall be separated by a minimum distance or a protective barrier.

CGA SP-J – Safety Poster: Proper Cart Usage for Liquid Cylinders • •

•

CGA SP-K – Safety Poster: Wear Recommended Personal Protective Equipment •

CGA SP-N – Safety Poster: Plan Your Trip to Avoid a Tip • •

Released: July 2019 (1st Edition) Reminds workers to wear recommended personal protective equipment (PPE), and refer to products’ Safety Data Sheets (SDS) for guidance.

Released: July 2019 (1st Edition) Cautions viewers that misuse of adaptors can be dangerous, even fatal.

Released: July 2019 (1st Edition) Reminds viewers that liquid containers on permanently attached wheelbases can become unstable. Workers are advised to watch for transitions in flooring and uneven surfaces, and plan trips accordingly, when moving these containers.

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CGA SP-M – Safety Poster: Misuse of Adaptors Can Be Dangerous •

Released: July 2019 (1st Edition) Advises viewers to use only properly designed hand trucks or carts when moving liquid cylinders.

Released: July 2019 (1st Edition) Reminds viewers of the dangers posed by enclosed spaces, while emphasizing the importance of storing and using compressed gases in well-ventilated areas.

•

TIO

•

CGA SP-L – Safety Poster: Enclosed Spaces Can Be Unsafe

S O LU

•

10 REGO

YEAR

WARRANTY

GODDARD GATE VALVES

GLOBE VALVES

LIQUID CYLINDER VALVES

MANIFOLDS

REGULATORS

HIGH PRESSURE VALVES

DIVERTERS

RELIEF VALVES

MEMBER PROFILE

A Distinguished History GAWDA Charter Member Willard C. Starcher continues to thrive after more than 80 years BY STEVE GUGLIELMO

illard C. Starcher, Inc. was founded by Willard Starcher in 1938. Prior to opening the company, Starcher had worked as a schoolteacher and then as a mechanic fixing generators and refrigerators. He opened Willard C. Starcher in his hometown of Spencer, West Virginia, in a garage behind his house. More than 80 years later, the company continues to operate out of Spencer.

34 â&#x20AC;˘ Spring 2020

MEMBER PROFILE “We’re located in rural West Virginia, in a town of 2,600 people,” says John Hill, Starcher’s grandson and current company president. “And it probably had 2,600 people 82 years ago, when the company was started. But it’s our town and that’s where we’ve chosen to stay.” In what would become a reoccurring story for the leadership of Willard C. Starcher, Starcher briefly left the company to serve his country in World War II. During his time as a civilian technician in the United States Navy, Starcher’s wife, Dorthy Starcher, managed the company. Upon Starcher’s return from the war, several milestone events took place within the company, all in the span of 3 years, from 1945-1948. The first grew out of grew out of concern that manufacturers were going direct to customers, which would hurt the company’s hard-won business. In 1945, Starcher banded together with fellow distributors to form what was, at the time, a fledgling startup organization. “Willard became involved in the process of forming an organization that would represent the interests of the independent welding distributor,” Hill says. “In 1945, this resulted in the formation of the National Welding Supply Association.” Starcher was one of 13 representatives from 12 distributorships that attended the inaugural NWSA meeting at the Hotel Van Cleve in Dayton, Ohio, on November 13, 1945. Today, Willard C. Starcher is still an active participant in GAWDA. In fact, John Hill serves on the Safety Committee, something that he attributes, in part, to the second milestone event that Willard C. Starcher experienced. On September 25, 1947, tragedy struck the company. The business facility was completely destroyed in a propane explosion. The explosion severely burned Willard. “Either they weren’t following procedures or, more likely, there were no established procedures then,” Hill says.

“We want to follow established safety procedures and to do it the right way and the professional way.” However, during Willard’s recovery, the company continued to persevere, and in 1948, it experienced its third significant milestone. It hired Denver Sturm. “Denver got off a Liberty Ship in 1948 and stayed with us for almost 60 years,” says Hill.

are professional. They do things the right way and they’re treating the customers honorably.’” One of the things that helps aid in that mission is a streamlined structure. “Because of our size, it often gives us the ability to resolve a problem much quicker than a larger company,” Hill says. “Almost any customer can call here and ask for me by name and they can get me on the phone. If a problem evolves, they don’t have to make 20 calls and leave a voicemail. They can always get hold of me.” As a matter of fact, a customer will never leave a voicemail at Willard C. Starcher because Hill has turned them off completely. “I refuse to turn on our voicemail,” he says. “You’re going to talk to a human being when you call our store.” Willard C. Starcher believes that, even in a digital world, there is still room for good old-fashioned business.

THE RIGHT WAY

MILITARY SERVICE

That notion of doing things the right way and the professional way is not merely lip service. It is the driving force behind everything that Willard C. Starcher does. “Our mission statement is ‘Do it right the first time,’” Hill says. “I think that’s one of the things that the people here are very proud of. What we want people to say after working with us is, ‘These folks

Part of the ethos of professionalism that Willard C. Starcher espouses comes down to the company’s long and storied history of military service. Willard Starcher and Denver Sturm both served in World War II. And John Hill served in the military in the 1970s and 80s, and again in the Gulf War as a helicopter pilot. “I think a lot of my experience in

What we want people to say after working with us is, ‘These folks are professional. They do things the right way and they’re treating the customers honorably.

Spring 2020 • 35

MEMBER PROFILE

the military transferred over into this business,” says Hill. “It was establishing systems and the inventory controls and many of the same things that we did in the military that really applied here.” Like Starcher when he left to serve during World War II, Hill was lucky enough to have a spouse that would gladly step into his role as he served 36 • Spring 2020

our country. In November 1989, as John was recalled to duty in the Gulf War, his wife, Carol Hill, formally succeeded him as president. From the beginning, Willard C. Starcher has been a family company. Willard and Dorthy ran the company until Willard’s death in November 1974. Willard was succeeded as president of

the company by Fred Hill. Fred was instrumental in the complete renovation of the company facilities. Fred ran the company until his death in 1985. “I got involved in the company in 1980, when I came out of the service for the first time,” says Hill. “My father was ill and there was an expectation that I would come out of the service and come home and run the business. That’s what I ended up choosing to do.” Upon Fred’s death, his wife, Joan Hill, became President and began the initial computerization of the store activities. Joan worked closely with Carol Hill on modernizing the office. “We needed to get an office set up and functioning for today’s world,” says Hill. “Carol’s first job was basically handling inventory systems. Back then, we kept all our inventory on what we called card files. We basically had a big tub of files, and as you sold a part, you flipped the card over. We’re probably 15 times the size we were then, but even then, it was an all-day event just to keep track of what you sold and ordered. We knew we had to come up with a better system.” Unfortunately, just three months after the passing of her husband, Joan Hill unexpectedly passed away. Today, the company is owned and operated by John and Carol Hill and Mary Beth Titus, John’s sister. All three of the owners have been involved with Willard C. Starcher for nearly 40 years. Denver Sturm was with the company for nearly 60 years. Willard’s sister, Imogene Starcher, worked with the company until she was nearly 90. That commitment and experience is a part of the company culture that Hill is very proud of. “Any time you’re hiring somebody and bringing them into the organization, you’re going in with the attitude that it’s going to be forever,” Hill says.

MEMBER PROFILE “Unfortunately, that’s not always the case. But that’s part of the culture we’re trying to create. We’ve been very fortunate with the employees that we’ve had. I can’t say enough about them. They’re the ones who bear the burden of what goes on in the day-to-day and they’re one of the biggest reasons we’ve lasted as long as we have.”

me to pay my bills on time. In turn, we expect them to have the product in stock, to offer those sales and safety training and provide expertise on technical matters. And return our phone calls.”

GROWTH WITH GAWDA

COMPANY GROWTH If doing things in a professional way and a culture that entices people to make a job a career are two legs of the stool that Willard C. Starcher sits on, the third is certainly the commitment to “Doing Things Right the First Time.” It is a mantra that Hill preaches. And with good reason. “The culture we’ve built is to do it right the first time,” says Hill. “That’s extremely important to us being in rural West Virginia. Most of our supplies are traveling on trucks for very long distances. Our first customer is more than an hour away. And distance equals expense. It’s very expensive to drive hundreds of miles and then foul up an order. When a customer calls here a second time, I’m usually involved at that point.” That mission has served Willard C. Starcher well for more than 80 years, as it has grown from Willard Starcher’s garage to a company that now sells both hardgoods and equipment as well as compressed industrial, medical and specialty gases. “There hasn’t been a secret to our success,” Hill says. “It was nothing but hard work by our very dedicated and very professional employees here.” The company has continued to value working with suppliers who value the supplier-distributor relationship, just as they did when Willard helped co-found GAWDA in 1945. “People still buy from people,” says Hill. “I can’t say enough for a personal

Willard C. Starcher received the CGA/ GAWDA Annual Safety Award at the 2019 Annual Convention. George Bodnar accepts on the company’s behalf.

relationship between the supplier and the distributor. I think, unfortunately, that some vendors have cut their sales force and are trying to do more with what I call ‘cyber reps.’ They communicate exclusively by email. That doesn’t really provide the training and the expertise in the product line that will help us sell more of their product.” He continues, “If there is a project that has turned into a mess, it’s much more difficult to be angry with a person you consider a friend. It’s a whole lot easier for the two of you to work together to try to resolve something to everybody’s satisfaction in a timely manner.” Willard C. Starcher has been fortunate to partner with suppliers who strongly value that relationship, including ESAB, Lincoln Electric and Norton Abrasives. “It’s not a one-way street either,” says Hill. “I think there are certainly things that the supplier should expect from us. They should expect us to stock their product, attend their trainings and for

While the preservation of the distributor-supplier relationship may have been the catalyst for Starcher joining GAWDA, it is not the only benefit that the company has received. “GAWDA has been very important to us,” says Hill. “It gives us visibility. It gives us access to vendors and to other distributors. And the one that that is very important to us is the access to the consultants and the CGA publication partnership program.” Willard C. Starcher has twice been recognized with the CGA/GAWDA Annual Safety Award for companies under 100,000 Employee Exposure Hours at the GAWDA Convention, including at the most recent Convention in 2019. “It’s an honor to win that award,” says Hill. “We put it right out where customers can see it. It goes back to the professionalism of the organization. Our folks try to do things the right way.” That professionalism, along with the company’s longevity and continued family ownership, helps Willard C. Starcher compete, even from rural Spencer, West Virginia. “I think it’s an advantage,” Hill says. “When someone finds out we’ve been around since the 1930s, they know we’re not likely to disappear overnight. And I think often times the fact that we’re a smaller company is helpful. Customers like being able to pick up the phone and call the owner. As Hill says, people buy from people. And with a professional staff who emphasize personal relationships, people seem to enjoy buying from the people at Willard C. Starcher. Spring 2020 • 37

Y E A RS O F

The Origins of Something Great Looking back on the start of a 75-year journey

his year is a milestone year for GAWDA as we celebrate our 75th Anniversary. Throughout 2020, we will be celebrating our roots, all while looking forward to ensuring that the next 75 years are as productive and impactful as the first. In the 1st Quarter 2020 issue of Welding & Gases Today, we ran a “Trip Down Memory Lane” 75 Years of GAWDA timeline on pages 50 and 51. In this issue, as we preview this year’s new and improved SMC, we look back on fun SMC moments from throughout our history on page 44. We also have made apparel with the GAWDA 75 Logo on it available for sale. See more information on page 42. But for this article, we thought it was important to see where we came from. The following is an excerpt about the formation of the National Welding Supply Association (NWSA), which would later become GAWDA. It is from the definitive book on the history of GAWDA, The Road to Dayton. If you are interested in reading more of The Road to Dayton, copies are available for purchase in the GAWDA.org Members-Only Section.

THE START OF SOMETHING BIG Historians refer to 1945 as “The Year that Changed the World.” The Second World War had ended after the defeat of Hitler’s Third Reich in May, followed by the surrender of Japan in August. During the years leading up to the Second World War, manufacturing was in overdrive for the war effort. When the war ended and victory was declared, returning U.S. veterans helped propel an idealism and optimism that we could do anything. And we could. The economy began a slow ascent, due in part to the end of the war and the consumer confidence that came with it. The G.I. Bill helped returning soldiers learn new skills that would help them step up the ladder…and with this often came a move to a bigger house in the suburbs, which required home goods, a car and other essentials. The building of new roads under the Federal Aid Highway Act to get these new cars from the city 38 • Spring 2020

to the suburbs brought new jobs…and a large need for welding equipment and supplies. The world was changing. Perhaps it was from this newness, this optimism and confidence that as a country we could overcome challenges and not only survive, but thrive, that propelled a small group of welding supply distributors to take on their biggest challenge – the loss of sales and money. In retrospect, 1945 was a year that changed not only the world, but one very essential piece of it – the gases and welding industry. The manufacturers’ penchant for independently establishing pricing and terms, with little regard for the distribution channel, was creating a hostile environment in which each viewed the other with suspicion. Many manufacturers were selling direct to customers, bypassing distributors as the exclusive medium through which products should be sold. Some were private-branding their products. Other manufacturers required that once a distributor established the account, that account would revert back to the manufacturer on a direct basis. Some manufacturers were referring to distributors as “welding specialty houses” and classifying them as “dealers” while granting distributorships to wholesale hardware and mill supply houses at much better terms. Many distributors felt pressured and began talking about forming an organization. They believed it could strengthen their role in the industry and address the growing hostility between suppliers and the distribution channel. But it was Herbert Weiler of Weiler Welding Company in Dayton, Ohio, who walked the talk. Weiler, a distributor of gas equipment and supplies, was unhappy with some of his manufacturers’ requirements. Weiler’s office had a large window that faced the front doors of the Dayton Electric Company (Delco), which manufactured parts for General Motors. After the manufacturers’ reps and salesmen left his office with an agreement that Weiler would sell their products, he watched them cross the street and sell directly to Delco. He had enough! He felt that

C E L E B R AT I N G

75 YEARS

1945-2020

1945: The inaugural NWSA Charter Meeting (photo above) 1946: L.O. Schneiderwind (right) was elected the first president of NWSA at the second Annual Convention in Dayton, Ohio, in 1946. He presided over the adoption of the association’s constitution and bylaws, and created a resolution allowing manufacturers to join the association. Also pictured, George Ohmer, one of the founders of GAWDA. (photo right)

a distributor association would foster dialogue with manufacturers and encourage the beginning of a fresh relationship. Herbert Weiler put his heart into laying the groundwork for a distributor association. During the summer if 1945, Herbert Weiler met in his office with manufacturer’s representative George H. Ohmer, whose own office was housed in Weiler’s building. The two discussed how an association of like-minded distributors would benefit the industry. That same day, Weiler received a surprise visit from his friend Vaughn Stacey Rice of Virginia Welding Supply Company in Charleston, West Virginia. Rice jumped into the conversation, agreeing that an association was sorely needed. Shortly after, Ed Caluwaert of O.K.I. Welding Supply Co. in Cincinnati became part of the discussions, which intensified over the next few months. The four turned their frustrations into passion for bettering the gases and welding industry.

Want to learn more about the origins of GAWDA? Order The Road to Dayton from the GAWDA.org Members-Only Section.

The first official charter meeting of the NWSA was held on November 13, 1945 at the Hotel Van Cleve in Dayton, Ohio. Attendees included: • Ralph Chase, Chase Welding Supply Co. (Benton, IL) •

J.D. Hopper, Hopper Welding Supplies (Anderson, IN)

•

F.B. Findley, Mahoning Welding Supply Co. (Youngstown, OH)

•

J.W. Albiston, Maine Oxy-Acetylene Supply Co. (Auburn, ME)

•

E.C. Caluwaert, O.K. I. Welding Supply Co. (Cincinnati, OH)

•

G.G. Garman and H.W. Sweet, Purity Cylinder Gases (Grand Rapids, MI)

•

Louis A. Periard, Saginaw Welding & Supply Co. (Saginaw, MI)

•

V.S. Rice, Virginia Welding Supply Company (Charleston, WV)

•

Herbert G. Weiler, Weiler Welding Company (Dayton, OH)

•

J.W. Richards, Welders Sales & Service Co. (Youngstown, OH)

•

R.A. Vaughen, Welders Supply Company (Canton, OH)

•

W.C. Starcher, Willard C. Starcher, Inc. (Spencer, WV)

Spring 2020 • 39

A BLAST FROM THE PAST

40 â&#x20AC;¢ Spring 2020

American Welding Society® FOUNDATION

2019–2020 SCHOLARSHIP RECIPIENTS The AWS Foundation would like to thank GAWDA members for their generous donations! Because of their support, the following students will receive scholarships to advance their welding education. Air Products Women in Gases and Welding Scholarship

Arc3 Gases Scholarship James Silver

Women of Gases and Welding – District 7 Scholarship

Callahan Jobe

East Carolina University

Daniella Morris The Ohio State University

Santa Fe Community College

Women of Gases and Welding – District 20 Scholarship

WESCO Gas – ITW Mobile Section Scholarship

Cassandra Wisser

Darrius Booker

Azaiah Presley

College of Western Idaho

Reid State Technical College

Brant Family/Indiana Oxygen Scholarship

AWISCO Scholarship

Roger Hood

Kevin McIlvaine

Hobart Institute of Welding Technology

The Ohio State University

Rod Belden – OE Meyer Co. Scholarship

Stephen E. Harrison Memorial Scholarship (WELSCO)

Sky Cylinder Testing Scholarship

Samuel Rhoades

Dalton Wetherington Arkansas Elite Welding Academy

Shawn Lannan Ivy Technical College

Hobart Institute of Welding Technology

Scholarships to be Awarded in 2020 



Atlas Welding Supply Scholarship

Keen Compressed Gas Scholarship 



nexAir Scholarship



Norco/Kissler Family Foundation Scholarship

Saf-T-Cart/Jimmy Walker Scholarship



Welders Supply Company Scholarship

Women of Gases and Welding - District 8 Scholarship

Learn how the AWS Foundation supports education and careers in welding at www.aws.org/foundation. Contact Executive Director Monica Pfarr at 800-443-9353 Ext. 461 or mpfarr@aws.org if you are interested in establishing a scholarship or grant endowment. All donations to scholarships and grants are matched 100% by the AWS Foundation.

Y E A RS O F

Celebrate in style! SHOW YOUR GAWDA PRIDE

C E L E B R AT I N G

75 YEARS

1945-2020 GAWDA is celebrating its 75th anniversary in 2020. If you want to show your support for GAWDA's 75th Anniversary you can order 75th anniversarybranded products including clothing, yeti mugs, coasters and more.

Visit GAWDA.org for more information 42 â&#x20AC;˘ Spring 2020

Introducing the

Made in the USA

888.508.2583 specgas@sherwoodvalve.com www.sherwoodvalve.com

A TRIP DOWN

SMC AND CONVENTION FUN This year’s Spring Management Conference in Austin, Texas, is sure to be three days of non-stop educational opportunities and takeaways. Those opportunities, combined with the unparalleled networking that GAWDA events facilitate, make the SMC and Annual Convention must-attend events for everybody in the gases and welding industry. But between all the professional development, GAWDA members have always known how to have a great time! Here is a look back at some fun SMC and Convention pictures from GAWDA’s illustrious history.

44 • Spring 2020

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SPRING MANAGEMENT CONFERENCE 2020 JW MARRIOTT AUSTIN

Sunday, April 5, 2020 – Tuesday, April 7, 2020

JW MARRIOTT AUSTIN 110 E 2ND STREET AUSTIN, TX 78701 PHONE: 512-474-4777

46 • Spring 2020

More Value

For Members

•

12 Engaging Educational sessions with different

presenters. •

Relevant & timely topics:

Sales & Marketing  Safety & Operations Technology  Human Resources • Valuable insight for all levels of management

REGISTRATION AND BADGE PICKUP LEVEL 3 - LONESTAR BALLROOM FOYER EAST JW MARRIOTT AUSTIN

About Austin Austin is the capital city of Texas. It is the fastest growing large city in the United States. Located in Central Texas within the greater Texas Hill Country, it is home to numerous lakes, rivers, and waterways, including Lady Bird Lake and Lake Travis on the Colorado River, Barton Springs, McKinney Falls, and Lake Walter E. Long.

The Hotel This urban resort is located within a 15 minute drive from the Austin International Airport and just steps from the best attractions and entertainment options Austin has to offer – including the Sixth Street Entertainment District, Austin City Limits, University of Texas and the Texas State Capitol.

Saturday

12:00 p.m. – 5:30 p.m.

Sunday

7:00 a.m. – 6:00 p.m.

Monday

7:00 a.m. – 5:00 p.m.

Attractions With vibrant entertainment and culture, inspiring cuisine and stunning outdoor settings, Austin lets you create a soundtrack all your own. Austin is home to more than 250 music venues and a vibrant art scene.

SIXTH STREET Sixth Street is a historic street and entertainment district in Austin, Texas, located within the city’s urban core in downtown Austin. Located just 0.5 miles north of the hotel, Sixth Street is home to lots of great nightlife in Austin, with numerous bars and restaraunts playing host to live music.

SOUTH CONGRESS AVENUE This vibrant neighborhood south of Lady Bird Lake is a must-stroll for visitors and a popular hangout for locals. South Congress oozes homespun character and boasts the story of Austin’s yesteryear in its boutiques, eateries, galleries and music venues. Located just 1.2 miles south of the hotel.

SECOND STREET DISTRICT

Weather + Attire The average high temperature in Austin, TX in early April is 80 degrees and the average low is 59 degrees. Attire for the Spring Management Conference is business casual.

Located 0.2 miles west of the hotel, the Second Street District centers around Austin’s best mix of local retail, restaurants, living and entertainment. It’s a vibrant area of walkable downtown shopping, dining and enjoyment. Take a stroll and find Austin-owned restaurants and world-renowned music in this downtown gem. Explore an enclave full of boutiques and Austinbased shops. From Instagrammable coffees to craft cocktails and indie films, you’ll find it at all Second Street District, distinctly Austin. Spring 2020 • 47

SPRING MANAGEMENT CONFERENCE 2020

Schedule of Events TIME

Austin City Limits

MEETING

PRESIDENT’S WELCOME RECEPTION & DINNER

SATURDAY, APRIL 4, 2020 12:00 p.m. – 5:30 p.m.

Early Badge Pick Up

SUNDAY, APRIL 5, 2020

SUNDAY, APRIL 5

6-10 p.m.

Join us for a legendary evening at Austin City Limits, just a few steps from the JW Marriott Austin. No need to leave early - connect with industry friends and explore Austin City Limits, music’s best address, home of the longest running music series.

7:00 a.m. – 6:00 p.m.

Conference Registration

8:00 a.m. – 9:00 a.m.

Executive Committee Meeting

9:00 a.m. – 11:00 a.m.

Board Meeting 1

11:00 a.m. – 1:00 p.m.

Strategic Plan Rollout Working Lunch with Committee Chairs

1:00 p.m. – 5:00 p.m.

Exhibitor Booth Set Up

1:00 p.m. – 3:00 p.m.

Committee Meetings

3:00 p.m. – 4:00 p.m.

Board Meeting 2 3-TWO-1 Reception

5:00 p.m. – 6:00 p.m.

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

6:00 p.m. – 10:00 p.m. President’s Welcome Reception & Dinner

MONDAY, APRIL 6, 2020 6:00 a.m. – 12:30 p.m. Exhibitor Booth Set Up 7:00 a.m. – 5:00 p.m.

Conference Registration

7:00 a.m. – 8:00 a.m.

Networking Breakfast and Welcome By GAWDA President, Abydee Butler Moore

8:00 a.m. – 8:55 a.m.

SALES & MARKETING

SAFETY & OPERATIONS

TECHNOLOGY

HUMAN RESOURCES

We Now Get CRM Colleen Kohler, Noble Gas Solutions

The True Cost of an Accident Marilyn Dempsey, GAWDA Safety Consultant

Cyber Security – The Pain and Cost of Being a Victim and How to Protect Yourself Joe Ripslinger, SJ Smith

Winning The Talent War Bill Proctor, nexAir

8:55 a.m. – 9:15 a.m.

9:15a.m. – 10:10 p.m.

Break Grow Time! What You Need to Know About the New Cannabis and Hemp Extraction Markets Jason Kirby, Oxarc

10:10 a.m. – 10:30 a.m.

10:30 a.m. – 11:25 a.m.

48 • Spring 2020

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

Our Story Your Lesson Mike Dodd, GAWDA DOT & Safety Consultant

Using HR to Maximize Employee Potential and Protect The Business You’ve Built Anne Hayes, Indiana Oxygen

Break Playbook for Sales & Marketing Growth through Company Alignment Allison Earlbeck, Earlbeck Gases and Technologies

Keeping Score in Distribution Craig Harris, Red Ball Oxygen

Changing Your ERP Without Taking Years Off Your Life David Healzer, CeeKay Supply

Getting Employees to Give a Damn Ryan Craven, General Air

ABRASIVE PRODUCTS FOR THE PROFESSIONAL

TIME

MEETING

MONDAY, APRIL 6, 2020 (continued) Group Lunch & GAWDA Presentation

11:30 a.m. – 12:30 p.m.

by GAWDA President, Abydee Butler Moore & Executive Director, John Ospina

12:30 p.m. – 4:30 p.m.

Contact Booth Program

4:30 p.m.

Industry Hospitalities

A New Take on Angle Grinder Wheels

TUESDAY, APRIL 7, 2020 7:00 a.m. – 12:00 p.m.

Conference Registration

7:00 a.m. – 8:00 a.m.

Networking Breakfast

8:00 a.m. – 10:00 a.m.

• President’s Address: GAWDA President, Abydee Butler Moore • Keynote Speaker: Patrick Lencioni

10:00 a.m. – 10:20 a.m.

Break

10:20 a.m. – 12:00 p.m.

• GAWDA Scholarship Presentation • Industry Keynote Speaker: Jens Luehring, President & CEO of Messer Americas

General Business Session

E.T 20°

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SPRING MANAGEMENT CONFERENCE 2020

Meet the Speakers

PATRICK LENCIONI Best-Selling Business Author, Recognized Speaker and Thought-Leader

 Tuesday, April 7, 2020

JENS LUEHRING President & CEO of Messer Americas

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50 • Spring 2020

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Download the GAWDA 2020 Spring Management Conference App for a full list of events and attendees, direct attendee messaging and social media access, maps and much more!

Don’ t miss it!

The Contact Booth Program

M O N DAY APRIL 6, 2020 12:30 – 4:30 PM JW GRAND BALLROOM The Contact Booth Program is one of the best networking opportunities in the entire gases and welding industry. Distributors, make sure to walk the floor and meet with all of the more than 120 suppliers exhibiting this year. See the latest and greatest products and services that the industry has to offer, and form invaluable relationships that could benefit your business in the future. GAWDA Consultants are available in the GAWDA Booth to answer questions: Marilyn Dempsey (DHS, EPA and OSHA), Mike Dodd (DOT and Security), Tom Badstubner (FDA, Medical and Specialty Gases), Rick Schweitzer, Esq. (Government Affairs and Human Resources) and Brian McLaughlin (Group Life Insurance).

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Spring 2020 • 51

HUMAN RESOURCES

Teamwork Over Talent BY PATRICK LENCIONI

Patrick Lencioni is founder and president of the Table Group, a firm dedicated to making work more fulfilling by making organizations healthier. Pat has written numerous best-selling books and has worked with organizations ranging from Fortune 500 companies to nonprofits. Through his work as a best-selling author, consultant and keynote speaker, Pat has pioneered the organizational health movement.

SMC SPEAKER 52 • Spring 2020

hese days, virtually no one will tell you that teamwork isn’t important when it comes to an organization achieving its goals. Even cynics understand that groups of people who are willing to put their individual interests aside for the good of the team will outperform groups of people who do not. Having said that, there is something that often happens after a team succeeds that suggests many of us might be discounting the real power of teamwork. A great example of this happens in the world of professional sports. With the football season having just wrapped up, perhaps a hypothetical example from the NFL would be a good case study. Imagine that a team wins the championship with less talent than many of the teams it defeated along the way. This is not all that uncommon in sports. When this happens, television announcers, journalists, coaches and sports executives often rave about the amazing culture of teamwork that existed, and how it was what allowed the team to overachieve and beat the odds. Those people seem sincere when they make that claim, but then something strange happens during the off-season which doesn’t really make sense. As soon as the free-agent market opens up and executives try to sign new players or make trades with other organizations, a premium is

placed on athletes who played for the championship team. General managers are suddenly willing to bid higher and pay more to pry a linebacker or wide receiver away from the championship team, as though they are now more valuable. All too often, those same general managers find themselves disappointed the following season when the new recruit doesn’t do for his new team what he apparently did for his old one. Of course, the explanation for this is obvious: the culture of teamwork that the championship champ created made its players much more effective than they would have been on other teams. As a result, the collective achievement of the team exceeded what anyone would have been able to predict based on an individual analysis of talent. Now, if we really believed in the power of that team culture, then we would know that taking someone off that team and putting them in a new organization is going to have a profound impact on their performance. And so, the question is, do those executives really believe what they said about teamwork and somehow forget it in their desire to find new players, or do they just give lip service to teamwork and deep down inside believe it all comes down to talent? This same phenomenon also happens in business. Companies spend a lot of time and energy trying to acquire talent from successful organiza-

HUMAN RESOURCES

tions, believing that by doing so, they’ll be able to improve the performance of their own organizations. In most situations, people from great companies aren’t easy to lure away from healthy, successful organizations, and so they command higher salaries. Unfortunately, like in the NFL, the return on investment is rarely what the acquiring company was striving for. What’s the practical lesson for companies trying to improve? They should start by spending more of their time and effort creating a culture of teamwork than looking for outside talent because the rewards for doing so are enormous. For starters, they’ll get more from the employees they already have, and even

Remember, great football teams birth superstars from the ranks of ordinary players who happen to have extraordinary attitudes.

find stars who are already in their midst. Remember, great football teams birth superstars from the ranks of ordinary players who happen to have extraordinary attitudes. Beyond that, companies that create true team environments become places where other team-oriented players want to work. Great football teams attract players who are tired of playing for selfish, dysfunctional teams, and, in some cases, they even play for less money to have that opportunity. Perhaps the first thing that a company needs to do in order to improve is to ask itself if it truly believes that teamwork is a strategic advantage and that it, more than sheer talent, brings about lasting success.

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FEATURE

RECOVERING AF TER TRAGEDY STRIKES

When Tragedy Strikes How to cope when your company has a tragic incident BY STEVE GUGLIELMO

ccording to the United States Department of Labor Occupational Safety and Health Administration (OSHA), 5,250 workers died on the job in 2018, an average of more than 14 deaths every day. It is a tragedy that nobody wants to think about. But a good company must be prepared for how to respond when tragedy strikes. Tragedy, of course, can take many forms. It does not necessarily need to be a worksite death, as cited above. It could be a non-fatal accident (2.8 million nonfatal workplace injuries and illnesses reported in 2018), or a natural disaster like a fire, earthquake, hurricane, flood, etc. Companies must not only be prepared with a plan to continue operating after an

54 • Spring 2020

event like this, but also with how to help employees cope with the tragic event. When a workplace fatality or a natural disaster strikes, it is not only the injured party who suffers. Other employees in your company are impacted. Customers and suppliers are potentially impacted. According to an article entitled 8 Effective Strategies for Supporting Employees After a Disaster by Joanne Crossland, “Although it may be tempting to crack the whip and get back to business as usual as quickly as possible, it’s best to avoid rushing stressed, traumatized employees back to work. They probably won’t be able to focus on their jobs until they have a handle on their situation, and they deserve the time and support it takes to get there.”

One of the most effective things that a company can do during a tragic situation is communicate frequently through multiple channels. That communication can include information such as: What happened? How will the business be impacted? Will people’s jobs be impacted? “During and after a disaster, employees need to know what’s going on at the office and what’s expected of them,” Crossland says. “This can help them regain some sense of normalcy when their world is turned upside down. Use every channel available, including company-wide and department-level emails, messages posted on your company intranet and internet sites, communication apps, texts, social media accounts and even signs

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RECOVERING AF TER TRAGEDY STRIKES

posted onsite. Using multiple channels simultaneously helps you reach people wherever they are, which can vary in a disaster, depending on the availability of power and access to desktops or mobile devices.” These tragedies can happen to any company at any time. Unfortunately, many GAWDA members have learned that lesson first-hand. When tragedy does strike, it’s important to have a plan in place for how to handle it, both in the immediate aftermath and in the long-term. We spoke with two GAWDA Members, A-OX Welding Supply Company, Inc. and Uniweld Products, who both experienced major fires at their facilities, about how they were able to cope with the disasters and keep their business intact. We thank both companies for their participation.

In the immediate aftermath of a tragedy, communicating with those affected should take priority. But eventually, attention will have to be turned to what is next for the business. HP and SCORE conducted a study entitled, “Impact on U.S. Small Business of Natural & Man-Made Disasters.” Some statistics from that study include:

“A company that experiences a computer outage lasting more than 10 days will never fully recover financially. 50% will be out of business within five years.” “An estimated 25% of businesses do not reopen following a major disaster.” OF COMPANIES EXPERIENCING A CATASTROPHIC DATA LOSS: y 43% of companies never reopened. y 51% of companies closed within 2 years. y 80% of companies that do not recover from a disaster within month are likely to go out of business.

y 75% of companies without business continuity plans fail within three years of a disaster. y Of those businesses that experience a disaster and have no emergency plan, 43% never reopen; of those that do reopen, only 29% are still operating two years later.

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FEATURE

RECOVERING AF TER TRAGEDY STRIKES

A-OX WELDING SUPPLY COMPANY, INC. Those who attended the 2019 GAWDA SMC in Minneapolis, Minnesota, will no doubt remember the incredibly moving presentation given by A-OX President and Owner Thomas Elliott. Elliott described the massive fire and subsequent explosions that consumed the A-OX propane cylinder filling area on May 17, 2018. “One of our employees was filling propane and while he was doing this, he was unaware that the propane was pooling around the tanks,” says A-OX 56 • Spring 2020

CTO/Business Development Manager Trenton Elliott. “As he reached for another propane cylinder, he brushed up against a pallet that was made out of plastic, which produced a static discharge igniting the propane pooling beneath the cylinder.” Soon after, the entire pallet was engulfed in flames and not long after that, the entire flammable gases area was consumed. To see security footage of the incident and how quickly the inferno got out of hand, visit the GAWDA.org Members-Only area. “We were so fortunate that no one

was hurt,” Elliott says. “The damage was substantial. We lost all our flammable cylinders. The fire ruined the exterior of the building but fortunately didn’t penetrate the building. The exterior damage caused us to temporarily shut down our reconditioning area. We lost 2 semi-trucks, 3 tractor trailers, and a few vehicles.” All told, the total damage from the fire cost A-OX $2,236,000, without accounting for the opportunity cost of time devoted to the cleanup and recovery that was not spent selling. And even with all that, A-OX considers itself lucky.

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RECOVERING AF TER TRAGEDY STRIKES

asking numerous questions. I would recommend designating one person to speak with them.” Through it all, A-OX didn’t lose a single employee. “Our employees were shocked that this happened,” says Elliott. “But, fortunately, they all rallied around us. I credit this mostly to Dr. Terran Elliott Bergdale. She was instrumental in addressing everyone’s concerns, identifying how it happened and how we were going to keep it from ever happening again.” Though A-OX continues to feel the effects of the disaster today, it has revamped many of its safety and training practices to ensure that nothing like this ever happens again.

“We were fortunate that the fire didn’t penetrate into the building,” Elliott says. “Because of this, we were able to resume pumping operations the next day. However, our blasting, paint, hydro, ultrasonic testing facilities were all down.” For A-OX, communication was key. “In the immediate aftermath, a lot of our customers were calling us. First to show their concern for us, and then to learn how it would affect them,” Elliott says. “Because it created such a spectacle, naturally there was media, state and federal agencies

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“We no longer pump propane on site,” says Elliott. “We’ve ramped up our training to make sure our employees are as prepared as we can possibly make them. I recommend using the resources available to you from Propane Education & Research Council (PERC). We evaluated and made some changes to our record keeping systems to make sure that our data is safe and secure.” He concludes, “I think it’s important to remember that things like this happen. If you’re prepared now, it will be easy to have faith that everything will work out later. I would also recommend leaning on your support structure, whether it’s family, friends or colleagues. You have to share this burden, one person can’t do it alone.”

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RECOVERING AF TER TRAGEDY STRIKES

UNIWELD PRODUCTS, INC. Like A-OX, Uniweld Products, Inc. also endured a massive fire that could have crippled its operations. In September 1999, Uniweld suffered a catastrophic fire that consumed 45,000 sq. ft. of office and manufacturing space. Fifty years of office records, both hard copies and computer, were lost in a single evening. “The fire burnt up all of our offices and all of our raw material and half our machines, but didn’t touch our assembly area or finished goods inventory,” said Uniweld Executive Vice President Douglas B. Pearl and President David S. Pearl II. “We lost all of our digitized records. We had so many good, honest customers and even competitors who helped us out.”

To this day, the cause of the fire is undetermined. The fire marshal speculates that it could have been caused by a lighting strike. “Our insurance company paid out more than $10 million and we were down for months waiting for our new building,” says Pearl. However, even without a building, Uniweld was able keep operations afloat in the meantime. “After the flames were finally fully extinguished, inspectors had to do swab sampling around the inside of the building to determine if there were any toxic or harmful residues,” Pearl says. “After we got clearance to enter the building, we assessed our damage and prepared a flexible plan of operation on the fly. We were back with limited shipping

within three days and back in full swing in about two weeks. Parts production became a critical element and we used every piece of equipment that we could muster and salvage to begin making parts. We moved our operation center to a family-owned building next door, and we began preparing a comprehensive insurance claim.” To weather such a storm took a true group effort. “Our employees were great. We kept everyone on at family expense and everyone was assigned tasks to accomplish. It would have been next to impossible to recover the way we did without our wonderful employees and insurance. Everyone stepped up and delivered,”

To this day, the cause of the fire is undetermined. The fire marshal

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speculates that it could have been caused by a lighting strike. Pearl says. “Even before the smoke cleared, one of our competitors was sending out faxes to everyone saying that they were ready to supply. All personnel were assigned specific tasks. Much of the work was information collecting from both employees and customers. Our insurance company was wonderful and very helpful. They helped us with the demolition and pre-re-construction issues. Most of our family of employees got over the shock quickly and we moved on to the task at hand.” Uniweld celebrated its 70th anniversary in 2019, but it was very close to never

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RECOVERING AF TER TRAGEDY STRIKES

achieving that milestone. The fire helped teach the company a valuable lesson and it has instituted new protocols and safeguards to prevent something similar from happening again in the future. “Preparation for a catastrophe is critical for survival,” says Pearl. “Make sure you have adequate insurance coverage from a highly rated insurance carrier. Make sure your property insurance is at replacement cost value. Business interruption insurance is also a good idea. It is very important to have an upto-date copy of ALL of your computer systems information away from your building in a safe deposit box. This way, if your computers are damaged, you can buy new hardware and upload all of your current information. Copies of ALL computer records must be stored off site in a secure location. Copies of mechanical drawings, if not computerized, should also be stored off site in a safe and secure location. When designing your disaster plan make sure you consider the least but plan for the worst. An up-to-date machine list and full inventory list is also very important to keep off site.” In addition to keeping copies of all data off site, Uniweld has also changed the way some of its parts are manufactured and its compressed gas cylinders are stored. Says Pearl, “Having a fully sprinklered building is an excellent fire deterrent. Once there is water flow, an alarm goes off and your alarm central station notifies you and the fire department. Having an approved building fire sprinkler system, will also reduce your insurance costs. Had we had a fire sprinkler system the damage to our facility would have been much less. There are companies that specialize in assisting companies with disaster plans, they are experts and can assist you if necessary.”

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FEATURE

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How to Overcome a Loss

BY BILL MCCLOY, MANAGING DIRECTOR, AMWINS PROGRAM UNDERWRITERS, WELDING DISTRIBUTORPRO INSURANCE PROGRAM

our business has suffered a loss - a natural disaster or a fire. So much of how you respond after a loss is predicated on how well you’ve prepared prior to a loss. Ask yourself these questions: Have you developed an Emergency Response Plan or Disaster Recovery Plan? Do you have inventory lists, plot maps, vehicle registrations, accounts receivable and payable, or key contact information documented and backed up? Is your back-up secured off site? Do you have a dedicated individual accountable for coordinating the response if an emergency occurs? Have you reviewed your plans with local response agencies? Emergency response preparation is invaluable in the event of an unforeseen loss.

COMMUNICATION After a loss occurs, and you have verified that personnel are safe and the site is secured, you want to first think about communication. Reassure employees and customers of your restoration plan. Discuss your options with suppliers and vendors. Their response time and flexibility when an unforeseen loss occurs is also important. 60 • Spring 2020

Communication with government agencies and local authorities will go much smoother if you’ve prepared in advance and if you have an established a relationship wherever possible. You should also contact your insurance representative to initiate the claim and understand the process for receiving business income or extra expense (if applicable).

RESUMING OPERATION Before returning to normal business operations, ensure the area is secure and have the structural integrity of all buildings validated by a professional. They will assist you in identifying current building codes and ordinances on demolition and clean up. Once secure, you will want to assess the damage and begin the process of documenting damages and all necessary expenses. As you assess the damage, determine the areas that employees can safely access. As you evaluate the property, keep the following questions in mind. Do you need to protect undamaged property? What is the status of your utilities? Are water supplies safe? Are electrical lines down? Can you access telephone systems and phone lines? Where will you operate “central command” from? Do

you need to secure temporary space such as a mobile unit or other structure? Do you have access to your computer network and available laptops? Can you fill orders from another branch or direct from suppliers?

EMPLOYEES In the case of a natural disaster, not only your business but your employees’ personal lives could also be disrupted. Take this into consideration when recovering from a loss. Determine if and how you can provide employee assistance, both financially and emotionally, during this time. Transportation to/from work, scheduling, and possibly child care may need to be addressed. Discuss with your employees that day-to-day tasks may shift in the short term and identify if training is needed.

RESOURCES When recovering from a loss, consider the following resources: the FEMA website (www.fema.gov), your insurance representative and carrier, and industry trade associations. This is by no means a complete list and we recommend looking at other resources pre and post loss to prepare for the unexpected.

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SALES & MARKETING

The State of Digital Marketing Among GAWDA Members BY BRIAN BLUFF, SITE-SEEKER, INC.

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

or just about every distributor-based association whose members I’ve worked for or for whom I’ve written an article, the story is the same. It’s commonly believed that members are far behind the times when it comes to digital marketing. To some extent this is true, but in most cases that’s not the case. Here’s what I usually find: 1. The majority of members don’t know where to begin from a digital marketing standpoint. 2. Some members understand digital marketing is important, but can’t seem to execute the program they know will produce results. These folks never seem to allocate enough budget to get the job done. They usually underinvest in a proof of concept program only to be disappointed in the results. 3. A few member companies get it, have implemented a strong program, and are kicking some digital butt. These folks have established goals and are organized and deliberate in their pursuit of them. For this article, I decided to see if this was the case with GAWDA. In other words, I wanted to find out if GAWDA member companies get digital marketing and, more specifically, if I could find evidence of the same three groups I described above.

HOW TO TELL IF A COMPANY IS ACTIVELY ENGAGED IN DIGITAL MARKETING Here are the top three indicators I look for to make the determination that a company is engaged in digital marketing. 1. Local Search: Company has claimed their Google My Business Page and actively 62 • Spring 2020

pursues positive reviews. 2. Digital Advertising: Company participates in digital advertising. 3. Website: • Company’s website contains a customer portal or an outward facing e-commerce capability. • Company makes it easy for members to get the help they are looking for. In this case, I looked for websites with a chat tool installed. • Company’s website is fast. There are many other indicators that I could have added to my list – social media participation for example – but these are my top selections. Companies that do the above get digital marketing. If these tactics/tools are implemented well, the company can enjoy really great results.

LOCAL SEARCH I can’t overstate the importance of local reviews. Bright Local’s, Local Consumer Survey 2019 found that: 1. 86% of consumers read reviews for local businesses. 2. A positive reputation online helps customers trust businesses, converts searchers into leads and boosts local search rankings. There are many local search websites/platforms, but I’d argue that Google My Business (GMB) is the most important to GAWDA members. GMB listings are typically displayed on a Google Search Engine results page when Google either recognizes that the query can best be addressed by a local business, or when someone searches for a term like “welding supplies, Syracuse, NY.”

SALES & MARKETING MY FINDINGS The most important part of a GMB page, besides accuracy of information, are the reviews. For this article, I visited the GMB pages of 75 GAWDA member store locations and found the following:

As a general rule you need to continuously generate positive reviews or risk that an unhappy customer or spammer will knock your rating down to the point that potential customers become leery of doing business with you.

DIGITAL ADVERTISING Avg. Star Rating

Avg. Number of Reviews

Across All Locations

3.8

9.8

Top Performer (8 locations)

4.7

43.3

Top Performer (11 locations)

4.8

Poor Performer (16 locations)

2.7

3.1

Poor Performer (14 locations)

2.8

5.1

Metric

Zero reviews

In today’s mature digital marketing world, there are many forms of digital advertising - search, display, social, etc. For this article, I looked at 29 GAWDA member companies and used tools like SEMrush.com and Spyfu.com to find out which companies participated in Google Ads (formally Google AdWords). Why Google Ads? Google Ads is a gateway ad platform for most companies. More importantly, I believe the audience for GAWDA member companies use Google more than the other platforms. I’m not saying the other platforms don’t provide value and shouldn’t be considered; just that it makes sense for a company to first start advertising on Google and expand once they have achieved good results.

MY FINDINGS

Of the 75 GMB pages I looked at, 13 (17.3%) had zero reviews.

TAKEAWAYS 1. The top performer with an average of 43 reviews across their eight locations is doing a great job. It would be very difficult for a competitor to catch them. They clearly have a program to actively solicit reviews. The large number of reviews coupled with the high average star rating give credibility to the quality this company delivers to its customers. 2. The second top performer, based on their star rating, is in a very dangerous situation. While they enjoy a solid average star rating of 4.8, they have only an average of seven reviews per location. It would only take an average of two one-star reviews per location to knock them down below four stars. 3. The two poor performers are suffering from this exact situation. With only a few reviews per location, a couple one- or two-star reviews have put the reputation of these companies in jeopardy. At the same time, it would be pretty easy to fix this situation by actively targeting the generation of more four- and five-star reviews.

1. Six of the 29 (20.1%) companies I looked at participate in Google Ads. 2. The average monthly spend of the companies that did advertise was approximately $1,000. Note - This average spend number is only as good as the data analyzed by the tool I used. The actual spend may be vastly different.

TAKEAWAYS I think 20% Google Ads participation is low. There are so many effective ways to advertise on Google alone (including YouTube and Google’s display network), that I would have expected this number to be in the 30-40% range. Perhaps if I had expanded my research to include more companies, this number would have increased. As for the average monthly spend, I believe that $1,000 per month is a reasonable budget. This number can be refined over time based on results achieved and the geographic area and/or number of locations you are targeting.

WEBSITES In the digital world, your website is the centerpiece. No surprise, right? Sites like Amazon, Home Depot, Lowes, etc. have set the bar really high when it comes to delivering a good user experience. We have come to expect this type of service from every website; and we get frustrated when we experience Spring 2020 • 63

SALES & MARKETING a site that doesn’t deliver. When frustrated, we vote with the click of our mouse and instead buy from a company that can make buying from them easier.

MY FINDINGS I looked at a number of factors related to the 29 GAWDA member websites. Here’s a summary of what I found: Item

Findings

Customer Portals Requiring Login

6 (20.7%)

Outward Facing e-commerce Platform

6 (20.7%)

Live Chat

2 (6.7%)

Website Speed (Average)

CMS or Language

TAKEAWAYS

38/100 - mobile 72/100 - desktop 16/29 (55.2%) - WordPress 2 (6.9%) - Hubspot 11 (37.9%) - Misc. (SquareSpace, WIX, Drupal, ASP.net)

Customer Portals/e-commerce: I expected to find the number of websites with either a customer portal (I assume you can place an order after logging in) or an outward facing e-commerce platform to be much higher. In my experience working with HARDI (Heating, Air Conditioning and Refrigeration Distributors International) members, just about every member is either actively building an e-commerce website or planning to build one in the near future. Still though, the combined number of websites with either a customer portal or an e-commerce platform was 37.9%. This is significant. It will only grow in the future. Live Chat: I included live chat in my research to demonstrate this highly effective tool is underutilized. I belong to a networking group made up largely of forklift dealers and, within this group, live chat is producing fantastic results. Priced very modestly per month, it’s hard to pass this up. Still, when I talk to companies about live chat, I get pushback about needing to man the tool. 64 • Spring 2020

As a final thought, with more and more millennials in the workforce, there’s no question that live chat will continue to grow in popularity. Website Speed: As a group, your websites are pretty fast. They average 38/100 for mobile sites and 72/100 for desktop sites. I used Google PageSpeed Insights to run the test. I included this metric because Google continues to focus on delivering a great experience to its users. The higher the speed, the better the user experience. And, as with most things related to Google, the better experience you deliver to its users, the better you’ll rank. While a mobile score of 38 out or 100 may not seem high, it’s not bad in comparison to other industries. On the negative side, I found that 34.5% of sites scored less than 20 on the mobile speed test; while 27.5% scored above 50 for their mobile site speed. If you’d like to improve your score, run your site through the above tool. On the bottom of the results page, you’ll find information about the things you can do to improve performance. CMS Or Website Language: A CMS (or content management system) is the platform upon which your website is built. It allows the layperson to login and update most elements on the website - page content, banner images, navigation layout and links, etc. Within the 29 websites I looked at, 55.2% are built on WordPress. No surprise here, as WordPress is the most popular CMS in the world. The only thing that surprised me was the two sites that were built on Hubspot. Hubspot is best known for its marketing automation capability. Marketing automation is like email marketing on steroids. With marketing automation, you can create a series of workflows typically consisting of 5-8 emails. Workflows can be assigned to an email list or can be automatically started as users interact with your online content. For example, if a past customer visits your training page a certain number of times, this could be the trigger to send that person a series of pre-written emails about upcoming training events. Alternatively, if someone signed up for a particular training session, they can automatically be added to a list of people that are interested in a particular subject and send them relevant information for a defined period of time going forward. There are many other really great features available within Hubspot and other marketing automation platforms; but, for the purposes of this article, the important point is that no one without a desire to implement an advanced digital marketing program would invest in Hubspot. The annual fee for just the Hubspot CMS is $3,000 - there are other fees related to

SALES & MARKETING marketing automation, Iâ&#x20AC;&#x2122;m just talking about the CMS. In comparison, WordPress is free. The fact that 2 of the 29 websites I looked at were built on Hubspot should serve as an indicator that some part of the GAWDA membership are not messing around and are taking digital marketing seriously.

SUMMARY As with any technology there will be innovators, early adopters, early majority, late majority and laggards. The research I did for this article indicates to me that GAWDA members follow a similar pattern to other associations I work with. Some companies get digital marketing and are likely producing great results. Other companies are still burying their heads in the sand, hoping that this is all a fad. And in the middle, there are a lot of companies that perhaps understand the importance of digital marketing, but for one reason or another have not fully engaged. If youâ&#x20AC;&#x2122;d like me to assess the state of your digital marketing program give me a call at 315-732-9281 x11.

Within the 29 websites I looked at, 55.2% are built on WordPress. No surprise here, as WordPress is the most popular CMS in the world.

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SALES & MARKETING

SEARCH ENGINE TRENDS

n the 4th Quarter 2019 issue of Welding & Gases Today, we debuted a new feature called “Search Engine Trends for the Gases & Welding Industry.” This feature is designed to help readers understand the terms and searches that are ranking highly in Google Trends. Part of developing a comprehensive digital marketing campaign is understanding how customers and potential customers are using the Internet to find your products and your website. The graphs and information below all come from Google Trends, which analyzes the popularity of search queries in Google Search across various regions and languages. The graphs scale “Interest Over Time,” which represent search interest relative to the highest point in the chart for

for the Gases & Welding Industry BY STEVE GUGLIELMO

the given region and time-period. So, a value of 100 is the peak popularity for the term. Another alternative is “Google Keyword Planner.” To use this tool, you must have a Google Ads account. The Keyword Planner lets you search keywords and suggests other words or phrases related to your products and services. It lets you research the trend information for how often certain words are searched and how those searches have changed over time, and also gives you suggested bid estimates for each keyword so you can determine your advertising budget. In today’s digital environment, we strongly encourage members to capitalize on this growing trend and ensure that your company is visible in the place where people search the most.

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SALES & MARKETING

Five Things to do to be Successful in the Gases and Welding Industry Wisdom from 50 years spent in this business BY RANDY SQUIBB, 1994 GAWDA PRESIDENT

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

efore I get started, I have to come clean. Anybody that is reading the title of this article and expecting something that sounds like it came out of the Harvard Business Review or the Wall Street Journal is going to be very disappointed. I went to Texas Tech, not Harvard or Yale. But what I lack in high-powered, fancy advice, I make up for in experience. I’ve spent 50 years in this ‘bidness’ and I’ve found the five things that I think anybody in our industry needs to do to be successful. I’ve worked in the welding industry since I was 16, and these are things I learned first-hand from others in our industry or picked up along the way. I’m so grateful for the friendships I’ve formed and for all the people who have taken the time to help me and mentor me. If you don’t get anything else from this article, I hope your one takeaway is this: Begin to find and build those relationships today. They will be life-lasting and you will learn so much from your fellow industry colleagues.

1. SHOW UP WITH A GOOD ATTITUDE. I honestly believe that about 85% of being successful is showing up for work every day. And the reason I added “with a good attitude” is because one thing I have noticed over the last 50 years is that the most successful people that I have known have a great attitude. There was a wonderful motivational speaker whose name was Zig Ziglar, who I had the opportunity to hear on several occasions. One of the things that he said that has stuck with me all my life, and I so believe it to be true is, “It’s your attitude, not your aptitude, that will determine your altitude.” I believe that with all my heart. Give me someone with a great attitude, and I’ll take them over somebody who is 68 • Spring 2020

Showing up with a good attitude is a real strong base for being successful. smart as a whip but has a terrible attitude every day of the week and twice on Sunday. We are so fortunate, in our industry through our associate members, that we can send our folks to schools and teach them everything there is to know about the technical aspects of this business. But there are few places that we can send somebody in order to get a better attitude. So, showing up with a good attitude is a real strong base for being successful.

2. LEARN, LEARN, LEARN. Set a goal to learn one new thing every day. It does not have to be technical in nature. It can be anything. Learn something new about one of your customers. As I said in a previous article, learn their date of hire and their birthday. Make a note and call them and tell them how much you appreciate them. Learn something about the industry. Some history of the industry. Make your golf swing better. It doesn’t make any difference what you learn, but learn something new every day. That puts your mind in a learning mode. You will get to the point where the first thing you do in the morning is say, “What am I going to learn today?” And when you put your head on your pillow at night, you can reflect on what you did learn that day. Once you get in the habit of doing that, you’ll find it’s very easy to learn something new every day.

SALES & MARKETING

3. BE POSITIVE IN ALL YOUR ACTIONS. Be positive, regardless of what is happening around you. This is different than having a positive attitude. An attitude is a sense of mind. Being positive has to do with your actions. Believe me, there are a lot of unhappy people in this world. If you’re like I was, and you’re involved in a closely held corporation or a family business, this is extremely important for you to learn as quickly as possible. Most of you, like me, started in the welding supply business at a young age. I promise you, the things that you do when you’re 16 are going to be remembered when you’re 26, 36 and 46. We’re fortunate in this industry to not have too much turnover and people will remember the things that you did. That is a tremendous amount of pressure on a young person today, but it’s true. The things that you do today will be remembered when you’re the boss. It’s extremely important to be positive in all the things that you do. This is doubly true in today’s social media environment. You set the tone for others by how you react to different situations. You’re going to be the boss someday. What kind of boss do you choose to be?

4. DO THE RIGHT THING AND TREAT PEOPLE RIGHT. This sounds so simple. Don’t just treat your management team right. Treat everybody right. The people in the plant, the drivers and yes, even the accountants! One of my more famous Squibbisms is “Always say ‘we’ instead of ‘I’ or ‘me’.” It just sounds so much better. Image you’re

in a customer meeting with one of your salespeople. If you say something like, “I’ll take care of this. Kirsten works for me and I’ll make sure she gets it done.” Now, put yourself in her shoes. How do you think that made her feel? Doesn’t it sound so much better, not to mention inclusive, to say, “We’ll get this done!” Another part of treating people right is to find them doing something good and then telling them about it. I was at a Waffle House a few years ago with a couple of other GAWDA Past Presidents, Chip Valentine and Dave Mahoney. Our waitress’s name was Helen. When we sat down, I asked her how her day was going, and she seemed surprised. After all, she’s supposed to be the one who says that. And as we were speaking, I noticed that right above her name tag, she had three waffles with a diamond in each of them. I asked her what those meant, and she told me that she was celebrating her 15th year with the company and Waffle House had given her those waffles to celebrate her anniversary. Well if you know me, you know that I went nuts. “Helen, that is great! Congratulations, I’m so proud of you. That kind of tenure just doesn’t happen often these days. Waffle House is so lucky to have you.” And I got up and got everybody’s attention in the Waffle House and I said, “Hey everybody, Helen is celebrating 15 years today. Can we give her a round of applause?” As we were about to leave, Helen stopped me with tears in her eyes and said, “Thank you so much for doing what you did. That meant the world to

me.” How long did it take me to do that? How do you think Helen felt after we left? Do you think she felt pretty good about herself? Do you think she felt like it was good to be an employee of Waffle House? Take the time, find somebody who is doing something right and tell them about it.

5. HAVE FUN AT WHAT YOU DO. Life is too short to be miserable. The minute you get unhappy at what you do, quit. Do yourself a favor, your family a favor and the company a favor and walk out the door. I’ve had the opportunity to make presentations to companies all over the country and this is where the boss gets really really nervous. And they will come up to me after the meeting and say, “Did you really just tell my people to quit?” And I’ll say, “No, I didn’t tell your people to quit. I told those people who are unhappy to quit. And I promise you, if they quit, you’ll have a whole lot better company and the attitude and everything around your business will be better.” I have been blessed beyond my wildest dreams in this thing we call the welding and industrial gas business. I love this industry and the people in it. I think back on all the people who helped me along the way. I really hope that you’re reading this article has helped you. In a very small way, this is my way of saying thank you to those people, most of whom are dead now, who took the time to mentor this 16-year-old kid 52 years ago. I wish you all the best of everything. Until next time, peace and joy. Spring 2020 • 69

SALES & MARKETING

There’s an App for That BY JOHN TAPLEY

John Tapley is a Business Development Manager at Chart Industries with 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@ chartindustries.com and 470-332-4686.

70 • Spring 2020

That phone in your pocket has more than 100,000 times the processing power of the computers used on Apollo 11. Wow, grasp that; the computing power of your iPhone is that much more powerful than the computer that sent a man to the moon 50 years ago! Granted, everything has advanced since then by exponential orders of magnitude, but it’s still impressive the technology you have available at your fingertips. If you’re not using your smartphone or tablet to its fullest capacity, you could be missing opportunities to grow your business and manage your sales territory more effectively. For the purposes of this article, we will refer to the iPhone but the information is relevant to any smart device. There really is “an app for that.” Your smartphone is capable of so much more than talking, texting and taking pictures. The standard apps that come pre-loaded on your phone are fine, but find your way to the app store for more ways to manage your time and get organized, find new leads, network and connect, and discover tools to support your selling process in the gas and equipment business. Let’s start with managing your time and staying organized. Getting lost in the details of your day, keeping track of all the things you said you were going to do but lost the sticky note, thinking about what you need to be doing next week… there’s an app for that! Wunderlist: Soon be known as Microsoft “To Do,” Wunderlist lets you create lists and specific folders with reminders and prompts to follow-through with things you committed to on that call you made this morning. Target a future date to schedule a visit to the top prospect that is not quite ready to buy yet. Make a list of sales

literature and promotional items you need for restocking your carry-along items. Set a goal, with weekly reminders, for meeting your sales target. Wunderlist has been a life saver for me. But you must use it and stay with it. If you do, odds are high that you’ll become much more effective and efficient in your daily sales efforts. Next up, searching for leads for specific applications or nearby, yes you know what’s coming… there’s an app for that! And it’s something very familiar to most everyone. Google Maps: Commonly used for directions and finding your way, there are features that allow you to search nearby for specific applications or types of businesses. Here is an example of a search nearby for analytical testing laboratories around the Atlanta area:

SALES & MARKETING Now you have a target list. And the next app will help you find the right contact(s) to start developing a relationship at any or all these prospects. And the next app is something also very familiar to most users but one of the features for networking is not well-known: LinkedIn: First, you can use it to find contacts at the analytical testing labs. Just pull up the business name and you’ll see a listing of all employees on LinkedIn. Now, the other feature I mentioned above that is not well-known but is a brilliant way to find and connect with others at networking events, trade shows and industry gatherings, is known as “find nearby.” Here’s how it works: open LinkedIn, select the “my network” icon and look for a small blue circle in the bottom right corner with the people emoji and + sign. Click on this and a window will pop up with three options, the last one being “find nearby (off).” Select to “on” and another window will pop up and “nearby” is open. You’ll start to see others nearby who are open to connecting and voila, new contacts to network with! They may be industry contacts or prospects to pursue. Once you land a meeting with your new prospect, next up are a few tools you can use to support your sales process in the gas and equipment industry. First up, the “gas converter” app by Air Products: Gas Converter: When your prospect tells you they’re using 150,000 scf of N2 for a food packaging process and want to install a bulk tank with delivery once a month, how do you quickly respond to the tank size in gallons? Presto, the app is telling me it’s 1,611 gallons, so I think a 1,500-gal bulk tank or 5,500-liter microbulk tank is the answer for them and I’m on my way to the next step. Tank Sizing by Chart Industries: You’re having a conversation with the welding engineer who is looking for a

way to eliminate cylinder changeouts and optimize argon use in the fab shop. He’s ready to pipe the shop if needed. Eight stations and going through 30 high pressure cylinders a month. You’re thinking microbulk could be an option. As you go through the steps, you can show that customer 1,250 scf of residual gas returned to his supplier or almost 14% of what they purchase each month is wasted. And total monthly volume used in their process is 9,000 scf, so you recommend a 450-liter microbulk tank. Genius for you, the customer is ready to sign the agreement and install the tank. Finally, something for fun but there is a serious side of it to add value to your relationship building in the sales process: Yelp: Yes, Yelp. Find yourself in a new area and want to impress your

prospect with the best local choice for a business lunch? Yelp it up that way. Or, if you just want to be different and stand out, Yelp “unique lunch” places. Finding the best place to bring in donuts? “Duck Donuts” is the answer and you’ll find it on Yelp (or some other novelty donut business). We could go on and on. It seems there are an infinite number of ways you can use the power of the device you carry around all day to boost your success rate and efficiently manage your daily activities. But my point in all this is that you should take advantage of your smart devices. They call them that for a reason. Think about using it for creative ways to overcome issues holding you back and if you aren’t finding an app for that, do the next best thing and “Google it.”

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SALES & MARKETING

Do I Need Social Media to Sell? BY ART WASKEY

Art Waskey has served with General Air Service and Supply Company of Denver for 34 years, most recently as senior vice president of sales. Before that, he was a zone sales manager for British Oxygen Company in Houston. He has written two books about sales in the gases and welding distribution industry. Waskey is transitioning to a new career in consulting and public speaking and in 2019 will be teaching in a seminary. He can be reached at impactspeakingdynamics. com and at awaskey@generalair.com.

Generation X (born 1965-1985) sales rep asked me whether I thought social media was an effective tool for sales prospecting. He found his experience with Facebook, where he spent an inordinate amount of time reading about family and friends, to be counter-productive from a business perspective. As a Baby Boomer (born 1944-1964), I did not grow up with social media but I have grown along with it and could offer the rep some insights. I was recently reminded of social media’s critical importance to marketing when asked by Vicara Books, the publisher of my latest book, how many hits I was getting on my website. Vicara explained that if I wanted to be successful in writing, selling books and public speaking — my current endeavors — I’d better beat a path to a “social selling” consultant. Social media is designed to spread the word quickly about the latest ‘anything.’ When I teach attendees in my Selling for Success program how to develop ‘pain’ (the need to buy), social media tools come to mind. A well-done YouTube video can move your client from a position of feeling comfortable with the status quo to realizing he/ she is missing out on something they really need to succeed.

WHAT IS SOCIAL SELLING? In A Sales Reps Guide to Social Selling Success, author Steven MacDonald defines social selling as the use of social media platforms to find and engage new prospects. Throughout the buying process, social media can be used to answer questions from potential customers, respond to 72 • Spring 2020

their comments, or share content about the item or application for sale. From creating awareness of a product to helping close the deal, social media platforms can be effective tools in the sales process. Keeping up with new sales strategies is always challenging. This is especially true today. The latest strategy – social selling – has been proven to increase company revenue by 16%. Keeping up with this trend is very important. Wikipedia describes social selling as “the process of developing relationships as part of the sales process.” Today, relationships often are first established on social network platforms like LinkedIn, Twitter, Facebook, and Instagram. Social selling techniques include the sharing of relevant content, interacting directly with potential buyers and customers, establishing a personal brand, and social listening. These practices all predate the internet and C2C (consumer to consumer) companies have been using them for a long time. As social selling techniques are translated into social media platforms, B2B (business to business) and B2C (business to consumer) companies are adopting many of them.

WHY USE SOCIAL SELLING? MacDonald tells us, “Sales reps that use social selling sell more and reach their targets faster. Yet, 75% of sales reps do not use it as part of their overall sales strategy. Why is it that only a few sales reps are using social selling? The reason – they don’t know how to get started. You see, social selling is more than just sharing content on LinkedIn and hoping for the leads to pour in.”

SALES & MARKETING Drew Henricks’ book, 5 Ways to Use Social Media as a Sales Tool, recommends “using social media because it can improve the frequency, quality, and reach of your marketing. It is a quick and easy way to promote your business’ sales, promotions, events, and other marketing activities. One of the many benefits of social media is that you can sell your products anywhere.” According to a Nielson report on social media, “Americans spend three times as many hours on social networking sites as they do reading email (7.6% of online time is spent reading email, while 23% is spent on social).” Even more eye opening is Nielson’s revelation that “70% of social users shop online. In other words, your customers are waiting for you on social networking sites. You have to find ways to monetize this reality.” Here are 4 compelling reasons I have found for using social selling: 1. Most of your customers do research on social media before deciding to buy. Buyers look to the sources that can give them the most valuable information on social media. According to Forrester Research, 74% of buyers purchased from the first sales rep that added value to their research.

2. Building relationships is still the best way to influence. I don’t answer the phone or respond to most emails unless I already know the contact. A study by Harvard Business Review found that 90% of people never respond to a cold call. Social selling is an effective way to build relationships and makes for more calls that aren’t cold. As my favorite sales philosopher, Zig Ziglar, use to say, “You can get anything out of life, if you just help enough other people get what they want in life.” 3. Social selling is a 24/7 business. Even with all the latest bells and whistles at your disposal, selling is still selling and is dependent on the size of your network. It’s been shown that social selling activities are the most efficient method of growing a prospect list, and no matter where you are or what you are doing those tools are available to work for you 24/7. 4. It’s the new form of peer pressure. How many times does an associate tell you about something they saw or heard on the internet? A 2013 LinkedIn study discovered that 53% of buyers said their peer network influenced their buying decision. That was compared to only 19% the previous year

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SALES & MARKETING (same study). Social media makes it easy to create and access the P2P (peer-to-peer) narrative, and this breeds success. Just look at the list of some of the giants that have built their business on social selling: Amazon, Alibaba (China), Best Buy, and many others including regional grocery and hardware stores who are continuing to enter the market.

HOW TO GET BETTER AT SOCIAL SELLING Like most of my generation, my first social media effort was getting someone to build my website. I hired a colleague from my office who created a functional website, which enabled me to sell some books. I continued to improve the site over a 10-year period using other web developers. In researching the best social media strategy for the launch of my new book, one that would take me beyond my existing website, I found that many social media experts are specialists in various platforms. One person offered me the best website, another was good with Facebook, and still another with other social media platforms. While each expertise was appreciated, it made creating a unified approach that met my social selling needs difficult, particularly with

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each vendor charging separately by the hour or the job. I was looking for someone who could do the whole job and was open to be paid commission on the results. Through a local network of friends, I found a young social media expert who was branching out and forming LLCs with people that had something valuable to sell. I became one of his clients and I now have a much-improved website, a YouTube presence, and the use of marketing tools like Mailchimp, LinkedIn, Facebook, Pinterest, etc. If your company can afford it, my advice is to hire a full-time social media specialist whose focus is on your products. If an additional staff member is not in your budget, I recommend that you look for a millennial expert who will work on commission. There are a lot of good social media consultants out there, so be diligent in your search. As social media platforms represent today’s most effective sales tools, finding the best way for your company to engage in social selling is critically important. My recent experience taught me that social selling does not need to be difficult. It’s just selling in a new, more effective way. I’ve built my career on the premise that selling starts with building relationships. As I see it, now I have a host of new ways to create and improve those connections.

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The Need for Succession Planning Don’t Let a Triggering Event Take Down Your Family Business BY CAROLINE K. REFF

orty years ago, your father and mother started a family business. They worked hard, and the business grew. Maybe, as a child, you helped behind the counter or as a teen started to learn some of the skills required on the production end of the business. Your three siblings did the same. At some point, however, you and your siblings each had to decide whether to make the family business a career. Maybe your parents influenced you, pressuring you to stay with the business or conversely deciding that you needed to go to college and/or work in the outside world first to gain some experience. As the years went on, some of the siblings took on roles with the business and others did not. Now, mom and dad are ready to retire but will still depend on the income from the business and want it to continue to be family-owned and operated. So, what happens now? The answer is not an easy one, and the details for each family situation certainly differ, but the need for preparation is the same, according to Daniel G. Van Der Vliet, executive director, Smith Family Business Initiative at Cornell University. “Succession planning should be viewed as a process, not an outcome, and, as such, an opportunity to craft a desired pathway forward for all interested parties,” said Van Der Vliet, who noted that families should not wait until there is a disruption — death, divorce, retirement, the possibility of a sale or 76 • Spring 2020

acquisition, etc. — before discussing the future and putting a plan in place. A particular challenge to succession planning is the separation of family, business, and ownership — what we commonly refer to as the three-circle model of family business,” he explained. “Often, in smaller businesses, people wear multiple hats simultaneously, and, as such, fail to see the differences between family and business decisions and outcomes.” Many don’t see the need for a formalized plan, but it is particularly important for a family-run business to have one, as there are so many factors, and emotions can run high in a crisis or transition. What if parents start a business and gift each of the children a share of the company, yet only a few of the children actually work for the business? What if a parent dies or steps away from the business? What about spouses? Does he or she retain a piece of the company if the couple divorces? In many cases, small family businesses tend to have a harder time discussing these unknowns, much less formalizing some kind of written agreement. “Families are great at unwritten rules, informality and going with the flow,” said Van Der Vliet. “In a family business, very little gets delegated, and plans are not always spelled out but instead tend to be assumed.” “The most important factor is going through the process,” said Van Der Vliet. He explained that 50% of business failures are precipitated by an owner’s

“Succession planning should be viewed as a process, not an outcome” – DANIEL G. VAN DER VLIET Executive Director, Smith Family Business Initiative At Cornell University

death. That is why meaningful discussions and more formalized succession planning are vital to the continuation of a family business. Van Der Vliet encourages family businesses to treat family members like any company would treat its employees. In any other type of working environment, an employee would have some sort of contract, an expectation of employment, education requirements, a negotiated salary, etc. However, in the case of family businesses “a lot of that goes out the door,” he said. “Often, family business owners think, ‘Why would I need that? I know my son or daughter. I don’t need to have these discussions or have anything in writing. They’ll know what to do.’” Putting together a succession plan “removes the emotion from the decision,” said Van Der Vliet, who noted that this kind of agreement can range from formal legal documents to something written down in a notebook. He suggests some type of “family constitution” or protocol that outlines a set of rules to follow with

BEST PRACTICES regard to each person’s role or ownership in the business. Another good option is a buy/sell agreement, which outlines ownership or the transfer of ownership both in and outside of the family, should a disruption occur. “Essentially, what we’re talking about here is called ‘governance,’ and that word has a tendency to scare families,” said Van Der Vliet. “Still, it’s just a formal word for a discussion and possible documentation to clearly outline the primary owners of the business, the company’s long- and short-term goals, the qualifications that members of the next generation need to join the business, and the expectations regarding input and profits for those working in the business versus those who are not part of the day-to-day operations. Putting this kind of work into the business before a triggering event can take some of the emotions and/or sense of entitlement off the table and help everyone understand the expectations and goals needed to keep the family business going strong.” According to Van Der Vliet, having a board of directors, or at least a board of advisors, made up of primary shareholders and owners, as well as a few non-family members, can be advantageous to succession planning and good governance. Having people outside of the family participate on a board is usually beneficial, as their primary interest is in making solid business decisions and offering objective ideas and observations that are separate from the emotions that can run deep in even the closest of families. From the corner store to a national brand, family businesses span the economic spectrum, but regardless of the size, “matters of family are fairly universal no matter how many zeros are added to the bottom line,” Van Der Vliet said. “Addressing the difficult, yet necessary, decisions up front will help make things easier later on.”

WHERE TO START? Are you thinking of putting together a succession plan for your family business but aren’t quite sure how to get started? The Smith Family Business Initiative at Cornell University in Ithaca, New York, has a variety of educational and networking tools, as well as resource referrals for family business owners, successors and students. FOR MORE INFORMATION, GO TO: www.business.cornell.edu/familybusiness This site also offers a directory of universitybased family business programs across the globe through the Family Business Alliance.

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7/23/2018 2:18:21 PM

BEST PRACTICES

Distributors: Want to Know Why Things are Getting Harder? BY MIKE MARKS, MANAGING PARTNER OF INDIAN RIVER CONSULTING GROUP

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

ack in the day, the path to distributor growth was to sell service with excellent people. Sales reps sold themselves first and customers bought from reps that had earned their trust based on their past performance. A key driver in the customer value proposition was their relationship with their own sales rep, not the company. Supply chains were unreliable and heroic recoveries were visible and common. The reps were paid a commission on the gross margin they generated so they could “eat what they killed.” The sales force was self-directed and those that couldn’t cut it found other employment. The advantage of scale was buying better from suppliers. Market power rested primarily with the manufacturers, and the lines a distributor represented often defined their growth rates. Step forward to today and the world is very different. It would take an historian to track all the changes that brought us to this point. There would be chapters that cover the role of distributor trade associations, buying groups, geographic branch expansion, the rise of central distribution centers, specialized sales roles, and of course technology.

WHAT MARKET LEADERS DO RIGHT It doesn’t really matter how we got here, today’s distributor must compete and grow in this challenging environment. It would be interesting, if we could, to ask those who created the great distributors back in the 70s how they would compete today. We had a great opportunity back at the turn of the century to build ethnographic profiles on many of these great leaders. One thing that they all had in common was the ability to ask hard questions and change what wasn’t working. 78 • Spring 2020

To the many who were comfortable doing the same things over and over, these leaders appeared to be tough and demanding. But they all created significant growth for their shareholders. One huge takeaway from this research that has stayed with me is that they all expected to consistently and significantly outperform their competitors. Michael Porter, the Harvard professor and well-known strategy guru, called it competitive advantage. Their sales and profit declines in recessions were less than their competitors, they captured share when the economy recovered, and created more profit and experienced higher growth during economic expansions. Over the years in our consulting practice, we have seen many distributors earn EBITDA margins over 10% and a few above 25%. We have also seen long-term growth rates that are consistently two and even three times the market. These firms exist today; they are privately held and definitely not for sale. Most are serial acquirers that can effectively integrate the new firms into their core business. About half of their growth is due to acquisitions and cross selling. The most important strategic question for any distributor today is: “Do you have higher profits and growth than your competitors, and if you don’t, what are you going to do about it? The first step is understanding how the executive leadership defines what is considered acceptable performance. There is an old expression that the CEO always gets their minimum-accepted performance level. Many distributors today are working as hard as they can to just stay even and squeeze out a growth rate slightly above GDP with average net margins. Many don’t know what else to do so they try as hard as they can to improve what

BEST PRACTICES they are doing now. They often gravitate to the latest guru or great idea and build e-commerce websites, implement CRM systems, do sales training, or get into private label. For most, this is playing around the edges of what is necessary. Leading distributors are analytically led and strategically driven. They share many characteristics and most distributors would find it useful to compare themselves to the core practices they employ. The list below is generic – and oversimplified – but is hopefully still instructive. In no particular order, the practices include: • Their sales reps still have flexibility to maintain customer intimacy, but they are clearly management-directed versus self-directed. • They no longer have generalist field sales reps and have migrated to specialized roles where the economic value of recurring activities is grouped to match appropriate compensation levels. • They have created specialized value propositions for specific customer segments and allocated resources based on the segment’s cost to grow and potential to grow. • They are deeply involved in the digital transition and investments are balanced between lowering SG&A costs with automated processes and creating a B2C experience for their customers. • Their CRM systems are designed first for helping sales reps make better decisions on where to spend their time, not just giving managers a set of tools to measure them. • They have developed analytical tools to understand market potential and share of spend metrics by customer along with the cost to serve. Many even know the net profit by customer by month. • Sales staff has input, but not control, over pricing to customers. In

The most important strategic question for any distributor today is: “Do you have higher profits and growth than your competitors, and if you don’t, what are you going to do about it?”

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many of these firms the sales rep doesn’t see or know purchase costs. Pricing is data-driven and rules based such that they have hard data on what is the market price at a transaction level to overcome traditional negotiation activity. Individual sales contributors, and many others, see their performance on a monthly and year-to-date ranking report. They have designed compensation and incentives such that selling costs decline with scale and are no longer linear. Their supplier scorecards are not negotiating tools, but joint measurement processes closely linked to suppliers to improve the effectiveness of their commercial relationships. Every employee knows the strategy and can explain it at a high level. This means that everyone knows why the distributor is doing what it is doing.

THINKING BEYOND LUNCHTIME So few distributors employ these practices because most are looking for

good ideas or initiatives to lay on top of their existing organizational structures. The executives have lengthy discussions about what they need to do now. After an emotional and often data-free discussion they choose something and charge ahead. This rarely meets initial expectations because they are facing a strategic issue using tactical tools. The old joke for most lifestyle distributors is that long-range planning is what they do after lunch. The real answer is that distributors need to develop a strategy to define their true north, so they will no longer be distracted by ongoing tactical noise. Being strategically driven means that when the CEO changes, the strategy does not. It does not mean doing the same thing as a competitor – only better. That is an operational activity. Peter Drucker’s first law of service is that sometimes you can only hope to be no worse than your competitor. And a five-year revenue forecast is not a strategy. The most effective strategies are only 20% numerical. The remaining 80% are focused on value propositions and how they are delivered. The real essence of strategy for these market leaders is creating unique activities that make it blindingly easy for a customer to choose that distributor over competitive alternatives. It takes months to develop a strategy. And a strategy should start with the customers, not the sales force. Remember that sales rep input is heavily colored by negotiation. (Every customer wants to buy from the best distributor at the worst distributor’s price). The real obstacle for most is that it costs time and money to create a real strategy. Few have the ability or willingness to take the short-term hit for the pivot to the new strategy. If you are one of those few that are playing the game to win – and not just to lose – you will thrive; no matter what the market throws at you now or in the future. Spring 2020 • 79

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

ITR Second-Quarter Outlook

Assume 2H 20 Cyclical Rise Despite Political, Trade and Global Health Concerns BY ALAN BEAULIEU

he economy here and at a global level is performing as expected. Some aspects of the U.S. and world economy are still weak or otherwise in the slowing-growth phase of the business cycle. Some segments are holding up well and are clearly on the upside of a cyclical swing. Focusing more on the US, all seems to be normal at a macroeconomic level despite the potential interference of domestic politics, trade (a form of global politics), and health scares. Our advice is to assume the U.S. and global economies will shift into a new cyclical rising trend in the second half of 2020, with cyclical rise extending to the majority of 2021. Politics has not had a demonstrable impact on the economy, and there is no reason to think that will change (even in this election year). A status quo is taking shape regarding trade (at least for the moment), which will provide some confidence to decision makers and stabilize costs for some people. The coronavirus, while scary, is not going to bring down the U.S. economy. As stated in one of our blogs earlier this month, certain microeconomic changes/ disruptions will certainly be noticeable both in the U.S. and in China. Each of us should understand our markets well enough to know if there is a localized threat to our revenue stream or profits. Keep in mind that in our opinion there is no material macroeconomic business cycle

threat. The current weaknesses will give way to renewed rise. That is what most of us should be focusing on. WHY DO WE THINK THAT? 1. U.S. consumer 2. Experience 3. History 4. Latest data

Latest data: Most of the mainline data we use goes through December and January. That news is encouraging. Examples of that include the two months of rise in the 3/12 rate-of-change for U.S. Nondefense Capital Goods New Orders (excluding aircraft) through December and well-defined rise in the ITR Leading Indicator™ through January 2020. Less reliable as a leading indicator but arguably helpful at this time is the ongoing rise in the S&P 500 through early February. The U.S. stock market has been relatively resilient to coronavirus concerns. Looking specifically at China, we examined the current Shanghai Stock Exchange Composite Index (SSE Index) data. The SSE Index tanked badly from the January 13 high (which was well below the previous record high) to a potential February 3 low. The index dropped 11.8% in that span. We have seen that magnitude of decline on 14 prior occasions when measuring month-to-month changes in the Index. The 11.8% is recoverable, and it may have already begun. The SSE Index is up about 4.7% since February 3 as of the writing of this Executive Summary. This is not a recommendation to buy the SSE Index for a whole host of reasons. It is meant to demonstrate that even at ground zero the situation may be stabilizing.

This content is exclusive to GAWDA Members. For more information on GAWDA and association The U.S. consumer: Amid daily headmembership, contact Andrea Levy: lines, some of which tend to be apocalyptic, (844) it251-3219 / ofalevy@gawda.org is easy to lose sight what really drives

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the economy. At the end of the day it is the U.S. consumer, and the consumer appears to be happily willing to spend money, and more of it going forward. Experience: We have been analyzing the economy for decades and have experienced some horrific events (e.g., 9/11), and some general hysteria (e.g., Y2K) that turned out to reflect the worst of people’s imaginations and fears. The economy is amazingly resilient is what we have learned. History: We have studied the economic impact of prior health scares, and while the humanity of the event is certainly always present, the economics of the event have not matched up to the human element. There will no doubt be a first time when the apocalypse is really here, but you cannot run a business thinking “this is it” when these issues arise.

ITR FOR GAWDA USE EMOTIONS TO YOUR ADVANTAGE Oil prices dropped about $10 per barrel in January 2020 to close the month at $51.56 per barrel. The price remains at about that level through early February. We asked ourselves if this was one of those opportunities when markets seem to move too far based on emotions. The

U.S. Crude Oil Futures Prices to U.S. Industrial Production Index The JPMorgan Global Manufacturing Purchasing Managers Index 1/12 rate-ofchange provides a similar upside signal.

answer we came up with is “yes.” Economic fundamentals ultimately drive oil prices higher and lower through the business cycle. The chart below compares the 3/12 rate-of-change of oil prices to the U.S. Total Industrial Production 3/12. The rise in prices in late 2019 was early relative to the macroeconomics but not without precedent. The green dots depict our

Prices

forecast for US Industrial Production using the 3/12 rate-of-change. We expect the rising trend to “reset” before moving back into a more normal timing relationship. Our ongoing analysis strongly suggests that the U.S. Total Industrial forecast is valid. That in turn argues for a resumption of normal, cyclical ascent in oil prices until we are in the 2022–2023 downturn.

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U.S. Crude Oil Futures Prices to JP Morgan Global Manufacturing Purchasing Managers Index Beyond the macro input, there is industry data that supports our position. The Cushing, OK, Crude Oil Inventories 3/12 is throwing off an upside signal for prices. Note that the inventory axis (right side) is inverted; a tightening in inventories results in rise in the rate-of-change and is consistent with our view of higher oil prices in the future.

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For more information on GAWDA and association membership, contact Andrea Levy: U.S. Crude Oil Futures Prices (844) 251-3219 / alevy@gawda.org Dollars per Barrel

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What do you do with this? Follow the standard economic dictum of “buy low and sell high.” Choices and opportunities always present themselves if we maintain the right perspective regarding the economy. 82 • Spring 2020

ITR FOR GAWDA CORE DASHBOARD 12/12

12MMT/A CURRENT 2020 2021 2022

HIGHLIGHTS

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Plan for 2021 activity to be more robust than 2020 activity.

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Expect this year's New Orders spending to come in mildly above the 2019 total.

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Expect the labor market to remain tight in at least the coming years.

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Plan for Retail Sales to generally grow at a faster pace during 2021 than during either 2020 or 2022.

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Wholesale Trade spending will transition to a rising trend in the near term. Spending will then rise through 2021.

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Rising US Food Exports may provide some upside momentum for Wholesale Trade in the near term.

This content is exclusive to GAWDA Members.

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

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Expect more robust GDP growth in 2021 than in 2020.

For more information on GAWDA and association membership, contact Andrea Levy: (844) 251-3219 / alevy@gawda.org LEADING INDICATORS

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

JANUARY MARKS THIRD CONSECUTIVE MONTH OF RISE The ITR Leading Indicator™ rose for the third consecutive month in January. Rise in the Indicator signals upward business cycle momentum in U.S. Industrial Production is likely in the second half of 2020, as expected.

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THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

THE RATE 1/12 DECLINED FURTHER IN OCTOBER The U.S. Total Industry Capacity Utilization Rate 1/12 declined to a new low in December. This decline does not yet conflict with our expectations for a mid-2020 cyclical low in U.S. Industrial Production. However, we will monitor the Rate, as future decline would pose a downside risk to our outlook.

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This content is exclusive to GAWDA Members. For more information on GAWDA and association THE LEADING INDICATOR Conference BoardLevy: Leading Indicator membership,U.S. contact Andrea DECLINED DURING Rates-of-Change (844)Production 251-3219 / alevy@gawda.org DECEMBER Leading Indicator With the most recent data release, The 15.0 Conference Board revised the U.S. Leading Indicator. The Indicator 1/12 declined to a 10.0 new low in December. Ongoing decline in the U.S. Leading Indicator 1/12 suggests the U.S. Industrial Production 12/12 could 5.0 be on the back side of the business cycle into the third quarter of 2020. 0.0

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ITR FOR GAWDA U.S. ISM PMI (Purchasing Managers Index)

JANUARY PMI 1/12 RISES The U.S. ISM PMI (Purchasing Managers Index) 1/12 rose in January. The Institute for Supply Management revised Index data from 2012 forward, but the adjustment did not significantly impact the rates-of-change. Rise in the PMI 1/12 signals the industrial sector will likely transition to cyclical rise in the second half of 2020.

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GAWDA EXECUTIVE SUMMARY/DASHBOARD

This content is exclusive to GAWDA Members. GAWDA INDUSTRY INDICATORS

For more information on GAWDA and association CURRENT GROWTH PHASE INDICATORS HIGHLIGHTS RATE (12/12) membership, contact Andrea Levy: Rise in a number of key leading indicators supports our outlook for rise U.S. INDUSTRIAL 0.8% C PRODUCTION INDEX in the industrial sector in the second half of 2020. (844) 251-3219 / alevy@gawda.org U.S. PROCESSED GOODS FOR INTERMEDIATE DEMAND PRODUCER PRICE INDEX

Prices of commodities such as steel, copper, and oil will generally rise during 2020. Overall Producer Price inflation is likely to be more robust during 2H20 than 1H20.

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Quarterly Prices will generally rise throughout 2020, reaching the upper $60s by the end of the year.

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Rise in the US ISM PMI (Purchasing Managers Index) indicates business cycle rise in New Orders is likely in the second half of 2020.

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U.S. ELECTRICAL EQUIPMENT NEW ORDERS

"Electrical equipment manufacturers and distributors may find more-robust end-user demand within the new home construction market this year."

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Rise in the US Small Business Capital Expenditure Plans Index bodes well for New Orders business cycle rise beginning around mid-year.

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Trends in US Nonfinancial Domestic Corporate Profits and the US Business Confidence Index signal business cycle decline in New Orders into mid-2020.

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Rise in the Indicator signals business cycle ascent for the US industrial economy in the latter half of 2020

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THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

The majority of GAWDA industry indicators are on the back side of the business cycle (Phase C or D). However, the ITR Leading Indicator™ is rising. This, combined with signals from a number of other macroeconomic leading indicators, suggests business cycle rise is probable for the majority of these industries in the

second half of 2020. Lead with optimism and consider taking advantage of others’ pessimism by making opportunistic capital and business acquisitions, if appropriate, as the bottom of the business cycle approaches around the middle of the year. A number of GAWDA industry indicators, including US Industrial Production, will reach record highs

U.S. INDUSTRIAL PRODUCTION

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C - SLOWING GROWTH 2020 0.7% 109.8* 2021 2.0% 112.0* 2022 -1.9% 109.9*

during 2021. If you need to make capital expenditures now to be ready to meet 2021 demand, consider utilizing today’s low interest rates to do so. You may be able to get pricing concessions due to relatively low commodity prices and pessimism in the industrial sector.

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HIGHLIGHTS: ◼ The Production 12MMA for 2019 came in 0.8% above 2018 as whole ◼

Plan for the Production 12MMA decline into mid-2020

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The domestic and global PMIs are signaling upward manufacturing sector momentum in the second half of 2020

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For more information on GAWDA and association 90 membership, contact Levy: The December U.S. Industrial Production '12 '13 '14 '15 Andrea '16 '17 '18 '19 '20 '21 '22 12MMA was 0.8% above the year-ago level. (844) 251-3219 / alevy@gawda.org However, fourth-quarter Production was down 0.8% relative to the fourth quarter of 2018. Plan for industrial sector decline into mid-2020. Rise will resume in the second half of 2020 and extend into the first half of 2022, followed by decline for the remainder of that year. The preponderance of leading indicator evidence signals that Production will move along the back side of the business cycle into mid-2020 as expected. Push away pessimistic thoughts and begin focusing on maximizing the upward momentum expected for late 2020 and 2021. The U.S. ISM PMI (Purchasing Managers Index) and the JP Morgan Global PMI both suggest upward momentum in manufacturing in the second half of 2020. Prepare for that rise. Training up your employees will help open bottlenecks, elevate capacity, and ensure your process can afford any labor attrition. 86 • Spring 2020

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

C - SLOWING GROWTH 2020 0.9% $832.2 billion 2021 6.4% $885.5 billion 2022 -3.0% $858.9 billion

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U.S. Nondefense Capital Goods New Orders (excluding aircraft) totaled $826.8 billion for 2019. While the sum exceeds the 2018 total by 0.7%, the 12MMT is generally declining from a mid-2019 peak. Plan for the New Orders decline to persist into the middle of this year. Rise will take hold late this year; total spending for 2020 will come in mildly above the 2019 level. Rise will persist into mid-2022 before contraction takes hold for the remainder of that year. Despite decline in overall New Orders spending, evidence suggests small businesses are already planning to ramp up capex. The U.S. Small Business Capital Expenditure Plans Index in the fourth quarter of 2019 was 3.6% above the same quarter of 2018. If you are not already looking to the next macroeconomic cyclical upswing, follow the small businesses’ lead. Take the necessary steps to capitalize on upcoming growth in New Orders beginning late this year. Management Note: Now is the time to ensure you have the people and equipment to handle record-high New Orders spending from late 2020 into the first half of 2022.

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OIL PRICES: U.S. CRUDE OIL FUTURES COMMODITY PRICES A - RECOVERY Mar 2020 $53.73 per barrel Jun 2020 $58.42 per barrel Sep 2020 $60.59 per barrel Dec 2020 $67.65 per barrel HIGHLIGHTS: ◼ We lowered our expectations for the Prices 3MMA ◼

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Slowing U.S. Oil Production and OPEC supply cuts are helping curtail oversupply while rising global leading indicators bode well for future oil demand Prices will reach the upper $60s per barrel by the end of the year

January month-end Crude Oil Futures Prices came in about $12 per barrel below our median first-quarter expectation; January’s nearly $10 decline from December was the largest December-to-January decline in more than a decade. We adjusted the forecast downward to reflect our new analysis. Expect Prices to generally rise into at least late 2020. Prices are likely to reach around $60 per barrel by mid-year and the upper $60s by the fourth quarter. On the demand side, leading indicators to World Industrial Production are rising. Concurrently, slowing growth in U.S. Crude Oil Production coupled with OPEC supply cuts is helping to curtail oversupply; Oil Inventories in Cushing, OK, are tightening. Taken together, these factors will drive Prices higher in the coming quarters. Management Note: Consider entering or renegotiating long-term leases or contracts now, before Prices rise more significantly later this year.

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

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ITR FOR GAWDA STEEL PRICES: U.S. STEEL SCRAP PRODUCER PRICE INDEX D - RECESSION Mar 2020 363.25* Jun 2020 380.66* Sep 2020 404.83* Dec 2020 396.46* * Index based to 1982 = 100. HIGHLIGHTS: ◼ Prices ticked up in December, but were 28.0% below December 2018 Prices ◼

The Prices 3MMA will generally rise into at least late 2020

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Movement restrictions and shutdowns in China manufacturing regions due to the coronavirus outbreak pose a downside risk to our Prices outlook:

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This content is exclusive to GAWDA Members. U.S. Steel Scrap Futures Commodity Prices

Monthly U.S. Steel Scrap Producer Prices ticked up in December but were 28.0% below December 2018 Prices. The Prices 3MMA will generally rise into at least late 2020, but will likely be below early-2019 levels during that time. It is possible that the coronavirus outbreak could impact China’s steel market, as it has already impacted the copper industry. Movement restrictions in response to the outbreak and – if it occurs – an extended shutdown in China’s manufacturing regions could potentially delay market activity related to Chinese industrial production and construction, which could in turn impede demand for steel. However, US and global leading indicators suggest that quarterly Steel Prices will generally recover and rise during 2020. Management Note: If you use steel as an input, consider cost-reducing measures as Prices rise into at least late this year. Locking in prices now or increasing your efficiencies are two possibilities.

For more information on GAWDARate-of-Change and association 100 membership, contact Levy: 12/12 Andrea Forecast Range 12/12 (844) 251-3219 / alevy@gawda.org 50

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Spring 2020 • 89

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. Fabricated Metal Products New Orders Data Trend

U.S. FABRICATED METAL PRODUCTS NEW ORDERS C - SLOWING GROWTH 2020 2.9% $414.3 billion 2021 5.2% $435.8 billion 2022 -1.1% $431.0 billion HIGHLIGHTS: ◼ New Orders will decline mildly in the near term ◼

Expect New Orders to begin rising in the latter half of 2020

◼

Plan for record-high New Orders in the second half of 2020 and into early 2022

U.S. Fabricated Metal Products New Orders during 2019 were 1.2% above the 2018 total. The annual total is declining. Decline will persist into around the middle of 2020, followed by growth in spending into early 2022. New Orders will hit record levels during the growth period. Decline will then characterize spending during the majority of 2022. Rise in the U.S. Small Business Capital Expenditure Plans Index suggests spending will rise in the latter half of 2020. Expansion in the U.S. industrial sector from the second half of 2020 into the first half of 2022 will contribute to New Orders growth during that time. Iron and steel prices have yet to definitively transition to a recovery trend. If we see prices decline deep into 2020, perhaps as a result of the coronavirus or other factors, our New Orders outlook for 2020 could prove too optimistic. Management Note: Now is the time to ensure you have the people and equipment needed to handle record-high New Orders spending from the second half of 2020 into early 2022.

Bils of $ 150

Bils of $ 600

12MMT Forecast 12MMT 3MMT

125

500 404.1

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This content is exclusive to GAWDA Members. Fabricated Products For more information onU.S. GAWDA andMetal association New Orders Rate-of-Change 30 membership, contact Andrea Levy: 20 (844) 251-3219 / alevy@gawda.org

90 • Spring 2020

30 20

10 1.2

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ITR FOR GAWDA U.S. AGRICULTURAL IMPLEMENT PRODUCTION INDEX C - SLOWING GROWTH

U.S. Agricultural Implement Production Data Trend Index 120

3MMA

HIGHLIGHTS: ◼ Production was up 3.0% in 2019 relative to the 2018 average

100

Leading indicators signal Production business cycle decline into at least mid-2020 is probable

◼

Tariffs pose a risk factor to this market

U.S. Agricultural Implement Production was up 3.0% during 2019 compared to the 2018 average. The Production growth rate ticked up during the fourth quarter. However, the ITR Checking Points™ system suggests further business cycle decline is likely during at least the next one to two quarters. Leading indicators such as the U.S. Machinery Manufacturing Capacity Utilization Rate monthly rate-of-change suggest that Production will be on the back side of the business cycle into at least mid-2020. Additionally, trade tensions and tariffs may place downside pressure on Production. Additional tariffs could reduce foreign demand for the US farm products, negatively impacting farm proprietors’ purchasing power, and/or reduce the demand for U.S. Agricultural Implement Production from abroad. The removal or easing of tariffs could have the opposite effect. Management Note: Growth in this industry will likely have to come from internal initiatives in 2020; plan accordingly.

12MMA

Index 120

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This content is exclusive to GAWDA Members. U.S. Agricultural Implement For more information on GAWDA and association Production Rate-of-Change 45 contact Andrea Levy: membership, (844) 251-3219 / alevy@gawda.org 30

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Spring 2020 • 91

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

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 year-over-year percent change of a single month, 3MMT(A) and 12MMT(A), respectively. A rate-of-change above zero indicates a rise in the data relative to one year prior, while a rate-of-change below zero indicates decline.

This content is exclusive to GAWDA Members.

For more information on GAWDA and association membership, contact Andrea Levy: BUSINESS CYCLE POSITIONS: The data trends and rates-of-change identify positions in the business cycle. Those positions are: (844) 251-3219 / alevy@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

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

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

This is the first negative phase of the business cycle.

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

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

92 • Spring 2020

RECESSION

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

PRECISE EQUIPMENT

118 N Bedford Road, Suite 100 Mount Kisco, NY 10549-2555 (914) 242-3666 www.venatorsalesgroup.com

3421 Barcelona St. Denton, TX 76207 (940) 566-4780 www.preciseequipment.com

Jay Spielvogel, CEO jay@venatorsalesgroup.com

Dennis Daugherty, President dennis@preciseequipment.com

EPICOR SOFTWARE 3800 Horizon Blvd. Trevose, PA 19053-4968 (215) 436-1794 www.epicor.com odd Daubenberger, Sr. DirectorT Sales & Strategic Alliances todd.daubenberger@epicor.com

Spring 2020 â&#x20AC;˘ 93

INDUSTRY NEWS ORS Nasco and MEDCO Appoint New President & CEO ORS Nasco and MEDCO announced the appointment of Kevin Short as the new President & CEO. “Kevin brings over 25 years of experience in multiple sales, operations and general management roles. His extensive distribution experience will help us both internally as well as connecting with Kevin Short our customers,” said Manny Perez de la Mesa, Chairman of ORS Nasco and Medco. “The Board is confident in Kevin’s ability to work closely with the dedicated management team, committed employees, and business partners to execute our growth strategy and create value. I am excited to see what lies ahead with the many opportunities that we have to become integral business partners with our distributor customers and manufacturer vendors as a true value add wholesaler.” “It is thrilling to join recognized leaders in ORS Nasco and MEDCO. Now independently owned, we will add increased

94 • Spring 2020

speed and flexibility to our track record of delighting customers. We have the right strategy in place going forward, and I am committed to delivering value for our customers and sustained profitable growth and value to all our partners,” said Short, Group President & CEO, ORS Nasco and MEDCO. “The dedicated people of these organizations are a true differentiator and it is an honor to lead them.”

TOMCO Systems Hires Trey Smith as Senior Product Manager

TOMCO Systems welcomes Trey Smith as their new Senior Product Manager. In his role, Trey will focus on growing and further developing TOMCO’s Food Systems and Dry Ice market segments and report directly to Jeff Holyoak, Vice President Sales and Market Development. He will be Trey Smith responsible for implementing growth strategies, product line expansion, and market development for the extensive line of Meat & Poultry Processing equipment,

INDUSTRY NEWS as well as all dry ice production and application equipment. TOMCO has a complete line of cold chain food processing equipment in both CO2 and Nitrogen applications, coupled with small scale and large-scale dry ice production equipment. Additionally, as the exclusive U.S. and Canadian distributor of the Dohmeyer cryogenic refrigeration systems, the global leader in cabinet, in-line tunnel, immersion, and spiral freezers, TOMCO offers end-to-end solutions in these markets. Trey has over 10 years sales, product, and engineering experience in industrial applications, a majority in cryogenic equipment. Additionally, Trey brings extensive entrepreneurial and business acumen to TOMCO having owned and operated his own retail bike business for 12 years. He has a B.S. in Mechanical Engineering from Southern Polytechnic State University. “We’re excited to have Trey join our team as we continue to focus on developing end user applications and identifying constructive uses for CO2,” says Holyoak. “Trey brings a unique blend of technical, entrepreneurial, and market understanding that will continue to elevate our products and service in Food Systems and Dry Ice markets.”

Lincoln Electric Board Directors Named Among WomenInc. Magazine’s 2019 Most Influential Corporate Directors Lincoln Electric Holdings, Inc. congratulates board directors, Kathryn J. Lincoln and Hellene S. Runtagh, who have been named to WomenInc.’s 2019 Most Influential Corporate Directors list. WomenInc. Magazine highlights women’s achievements in business, and the Most Influential Corporate Directors list features top women executives and influencers who represent corporate board leadership, diversity and excellence. “WomenInc. is proud to showcase the achievements of distinguished women serving on corporate boards,” said WomenInc. Magazine Executive Vice President and Chief Communications Officer Catrina Young. “We are inspired

Kathryn J. Lincoln

Hellene S. Runtagh

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

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INDUSTRY NEWS by the companies and individuals recognized on our 2019 list and are proud to share these names with our readers.” Kathryn J. Lincoln serves as the Board Chair and Chief Investment Officer of the Lincoln Institute of Land Policy, an independent, global nonprofit that seeks to improve quality of life through innovative land use and taxation methods. Ms. Lincoln has served on the Lincoln Electric board since 1995 and chairs the nominating and corporate governance committee. She also serves on the compensation and executive development committee. Ms. Lincoln is also a member of the board of directors of the HonorHealth Network and chairs the Claremont Lincoln University board. In keeping with her commitment to board and corporate governance excellence, Ms. Lincoln has been a National Association of Corporate Directors Fellow since 2014. Hellene S. Runtagh is the former President and Chief Executive Officer of the Berwind Group. She served as Executive Vice President of Universal Studios, and previously held a variety of leadership positions at General Electric Company. She brings extensive experience in general management having held leadership positions with technology focused global companies. Ms. Runtagh has served on the Board of Directors of Lincoln Electric since 2001 and is a member of the compensation and executive development committee, as well as the nominating and corporate governance committee.

Tarah Sutter Joins Acme Cryogenics

Acme Cryogenics welcomed Tarah Sutter to the company as its new Marketing Coordinator. Tarah began at the company’s Allentown, Pennsylvania, location on January 6. She reports to Dave Edge, director of technical sales and marketing. Tarah can be reached by phone at 610-791-7909 ext. 608 or by email at tsutter@acmecryo.com.

Ketvertes named new Marketing Manager at Western Enterprises

Shannon Ketvertes

96 • Spring 2020

Western Enterprises is pleased to announce it has selected Shannon Ketvertes as the new Marketing Manager reporting to the VP of Sales and Marketing, Jeff Ghilani. Ke t ve r t e s , w h o e a r n e d a d e gree in Broadcast Journalism and Communications from Cleveland State University, has successfully managed

a marketing consulting business since 2013, helping small businesses and entrepreneurs with marketing and branding services. She also earned a minor in business management and a certification in graphic design, along with her degree. Her experience has guided her career to award-winning success in a wide range of industries in marketing leadership roles. Ketvertes brings a wealth of knowledge across a wide range of marketing and communication mediums including experience in product marketing and Business-to-Business marketing. Outside of work, she enjoys watching Cleveland sports teams, biking in the Cleveland Metroparks, swimming, music and traveling. She also volunteers as Marketing Director for her church’s job seekers networking group. “I am thrilled to join Western Enterprises, Scott Fetzer Companies as Marketing Manager and I look forward working with this team to bring the best experience to our customers by providing strategic and creative marketing that will help Western achieve its goals,” says Ketvertes.

Exocor Launches New Website Exocor debuted a new website for 2020. The site, which can be viewed by visiting exocor.com, showcases all of Exocor’s executive line of filler metals and categories. Focusing exclusively on filler metals and fluxes, Exocor sells its own executive filler metal brand throughout North America and Canada is the sole approved supplier of Kobelco, COR-MET and Special Metals. The new site features intuitive and clear architecture and navigation, making it seamless to navigate for customers. Its responsive design and mobile-friendliness ensure that that ease of operation expands to tablets and phones as well. If you have a question that can’t be answered by one of the pages on the site, you can engage in instantaneous, real-time chat with one of Exocor’s Inside Sales Reps during business hours. This is an outstanding tool for getting questions answered quickly and efficiently. Visiting Exocor.com from outside the United States? The site has a built-in Google Translate feature which allows the user, in real time, to translate the site into dozens of languages including French, Spanish, German, Portuguese and many others. Executive filler metals provide unparalleled quality, consistency and reliability designed to exceed the performance requirements necessary in today’s demanding welding industry. The new exocor.com makes finding and buying those metals easier than ever.

INDUSTRY NEWS Harris Products Group Helps Grayson County Students with Brazing and Soldering Skills Training The future need for qualified HVACR techs is outpacing the demand for other skilled trades. According to the U. S. Bureau of Labor Statistics, the need for skilled HVACR technicians is projected to grow 13% from 2018 to 2028. While this is a big concern for the industry, the good news is that many school districts are seeking to help fill this gap by providing hands-on vocational learning for their students. One such school district is Grayson County High School. The school district provides a traditional academic curriculum, but also offers a variety of project-based learning programs through its Career & Technical Education (CATE) Center. In fall 2019, the school hired Chris Crooke, a HVAC/R professional with more than 20 years of trade industry experience. Crooke, who had owned and operated a heating and air conditioning business for more than 10 years, believed that technical education could make a big difference in the lives of Grayson County students. “My goal is to equip these kids with the knowledge they need to get more than just a job,” he says. “I want to provide them with a ladder of opportunity to climb into a lifelong career.” He knew the best preparation for employment is hands-on experience with current technology, so he and the school developed a new 2,500-square foot space that includes four workstations specially created to provide the needed training. Local distributors suggested that a manufacturer might offer direct discounts to schools, so he contacted the Harris Products Group. A company committed to helping young people who want to learn technical skills, Harris

Harris Grayson

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INDUSTRY NEWS responded immediately to Crooke’s request with a donation of portable torch kits, air fuel torches, gloves, goggles, and brazing and soldering alloys. In November 2019, Timothy Reading, Harris Products Group District Manager, traveled to Grayson County to set up the equipment and gave them demonstrations for using the products. “Harris Products Group understands the critical need to train students, so they have brazing and soldering skills to meet employer needs and for our country to remain globally competitive,” said Reading. “There’s a lot for these students to learn about brazing and soldering – including how to set up the best flame, how to choose which alloys to use, how to make sure the alloys and metal of the pipe fuse together properly so no leaks. We’re happy to help them to develop these skills so they can use them properly and safely.”

Butler Gas Debuts its Driver Documentary

Butler Gas debuted its driver documentary, What is it Like to Drive with Butler Gas? The description of the documentary says, “Go inside the truck with the growth drivers of Butler Gas. This special behind-the-scenes documentary captures a day in

the life of a Butler Gas driver. Our CDL Class A HAZMAT and tanker endorsed professionals are the best in the business. From cylinders to bulk, rain or shine, these drivers do it all. We look forward to seeing you on the road.” Watch What is it Like to Drive with Butler Gas? by visiting butlergas.com/employment.

Signal Hill Gas and Equipment Distributor Changes Name to Encore Gas & Supply Signal Hill-based Encore Welding Supply has kicked off 2020 with a new name and a newly articulated mission for the

The Executive brand of Filler Metals Stainless Steel - Nickel Alloy - Aluminum Carbon Steel - Low Alloy - Cobalt

Doing the common uncommonly well Providing high quality filler metals in North America since 1997.

BUFFALO, NY

98 • Spring 2020

888.317.2209

EXOCOR.COM

INDUSTRY NEWS future. The company – now called Encore Gas & Supply – has undergone significant growth over the past five years, and the new name is a reflection of Encore’s evolution during that period and the growing number of diverse industries it serves. “When we started this business in 2014, we catered almost exclusively to welding and construction, particularly to those companies serving infrastructure and energy,” said Encore’s co-founder and president, Ben Anderson. “Since then, while our commitment to and market share in those core areas have continued to grow, we have also experienced tremendous diversification in the number and type of industries we serve on a day-to-day basis.” In tandem with the name change to Encore Gas & Supply, the company has launched a new campaign highlighting and honoring many of the individual industries and local organizations the company serves. Appropriately titled “We Serve,” the new campaign will be most highly visible on the company’s delivery fleet, the entirety of which has recently been completely redesigned and upgraded. Each side of each vehicle now pays homage to a different industry served by Encore, and a corresponding micro-site has launched on the web at www.EncoreSupply.com/WeServe.

Airco Gases/Big 3 Gas and Supply Announce First New Hire to Support Welders Warehouse Acquisition Big 3 Southwest, LLC., the Texas operating company of Big 3 Gas and Supply, has hired Craig Hartberger as their Chief Operating Officer. In this role, Craig will help the company develop and implement processes and business structures that facilitate market share growth and financial performance. Marvin Rodgers, III, president of Airco Gases and the Big 3 Subsidiaries stated, “Craig was a key performer when he worked with me at Alliance, and when he became a redundancy in the Airgas/Techair integration, I knew I would want him to have a role in any of my future efforts. I am pleased we have an opportunity to work together again this quickly.” Craig started in the Gas and Welding Industry in 2002 at Union Industrial Gas in Texas and has held several executive positions during his career. Most recently, Craig was Regional Manager for TechAir in Northern California, and Chief Operating Officer for Alliance Welding Supplies. Craig experienced additional broad exposure to the business during his tenure at Airgas where he was an Area Branch

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INDUSTRY NEWS Coordinator in Houston and a Logistics and Distribution Manager in Dallas, as well as through his role as CFO/ Controller for BTU Gases, Craig combines his varied industry experience with a passion for continuing education. Craig has earned a BBA from Baylor University, an MBA and a Masters in Marketing from University of Texas at Dallas, a Masters of Accounting from St. Mary’s College of California, and plans to begin work soon on a Doctorate. Craig has recently relocated back to Dallas from the San Francisco Bay Area.

Holston Gases, Inc. Opens Two New Locations Holston Gases, Inc. announced that it has opened new distribution facilities in Huntsville, Alabama, and Owensboro, Kentucky.

100 • Spring 2020

“We are very excited about expanding further into Alabama and Kentucky. Our new store located at 1104 Putman Dr. NW, Huntsville, AL 35816 will allow us to better serve the rapidly expanding North Alabama economy,” says Holston Gases president Robert Anders. “The new Owensboro, KY store located at 7549 Iceland Road, Maceo, KY 42355 now allows us to distribute product throughout the entire state of KY and southern Indiana. We look forward to being a part of Owensboro’s expanding business community.” Holston has been in business for over 60 years. Its headquarters are in Knoxville, and it now has 34 locations in Tennessee, Kentucky, Alabama, North Carolina, Georgia and South Carolina.

IN MEMORIAM

Linda J. Rosenthal Linda J. Rosenthal passed away peacefully at her home on Tuesday, January 28, 2020. She was 75. She is survived by her husband, Donald (President of Economy Welding and Industrial Supply); sister, Judy Moore (the late Jack); three nephews, Danny (Mary), Brian (Michele) and Craig (Tracy); and two stepsons, Stephen and Peter (Heather); two grandsons; several grandnephews and grandnieces. Linda was born in Pittsburgh and was raised in Brentwood, PA. She received her bachelor’s degree in education from Clarion University and a master’s degree from the University of Pittsburgh, also in education. Linda taught English in the Pittsburgh city schools for 31 years, including more than 20 years at Oliver High School. Linda loved to travel, read and entertain her many friends with spontaneous parties at her homes in Pittsburgh and Seven Springs. She was an usher for many years at the Pittsburgh Public and O’Reilly Theatres and served on the board of the Pittsburgh Symphony Orchestra. In lieu of flowers, donations may be made in her name to the Humane Animal Rescue of Pittsburgh.

INDUSTRY NEWS

u p c o m i n g industry events Here are some of the events scheduled for 2020 and beyond. Check the EVENTS tab on the GAWDA website at www.gawda.org for more information.

APRIL 2020 GAWDA Spring Management Conference Austin, Texas APRIL 5 – 7, 2020 CGA Annual Convention New Orleans, Louisiana APRIL 26-30, 2020

MAY 2020 AIWD Annual Convention Miami, Florida MAY 3-6, 2020

GAWDA Regional Meeting Houston, Texas MAY 11-12, 2020

JUNE 2020 IWDC Sales & Purchasing Convention Louisville, Kentucky JUNE 9 -11, 2020 GAWDA Regional Meeting Seven Springs, Pennsylvania JUNE 24-26, 2020

JULY 2020

OCTOBER 2020

GAWDA Regional Meeting Coeur d’ Alene, Idaho JULY 22-24, 2020

IOMA Annual Meeting Washington, D.C. OCTOBER 10-14, 2020

AUGUST 2020 GAWDA Regional Meeting Oregon, Ohio AUGUST 10-11, 2020

SEPTEMBER 2020 GAWDA Annual Convention Phoenix, Arizona SEPTEMBER 25-28, 2020

IWDC Owners Meeting Rancho Mirage, California OCTOBER 20-24, 2020

NOVEMBER 2020 FABTECH Las Vegas, Nevada NOVEMBER 18-20, 2020

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Spring 2020 • 101

M&A SCORECARD Airco Gases, Inc. Announces Subsidiary Formation and Acquisition Airco Gases, Inc. announces the formation of Big 3 Gas and Supply, LLC., a subsidiary company structured to facilitate aggressive expansion through organic growth strategies and targeted acquisitions. Marvin Rodgers, III, president of Airco Gases notes that “too often in the process of consolidation in our industry, the choice for owners wishing to take some risk off the table is binary, and requires a complete divestiture of their company accompanied by significant cultural change for their operations. Big 3 allows owners desiring one, an opportunity to remain engaged and invested in the business and to perpetuate the customer centric values that built their operations.” Rodgers adds, “secondarily, typical corporate structures in our industry make it difficult to reward key employees with direct equity that provides a long-term incentive for their efforts. Big 3’s structure is optimized to address these opportunities as well as to support direct capital investments that can support organic growth.” Concurrent with the formation of Big 3 Gas and Supply, LLC., Big 3 is announcing the completion of their first acquisition, Welders Warehouse Corporation, with locations in Dallas and Waxahachie, TX. According to Rodgers, Welders Warehouse is a well-established local company with an excellent reputation for customer service. Longtime partners at Welders Warehouse, Harold Bredemeier and Gary Varner will retain an investment in Big 3 and will be actively engaged in managing the business. To support organic expansion goals, Big 3 will initially be investing in adding additional staff to the Welders Warehouse team to drive growth in the DFW Metroplex.

TOMCO2 Systems Announces Asset Purchase of CO2 Air, Inc. Dry Ice Equipment Business TOMCO2 Systems, Inc., a subsidiary of Air Water America, LLC, is proud to announce that it has acquired all the operating assets of CO2 Air, Inc. used in the dry ice production equipment business. This includes dry ice pelletizers, block presses, reformers, and saws. CO2 Air will continue to purchase and distribute bulk carbon dioxide products throughout the United States. “The divestiture of our dry ice machinery business allows CO2 Air to focus on our core business, the distribution of carbon 102 • Spring 2020

dioxide,” Justin McDowell, Vice President of CO2 Air stated. McDowell continued, stating “We believe TOMCO’s quality and resources are without equal in our industry and we are honored to work with them. CO2 Air will continue to focus on the growth of our carbon dioxide distribution business first started in 1992.” “Aligned with our growth strategy in CO2 and dry ice applications, the asset purchase from CO2 Air further expands our footprint and product portfolio,” Luke Bradshaw, President of TOMCO stated. “We designed our first pelletizer in 1979 and have continuously produced the most robust dry ice production equipment for distributors and end users for over four decades. We are excited to continue to penetrate markets across Europe and Asia with our comprehensive line of production and recapture systems while strengthening our position in the Americas.”

WestAir Expands into the Coachella Valley With its Acquisition of Desert Fountain WestAir Gases & Equipment provides industrial and specialty gases and welding supplies to a wide variety of businesses throughout the southwest and beyond. It has a deep background of combining high quality gases with unmatched customer service since its founding in 1970. The acquisition of Desert Fountain’s assets will further strengthen the company’s capacity to serve customers, new and old, throughout the region. “We’re thrilled about our recent acquisition of Desert Fountain,” said WestAir General Manager, Andy Castiglione. “This new location will not only empower us to provide more and better services to our customers in the Coachella Valley, but it will give us the space we need for future growth opportunities.” This acquisition will also enable WestAir to better assist local agricultural and beverage businesses with some of its top products for these industries, including Green CO2 and Modified Atmosphere Packaging (MAP) gases. It will also lay the foundation for future partnerships with the many local and seasonal businesses in the region. WestAir opened the doors at their new location on February 3, 2020. For more information about the acquisition or to learn more about WestAir, please contact marketing@ westairgases.com.

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3. Get Wired for Success with New Norton

Fluoramics, Inc. has introduced a new application tip for its 100-gram tube of Formula-8 thread sealant. This packaging will appeal to users of Formula-8 who are looking for easier or one-handed application. The extended tip also makes it easy to access hard-to reach areas. 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° F to +500° F, and is solvent-free and non-hazardous. Formula-8 is available in a 100-gram tube with the new extended application tip, 1-lb. jars, and 15-gram tubes. The 15-gram tube is particularly handy for less-frequent users of Formula-8 or those who are looking to include Formula-8 with their product or kit shipments. To learn more about Fluoramics’ products, please visit the company’s website at Fluoramics.com.

When you need the perfect low-impact solution for refining surfaces without removing any base material, try the new line of Norton wire brushes. This economically priced, solid-performance line complements your projects perfectly while bringing real savings to the bottom line. All wire brush basic shapes, wire configurations, and filament materials are available.

with Easy Application Tip

2. Eleet Cryogenics has Vaporizers on Hand Eleet is now stocking 5,000scfh, 10,000scfh, and 20,000scfh high-performance large gap vaporizers at their Texas and Ohio locations for immediate shipment. You can ship these with a new Taylor-Wharton bulk tank or fully rehabbed tank, with the final line assembly manifolds, and any other components needed for your installation all on one truck. This saves on freight and makes for an efficient installation.

Wire Brushes

4. Lincoln Electric Expands Hardfacing Consumables Product Line

Lincoln Electric aims to ‘take the hard out of hardfacing’ with a current expansion of the company’s hardfacing consumables product line, both with new Lincore flux-cored wires and with new small shop-friendly packaging. This staggered launch includes a number of new and existing Lincore hardfacing wires on 10 lb. (15 kg) spools in 1/16-inch (1.6 mm) diameter. These changes deliver a convenient and Spring 2020 • 103

NEW OFFERINGS

4 lower priced package for sale in authorized distributor stores. Denise Harpster, Lincoln Electric product manager, hardfacing said, “Our hardfacing team is focused on delivering a full product offering for a wide variety of hardfacing applications, including the demand for smaller diameters and packaging that are just right for small shop maintenance and repair projects. And we are especially excited about the opportunity to create custom formulations that allow customers to obtain new productivity, quality or cost-saving advantages in their operations.” Three new Lincore hardfacing wires are launching: • Lincore 70-G – Severe abrasion metal-cored wire with up to two times more wear than most chrome carbide or complex carbide alloys, especially for wet abrasion applications. • Lincore 57-G – General abrasion and impact metal-cored wire with a broad range of applications, including metal-to-metal wear with moderate impact or mining, agricultural or shredding equipment. • Lincore 420HC-S – For overlay deposits that resist metal-to-metal wear and mild corrosion such as continuous caster roll rebuilding. In addition to the new products, the expanded line includes new diameters or packages for existing products, including: • Lincore 50 – Abrasion + Impact FCAW-S wire • Lincore 55 – Metal-to-Metal FCAW-S wire • Lincore 55-G – Metal-to-Metal FCAW-G wire • Lincore 60-O – Severe Abrasion GMAW-C wire • Lincore BU-G – Build-Up FCAW-G wire Lincoln Electric’s Regional Alloy Sales Specialists are ready to help you take the hard out of addressing your hardfacing application. The Lincoln Electric hardfacing team also offers 104 • Spring 2020

custom formulations for specific customer applications. For direct inquiries or demonstration requests, feel free to contact the national Alloy sales office at 1-800-638-1458. For more information, visit lincolnelectric.com/lincore or www.lincolnelectric.com.

5. New, Innovative Norton FAB Buffing

Wheels Achieve Exceptional Finishes

Saint-Gobain Abrasives, one of the world’s largest abrasives manufacturers, announced the introduction of its new, innovative Norton FAB (Fixed Abrasive Buff) buffing wheels that virtually eliminate the need to use buffing compounds. Norton FAB wheels feature a patent pending design, which incorporates abrasive grains into the buffing wheel and consistently results in excellent single digit Ra values ranging from 1 to 5 Ra. The new Norton FAB wheels are tear resistant, waterproof and durable, providing significantly longer life than traditional cotton buffs. “In addition to virtually eliminating the need for messy buffing compounds, new Norton FAB wheels increase productivity by generating more parts per buff with fewer buffing wheel changes,” said Anne Bonner, Sr. Product Manager, Norton | Saint-Gobain Abrasives. “Also, their superior finishing performance can remove costly, extra pre-buff processing steps.” Due to significantly decreasing the need for buffing compound, Norton FAB wheels offer a more efficient, cleaner and safer way of buffing. There is less cumbersome, time-consuming cleanup in buffing operations and post-clean-up processes. Without the requirements to purchase, apply, cleanup, and dispose of large amounts of compound, costs are minimized. Also, less buffing compound improves worksite safety and reduces the environmental impact of compound disposal.

NEW OFFERINGS

Norton FAB wheels have a premium silicon carbide abrasive which is uniformly dispersed and applied to both sides of the cloth, resulting in more consistent buffing performance. Norton FAB wheels can be easily incorporated into new or existing robotic buffing applications. Key applications for new Norton FAB wheels include automatic or semi-automatic buffing, cut buffing and mush buffing in a wide range of markets such as automotive, hardware, oil and gas and more. The new wheels are effective on hard alloys as well as soft metals such as aluminum and brass. Norton FAB Wheels are available in outer diameters from 5” to 22,” in 12 or 16 ply (number of cloth layers of buff), 2 or 4 pack (waviness of the buff face) and various ID hole designs.

6. Lincoln Electric Launches New Dual Maverick 200/200X

Harness the power of two with the new Dual Maverick 200/200X engine driven welder/generator from Lincoln Electric. This innovative multiple arc welder/generator features two welders powered by one diesel engine with dual welding outputs, allowing two or more welders to work at the same time in structural, pipeline and maintenance and repair applications. With optimized operations for the most efficient weld, the Dual Maverick 200/200X offers minimized engine noise for a quieter experience. Welders can also achieve more fuel savings with variable engine RPM based on welding output level and auto stop/start functionality. The output remains steady even during arc stops and starts in dual mode. Dual Maverick 200/200X includes an advanced user interface for ease of use. The intuitive interface provides easy setup, a low learning curve and increased functionality, while

maintenance reminders help keep your machine running in peak performance. These advancements are utilized through two bright and clear 4.3-inch IP67 rated color LCD screens, making them weatherproof and functional. Walk less and weld more with CrossLinc technology enabled in the Dual Maverick 200/200X. The technology offers full control of output at the arc without cumbersome and expensive control cables. This elimination can increase worker productivity by reducing trips to the power source and promotes overall site safety by reducing job site clutter. The convenient and easy-to-use technology also helps improve consistency in weld quality and direct connects with the Magnum PRO 250LX GT spool gun. For more information visit www.lincolnelectric.com/ dual-maverick.

7. EZ Regulator Mount Protects Downstream Gas Quality

The Harris Products Group offers the EZ Regulator Mount system for customers who want a practical and safe wall-mounted installation of any Harris high-purity bar stock cylinder regulator. It fits in well with the décor of a modern laboratory, and its compact size minimizes the amount of valuable wall space normally required to wall mount regulators. The system is designed with flexible hoses and integrated CGA check valve connections to prevent contaminants from entering the gas stream. The regulators are wall-mounted, which eliminates the need for users to handle the regulators during cylinder change out. This enables a safe and efficient way to switch cylinders without fear of gas backflowing through the disconnected hose. With a maximum rated inlet pressure of 3000 psig and Spring 2020 • 105

NEW OFFERINGS 9

cleaned to exceed CGA G-4.1, it is suitable to use in most laboratory applications. The EZ Regulator Mount is available for both brass and stainless-steel Harris regulators and can connect to up to two cylinders. This EZ Regulator Mount system allows for right-outof-the box installation of the regulator assembly onto a wall or structure. Its mounting brackets are fabricated from 304 stainless steel for durable, long-life service and are suitable for most environments and locations. The system is an example of how Harris Products uses its technology and experience to help its distributors and end-use customers by developing innovative products and solutions.

8. Worthington Industries Announces Worthington RoboStor by Celltrio

Worthington RoboStor by Celltrio is an automated liquid nitrogen freezer providing -195 degrees Celsius for research and development, biobanking and cell culturing applications for up to 21,600 vials. The RoboStor product launch is part of a distribution agreement Worthington has formed with Celltrio Inc., a life sciences automation company based in Santa Clara, California, to provide product sales and service throughout North America. “Our customers are asking for better sample security and RoboStor provides audit trails for cell-based materials in cryogenic conditions,” said Josh Oakes, director of Cryogenics for Worthington Industries. “We are excited to work with a fantastic innovator like Celltrio to add robotic cryogenic solutions to our existing portfolio of manual cryogenic products.” “Celltrio Inc. is pleased to partner with Worthington Industries for product distribution and service in North America,” said 106 • Spring 2020

Charlie Duncheon, CEO of Celltrio Inc. “Worthington has strong distribution partners throughout North America that will allow for a seamless go-to-market channel and an acceleration of our growth.”

9. Wire Wizard Gas Tracker Digital Gas Flow Monitor

The Gas Tracker Digital Gas Flow Monitor from Wire Wizard provides an easy way to monitor and track shielding gas flow in robotic or semi-automatic MIG or TIG welding applications. The Gas Tracker is two monitors in one – it may be used as a portable unit or mounted in-line. It provides a simple and accurate method for monitoring and totalizing incoming gas flow, or measurement and verification of gas flow at the nozzle. The touchscreen interface has a digitally displayed flow rate and the PLC connectivity allows for automated alert functions. The Gas Tracker Digital Gas Flow Monitor is pre-calibrated for a wide variety of gas mixtures.

10. Ratermann Mfg. Expands Opportunities with Labels

Ratermann Mfg.’s label department has expanded its branding capabilities. Size and Shape of the labels can be customized for just about anything. Ratermann’s color-matching technology means that all logos can be matched accurately and printed on shoulder labels, side labels or any other label. The in-house label department has an art team that works one on one with customers to ensure they get the most out of their branding. To find out more information about Ratermann Mfg.’s new label branding capabilities, visit https://www.rmiorder.com/ sign_builder today.

ADVERTISERS INDEX Acme Cryogenics.............................................. 71

Kaplan Industries.............................................. 25

Allcryo............................................................... 59

Lenox................................................................. 65

American Welding Society, Inc......................... 41

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

AmWINS Program Underwriters......................... 8

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

Anthony Welded Products................................ 17

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

Arcos Industries.............................................. IBC ASM/American Standard Manufacturing.......... 19

NorLab Calibration Gases Division of Norco............................................... 77

Black Stallion/Revco Industries........................ 24

Norton Abrasives............................................... 31

BTIC America Corporation................................ 75

ORS Nasco...................................................... 100

Bug-O Systems International............................ 50

Prism Visual Software....................................... 95

California Cylinder............................................. 99

RegO Cryo-Flow Products................................ 33

Carborundum Abrasives................................... 73 Catalina Cylinders........................................... 101 Cavagna North America.................................... 27 Chart Inc............................................................ 45 Computers Unlimited........................................ 29 Controlled Efficiencies...................................... 15 Cryogenic Industrial Solutions.......................... 94 Cryoworks......................................................... 65 Eleet Cryogenics............................................... 51 Equigas............................................................. 57 Exocor............................................................... 98 Flexovit USA...................................................... 49 Gas Innovations................................................ 74 Generant Company........................................... 94

Rotarex.............................................................. 21 SafTCart............................................................ 13 Select-Arc......................................................... BC Sherwood Valve................................................ 43 Superflash Compressed Gas Equipment/IBEDA Inc....................................... 11 Thermco Instrument Corporation..................... 55 TOMCO2 Systems Company............................. 5 Veite Cryogenic Equipment & Service Corp....... 1 Vendor Managed Gas Telemetry...................... 58 Watson Coatings Inc......................................... 97 Weldcoa.............................................................. 9 Weldship Corporation....................................... 53

H & H Sales Company...................................... 74

Winton Products Co.......................................... 99

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

Wire Wizard/ElCo Enterprises........................... 93

Hobart Institute of Welding Technology............ 93

Worthington Industries…………... ……………..61

Let’s get

social!

@GAWDAMEDIA

/ WeldingAndGasesToday

@GAWDAMEDIA

Spring 2020 • 107

aaweldingsupply Behind every great race car is a great #welder. From roll bars to wheel spindles, a TIG welder helps you build, modify and repair. To learn more about #TIGwelding in racing applications. #miller

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

Ratermann Manufacturing Look who crashed Ratermann Manufacturing’s annual business meeting and holiday celebration..(is that George Ratermann)? #Hypertherm

cryogenic_ ind_nikkiso Airlifting a P2K for @butlergas today for their Argon tank #cryogenic #argon #gawda #iwdc @iwdc94 @gawdaorg @gawdamedia

awisco_jeff AWISCO is very proud of the Rockland Boces Welding Students and Teachers !!! Rockland Boces is one of the few winners of a national contest “Rulers of the Flame” that was sponsored by ESAB and Victor Technologies. Way to go!!! @awisco_welding @esabweldingcutting @rocklandboces @esab_eric @awisco_abel_mariot #esabweldingcutting #rulersoftheflame #awisco_welding #awisco #rocklandboces 108 • Spring 2020

worthingtoninds Members of our Steel division’s employee council joined our senior leaders to volunteer at the @rmhcofcentraloh, prepping rooms for future guest use. The @rmhc provides vital support to families of sick children across the globe, including in our own communities, and we are proud to support their work.

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