Welding & Gases Today | Q3 2019 by Welding & Gases Today

The Official Publication of the Gases and Welding Distributors Association

C ELEBRATING O UR H ISTORY

ANNUAL CONVENTION

Itâ&#x20AC;&#x2122;s All About Service in Washington D.C.

Third Quarter 2019

SMC RECAP

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contents

Third Quarter • Summer 2019 • Volume 18, No. 3

DEPARTMENTS 08

PRESIDENT’S VIEW Providing Great Service in All Areas BY BRAD PETERSON

COVER STORIES

2019THE YEAR OF

DIRECTOR’S DESK Inspiration and Innovation BY JOHN OSPINA

EDITOR’S NOTE Coming Full Circle

BY STEVE GUGLIELMO

GAWDA CONSULTANTS 14

edical Gas – M Data Integrity

PAGE

BY THOMAS L. BADSTUBNER

DOT Training Requirements

BY MICHAEL DODD

rug and Alcohol D Clearinghouse, Driver Training Rules Set to go Into Effect Next Year

BY RICHARD P. SCHWEITZER, ESQ.

ITR THIRD-QUARTER OUTLOOK Inflection Points

BY ALAN BEAULIEU

CELEBRATING OUR HISTORY GAWDA Members celebrate milestone anniversaries and share lessons learned during their years of service to the industry

EEN COMPRESSED GAS K Celebrating a Century of Success BY AGNES H. BAKER

ARLBECK GASES & E TECHNOLOGIES Working on Solutions that Make Customers More Efficient BY AGNES H. BAKER

GUEST VIEWPOINTS 70

SALES AND MARKETING Making the Customer Comfortable

BY ART WASKEY

SALES AND MARKETING Text Messaging – 7 Use Cases Beyond Immediate Sales

BY ADAM NATHAN

BEST PRACTICES Adopting the Entrepreneurial Mindset in Your Company Culture

4 • Summer 2019

RICHES IN THE NICHES Compressed Gas Cylinder Maintenance BY JONATHAN R. BALBI AND STEVE GUGLIELMO

MEMBER PROFILES 22

BY STEVE GUGLIELMO

BY JOHN TAPLEY

TAKING THE INDUSTRY BY STORM

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contents

Third Quarter • Summer 2019 • Volume 18, No. 3

THE TEAM

ANNUAL CONVENTION PREVIEW

EXECUTIVE EDITOR

John Ospina jospina@gawda.org PUBLISHER

Bill Brod billb@gawdamedia.com EDITOR IN CHIEF

Steve Guglielmo steveg@gawdamedia.com CONTRIBUTING EDITOR

Natasha Alexis nalexis@gawda.org CONTRIBUTING WRITER

Agnes H. Baker CREATIVE DIRECTOR

Robin Barnes robinb@gawdamedia.com VICE PRESIDENT, SALES

Tim Hudson timh@gawdamedia.com

PAGE

NEWS FROM GAWDA RELATIONSHIP MANAGER

Hannah Gray hannahg@gawdamedia.com

NNUAL CONVENTION A PREVIEW

COVER DESIGN

SMC RECAP

Greg Minix

NEWS ROUNDUP STAY CONNECTED

104

NEW MEMBERS

120

IN MEMORIAM

108

INDUSTRY NEWS

122

NEW OFFERINGS

118

MERGERS & ACQUISITIONS

126

ADVERTISERS INDEX

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

6 • Summer 2019

from CONCEPT to REALITY...

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P RESIDENT’S VIEW

Providing Great Service in All Areas by brad peterson

I Brad Peterson is GAWDA’s 2018–2019 president, as well as chairman and chief acquisition officer of family-owned Mississippi Welders Supply Company, Inc. He also serves on the board of the Independent Welding Distributors Cooperative (IWDC) and the board of Absolute Air. He can be reached at 800-6574422 or bradp@mwsco. com.

’ve made my theme this year service. I believe that if you provide good service, you’ll always be in business. For your service to be considered good, your customers need to feel that way…not just you. The customer needs to perceive value from your service, whether that service is delivering gases, building equipment, providing software, fixing machines or specifying an automation system. So, get out there and ask your customers what they think of your service. I’m doing the same in my travels representing GAWDA. How are we doing? Are we providing value in our offerings? Are the consultants doing a good job? Are people utilizing the training and safety information? Are they accessing CGA documents? Getting their money’s worth from regional meeting attendance? Please let me know your thoughts in person, by phone or by email.

For your service to be considered good, your customers need to feel that way…not just you. Regarding our regional meetings, the more focused schedule has been met with general gratitude, especially from supplier members. Our previous high point of nine meetings was just a bit of a stretch. This year’s four meetings seem to have hit the mark. However, that may not always be true. We need to be open to change and make it happen when necessary. The Northeast plan to rotate meeting locations (as is done in the Northwest) is a good example, as well as the

8 • Summer 2019

change to a distributor-manned contact booth at the Seven Springs regional meeting. Please be of service to your industry—get involved and give your feedback. You will see in this issue many examples of milestone anniversaries. These companies didn’t reach their milestones by sitting back. They provided good (I should probably just say great) service and changed and evolved when necessary as the customer’s perception of good service changed. I also have service on my mind in two other contexts: we need to serve our communities and our country. When we serve our community by sitting on a technical college board, or by doing science experiments with Boy Scouts, or participating with the Chamber of Commerce, or doing a hundred other activities, we’re building a strong community that will be resilient and have multiple connections between people of all walks of life. This will make our business environment stronger and less susceptible to the natural ups and downs that come along. And on a larger scale, when we encourage our friends, family and co-workers to serve the nation; in the military, in the peace corps, or by simply exercising their right to vote, we’re doing the same thing, knitting a stronger fabric that will bind us together and make the country stronger. Please continue to do your part and don’t be bashful about it. We need everyone to speak up for the value of service in all of its manifestations. I look forward to seeing many of you in Washington, D.C., as we convene for our 2019 Annual Convention. I think you will enjoy the meeting and the opportunity to see the sights!

MUTUAL PARTNERSHIP, MAXIMUM POTENTIAL

Lincoln Electric recognizes that the support provided by our distributor partners is critical to our business success. As the world leader in the development of welding and cutting solutions, we’re ready to respond to that support by continuing to provide you with innovative technologies, quality products, training, solution selling and distributor programs designed to help reach your primary goal – growing your business. To realize the full potential of Lincoln Electric selling power, knowledge and expertise; contact your sales representative today.

DIRECTOR’S DESK

Inspiration and Innovation 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 • Summer 2019

hen you think about all there is to see in Washington, D.C. it’s pretty mind blowing. Where else can you find so many museums and historical sites dedicated to embracing the history of cultures, innovation and the arts from not only here in the good old USA, but from all over the world? Today, we view ourselves as a global community, but if you think about it, it’s been that way, to a point, since the days of the Silk Road. You may recall from your studies as a kid that the Silk Road was the network of trade routes that connected Asia and Europe during the 2nd century all the way through the 18th century. It connected economic, cultural, political and religious interactions between these regions. Since then, trade has depended on the interactions between world communities to move the needle forward on innovation and success. The drive to continuously innovate has shaped the companies we know today. Examples of welding have been found from as far back as the Bronze and Iron ages. Many of the modern welding processes were developed in the 18th and early 19th centuries by both American and European inventors. As I read through the anniversary articles, starting on page 36, it’s interesting how many innovators started as small independent distribution and manufacturing firms that have flourished and grown into the modern companies we see today. They say that Rome wasn’t built in a day, and our industry has grown and evolved constantly since its inception. Today, our industry is experiencing a paradigm shift as customers increasingly look for advancements like e-commerce and automation as standard. This has changed the way our companies operate from things like

Annual Convention PAGE 80

record keeping, as outlined in Tom Badstubner’s article on page 14, all the way through sales and service via text message, as described by Adam Nathan on page 72. The inspiration to innovate can come from many sources: a good article, a speaker, a seminar or conference, a conversation with peers or other business leaders. At GAWDA, we’re always looking for that key inspiration point. I believe you’ll find several of those nuggets of inspiration as you read through our magazine and hope you’ll be joining us at this year’s Annual Convention. We have a great speaker lineup and lots of networking opportunities with fellow GAWDA members. As we move forward, we will continue to innovate as well! 2019 has been “The Year of Service” and we are striving to continue to serve you in the best way possible. We look forward to seeing and hearing from you in Washington, D.C.! As always thank you for your continued support.

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FROM THE EDITOR

Coming Full Circle by steve guglielmo

H 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

ello, GAWDA Members! My name is Steve Guglielmo, and I am the new Editor in Chief at GAWDA Media. This is actually my second experience working with GAWDA. My first job, after I graduated from college, was with Data Key Communications. While I mostly worked on one of Data Key’s other industry publications, I was able to pitch in and contribute to Welding & Gases Today in a support capacity. Now, almost ten years later, it feels wonderful to be back working with this association and its members. In the intervening eight years, I have been fortunate enough to work on association publications in industries ranging from material handling equipment, commercial diving, mining and aggregates, healthcare and much more. I believe that having experience with such a wide variety of industries will be beneficial in my new role. The Summer Issue is a lucky one to cut my teeth on, as we celebrate the milestone achievements of so many GAWDA members. Speaking with and interviewing these members about the way their companies and the industry have evolved over the years has been an incredible way to not only learn more about our membership but also

learn about the industry. Thank you to all those members who took the time to speak with me for the Anniversary Feature, which can be found on page 36. The Summer Issue is also the Annual Convention Preview Issue. As always, the GAWDA Staff has put together an incredible agenda for this year’s Convention in Washington, D.C. I’m so excited to not only hear from the all-star lineup of speakers but also to meet and network with members at the Contact Booth Event, receptions and hospitality events. Welding & Gases Today is a member publication and, as such, I believe that you have a say in the direction of the magazine. Are there features that you enjoy and would like to see more of? Or is there an area of the industry that you feel is being underrepresented and we could feature more in the magazine? I would love to discuss these ideas with you! Please feel free to reach out to me any time by phone (315-445-2347 ext. 120), email (steveg@gawdamedia.com) or Twitter (@GAWDAMedia, my DMs are open.) I’m so thankful for this opportunity and I look forward to meeting and working with all of you going forward!

Let’s get / WeldingAndGasesToday 12 • Summer 2019

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CONSULTANTS FDA & MEDICAL GASES

Medical Gas – Data Integrity by thomas l. badstubner

I 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.

n recent years, the Food and Drug Administration (FDA) has increasingly observed violations involving data integrity during audits. Data integrity issues have been observed in traditional pharmaceutical firms as well as in medical gas firms. Solid, accurate and reliable data is an important component to ensure compliance with FDA’s Current Good Manufacturing Practice (CGMP) regulations. The integrity of drug (and food/beverage/device) manufacturing data is also critical for your own business success.

WHAT IS “DATA INTEGRITY”? Data integrity refers to the completeness, consistency and accuracy of data. The data integrity term ALCOA stands for Attributable, Legible, Contemporaneous, Original and Accurate.

WHAT IS “METADATA”? Metadata is the contextual information required to understand data. A data value is, by itself, meaningless without additional information about the data. Metadata is structured information that describes, explains or otherwise makes it easier to retrieve, use or manage data. For example, the purity number “99.8” is meaningless without metadata (“percent.”) Metadata for a particular piece of data could include a date/time stamp documenting when the data were acquired, a user ID of the person who conducted the test or analysis that generated the data, the instrument ID used to acquire the data, material status data, the cylinder serial or lot number, and audit trails. Gas chromatography metadata could include the retention times, gas names, essential instrument parameters, etc. Metadata should be maintained with the original data throughout the record’s 14 • Summer 2019

retention period. The relationships between data and their metadata should be preserved in a secure and traceable manner.

WHAT IS AN “AUDIT TRAIL”? An audit trail is a secure, computer-generated, time-stamped electronic record that describes the history of events relating to the creation, modification or deletion of an electronic record. For example, the audit trail for a gas chromatograph (GC) run should include the username, date/time of the run, the integration parameters used and details of any reprocessing. Documentation should include the reason for any changes. Audit trails include any revisions, reprocessing or attempts to delete a record (e.g. chromatogram).

WHAT REGULATIONS ARE IMPACTED BY DATA INTEGRITY? •

• •

•

§ 211.68 (requiring that “backup data are exact and complete” and “secure from alteration, inadvertent erasures, or loss” and that “output from the computer ... be checked for accuracy.”) § 212.110(b) (requiring that data be “stored to prevent deterioration or loss.”) §§ 211.100 and 211.160 (requiring that certain activities be “documented at the time of performance” and that laboratory controls be “scientifically sound.”) § 211.180 (requiring that records be retained as “original records,” or “true copies,” or other “accurate reproductions of the original records.”) §§ 211.188, 211.194, and 212.60(g) (requiring “complete information,” “complete data derived from all tests,” “complete

record of all data,” and “complete records of all tests performed.”) • §§ 211.22, 211.192, and 211.194(a) (requiring that production and control records be “reviewed” and that laboratory records be “reviewed for accuracy, completeness, and compliance with established standards.”) • §§ 211.182, 211.186(a), 211.188(b)(11), and 211.194(a) (8) (requiring that records be “checked,” “verified,” or “reviewed.”) Data integrity certainly applies to electronic records (see 21 CFR Part 11). Software for creating and maintaining electronic production, calibration, testing, labeling and distribution records is available and will likely become more widely used in the future. Be certain you consider the integrity of the data when you decide to create an electronic record. If your operation uses a gas chromatograph or automatically acquires production testing data into a computer, you are creating and maintaining electronic records. As of 2019, most of the medical and food/beverage records are still handwritten and certainly impacted by data integrity issues.

EXAMPLES OF DATA INTEGRITY ISSUES FOR MEDICAL AND FOOD/BEVERAGE GAS COMPANIES?

Error corrections – If a mistake is made on a record (e.g. fill log) by the operator, the mistake can be easily corrected. The error should have a single line drawn through the entry and the correct entry should be written near the error. The initials/signature of the person who corrected the entry should be placed near the error. If the date of the correction is not the same as the date of the entry, the date of the correction should be entered. If the reason for the correction is not obvious, the reason for the correction should be documented. Never erase, obliterate or white out an error on a regulated record. Always use an indelible ink pen to make hand written records. Invalidating test results – Occasionally, the Oxygen test, gas chromatograph, etc., may deliver a non-conforming result. This could be as a result of the instrument being bumped during calibration, an electrical spike, a regulator failure, etc. You should follow your “non-conformance” or “out-of-specification” (OOS) procedure to determine what steps are needed to proceed. Among other actions, you might decide to reject the lot, recalibrate the instrument, retest the product, etc. It is critical to decide if the original test result was valid (and the product is truly non-conforming) or if the original test results are invalid (and the product may be retested.) The original test result must be recorded along with an explanation about the results of your investigation.

Compliance Made Simple.

Electronic Records Electronic Signature

Gas + Cryogenic Production Records

Medical Gases: O / N / N2O / CO2 Food/ Beverage Gases: O / N / CO2 Industrial Gases: O / N / N2O / CO2 Aviation: O

FDA Inspected + Validated

Tracking + Records:

Production / Training / Labels / Maintains COA + Certiﬁcation / Equipment

Summer 2019 • 15

CONSULTANTS FDA & MEDICAL GASES Two examples: • Oxygen Purity – Consider if you used the Servomex to test the purity of the oxygen and the instrument indicated 98.7%. This is below the USP minimum of 99% and would disqualify the lot for distribution. Your OOS procedure should be followed to determine the next steps (venting, reanalysis, etc.). Even if you decide to recalibrate and reanalyze the lot, you must keep a record of the original test result (98.7%) along with any other actions (recalibration, retesting, etc.) that you take. Fortunately, the paramagnetic oxygen analyzer technology is highly reliable and Oxygen purity OOS is very rare. • Gas Chromatography – Sometimes, an unusual event is recorded on the chromatogram. This could be due to an electrical spike, sample regulator issue, etc. All unusual events and results must be documented and explained. We recommend printing the chromatogram, signing/dating the chromatogram to indicate that it is a true copy of the electronic record and explaining any unusual events in writing on the chromatogram. Follow your OOS procedure. Even if you decide to invalidate the original test, you must keep the chromatogram with the testing records. Audit trails – If you make a change to a record (handwritten or electronic), the history of the record and changes must be maintained. • Handwritten records - For example, if you filled out a Packaging Control Record (PCR or “Fill Log”) for medical oxygen and the form was damaged beyond legibility, you cannot simply copy the data onto a new form and discard the old form. You must keep the original record attached to the new record (e.g. by stapling). This result will not be neat looking, but it will preserve the history of the record. • Electronic records - Similarly, if you make a change to a gas chromatography method file (e.g. slightly revise the retention times), you must maintain the history of the method file. This history is captured in an “audit trail.” The key is to be able to recreate the method as it existed at any time and to document the revisions done to the electronic record. There have been serious FDA compliance actions simply because audit trails were not maintained. Most newer chromatography data acquisition systems have audit trail provisions that you can enable in the software settings. If you are using a legacy GC data acquisition system, consider upgrading to a 21 CFR Part 11 compliant system with audit trails. There are no “grand-fathering” provisions for older non-compliant software. Keep in mind that audit trails also apply to computerized production and testing systems. If you make a change to the 16 • Summer 2019

software or system, a record must be maintained of the change. Audit trails must be reviewed by the Quality Control Unit. Copies of records – You are permitted to make true copies of handwritten and electronic records. In all cases, ensure that you preserve the content and meaning of the original record. This includes all the metadata required to reconstruct the CGMP activity (e.g. GC method, calibration files, etc.). True copies of electronic records may be made and maintained in the format of the original records or in a format that allows for the content and meaning of the original records to be preserved if a suitable reader and copying equipment are readily available. Be careful when upgrading legacy software that the new software will be able to read the old records. If the new software cannot read the old data, you will need to keep a copy of the legacy system active (for the length or the record retention period) or transfer the data (including metadata) to another format (e.g. paper.) • Hybrid electronic records – If you intend to make paper copies of an electronic record (e.g. chromatograms), you should initial/sign and date the paper copy. Ensure that you have a procedure that defines the meaning of the signature and date. The signature and date attest that the paper copy of the record is a true copy and includes all the data needed for CGMP compliance. This creates a “hybrid electronic record.” The original copy of the record exists on the computer, but a true copy for compliance purposes is on paper.

WHEN DOES DATA BECOME A CGMP RECORD? When generated to satisfy a CGMP requirement, all data become a CGMP record. You must document, or save, the data at the time of performance to create a record in compliance with CGMP requirements. You should not record data on pieces of paper that will be discarded after the data are transcribed to a permanent fill log or other record. Similarly, you may not store electronic records in a manner that allows for manipulation without creating a permanent record. (See audit trail, above.) It is a serious violation to sample and test product until it passes… and then only keep the final record. This practice is also referred to as testing into compliance. The FDA also does not recognize ditto marks (or similar continuation marking) as a legitimate record. Similarly, in the United States, signature stamps are not allowed on CGMP records. The FDA is re-evaluating the guidance for electronic records. If the agency changes its position, we will revise this information, as needed. If you have questions or need additional compliance procedures, please contact Tom Badstubner - tom@ asteriskllc.com.

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We’reWe’re prettypretty muchmuch in charge in charge of of our destiny,” our destiny,” said Bone. said Bone. “The“The program program provides provides quarterly quarterly reviews, reviews, so wesocan we can tracktrack results, results, makemake adjustments adjustments and and refocus refocus on areas on areas to maximize to maximize our endour endof-year of-year rebates.” rebates.” SinceSince Harris Harris is theisonly the only company company that manufactures that manufactures both consumables both consumables and and equipment equipment in theinindustry, the industry, distributors distributors have have a single-source a single-source supplier supplier for U.S.for U.S.manufactured manufactured brazing brazing and soldering and soldering regulators, regulators, welding welding alloys, alloys, torches torches and and otherother consumables consumables and equipment. and equipment. Top Brass Top Brass also supports also supports distributor distributor sales sales efforts efforts with dedicated with dedicated experts experts who who assistassist with questions with questions and demonstrations, and demonstrations, and and merchandising merchandising that that includes includes showroom showroom fixtures, fixtures, attractive attractive displays displays and other and other options options that are thateducational are educational and persuasive. and persuasive. “The “The in-store in-store displays displays are better are better than than he Harris he Harris Products Products Group, Group, a Lincoln a Lincoln Electric Electric we have we have ever ever had, had, and have and have helped helped us us company, company, is dedicated is dedicated to supplying to supplying distribution distributionto make to make sales sales with with walk-in walk-in customers,” customers,” partners partners with with quality quality products products andand thethe support supportsays says Bone. Bone. “They “They are professional are professional presentations presentations that that have have definitely definitely they they need need to succeed. to succeed. Distributors Distributors who who want want to grow to grow increased increased impulse impulse buys.” buys.” their their sales sales should should seriously seriously consider consider joining joining Harris’ Harris’ The The Top Top BrassBrass Program Program offers offers distributors distributors exceptional exceptional benefits benefits and the and the TopTop Brass Brass Program. Program. tools tools that they that need they need to increase to increase sales sales and and In addition In addition to theto robust the robust support supportsupport, support, aggressive aggressive rebates, rebates, impactful impactful their their ROI.ROI. For more For more information information aboutabout that Harris that Harris Products Products Group Group provides provides all allmerchandising merchandising and aand 24-48 a 24-48 hour delivery hour delivery this Harris this Harris Products Products Group Group partnership partnership of itsofdistribution its distribution partners, partners, thosethose who whoon most on most products. products. program, program, call 1-800-733-4043 call 1-800-733-4043 or email or email demonstrate demonstrate a higha level high level of commitment of commitment HaunHaun Welding Welding Supply, Supply, Inc., was Inc.,one was one custservmason@jwharris.com custservmason@jwharris.com to stocking, to stocking, marketing marketing and selling and selling HarrisHarrisof theoffirst thedistributors first distributors to sign to up sign forupthe for the products products receive receive premium premium benefits benefits and andprogram. program. “Harris “Harris makesmakes superior superior products products opportunities. opportunities. This two-way This two-way commitment commitmentand has andahas particularly a particularly outstanding outstanding sales sales is the is foundation the foundation of theof Top theBrass Top Brass Program Programteamteam that works that works with with us inus theinfield,” the field,” partnership partnership and its andmany its many avenues avenues for forsaid Michael said Michael Storie, Storie, V.P. of V.P.Sales of Sales for for growth growth and success. and success. Haun. Haun. “They “They put offers put offers together together for for ThereThere are big are rewards big rewards associated associateddistribution distribution that are thatcompetitive are competitive and and with the withTop theBrass Top Brass Program. Program. Participants Participantshelp help movemove products products off the offshelf. the shelf. As a As a in the in three-level the three-level program program receive receivemember member of theofTop the Brass Top Brass Program, Program, we we lucrative lucrative pricing, pricing, dedicated dedicated salessalesare selling are selling moremore outfitsoutfits than ever thanbefore.” ever before.”

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14 •Fall 14 •Fall 2019 2019

Summer 2019 • 17

CONSULTANTS DOT, SECURITY, OSHA & EPA

DOT Training Requirements by michael dodd

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

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.)

SECURITY AWARENESS (172.704) This training must include an awareness of security risks associated with hazardous materials transportation and methods designed to enhance 18 • Summer 2019

transportation security. A component covering how to recognize and respond to possible security threats must be included.

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. 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

CONSULTANTS DOT, SECURITY, OSHA & EPA • •

Name and address of the person providing the training Certification that the hazmat employee has been trained and tested.

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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.

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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Summer 2019 • 19

CONSULTANTS GOVERNMENT AFFAIRS & HUMAN RESOURCES

Drug And Alcohol Clearinghouse, Driver Training Rules Set To Go Into Effect Next Year by richard p. schweitzer, esq.

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

20 • Summer 2019

he Federal Motor Carrier Safety Administration (FMCSA) has two new rules set to go into effect in early 2020. One establishes an online clearinghouse for information on drug and alcohol testing information for commercial motor vehicle drivers, and the other imposes requirements for classroom and behind the wheel training for drivers before they may obtain a new Commercial Driver License or upgrade a CDL from Class B to Class A. The FMCSA has uploaded to its website (fmcsa.dot.gov) an expanded list of Frequently Asked Questions and other information on the agency’s drug and alcohol testing clearinghouse rule. The new rule goes into effect on January 6, 2020. The web page allows employers and drivers to subscribe to receive emails from the agency with news, updates and information to help prepare to use the clearinghouse. Employers and drivers will be able to register with the clearinghouse beginning in fall 2019 to input and access data in the system once it becomes effective. Once the rule goes into effect, companies must be registered with the clearinghouse and will have to input data on CDL drivers who test positive for drugs or alcohol or who refuse a DOT test. Prospective employers will have to check the clearinghouse database on all driver applicants, with the driver’s written permission, to determine if the applicant has any drug or alcohol test violations. For the first three years the rule is effective, employers will still have to check a driver applicant’s drug and alcohol testing history with prior employers for the previous three years. Once the rule has been in effect for three years, that additional check will be eliminated.

The entry-level driver training requirements go into effect February 7, 2020. These are minimum training standards for certain individuals applying for their commercial driver’s license for the first time; an upgrade of their CDL (e.g., a Class B CDL holder seeking a Class A CDL); or a hazardous materials (H) endorsement for the first time. These drivers must complete a prescribed program of instruction provided by an entity that is listed on FMCSA’s Training Provider Registry before taking the CDL skills test. The FMCSA will submit training certification information to state driver licensing agencies, who may only administer CDL skills tests to applicants for the Class A and B CDL, and/or the knowledge test for the H endorsement, after verifying the certification information is present in the driver’s record. The core and endorsement curricula generally are subdivided into theory (knowledge) and behind-the-wheel (BTW) (range and public road) segments. There is no minimum number of hours that driver trainees must spend on the theory portions of any of the individual curricula. However, training providers must provide instruction in all elements of the applicable theory curriculum and driver-trainees must receive an overall score of at least 80% on the theory assessment. Companies may provide the training to their own entry-level drivers, or use any third-party instruction entity, but the instruction program must be listed on the National Driver Training Registry as certified to meet the training standards. The training provider must not issue the training certificate unless the driver trainee demonstrates proficiency in performing all required BTW skills. Citing technical issues, the FMCSA has re-

CONSULTANTS GOVERNMENT AFFAIRS & HUMAN RESOURCES

cently proposed delaying implementation of two portions of the driver training rule for an additional two years. The proposed extension, which is likely to become final, would only apply to: (1) the date for training providers to upload entry-level driver training certification information into the Training Provider Registry and (2) for State Driver Licensing Agencies to receive driver-specific ELDT information. The implementation dates for these two provisions would be extended from February 7, 2020 to February 7, 2022. The FMCSA notice states this proposal would allow the agency additional time to complete development of the electronic interface that will receive and store ELDT certification information from training providers and transmit that information to the SDLAs. The proposed extension would also provide SDLAs with sufficient time to modify their information technology systems and procedures, as necessary, to accommodate their receipt of driver specific ELDT data from the TPR.

Employers and drivers will be able to register with the clearinghouse beginning in Fall 2019 to input and access data in the system once it becomes effective. The remainder of the rule, including the requirements for an entry-level CDL driver to complete classroom and behind the wheel training before taking the CDL exam, will go into effect as planned on February 7, 2020.

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MEMBER PROFILE

KEEN COMPRESSED GAS Celebrating a Century of Success by agnes h. baker

een Compressed Gas of Wilmington, Delaware, is proudly celebrating 100 years of service to its customers. Stanley Keen established the business in 1919 with the goal to be a company whose associates work hard to achieve total customer satisfaction in the delivery of its products and services. “Delivering on that promise,” says Bryan Keen, the company’s third-generation president, “is how we have achieved a century of success.”

greater significance in the business, the company became more involved with gases. By 1928, Keen was selling both acetylene and oxygen cylinders.

SELLING MORE GAS The company’s transition from servicing mostly the automotive market to

IN THE BEGINNING One hundred years ago, the welding and gases business as we know it today barely existed and the industries from which it emerged were just getting started. Having served his country during World War I, Stanley Keen was interested in founding a business in his hometown of Wilmington, Delaware. With the help of his father, he opened Keen Auto Parts in 1919. At the time, the U.S. automotive industry was growing fast, with more than 90% of all cars in the world manufactured here. Keen provided car parts and equipment, including the small acetylene cylinders commonly used for headlights at that time. Keen’s business grew steadily along with the emergent auto market, and by 1925 Keen had expanded its original facility. As welding repair work took on 22 • Summer 2019

Stanley Keen opened Keen Auto Parts in 1919.

the larger industrial gas business, really heated up in the 1940s. Keen added propane to its business in 1943. At that time, propane was mostly sold into the home heating and home use markets. During this period, Keen also began supplying gases to the growing manufacturing base in the Wilmington area,

MEMBER PROFILE including auto manufacturers. Says Bryan, “While most of those manufacturers are gone today, Keen maintains a strong customer base of small and mid-sized fabricators which are still prevalent in our region.” By 1946, the gases side of the business was so significant that the company incorporated under a new name, Keen Compressed Gas. When an industrial accident caused irreparable damage to the company’s only facility in 1952, Keen successfully managed to operate out of local garages until its new building was finished being constructed in 1953. That facility had added capacity and the company continued to flourish.

A MORE AGGRESSIVE APPROACH Stanley Keen was a skilled businessman. “He was able to support a family of 13 children by building this enterprise from the ground up,” Bryan says. Like many of his generation who had lived through the challenges of the

Welding repair work led Keen to become more involved with gases.

Great Depression, however, Stanley took a conservative approach to business, working out of only one main facility during his tenure. In 1965, J. Merrill Keen, the youngest of Stanley’s 13 children, took over as president. He had been part of the family

business since 1960 and, recognizing the company’s potential for growth, adopted a more aggressive approach to market expansion. In 1969 he spearheaded the acquisition of Anchor Welding Supply and in one bold stroke tripled the size of the company. As an Airco distributor, Anchor Welding was fully set up in the industrial gas and welding business and Keen began selling a much wider range of gases and hardgoods. As Bryan explained, this was a big turning point for the company: “It [Anchor acquisition] marked the beginning of the gas distribution business for Keen. Merrill was able to get a lot of guidance on how to run the gas business from this new relationship with Airco.” Keen has remained with the same gas supplier for 50 years, though their names have changed. “Our original supplier, Airco, was sold to BOC, which became Linde,” Bryan says. “Recently, the Linde plant that provides Keen’s gases was sold to Messer, which delivers to us today.”

A TURNING POINT

Kim and Jon Keen as children in front of the newly acquired Keen’s Anchor Welding Supply building.

Merrill continued to expand the business. In 1972, the company purchased its New Castle Avenue property just Summer 2019 • 23

MEMBER PROFILE THE THIRD GENERATION TAKES CHARGE

Growing up in the business:1974 photo Jon and Bryan Keen as youngsters in front of Keen’s new and expanding fill plant.

outside of Wilmington and built a fill plant. Keen’s filling operations are still centered at that site today. Jon Keen, customer service manager for New Castle, explained the transition to fill. “Keen had been struggling with supply issues and customer complaints,” he says. “When our plant was built, Airco provided the proper training and education we needed to run it. This turned out to be a big turning point and the beginning of a totally different approach to running the business.” By filling its own cylinders, Keen gained greater control of its distribution process and the ability to grow its customer base. A period of branch expansion followed and, in the late 1970s, Keen opened two additional stores, one in Dover, Delaware, and one in Millville, New Jersey. This was followed by a further buildout of the business in the 1980s and ‘90s, when Keen expanded into neighboring Maryland and Pennsylvania, adding six more branch locations. It also established its medical and specialty gas divisions during this period and introduced welder training schools. 24 • Summer 2019

SPECIALTY GASES Keen built a specialty gas lab in 1984 in order to be able to supply its own gases to its growing spec gas customer base. The company started with making High Purity (HP) gases and today makes a wide range of specialty gas blends and mixes. “The spec gas plant gave us greater control of our assets and enabled us to provide better customer service,” says Bryan. “We continue to increase our share of this market and are in the process of building a brand-new specialty gas lab with state-of-the-art capabilities.” The timing of introducing spec gas capacity was fortuitous. The departure of local manufacturers from the region in the 1980s caused Keen’s industrial business to fall off. Its specialty gas capabilities enabled the company to grow its customer base in the emerging R&D and life sciences markets. “Today, Keen has a special division, Keen Cryo, which has a salesman, four dedicated trucks and two service technicians that focus on the cryogenic needs of the biotech and life sciences markets,” says Jon.

When Bryan Keen, Merrill’s son, was named president in 2000, he took command of a business that had undergone tremendous expansion since its founding 80 years earlier. As he saw it, “The many branch expansions that took place under my father’s presidency were opportunities to buy out competitors and pick up new business in order to position Keen to better serve its ever-expanding customer base.” Bryan has embraced that philosophy and continues to take steps to further strengthen Keen’s position in what is an increasingly competitive market. In 2001, the company purchased its first nitrogen microbulk delivery vehicle, with the emergent biotech and life sciences market in mind. Those markets were in their infancy at the time and getting into microbulk was a proactive, as opposed to reactive, business decision. “We wanted to stay ahead of the market,” says Bryan. The company also realized that biotech required a different kind of selling and reorganized its sales efforts accordingly. Today, bulk, microbulk and cryogenic liquid cylinders are a significant part of the business and a key element in the company’s growth strategy.

GROWTH THROUGH DIVERSITY Keen has grown from a single location in Wilmington, Delaware, into a major regional distributor with 14 branch locations that supply gases and equipment to a four state area. And biotech isn’t the only market Keen has had to pay attention to. Today, the company has a 50/50 hardgoods to gas mix of business and serves a wide range of markets. “We still sell a lot of traditional welding machines, electrodes, filler metals and safety equipment,” says Bryan. “On the gas side we continue to supply large welding and fabrication concerns and power

MEMBER PROFILE plants, as well as hospitals, universities, medical facilities, labs and the life science market. We pride ourselves in having a foothold in many markets, which helps us weather recessionary trends.”

STAFFING FOR THE FUTURE With a group of third-generation family members on board as well as many managers with long-term experience, Keen has a solid team in place to lead the company into the next century. Managers like Vice President of Finance Dave Haas, have been with the company for more than 40 years, as has the company’s Vice President of Operations Steve Shupe. In fact, Kim Keen, administrative manager, reports that Keen has 27 employees that have been with the company for more than 25 years. Kim recognizes the benefits of having long-standing employees and also the challenges involved in replacing them. She explained how the company is approaching this dilemma. “Five years ago, we began identifying retirees well in advance of their departure so that we could bring in the right people to replace them,” says Kim. “We look closely at the functions of our long-time employees, who are often doing the jobs of three people, and redefine job descriptions as needed. We also start new employees early to make sure they are a good fit. This system is working well for us.”

WHAT’S AHEAD While the Keens are proud to share their 100-year history, it is really the next century of business they are most excited to talk about. In 2018, Keen Compressed Gas began construction on a new automated $6 million fill plant, which includes capabilities for both industrial and specialty gases. The CryoVation plant is fully automated and palletized and the new building sits on the same property as its existing fill plant. Importantly, the process of getting

Top: Bryan Keen recognizing 3 long time Keen employees for their years of dedication to the company (left to right): Dave Geldof, operations manager (50 year employee); Bryan Keen, president; Dave Haas, VP of finance (37 year employee), and Will Keen, VP of sales and marketing (retired after 40 years with Keen). Bottom: An aerial view of Keen headquarters showing the existing fill plant on the right and the new building and plant on the left. Completion of the new plant is on schedule for June, 2019.

the plant’s ISO certification is underway. “We see this is a major investment in our future on the gas side. It will allow us to better compete with the majors,” says Bryan. “Computer driven and gravimetric, the new plant enables us to produce more accurate mixes, including our own medical CO2, blood gas mixes, some CO mixes, flammable gases and other specialty mixes, many of which we now buy from another producer.” Keen has a growth annual rate of about 4-5% per year. “I would describe our approach to growth as opportunistic” says Bryan. “When an opportunity arises, we take

advantage of it, whether it is to add talent, enter a new market share or make an acquisition. We plan to continue on this path and have identified new markets and geographies with the greatest potential, particularly those in which specialty and cryogenic gases are in demand.”

THE CELEBRATIONS BEGIN Keen is, first and foremost, a people-oriented company. Says Kim, “All the steps we take are done in the context of treating our people and our customers right. That remains our central mission. Our business is all about establishing long-term personal relationships with the Summer 2019 • 25

MEMBER PROFILE

Keen’s new automated $6 million fill plant is due to open this fall.

people with whom we interact – be they employees, customers, or vendors.” To thank the people that have enabled the company to enjoy 100 prosperous years, Keen is planning a series of events. On March 30, they kicked off the celebration with an anniversary reception and dinner, attended by more than 150 people. Guests

included employees, spouses and friends of the company. “This was a great way to begin our thank yous to the people who helped get us to this important anniversary,” says Bryan. Next up is a series of customer appreciation days, which Keen will host at each of its branch locations throughout the spring

Messer Congratulates

Keen Compressed Gas Co. on 100 years of service made possible by their dedicated team

26 • Summer 2019

3862_0719

Messer North America, Inc. 200 Somerset Corporate Blvd Suite 7000 Bridgewater, NJ 08807 Phone: 1-800-755-9277 sales@messer-us.com www.messer-us.com

and summer. To show their gratitude to both customers and vendors, there will be plenty of good food, live demonstrations and promotional deals to be enjoyed by all. Wrapping up the centennial celebrations this fall will be a three-day event at company headquarters. Keen intends to roll out the red carpet, providing guests with culinary delights, enlightening product demonstrations and promotional deals. Most importantly, this will be an opportunity for people to tour Keen’s new stateof-the-art fill plant. “It will be a great chance for customers to see and learn about our new capabilities firsthand,” says Jon.

A PEOPLE BUSINESS It’s difficult to summarize 100 years of hard work in just a few pages, but a new $6 million fill plant certainly is a remarkable

MEMBER PROFILE

Left: Keen kicked off its 100-year celebration with a reception and dinner. Pictured here are long-time Keen employees (left to right): Will Keen VP of sales and marketing (retired); Steve Shupe, VP of operations; Jack Coyle, purchasing manager (retired); Paul Kenney, Dover store manager, and Steven Shupe, account manager. Right: Customer Appreciation Day at Keen’s Elkton, Maryland location. Keen employee Tim Stott (seated) discusses TIG welding techniques with a customer.

testimony to just how much this family-led company has grown since its days selling automotive parts. “With this plant,” concluded Bryan, “we gain more control of our own destiny. We see the cylinder gas side of the business remaining relationship-based and served

by those that can offer the best total value. Response time is very important to customers and our new technology will enable us to serve them better. We remain a people business and will continue to build our company with talented individuals and acquisitions that support Keen’s mission to

be the premier welding and gases supplier in our region.” Agnes H. Baker is a freelance writer and editor with 20 years of experience covering the industrial, medical and specialty gas industry. Based in Massachusetts, she is at: agnes.h.baker@gmail.com.

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MEMBER PROFILE

EARLBECK GASES & TECHNOLOGIES Working on Solutions that Make Customers More Efficient by agnes h. baker

l Earlbeck had a passion for the technical side of welding and it began when he was just a teen working for the T.A. Canty Company, in Baltimore, Maryland. Mr. Canty established a welding equipment and repair shop in 1919. By the time he was ready to retire, Al was a seasoned employee. He and a partner bought the company in 1949 and, after purchasing his partner’s shares in 1954, it became Earlbeck Welding Supplies. Today, Jim Earlbeck, Al’s son, serves as president of Earlbeck Gases &Technologies. In the 100 years since T.A. Canty was started, the company, since rebranded, has grown into a successful, regional, family-owned welding and gases distributorship with four locations and 45 employees.

When Al took charge of the business, he kept the initial product offerings of welding repair, and continued to build up the technical path that the company is still on today. Allison Earlbeck, COO and third-generation family member, says, “My Grandfather loved the technical side of welding and believed in working on solutions that made

his customers more efficient. Helping people understand metallurgy is rooted in our DNA.” From the start, Al’s preference for hardgoods over gas products was well known. He is remembered as saying, “If you go into gas distribution you are nothing more than a glorified truck driver.”

GETTING TECHNICAL Al’s doctrine, which is framed in the front office of the company’s headquarters in Baltimore, was: “I believe that a distributor should know more about his products than his customers do, and has a responsibility to recommend what is honestly best for his customers to use.” This continues to define Earlbeck Gases & Technologies today. 28 • Summer 2019

Al Earlbeck (pictured on the right), founder of Earlbeck Gases & Technologies, had a passion for the technical side of welding.

MEMBER PROFILE Today, that attitude toward gas distribution at the company has changed dramatically. Now, the Earlbecks view the gases side of the industry as a core part of their business and one of the most promising paths forward for future growth.

SHARING KNOWLEDGE In the 1950s, Al’s enthusiasm for welding led him to offer seminars, where he would demonstrate welding techniques and host talks on the different properties of welds. These sessions were the seeds of what was to become one of the most comprehensive and well-respected welding training programs in the industry today. Training operations at the company were formalized in 1960, when two booths were set up to teach customers how to operate equipment and to conduct certification tests. The Earlbecks noted that people were having difficulty getting certified and developed a training program to help. By 1965, the company was administering welding certification tests for customers. “Certification led to the comprehensive training programs that we offer today,” Allison explained. Training operations

Al Earlbeck’s enthusiasm for welding led him to offer seminars, where he would demonstrate welding techniques.

expanded to five booths in 1988 and the Earlbeck Technical Center began offering welding career courses. Jim Earlbeck was president at this time and, like his father, had a passion for educating the customer. “We were selling more advanced equipment,” says Jim. “The kind our typical customer was not familiar with. They needed a lot more assistance and we provided that by ramping up our

Earlbeck Gases & Technologies has one of the most comprehensive and well-respected welding training programs in the industry today.

training programs.” Earlbeck Gases & Technologies became an American Welding Society (AWS) accredited test facility (ATF) in 2009 — one of only 80 in the nation at the time (174 today). For Earlbeck, training programs have been an effective way to combat the hardgoods margin drain that has resulted from the commodization of equipment. A class on welding basics is included with an equipment purchase at no cost to the customer. “Its value-added the customer can see,” says Allison. Other classes are fee-based and today training is a stand-alone profit center for the company. Training has enabled Earlbeck to help its customers in many ways. When the Bethlehem Steel factory, RG Steel, in Sparrows Point, Maryland, one of the company’s earliest customers, closed its doors in 2013, some of the displaced workers were trained by Earlbeck for welding positions. This enabled them to embark on a new career path in a steady industry. Training has also become a leading sales tool for the company. Recently, the company began offering less formalized Summer 2019 • 29

MEMBER PROFILE

From a modest, two-booth test site, Earlbeck has grown its training program to include a 4,500 sq. ft. dedicated welding lab with 21 welding booths at its Baltimore location, an 8 booth lab in its York location, and an additional 8 booths in a mobile training facility contained in a 40-foot trailer. In 2017, the company was awarded the AWS and WEMCO Excellence in Welding Award for the Educational Facility Category. And in 2018, Earlbeck formed a partnership with Johnson College to provide a curriculum for their 20 booth welders training program. To date, the company has tested more than 33,000 welders and averages about 1,800 tests a year. Top: Earlbeck Gases & Technologies’ Baltimore showroom. Bottom: Earlbeck’s mobile training facility, contained in a 40-foot trailer, has 8 welding booths.

classes for hobbyists and to attract new customers. Its first Welding Basics class, a one-day Saturday workshop for people interested in learning how to weld, sold out immediately. The workshop was so successful that the company now offers it once a month. The symbiotic nature of training enriches the company in many ways. Says 30 • Summer 2019

Allison, “It helps with sales, as customers appreciate that we can train them on their equipment purchases. It helps our large clients find good welders as we can point them toward our top students. And it helps build our customer base as Earlbeck students move into companies where they advocate for our products and services.”

SITE CHANGES In 1966, Earlbeck moved to its current headquarters at 8204 Pulaski Highway, in Baltimore. Operating in the company’s original location was becoming expensive and the new site, just outside the city limits, was more convenient for deliveries, better situated to highways and had space for growth. Earlbeck became a stocking distributor for Burdette Oxygen in 1980, making its first step into the gases side of the

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MEMBER PROFILE

Left: Earlbeck Gases and Technologies got its start in welding repair. Right: Today, in addition to welding services and hardgoods, Earlbeck delivers compressed gases and liquid cylinders to a tri-state area.

business. Initially, the company was just a location for pick up and exchange of gas cylinders. Jim quickly realized the importance of gas supply to the effective selling of welding and cutting equipment and began to develop that side of the business in earnest. In 1998, Earlbeck opened a new showroom location in Beltsville, Maryland, to serve the Washington D.C. market. “We had been in that market with BEL Welding Supply (the E stands for Earlbeck),” says Jim. “When BEL was sold, it left that area without a technical supplier and created an opening for us.”

PARADIGM SHIFT By 2002, Earlbeck was fully invested in welder testing and training and becoming more active in gas distribution. To better reflect its expanded capabilities, the company was rebranded as Earlbeck Gases & Technologies. Earlbeck installed a gas fill plant in 2006, enabling the company to fill compressed gases in-house. This added a significant new products platform and led to growth. “Gas distribution required new cost accounting techniques, people to run and maintain the plant, and a shift in our sales personnel,” said Allison, “We

are still adding staff today in order to grow this side of the business.” Prior to the fill plant being opened, Earlbeck’s gases business represented 10% of total revenues. Today, that slice of the business is more like 35%. Recently, Earlbeck engineers designed and built a spec gas panel for in-house gas analysis. The company is also installing an additional fill panel and raised platform flooring to accommodate its growing gases business. While its original plant is still meeting customer demands, Allison anticipates future expansion.

THE IMPORTANCE OF SERVICES

Earlbeck’s technical support staff includes 3 degreed welding engineers, 5 AWS-certified welding inspectors, 4 certified AWS welding educators, and 1 SCWI. 32 • Summer 2019

Services have always been an important part of the Earlbeck business model. Company services include engineering consultation and failure analysis. When welds break, customers bring Earlbeck the pieces, and in-house experts can determine what went wrong. Other services include efficiency audits, welding procedure and welder qualification testing, and repair. The company stands behind and can repair anything it sells. Earlbeck’s technical support staff includes 3 degreed welding engineers, 5 AWS-certified welding inspectors, 4 certified AWS welding educators, and

MEMBER PROFILE

In Just

10 Years 2009

2019

Locations

Employees

Gas/Hardgoods/Training

30/60/10

35/55/10

Welding Training Booths

Right: Earlbeck Gases & Technologies leadership team (L-R) Allison Earlbeck, COO, Andrew Hess, VP of Engineering and VP of Cristiano branch, Jim Earlbeck, President/CEO, Joe Vincent, VP of Sales.

1 senior certified welding inspector (SCWI). In addition, all its customer service reps, counter salespeople and drivers attend in-house welding classes.

MORE GROWTH Earlbeck Gases & Technologies has experienced double-digit growth for the past six years. This has been achieved both organically and through acquisitions. For example, when an independent distributor in York, Pennsylvania, sold to a major gas company, Earlbeck saw an opportunity and built a facility there, adding a showroom and a significant training component. Earlbeck’s technical strength and training program were further enriched with the acquisition of Cristiano Welding supply in Scranton, Pennsylvania, in 2017. Like the York facility, this added both showroom space and training capabilities to the business.

“Cristiano was an independent welding and hardgoods distributor with a lot of technical expertise and their niche was helping customers find the right products and become more efficient,” says Allison. “They had the same objectives we do.” J o h n s o n C o l l eg e wa s o n e o f Cristiano’s customers and it had a welding program. Earlbeck developed a relationship with the college and today provides the welding curriculum to Johnson, which has 20 booths.

LEADERSHIP Jim Earlbeck became president of the company in 1981. Like his father, Jim has a passion for the technical side of the business and a degree in engineering to support it. For his business education, he was “home schooled,” working on the Earlbeck shop floor beginning in his teens. Jim’s sister, Trudy Hammett, also joined the company at the same time and

focused on accounting, human resources and IT during her career. She was the company controller until her retirement in 2017. She remains a principal to the company in an advisory capacity. “We’re still trying to fill her shoes,” says Allison. Recognizing that succession needs to be phased in over time, Earlbeck gets advice and support from Vistage, a peer advisory group that provides small business coaching for leaders. Today, third-generation Allison Earlbeck is on board as COO. She explained, “As a family-owned company we are focused on a smooth transition in our leadership. We spend time on training and ensuring that we have the proper procedures in place.” Currently, Joe Vincent, VP of sales, and Andrew Hess, VP of Engineering and VP of Cristiano Branch, are part of the company’s next generation leadership team. Summer 2019 • 33

MEMBER PROFILE active and information rich blog. Recognizing that people involved in purchasing roles — even in the gases and welding industry — are increasingly starting with an internet search, the company invests in its website. “Our blog is proactive marketing,” Allison explained. “We want to make sure we are at the top of a Google search. The increasing use of automation is one area the company had identified Providing a lot for growth. of content on the MEETING TODAY’S DISTRIBUTOR technical side of the business not only provides valuable educational material CHALLENGES Jim Earlbeck writes and speaks to the public, it enables us to become extensively on current challenges in the the recognized and reliable source of hardgoods supply chain and its effects information on welding and related on margins. One way his company is products and services.” addressing those issues is through an Earlbeck has even been able to expansion of product offerings. “We broaden its customer base for specific services due to the Internet’s wide have just brought in Fronius as a new power source line,” says Jim. “This reach. Many people find the Earlbeck is something we haven’t done in 25 website while looking for information years, but felt was necessary to offset on welder training and certification. Earlbeck now offers welder certificathe declining margins in other hardtion testing through its website, where goods lines.” Earlbeck is Fronius’ exclusive suppeople can order a Send-In Test Kit, plier in their geography. While territory which includes test coupons, related assignments were once the norm, no materials, and directions. The welding other equipment provider currently coupon is welded per the guide sheet offers this to Earlbeck. As part of the and sent back to Earlbeck, which tests Fronius agreement, Earlbeck comto ensure it meets the requirements for mits to certain training and service that particular welding code. requirements, having a sales force The Earlbeck website also has knowledgeable of Fronius products made people aware that the company and specific sales goals. offers welding productivity audits as Another way Earlbeck has found to a service. “In our auditing process, tap into today’s market is through an we make sure everything, from raw 34 • Summer 2019

material to end product, is being done as effectively as possible,” says Allison. “This has served as a great way to get our foot in the door and pick up new business.”

MOVING FORWARD Earlbeck is continually looking at new areas for expansion. “You’re growing or you’re going out of business,” Allison says. “Staying the same size is not an option for Earlbeck Gases & Technologies.” The increasing use of automation is one area the company had identified for growth. Earlbeck provides turnkey solutions for robotics and CNC machinery, including installation and technicians who can fix problems. The company sees automation as an important part of future business. As an independent, the company believes it is in the best position to continue to service the small and mid-sized customer that makes up its base. To gain more ground, Earlbeck will continue to focus on growing its gases business and further strengthening its welding training and certification services. “Though time has changed many aspects of our business, and expanded our offerings, the core of our business remains the same,” says Allison. “We believe in providing solutions, not products, so that we become an extension of our customer’s business. This philosophy will continue to guide us for years to come, as we transition to our next generation of leadership. We are committed to remaining an independent family owned business so that we can best serve our customers and employees.” Agnes H. Baker is a freelance writer and editor with 20 years of experience covering the industrial, medical and specialty gas industry. Based in Massachusetts, she is at: agnes.h.baker@gmail.com.

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Celebrating GAWDA members celebrate milestone anniversaries and share lessons learned during their years of service to the industry by steve guglielmo

AWDA has marked 2019 “The Year of Service.” For this issue, Welding & Gases Today interviewed those GAWDA members who were celebrating milestone anniversaries about their history of service to the gases and welding industry. Learn about how these members have helped shape our industry and how they will apply the lessons learned from the past to continue to serve the industry in the future.

115 YEARS S

– ESAB Welding & Cutting

Annapolis Junction, Maryland Oscar Kjellberg founded ESAB — Elektriska Svetsnings AtkieBolaget (Swedish for Electrical Welding Limited Company) — on September 12, 1904 in Gothenburg, Sweden, a port city. Trained as a ship engineer, Kjellberg developed the world’s first coated electrode to solve contamination and embrittlement issues in ship building, laying the foundations for a totally new epoch of welding, as his invention made it possible to exclude the oxygen in the air surrounding the workpiece. ESAB’s biggest accomplishment is to have established a track record of innovative solutions, whether through internal R&D efforts, acquisitions or collaborations which created entire process and product categories that revolutionized the industry. They include the Atom Arc and ESAB 7018-1 Prime series of low-hydrogen (H4R) Stick electrodes and developing the first gas-shielded FCAW electrode, Dual Shield, which is synonymous with the process. Other ESAB brands are also synonymous with welding and cutting processes and constitute some of the best-selling distributor items: Victor gas equipment, Tweco MIG guns, Thermal Dynamics Cutmaster manual plasma cutters, Arcair carbon-arc gouging equipment, the Sentinel A50 auto-darkening helmet and Rebel compact, portable welding systems. 36 • Summer 2019

ESAB pioneered the low-hydrogen Stick electrode 115 years ago and remains a leading innovator of welding and cutting products.

THE FUTURE OF FABRICATION With the ability to deliver exponential improvements, data-driven innovations represent the future of fabrication and manufacturing. ESAB Digital Solutions, including ESAB WeldCloud and ESAB CutCloud, connect digital ecosystems for manual, robotic and automated welding and cutting. For more than a century, ESAB pursued innovation, expanded industry knowledge and demonstrated an unwavering commitment to quality products and excellence in customer service. To emphasize that customers are at the center of company culture, ESAB announced its Iron Clad Pledge, which features a 100% satisfaction guarantee on its gas, welding and manual plasma equipment, as well as MIG guns and filler metals. Fabricators demand that welding and cutting products offer high reliability and greater ease-of-use. ESAB solutions enable fabricators to increase uptime today, while listening to their needs drives ESAB to discover the new technologies that will help them maximize productivity tomorrow.

Our

= Distributor = Supplier

History

110 YEARS D

– City Carbonic LLC

Oklahoma City, Oklahoma In 1944, Lawrence Amzy Morgan purchased the Brian Battie Company, a soda fountain service company established in 1909, that distributed carbon dioxide gas and fountain syrup to drug stores, restaurants and taverns. In 1946, Morgan changed the company name to City Carbonic Sales & Service and incorporated the company in 1964. For the next 53 years, City Carbonic continued to focus on the food service industry, distributing CO2 in high-pressure cylinders that needed to be requalified for continued service every five years. As this became cost-prohibitive with their current vendor, City Carbonic invested in the equipment to provide its own in-house requalification, installing its first Galiso hydro test equipment in 1982 and becoming a DOT approved facility. In the early 1980s, City Carbonic brought a new method of delivery of CO2 to Oklahoma: the mini-bulk system. As the company continued to grow, its footprint expanded beyond Oklahoma to include Texas, Arkansas, Missouri and Kansas, all from its central location in Oklahoma City. In 1997, the company sold the majority of its delivery assets and customer accounts/contracts to NuCo2, a nationwide company specializing in the delivery of mini-bulk carbon dioxide gas. The company reinvested those proceeds from the sale into a new state of the art requalification facility specializing in sales and service of compressed gas cylinders. In 2001, Amy Morgan Bruecks became the president of City Carbonic, which is now in its third generation of ownership. “We’ve been in the gas business for 110 years and this company has been in my family for the past 75 years,” says Bruecks. “Nothing makes me prouder than being able to participate in such a rich history in our industry.”

Above: Louis Morgan next to a drink machine he manufactured Left: Lawrence Amzy Morgan

Today, the company continues its evolution. “As a result of the legalization of medical cannabis in 2019, we are back in the CO2 distribution market and set to grow exponentially this year,” Bruecks says. “We are utilizing telemetry, tracking software and technology to more efficiently service our customers.” As Bruecks forecasts the next ten years, she expects that the fourth generation of family-ownership will be well established and ready to take the reins as the company sets sail on its next 110 years. Summer 2019 • 37

C elebrating Our History GAWDA MEMBER ANNIVERSARIES First AWS Annual Meeting in 1922

100 YEARS American Welding Society Miami, FL The American Welding Society was founded in 1919 in Philadelphia, Pennsylvania, with a mission to meet a national need to support welding during World War I. President Woodrow Wilson had asked Harvard Professor Comfort Avery Adams to chair the Welding Committee of the Emergency Fleet Corp., which was merged with the National Welding Council to form AWS. Adams served as the first president of the Society. The objectives of the newly formed society were, “To advance the science and art of welding in all the branches. To afford the members the opportunity for the interchange of ideas with respect to improvements in the welding art, and for the discussion of all matters bearing upon the practice of the art of welding, and for the publication of information thereon.” Now, 100 years later, the mission of the AWS has stayed remarkably similar. Today’s global mission is to “advance the science, technology and application of welding and allied joining and cutting processes, including brazing soldering and thermal spraying. AWS strives to move the industry forward S

– Arcos Industries, LLC

Mount Carmel, Pennsylvania Arcos started in 1919 as the R.D. Thomas and Company. Until 1931, electrodes were imported from Arcos S.A. in Brussels, Belgium. In 1931, the first heavy coated hand-dipped electrodes for welding stainless and other specialty steels were manufactured in the U.S. In 1936, R.D. Thomas and Company merged with the world’s most advanced producer of coated electrodes, Arcos Belgium. Six years later, the company developed the first 307 stainless steel electrode to weld armor plates instead of the then scarce and expensive stainless 310. In the pinch of war time shortages, this was 38 • Summer 2019

in both thought and action, as well as inspire new generations to see the exciting career opportunities available today.” “Since its inception in 1919, both the technology of welding and AWS as its major proponent have come a long way,” says AWS Interim Executive Director Ray Shook. “The next century promises to deliver even greater advancements in the science of materials joining.” Some of the milestones for the Society in its century of existence include: the publication of the Welding Journal in 1919, a publication which still exists today, the first AWS meeting in 1922, the moving of its global headquarters to Miami, Florida, membership eclipsing 70,000 members, the introduction of the AWS Welding Handbook and the launching of the AWS Annual Show, since merged with FABTECH, which hosted more than 48,000 members in 2017. “AWS is proud of its role in advancing the science, technology and application of welding over the past century,” says Shook. “And, yet, we know our most important contributions are ahead of us. As the premier member-based welding society worldwide, AWS is keenly aware of the role it must play in the science and application of materials joining. We take that job seriously and see great things ahead of us in the next century.” a real advantage, as the war created demand for repair and building new ships was so great for these electrodes, a new plant had to be acquired and tooled. The company’s progressive vision and devotion to innovation have been hallmarks of Arcos’ history, from the 1920s through today. In 2006, Arcos was purchased by Dale Stager, owner/ president of Select-Arc, Inc. Select-Arc is a manufacturer of FCAW and MCAW welding consumables for various industries with manufacturing in Fort Loramie and Troy, Ohio. Having partnered for years earlier, the official teaming of these innovative companies paved the way to combine their expertise in

Celebrating Our History GAWDA MEMBER ANNIVERSARIES manufacturing, sales, R&D and customer support. “Today’s market is global,” says General Manager Harry Wehr. “Arcos has developed markets throughout North America and reaches beyond the Middle East, Far East, Southeast Asia and Europe.” But the same principles that have guided Arcos for the last 100 years will continue to provide direction for Arcos as it embarks into its second century. “The employees of Arcos continue to be the driving force for the success of the company,” says Wehr. “Their fathers and grandfathers worked at Arcos through the last few decades. At Arcos, we currently employ 90 excellent salaried and union personnel, all working together to manufacture a superior end product to the global welding industry.” Welding is an essential factor of progress. For 100 years, Arcos has devoted itself to welding. When new metals or structures are designed, Arcos will be ready with the welding materials and processes.

95 YEARS D

Arcos Industries received citations in honor of the company’s 100th Anniversary from the Pennsylvania House of Representatives and state Senate.

The Original W.C. Delille Co.

– Delille Oxygen Company

Columbus, Ohio “You’re only as good as your last interaction with a customer.” That’s the attitude that Delille Oxygen Company has adopted as it celebrates its 95 th anniversary in 2019. President Josh Weinmann does not want the company to rest on its laurels as it heads toward its centennial anniversary. “What has made Delille successful these past 95 years has been being able to provide solutions to our customers and being innovative,” Weinmann says. “Being able to produce gas and the immense gas knowledge we have been able to provide has gotten us here. To move forward for the next 95 years, we need to make sure that we’re evolving with the time and well-versed on things like robotic welding and plasma tables.” Delille was founded in 1924 by W.C. Delille to sell coal and ice. Shortly thereafter, Delille began to sell welding

supplies as well. Delille eventually sold his company to the Smith family, who focused more on the welding supply business and let coal and ice fall by the wayside. In 1963, the Smith family sold the business to J.R. Smith (no relation) whose family still owns Delille currently, and whose son, Tom Smith, is the current CEO. Weinmann was named president of the company more than a year ago. “Manufacturing acetylene has been one of our main drivers,” says Weinmann. “In the early 90s, when most independents weren’t doing spec gas, we had our own

specialty gas lab. We’ve grown that part of the business.” Today, Delille maintains its acetylene plant and operates a hydrogen electrolysis plant to produce hydrogen and oxygen. The company is also in the process of building two carbon monoxide plants that will produce CO from CO2. “We are extremely proud of our history,” says Weinmann. “At the same time, we recognize that we need to continue to evolve to make sure that we’re well-positioned for our next 95 years. Training has been a big emphasis this year and will continue to be going forward.” Summer 2019 • 39

C elebrating Our History GAWDA MEMBER ANNIVERSARIES

90 YEARS D

- Maine Oxy-Acetylene Supply Company

Auburn, Maine Maine Oxy-Acetylene Supply Company was founded in 1929 in Auburn, Maine, by Joseph W. Albiston under the name Maine Gas Service. The company provided sales and service to home propane customers. Throughout its history, Maine Oxy has been dedicated to providing quality products at competitive prices, superior safety solutions and exceptional customer service. Since its founding, the company has expanded outside of Auburn to include several locations in New Hampshire, Massachusetts, Connecticut and Vermont. In 2015, Maine Oxy acquired three locations in Canada, under the name VAC Oxy. In total, the company now operates 19 retail locations throughout New England and Canada with a total of 204 employees. “Technology has been the biggest change from when we started,” says Dan Guerin, president and CEO of Maine Oxy. “Not just for us but for all businesses. That’s why we’re always looking for ways to improve what we do, which helps save time and money for us, as well as for our valued customers.” That drive toward improvement and efficiency has been especially prevalent since Guerin and Bryan Gentry purchased the company in 2012. Between the two, they have more than 70 years of experience in the gases and welding industry. In 2018, the company began a rebranding process, called the Quality, Service & Safety Campaign.

85 YEARS

YEARS 1934 - 2019

- R.N. Goss Gas Products Company

Reno, Pennsylvania Robert Norman Goss founded R.N. Goss Gas Products during the Great Depression in 1934 in Oil City, Pennsylvania. Just one year prior, unemployment had risen from 3% to 25% of the nation’s workforce. The original site of Goss Gas was on Seventh Street in Oil City. At the time, no propane or welding cylinders were filled on site. Goss Gas moved to its current location in Reno, Pennsylvania in 1960, shortly after N. Grant Goss joined his brother in business. Together, they operated Goss Gas until the early 1970s. The third generation of the family joined the business in 40 • Summer 2019

“We realized that Maine Oxy will never be the only choice for our customers, but we can be the first choice,” says Diana Picavet, marketing manager. “We can’t control the weather. We can’t control what our competitors do, and we can’t control economic trends. As we look to the future, the company must focus on things it CAN control: Quality Product, Customer Service and Safety, not only for our customers, but for our employees as well. Quality, Service & Safety is considered in every decision the Maine Oxy Management Team makes. It is this vision, focus and commitment to customers, employees and our local communities that will propel Maine Oxy to its 100th Anniversary and beyond.” To celebrate its 90th anniversary, the company debuted a special anniversary logo and have been running special “anniversary pricing” deals throughout the year. The company has also held customer appreciation days at several of its locations, including one at the Auburn headquarters planned for October. 1974, when, just out of college, Dave Goss returned to Oil City to help in the family business. “I didn’t really have a plan after college, but circumstances intervened,” says Dave. He came home at the time to assist the business and never left. Dave eventually became the owner of the company and in 2018, the fourth generation of the family joined Goss Gas as Dave’s daughter, Monika Goss, joined the company, serving as the purchasing and inventory manager. “Distribution of compressed gases is a heavily geographically dependent operation and there has always been a local need for this type of supply business in our area,” Dave says. “Our size and ability to really focus on our customers’ needs allow us to service the rural market more effectively than larger distributors. Goss Gas Products is part of a family of related businesses that includes RenovEx and Provanta, both of which focus on propane. Between the three companies, more than 100 local people are employed.

Celebrating Our History GAWDA MEMBER ANNIVERSARIES

80 YEARS – Dale Oxygen, Inc. Johnstown, Pennsylvania Dale Oxygen, Inc. has been a family owned and operated business since the company was founded in 1939. Harry W. Bennear founded the company after working as a welder in the Pittsburgh area during the 1930s. In 1937, Bennear moved to Johnstown, Pennsylvania, to work alongside a relative for the Air Reduction Company. Through connections made at the Air Reduction Company, Harry became an authorized Airco distributor and opened Dale Oxygen, Inc. in the Dale section of Johnstown. He began by selling and delivering Oxygen and Acetylene gas cylinders, oxy/fuel torches and welding electrodes for welding and cutting applications. In the 1950s, Harry was joined by his wife, Ruth. From accounting, cylinder records and billing, she became the backbone to support Harry and his efforts. By 1953, the company had outgrown its small shop in Dale and moved to the West End of Johnstown, where it operated for eight years, increasing inventory and adding three trucks to the distribution fleet. D

In 1963, the company moved again to the Hornerstown section of Johnstown. This location still serves as the headquarters for Dale Oxygen, the main cylinder fill plant facility, and is home to a 14,000 sq. ft. warehouse that holds and stocks inventory for the entire company. Harry W.’s sons, Dale and Harry D. Bennear joined the business in the 1970s. Both sons started in the business from the ground up, working in the fill plant, driving trucks and fulfilling roles as account managers. Dale Bennear sadly passed in 1990 and Harry D. Bennear took on the role of President and still holds this position today. Today, Harry D.’s sons, Chris and Evan Bennear, fulfill the roles of opera-

Huber employees outside of the company’s headquarters

tions management and sales management respectively. Over the past several years Dale Oxygen has continued to grow through its bulk gases program, sales and service of welding automation opportunities, and has recently added an Argon tanker to its fleet that distributes product throughout central and western Pennsylvania. The company has been able to reach the 80-year milestone thanks to its incredible staff, according to Harry D. “Truly, our employees have made our longevity and growth a reality,” he says. With strong leadership, loyal employees, and a growth plan that includes expansion in the bulk and microbulk business, the company is well-poised to take on the next 80 years.

– Huber Supply Company

Mason City, Iowa A boat’s engine problems laid the unlikely foundation of Huber Supply Company. Elmer Smith was on a boat trip on Lake Erie one weekend when his boat developed engine trouble. He was stranded at a boat works outside of Port Clinton, Ohio, that wouldn’t be open until the following Monday. However, Nelson Schmidt, who was the son of the owner of the boat shop, worked all day and night to help get Smith’s boat up and running. Elmer was so impressed that he told Nelson that if he was ever in Minneapolis looking for work as a welder to look him up. As fate would have it, Schmidt did just that. continued on next page

Summer 2019 • 41

C elebrating Our History GAWDA MEMBER ANNIVERSARIES Smith hired Schmidt as a salesperson when Schmidt moved up to Minneapolis. Fate struck again when Schmidt found a room at George Huber’s grandmother’s house just blocks away from the Smith Equipment Plant. George and Nelson became quick friends and began to talk of starting their own oxygen-acetylene supply route together. In the summer of 1939, George and Nelson began securing oxygen and acetylene and lining up customers for a route starting in southern Minnesota. After a route early in the company’s history, George stopped to fuel his truck and found out the news that Nelson had been killed in a car accident. Nelson was a major supporter of the welding business. He bank-rolled the project and kicked in $25 per week to keep food on the table at George’s house. When George’s folks came to the funeral, George had to borrow money from his dad to keep the new business going. After his first month in business, George had cleared $50. Though he lost a friend and business partner, he was very happy with the business’s success.

Fast-forward 80 years and Huber has continued that legacy of considering the customer as a partner. “We have continually invested in new product segments and services,” says Rodney Huber, President of Huber Supply. “We just started filling our own propane and invested in a UE machine to bring cylinder service back in house. This past year we invested in our own bulk trucks to simplify the bulk delivery process. We also implemented barcode tracking on all our cylinders about 2 years ago.” Today, the company has grown to three locations and 30 employees and has an online retail presence at weldingoutfitter.com. “Ten years from now, we hope to double our size in sales and locations,” Huber says. “The third and fourth generation are both very involved currently in the business and we are hoping to continue to carry the company onward based on the same family-owned-and-operated philosophies our customers have come to expect.”

– Mississippi Welders Supply Company

Winona, Minnesota Mississippi Welders Supply Company was founded in 1939 in Mondovi, Wisconsin, as Mississippi Welders & Auto Supply. The company had a network of dedicated driver-salespeople that served customers in southeastern Minnesota, western Wisconsin and northeastern Iowa. With so much territory to cover, the company expanded to include a Winona, Minnesota store in 1966, which today serves as the company headquarters. Don Peterson began his career in the industry working for Airco in 1960, calling on distributors in the Midwest. In 1973, the opportunity arose for Don to purchase Mississippi Welders Supply. Don purchased the business with two partners, who were later bought out, leaving the business in Peterson’s hands. “The company has been in our family for 46 years,” says Brad Peterson, chairman and chief acquisition officer. “I grew up in the business.” After graduating from college, Brad spent eight years in the Navy before joining the company in 1991. When Don purchased the company, it had one location and six employees. Today, Mississippi Welders Supply Company has grown to 11 locations and 175 employees. “We always focus on customer service and taking care of the customer,” says Brad. “When you take care of customers, they recommend you to other prospects and potential customers. It just keeps growing.” The growth has been almost entirely organic. The company has done no acquisitions of welding distributors but has 42 • Summer 2019

Don and Brad Peterson

acquired three small fire extinguisher companies and two beverage CO2 companies. Since 1939, this second-generation family-owned business has maintained a tradition of healthy growth in services offered, product lines carried, and customers satisfied. Today, as always, the first priority is providing top quality services and products to its valued customers. To commemorate the milestone, the company designed an 80th anniversary logo, has done an extensive social media campaign, and hosted a large company picnic. Says Brad, “Our goal has always been and remains to help the customer be more safe, more efficient and more profitable.”

Celebrating Our History GAWDA MEMBER ANNIVERSARIES

75 YEARS D

– A-OX Welding Supply Company

Sioux Falls, South Dakota The history of A-OX Welding Supply Company can be traced back to two separate companies: Dakota Welding Supply, which was founded in eastern South Dakota in 1944, and A&B Welding Supply, which was founded in 1959 by Harold and Bob Elliott in western South Dakota. Harold was a traveling welder and, after trouble finding a secure source of wire as he worked around the country, he finally decided to start his own company. He founded A&B from his home garage with his son, Bob, and his son Don later

joined the company in 1961. In 1964 they bought Dakota Welding Supply, which had three locations in Watertown, Sioux Falls, and Huron. In 1994, Dakota Welding changed its name to A-OX Welding Supply Co. Harold’s grandsons Tom and Michael Elliott are now the majority owners of the two companies, A&B and A-OX. Some of Harold’s great-grandchildren are also now part owners and work at A-OX. Today, A-OX employs 67 people and has filling locations in Sioux Falls and Rapid City, six branches located in Watertown, Huron, Mitchell, Yankton, Sioux City, Iowa, and Fargo, North Dakota. The company also has 42 authorized resellers in South Dakota, North Dakota, Minnesota, Iowa and Nebraska. S a y s A - OX C TO / B u s i n e s s

– Atlas Welding Supply Company

Tuscaloosa, Alabama Atlas Welding Supply Company was originally founded as Temerson & Son in 1944. The Temerson family had a scrap business and found that many of their suppliers needed gases and cutting materials to cut the scrap. Temerson became an Airco distributor and planted the seeds for what would eventually become Atlas Welding Supply Company. The company officially changed its name in 1978 when the Temersons sold the business to an employee, Jack Englebert. Jack, who approached his largest customer, Cain Steel, run by J.M. Cain, to partner in the transaction, changed the company name to Atlas Welding Supply Company and ran the day-to-

Development Manager Trenton Elliott, “Our successful history has been rooted in our drive for innovation and independence. We plan to keep our eyes on the future through these driving forces for the next ten years. With the fourth generation of our family working at the company, we look back to our elders for advice and we think our grandfather (Don Elliott, 86 years old) was wise to say, ‘Everything changes with more knowledge.’” He continues, “Our family is very humbled to reach this milestone and give special thanks to our customers, vendors, and most importantly, all those that have worked at A-OX over the many years to help us reach this point. Without all those people we would not be here to talk about celebrating 75 years. We are looking forward to the next 75 years!”

day operations of the company until 2008, when he retired. When J.M. Cain passed away, his equity of the business went into a trust managed by his sons. When Englebert decided to retire and sell the business, J.M.’s son, James Cain, who was working in finance, began negotiating a deal with Bill Visintainer to purchase Atlas. “I was going to buy the business as the sole owner,” says Bill. “At the last minute, James threw me a curveball. He said, ‘I love your vision and your plan for growth, and I’d like to be your partner on this.’ He came from a financial background and could handle the finances and HR component which would allow me to focus on sales and operations.” James went from looking to sell the business to becoming Summer 2019 • 43

C elebrating Our History GAWDA MEMBER ANNIVERSARIES an active partner with Visintainer. It was then that the two men began to implement an aggressive growth strategy for Atlas, which, up until that point, had been driven mostly by a core group of fiercely loyal customers. “I would say since 1978, sales probably doubled over those 30 years,” says James Cain. “The previous ownership was content being a niche player and maintaining the customer base that they had. When Bill and I took over we charted a different course. We were interested in growing and tackling new horizons.” Cain and Visintainer took over the company during a paradigm shift for the industry. At the time that they bought Atlas, the sales breakdown was about 15% gases and 85% hardgoods. Part of Atlas’ growth strategy was to offer more solutions, including a concentrated effort on increasing the gas side of the business. “This industry is all about becoming more efficient,” says Cain. “Improved efficiency, improved safety, reducing overall cost. We’ve been fortunate to work with vendor partners who have been very supportive of us. We’re loyal to our customers and also to our vendor partners.” Visintainer adds, “We’re not going to be the largest customer to our vendor. Some of our competitors are doing hundreds of millions or even billions in sales per year. But we can be the most loyal and we can add the most value. If we can continue to add value and solve our customers’ biggest challenges, we will continue to grow and thrive.”

James Cain and Bill Visintainer

As Atlas celebrates 75 years, the company looks to continue to expand on the strides they’ve made in the last decade. The company will celebrate its milestone with an open house during the week of the Alabama vs LSU football game. More than 600 people are expected to attend.

– HIAB USA

Perrysburg, Ohio “Necessity is the mother of all invention,” says HIAB USA Vice President of Sales and Service Barry McGrane. Three-quarters of a century ago, deep in the forests of Sweden, a ski manufacturer named Eric Sundin needed a solution to simplify the loading and unloading of wood. Sundin designed a hydraulic crane that cleverly used his truck’s engine for power to load the wood. “He didn’t realize it at the time, but he had just created a device that has driven a 75 year industry,” McGrane says. Seeing the potential of this new invention, Sundin started Hydrauliska Industri AB. His innovation would soon change how load handling was done 44 • Summer 2019

HIAB’s founder Eric Sundin (left) next to his right-hand man Einar Frisk, demonstrating the HIAB 19

Celebrating Our History GAWDA MEMBER ANNIVERSARIES all over the world, and his business would ultimately become known by its initials: HIAB. Today, HIAB is a global manufacturer with a presence in 120 countries and manufacturing sites in six different countries. The company employs nearly 4,000 people worldwide. “We have grown both organically and through acquisitions for the past 75 years,” says McGrane. With its U.S. National Support Center located in Perrysburg, Ohio, HIAB aims to be a customer-centric business partner in all of its prioritized markets and segments. The company’s main areas of focus include: enabling productivity and digital innovation to improve customer efficiency, excelling in aftersales service and support with hundreds of

The original HIAB Napoloen arm

service professionals across the U.S. and ensuring the customer has a superior experience through sales, engineering to final product delivery. The company is driven by its mission statement, “We keep everyday life moving by unlocking the full potential of load handling in our customers’ businesses,” and vision statement, “To be the number one partner in global on-road load handling, inspiring and shaping the industry.” To fulfill these goals, HIAB’s innovation is customer driven. “We pride ourselves on our customer focus,” says McGrane. “Our innovation is driven by the customer. It’s not us deciding what the market needs. It’s the market telling us what their challenges and pain points are.”

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C elebrating Our History GAWDA MEMBER ANNIVERSARIES

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LEADING A

WARRIORS CHARGE

Rebuilding American Manufacturing One Veteran At A Time.™ Weiler Abrasives is proud to support Workshops for Warriors®, an organization that provides veterans and transitioning services members with training and certification for careers in welding, machining and fabrication at no cost to the veteran. SUPPORT THE CAUSE:

weilerabrasives.com

Celebrating 75 years of growth, innovation, and partnership with our customers, co-workers, and community.

46 • Summer 2019

Weiler Employees wearing 75th anniversary commemorative shirts

– Weiler Abrasives Group

Cresco, Pennsylvania Weiler Abrasives was founded by Karl E. Weiler in 1944 as the Weiler Brush Company in Long Island. Weiler began the company with just $50 and a dream. Now, 75 years later, the Weiler Abrasives Group has grown from a small jewelry polishing brush business into a global abrasives leader with 1,300 employees across eight different countries. But even as the company has grown by leaps and bounds, it remains true to its original key values: integrity, customer focus, accountability, learning and competence, and passion. Today, Weiler continues as a fourth-generation privately owned company under the leadership of CEO Chris Weiler. Karl M. Weiler serves as chairman. The company has moved its headquarters from Long Island to its current location in Cresco, Pennsylvania. “We are proud of the growth Weiler Abrasives has undergone in its 75 years in business and the innovation it brings to the marketplace,” says Chris. “The hard work of our employees, our customers’ loyalty and the support of our community have been the backbone of our success.” Customer loyalty is something that Weiler has made a top priority in its history. It’s such an important aspect of Weiler’s success that after 75 years, the company is still in business with its first customer. To celebrate this milestone anniversary, Weiler kicked off a months-long celebration with its national sales meeting the week of April 22. The celebration is geared toward its customers, coworkers and community to thank them for contributing to the growth and longevity of the company. The company will be offering a variety of promotions for customers in the coming months and will also be holding a host of employee activities, including a family fall harvest celebration in October at its headquarters. Weiler will also be organizing several activities to engage the community in its celebration.

Celebrating Our History GAWDA MEMBER ANNIVERSARIES

70 YEARS S – Cavagna North America Somerset, New Jersey The Cavagna Group was founded in 1949 by Paolo Cavagna and his children. Today, Cavagna is a global company with more than 1,000 employees in Europe, Asia, South America and Africa, as well as a 25-person operation in North America. But through all that growth, The Cavagna Group remains a family-owned company and major decisions within the company are reached by consensus. The group consists of 11 vertically integrated production companies in Italy and seven others spread across five continents. The group sells in more than 145 countries through a distribution network consisting of 15 fully owned

additional distribution companies. Cavagna’s mission statement says, “Starting from innovation, wherever gas is the integral part and provides energy for everyday life, there will be the technological and productive commitment from Cavagna Group. Comprehensive one-stop solutions for each type of gas to promote safe and functional utilization in all applications.” The company is now in its third generation of family ownership. “Strategic roles are still in the hands of family members,” says Miriam Cavagna, director of marketing and communication. “There’s a consistency in running the company based on unwritten family principles that stress reinvesting in the company.” The company even codified the business role for future family members, where each family member signs a fam-

ily employment policy that addresses how to include members of the third generation in the business, establishing guidelines for all and Paolo Cavagna pre-requisite qualifications. If family members qualify to join the company, they are assigned mentors within the organization to help understand their role. “I guess we each feel an obligation to improve the business,” says Miriam Cavagna. “It doesn’t matter what our titles are. If your name is Cavagna, you give just a little bit more.” Guided by the same pillars and tenets that Paolo founded the company on 75 years ago, the Cavagna Group is well-positioned to make the next 75 years as productive as the first.

Summer 2019 • 47

C elebrating Our History GAWDA MEMBER ANNIVERSARIES D

– Middlesex Gases & Technologies, Inc.

Everett, Massachusetts Middlesex Gases & Technologies, Inc. is a family-owned, third-generation distributor of high-pressure cylinders, microbulk and bulk gases, including rare and specialty gases, medical, cryogenic, and electronic gases, as well as all gas-related equipment. The company was founded in 1949 by Joseph Martin, who had a clear vision, “To create and operate a strong independent distributorship that would sell quality products at a fair price and back them up with excellent service.” The company began with a single pickup truck for deliveries and used upside down milk cartons for chairs at the original Everett, Massachusetts location. As the company continued to grow, eventually it outgrew that location, moving to Cambridge, before moving back to Everett in 1965 with the addition of a fill plant that is now the Middlesex headquarters. This fill plant is thought to be one of the first of its kind for an independent distributor. To support these new facilities, equipment, and company growth, Middlesex also added to its staff at this time. In 1974, Joseph Martin Sr. passed away and Joseph Martin, Jr. began his role as CEO of the company. Like his father, Joe Jr. continued to focus on the company’s core values and met with even more success, necessitating the addition of other facilities

Breaking ground on the Everett location

in Massachusetts. The third generation of the family took leadership in 1991, with Joseph “Bo” Martin as CEO and his brother, Tom Martin, as president. In 1992 Middlesex Welding Supply changed its name to Middlesex Gases & Technologies to better reflect the capabilities, products, and services the company now offered to Boston’s emerging gas markets. Today, Middlesex operates in a tri-state area with three fill plants and three branch locations that service Massachusetts, Rhode Island, and New Hampshire. The company will begin servicing Connecticut in September. Middlesex Gases & Technologies’ core values remain the same as they were in 1949 and continue to lead the company’s further expansion by assuring its customers of excellent products, service, and support.

60 YEARS S

- Kaplan Industries

Harrison, Ohio Kaplan Industries was officially founded in 1959 as the A-M Fire Equipment Company. But the roots of the company go back even further than that. “In the late 1940s, after the second World War, my dad, Morris, and his brother, Albert, had what we would call today a recycling business,” says Dean Kaplan, CEO of Kaplan Industries, Inc. “They would collect cardboard boxes from the Philadelphia Navy Yard for recycling. But inside the boxes were decommissioned fire extinguishers from battle ships. They had so many fire extinguishers that they ended up acquiring UL approval, which allowed them to sell these extinguishers and then cylinders. That was the origin of Kaplan Industries.” 48 • Summer 2019

Kaplan’s Harrison, Ohio facility

A-M Fire Equipment Company became one of the first distributors in the area to service the fire and safety distributor with requirements for soda acid and CO2 fire extinguishers. As A-M Fire Equipment Company continued to grow, eventually Kaplan Industries, Inc. was formed, focusing on supplying its established customer base with an expanded line of new and reconditioned steel compressed cylinders. In 1969, the company moved to Maple Shade, New Jersey. By the mid 1980’s, two of Morris’s

children, Dean and Rita, had become vital members of the company, eventually becoming president and vice president, respectively. “My dad was able to build a really successful business through personal relationships, both here and abroad in Europe,” says Dean. “In order to build on that success and continue to grow, Rita and I realized that we needed to expand. We began to focus on just-in-time delivery and reaffirmed our commitment to the highest-quality products.”

Celebrating Our History GAWDA MEMBER ANNIVERSARIES

and analytical capabilities to effectively adapt to the market and ever-changing landscape. This year ORS Nasco donated to Workshops for Warriors, a nonprofit school that trains, certifies and helps place veterans, wounded warriors and transitioning service members into advanced manufacturing careers. “We are honored to support our veterans with

Chris Kempa, president, ORS Nasco.

Wright Wilbur Orville Wright and John T Daniels photographer. First ﬂight 120 feet in 12 seconds; Kitty Hawk North Carolina. Kitty Hawk North Carolina 1903. Photograph. https://www.loc.gov/item/00652085/.

GAME CHANGER. BR AN D

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Tulsa, Oklahoma Beginning in 1959, a group of stake holders launched the North American Sales Company [Nasco] with a primary focus to serve the welding industry. Years later and several states away Oklahoma Rig & Supply [ORS] was founded with a mission to provide products supporting the industrial and oilfield industries. The two wholesale companies merged in 2003 forming ORS Nasco and positioning the master distribution company for strategic growth through geographic expansion and product diversification. Throughout its 60 years, ORS Nasco has adapted to evolving business environments and technology advancements contributing to the success in supply chain. “We strive to streamline the entire purchasing cycle for our customers, which results in reduced working capital and allows them to focus on running their businesses more effectively,” says Chris Kempa, president, ORS Nasco. “We sell exclusively to our partners, our distributor customers and provide world-class wholesale supply - all in a one-stop shop.” As a leader in master distribution, ORS Nasco leverages over 500 associates and 16 strategically located distribution centers across the U.S. and internationally to extend its manufacturer relationships to support its distribution partners businesses. ORS Nasco continues to invest in its people, logistical, digital

– ORS NASCO

country to do service pickups and deliveries. Today, the third generation of the Kaplan family is involved in the business, as Dean’s children, Paige and Pierce, have joined the company. After 60 years, Kaplan remains a service-oriented company committed to meeting the needs of all those it serves.

has made us much more centrally located from a freight standpoint and allowed us to move into growth industries that we have wanted to be in moving forward. We’re now involved in the hydrocarbon market for cannabis, for example.” The company also acquired Midwest Cylinder, a service company that has allowed Kaplan to travel around the

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In 2012, Kaplan acquired a 16-acre facility in Harrison, Ohio. The space allowed for multiple structures for manufacturing and warehousing and provided room for future expansion. “Having one central location has simplified our logistics and inventory control, human resources and allowed us to reach the level that we have,” says Dean. “It

R IB U T I O

STOMER CU

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P P OR T

CHANGE YOUR FUTURE. PARTNER WITH US. 800.678.6577 • ORSNASCO.COM Summer 2019 • 49

C elebrating Our History GAWDA MEMBER ANNIVERSARIES an opportunity to learn new skills and contribute to an organization making an impact on people’s lives,” said Kempa. “The foundation of what Workshops for Warriors does for veterans and the welding community is core to our business. We are committed to supporting the welding industry and have been for 60 years.”

“At the end of the day, we would not be where we are without the support of our internal and external partners over the years. We are thankful the value ORS Nasco provides is recognized in this expansive market,” concludes Kempa.

– Oxygen Service Company

Saint Paul, Minnesota Oxygen Service Company was founded in 1959 by Bill Huber and Bill Lund. The company was originally called Wagner Welding before changing its name to Oxygen Service Company in 1965. One of the company’s most important moments came in 1993, when Bill and Bill decided to sell the business to its employees and Oxygen Service Company became a 100% employee-owned company. “Bill and Bill really felt that they had dedicated employees that they wanted to reward for their dedication,” says Oxygen Service Company President and CEO Ryan Diekow. “They said, ‘You helped us build this and we want to reward you for that.’ While Bill Huber has since passed away, Bill Lund still comes in and he’s so proud of this company, even though he hasn’t been an owner for 26 years.” Today, Oxygen Service Company has four locations. In recent years, the company has increased its growth strategy with the opening of its third location in Wilmar, Minnesota, in 2013, the opening of an automation center in 2018 and the opening of its Duluth, Minnesota location in 2018. “When a customer calls in and is talking to a customer service rep or one of our route drivers, they’re dealing with an owner,” Diekow says. “No matter what interaction you have at our company, the customer is always dealing with an owner. And we’ve found that by instilling those values in our employees, they treat every customer like it’s their

50 YEARS S

– Acme Cryogenics, Inc. Allentown, Pennsylvania

Acme Cryogenics was founded as a general machine shop in 1969 under the name H&B, serving the Lehigh Valley. A few years later, the company changed its name to Acme Screw 50 • Summer 2019

Bill Huber and Bill Lund

customer. Nobody is just coming in to collect a paycheck here; our people really believe in what we do and that’s a big part of our culture.” Last year, that ownership mentality was recognized with two awards. Oxygen Service Company was named the 2018 ESOP Company of the Year by the MN/Dakotas ESOP Chapter and also won a national award for Communication Excellence Regarding ESOPs. “We’re so proud to be members of this industry and to be celebrating our 60th year,” Diekow says. “We have so much respect for the companies who have charted the path in front of us and are humbled to be a part of the story and the legacy in our industry.”

Machine Products as several partners, including Rod Fink, entered the business. In 1977, the CGA released standards on a liquid transfer fitting that Acme was manufacturing. This provided the inroad to the industrial gas industry. By that time, Fink had become the sole owner of the company, and began growing the company through new products and acquisitions. As the business grew and expanded, the name was changed again to Acme Machine Products and eventually to Acme Cryogenics

Celebrating Our History GAWDA MEMBER ANNIVERSARIES to more accurately reflect the industries the company served. “Acme Cryogenics has grown and evolved largely by meeting the expanding needs of our customers and the broader growth in industrial gas applications,” says President and CEO David Fritz. “Much of Acme Cryogenics’ success in the marketplace is due to our ability to provide technical, problem solving expertise to our customers which allows us to win their trust and form long term partnerships.” The Fink family sold the business in 2006 to a private equity firm, but throughout its history Acme Cryogenics’ leadership has always looked for opportunities to provide a quality solution to an underserved segment of the industry. As Acme Cryogenics celebrates its 50th anniversary, the company has grown to employ 170 people across four manufacturing locations (Allentown, Pennsylvania, Ball Ground, Georgia, Lonsdale, Minnesota, and Oxnard, California) as well as field services from seven regional hubs. The company created a 50th anniversary logo that is being used in email signatures, advertising and its website, and is also hosting an end of summer anniversary picnic for the staff.

Rod Fink accepts CGA Award

– Dynabrade, Inc.

Clarence, New York In 1969, Walter Welsch was working at 3M as an abrasives’ salesman when he developed the original Dynafile Abrasive Belt Tool. The tool improved the task of hand-filing metals and other hard surfaces. It was then that Welsch decided to strike out on his own and Dynabrade, Inc. was formed. “The vision that Walter set forth in the beginning has always been the driving force behind our success,” says Ron Veiders, Dynabrade’s director of marketing. “That entrepreneurial spirit and devotion to innovation and high-quality.” Entrepreneurial spirit has especially been a hallmark of Dynabrade’s history, as the company is partially owned by its employees in an ESOP. “I think being an ESOP has a pretty significant impact in how our employees come to work every day,” says Veiders. “The pride that they have in the organization. To put that in perspective, our average tenure is close to 15 years.” Summer 2019 • 51

C elebrating Our History GAWDA MEMBER ANNIVERSARIES The company has grown significantly since Welsch opened its doors half a century ago. Today, Dynabrade has 150,000 sq. ft. of office and manufacturing space at its Clarence, New York, headquarters, with subsidiaries in Luxembourg and India and business in 90 countries around the world. To celebrate its 50th anniversary, the company has been holding events throughout the year, including a celebration on its actual anniversary, April 1, a family picnic in June, and a planned global sales meeting in October where employees from around the world will come to celebrate. “When you have a method and surround yourself with the right people, success will follow,” says Dynabrade President Hardy Hamann. “Our customers are seeing that when they partner with Dynabrade, success will follow. We’ve seen success, the end users have seen success and the distributors definitely have seen success. We want all of that to continue.”

Walter Welsch in 1973

– Genstar Technologies Company, Inc. Chino, California

Thomas Kuo, founder-CEO of Genstar Technologies Company, founded Genstar in 1969. He saw an opportunity for growth in the area of industrial regulators and cutting equipment. “His idea was to make a good quality product at a reasonable price and to give good quality service,” says Larry Meyers, national sales manager at Genstar. “People were looking for an alternative to the other major players in the market and Thomas figured out that if he could provide a great product with great service, he could be very successful.” Over the next 50 years, Genstar has emerged as a global company, with loca52 • Summer 2019

tions in Chino, California, and Shanghai, China. The company employs more than 500 people. But even as the company has grown to such heights, it is still firmly built around the ideals that Thomas instilled 50 years ago. “Genstar Technologies strives to instill employee confidence, team spirit, enthusiasm, and self-improvement,” according to its mission statement. “The company culture enables employees to provide outstanding customer service, excellent product quality, and continuous technological innovation.” “It’s very important to us to give good customer service,” says Meyers. “We see

ourselves as a major player in the market. We’re not box movers; we try to go above and beyond for our customers. We work hard to build strong relationships and partnerships with our customers. Our president, Tina Kuo, always reminds us that taking care of the customer is priority one. Giving good service and selling a great quality product.” As Genstar Technologies embarks on its next 50 years, the beliefs of loyalty, respect and commitment remain as strong as ever. Says Meyers, “Besides being good company values, we think that equates to good business and good growth opportunity for Genstar Technologies.”

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C elebrating Our History GAWDA MEMBER ANNIVERSARIES D

– Red Ball Oxygen

Shreveport, Louisiana While Red Ball Oxygen technically incorporated in 1930, it didn’t begin to resemble the modern company until 1969, when Craig and Lorena Kennedy purchased the company. At the time, Red Ball Battery and Oxygen was a National Cylinder Gas distributor that focused on automotive batteries and tires. The Kennedys set about building an entirely new kind of distributorship with welding and expanded cylinder gas capabilities. Fifty years later, the second and third generation of the Kennedy family now run the distributorship, which has grown into a regional industrial gas and welding supply powerhouse. “I’m standing on the shoulders of what my grandfather and my father and uncle did,” says Alex Kennedy, co-owner, chairman and CEO of Red Ball Oxygen. “We try to be a very innovative company that is on the forefront of technology. We try to push ourselves to not be a traditional mom and pop and be a company that has the same capabilities as the world class companies we compete against. We want to fight for the value that the distributor has in the market and add value to our customers.” When the Kennedys bought the business, Red Ball had just four employees and one location. Today, Red Ball has 235 employees, three fill plants in Shreveport, Louisiana, and Houston and Dallas, Texas, two specialty gas plants (Shreveport and Houston) and 23 retail locations. The company’s executive team comprises Alex Kennedy, Larry Kennedy, chairman of the board, Bob Ewing, president, Michelle Digilormo, CFO, and Craig Harris, vice president of operations.

– Vern Lewis Welding Supply Inc. D

Phoenix, Arizona Vern Lewis Welding Supply Inc. was founded in 1969 by Vernon F. Lewis. Prior to opening the company, Lewis served as a district manager for Forney Industries. The company began with Vern selling welders and Lincoln welding rods to farmers and welders in Avondale, Arizona and the surrounding west valley. He later added a business associate, Ron Ruch Sr. Ruch Sr. has since started his own welding supply distribution business, but Vern and Ron remain close associates after all this time. From a store front in Avondale and a warehouse in Phoenix, Vern Lewis Welding Supply has since expanded to seven 54 • Summer 2019

(left to right) Alex Kennedy, CEO, and Larry Kennedy, chairman of the board.

“Every decision we make is with the customer at the center of that decision,” says Ewing. “We’ve done a very good job of taking care of the employees that take care of our customers and reinvesting in the business. Focusing on our customers, our employees, and reinvesting in the business is how we’ve grown to where we are today and if we keep our focus on those things we’ll continue to keep growing.” Says Kennedy, “Our commitment to the customer is simple: we will make ourselves available 24 hours every day, 365 days every year and will respond to their problems and opportunities with urgency. We will be a problem-solving vendor they can rely on.”

Arizona locations, approximately 75 employees, a centralized distribution center with repair facility, industrial gas fill plant, welding training lab and four valley-wide route trucks, along with a variety of delivery trucks to service the valley. While Vern, who is now 83 years old, remains active in the business, the company is currently being run by his eldest daughter, Stacy Lewis Hayes. The company operates under her direction along with a management team, including General Manager and Partial Owner John K. Bone and Partial Owner Carol A. Arnold. Vern attributes the growth of the company in part to Bone’s vision and leadership. The company has a strong family culture and believes in participating in the community and industry throughout the country. The company holds memberships to GAWDA, IWDC, and AWS,

Celebrating Our History GAWDA MEMBER ANNIVERSARIES as well as several local chambers of commerce. Along with community involvement, the company has recently become a member of the NWBOC. To celebrate its 50th anniversary, the company will be honoring both employees and long-term customers alike. There was a weekend long company camping trip in northern Arizona for employees and their families. The company will also be honoring customers with custom statues that will serve as a reminder of the foundation and success... the customers! The statues were fabricated and designed by employees and will be personally delivered to customers. There will also be several customer appreciation events throughout the year.

Right: Vern standing next to mural that his wife, Bonnie, painted at the company’s Phoenix location

S - Veite Cryogenic Equipment and Service, Inc. North Ridgeville, Ohio Veite Cryogenic Equipment and Service was founded by Harry and Jim Veite in 1969. The company, formerly known as Cryogenic Equipment and Service, serves the U.S., Mexico and Canada from its 14,000 sq. ft. facility in North Ridgeville, Ohio. In 1969, distributors would typically lease fill plant equipment from their gas suppliers. Because of this, there was no incentive to upgrade equipment and no competitive element to gas pricing. The Veite brothers demonstrated to distributors how to increase profits by installing modern filling systems and the benefits that came from owning their own equipment rather than leasing it. That commitment to quality and efficiency has driven the company for half a century, as Veite has always operated by the golden rule: to treat employees, customers and suppliers as they would like to be treated. The Veite family remains heavily involved in the business today, with Jim’s son, Mike Veite, serving as president, and James Harris, Jim’s nephew, serving as vice president. James Veite Jr. serves as treasurer, while Mark Veite, Harry’s son, is a lead fill plant designer. Cumulatively, the Veite staff has more than 100 years of experience in the cryogenic and high pressure industrial and medical gas industries. “The flexibility and knowledge of our staff are our strongest assets,” said Jim Veite. “Our customers may work with one

technician on a small project, but they know that the entire team is ready to jump on the project, if that’s what it takes to get the job done. We place a lot of confidence and trust in our employees and provide them with extensive training to accommodate the heavy workload.” Summer 2019 • 55

C elebrating Our History GAWDA MEMBER ANNIVERSARIES S – Saf-T-Cart Clarksdale, Mississippi The history of Saf-T-Cart can be traced back to April 1, 1969, when Jimmy Walker, Sr. opened Walker Welders in Clarksdale, Mississippi. While Walker Welders grew and expanded, Walker saw a need in the industry for a self-contained oxy/acetylene unit with the gauges completely enclosed. However, Walker was unable to find manufacturers to produce the cart, so he decided to buy used equipment from local auctions and build them himself. With that, in 1986, Saf-T-Cart was born. “Saf-T-Cart really grew out of Walker Welders,” says Jim Herring, vice president of Saf-T-Cart. “Part of the reason for it was that the Mississippi Delta is very dependent on agriculture to drive business. If farmers are having a down year, it affects the entire region. The carts were kind of farmer-proof in that they weren’t dependent on the agriculture industry to drive sales.” The first Saf-T-Cart factory was built in Dublin, Mississippi in an abandoned school that Walker bought and converted, eight miles to the south of the Walker Welders facility. “By 1997, we had maxed out our space in the school, so we purchased property directly across the street from the original site of the first Walker Welders,” says

Original concept for the cart.

Herring. “The joke at the time was that the space was so large that we might have to rent some of it out. We ended up adding onto it five times.” Around that time, in April 1997, Walker sold Walker Welders to Holox, but retained ownership of its eight locations. Today, Saf-T-Cart has 106 employees in Clarksdale, sells into all 50 states, Canada, Latin America and beyond, and operates out of a 100,000 sq. ft. manufacturing facility that was purchased in 2005. While it has steadily grown from the days of Jimmy Sr. buying parts at auction to manufacture the carts himself, the company remains very family oriented.

Jimmy Sr. remains the CEO, while his son, Jimmy Walker, Jr. is the president. Herring, who married Jimmy Sr.’s daughter, Melinda, is the company vice president and Lesa Parks and Charlie Walker are both VP of Sales. The third generation of Walkers is now working in the business as well. Says Herring, “We do what we say and we say what we do. If you ask anybody in our plant who they work for, the answer is the customer. That has always been our mindset. There is no voicemail in Clarksdale. When you call our facility, you are going to speak directly to a person. That’s how we do business.”

45 YEARS – Black Stallion (Revco Industries, Inc.) S

Santa Fe Springs, California Revco Industries was started in 1974 by Mitchell Chu. C. Edward Chu, Mitchell’s brother, joined the company more than 39 years ago. In January 2017, Steve Hwang was named president of Revco Industries, with Ed Chu becoming CEO and chairman of the board. “Steve has made numerous positive contribu56 • Summer 2019

tions and is a respected leader within the organization,” Ed Chu said at the time. “With Steve as president, along with our experienced management team, Revco is ready to face all challenges and changes in our current business environment.” Also in 2017, Revco Industries announced that it would be doing business going forward as Black Stallion. The change was intended to showcase what had become one of the bestknown brand names in the welding industry. Black Stallion has been the flagship product line for Revco Industries since the company started in 1974. The DBA name leverages the

SafTCart, Inc. - P.O. Drawer 1869 - 1322 Industrial Park Drive - Clarksdale, MS 38614 800-542-2278 | 662-624-6492 | Fax: 662-627-1640 www.saftcart.com

C elebrating Our History GAWDA MEMBER ANNIVERSARIES A Revco company picture from 1980

strength of the Black Stallion product line and aligns the company and product brand identities. “Users of our gloves, FR garments, and other products know and trust us as Black Stallion,” said Hwang. “We want to leverage the success of Black Stallion through our entire distribution channel and capitalize on the momentum of the brand. We felt it was a good time to make the name change.” In January 2018, Revco Industries was acquired by Bunzl plc. “The acquisition of Revco represents a further development of

35 YEARS

S – Trendex Inc. Montreal, Quebec, Canada Trendex Inc. was started by Soumitra Mukherjee in 1984. Within a few months of the company’s founding, Soumitra’s brother, Bob Mukherjee, joined the company and the two began developing software for the wholesale distribution industry. Shortly afterwards, in 1985, they were asked to develop a system for the welding industry by several welding supply distributors who knew Soumitra. They decided to develop the software for the welding industry also. Unfortunately, in 1991, Bob passed away in a car accident. “We were just starting to expand into the U.S. with our software for the welding industry, Gastrend, and had to put that on hold until we were able to put the company back together again,” Soumitra says. “In 1995 we were able to go back and address marketing and selling in the U.S. and expanding into the states again. It’s unfortunate that Bob never got to see 58 • Summer 2019

our safety business in the U.S. with the business in particular complementing and strengthening our existing presence in the welding and industrial supplies market,” Frank van Zanten, chief executive of Bunzl, said at the time. Revco has grown into the company it is today on the foundation of two key elements: a singular focus on outstanding customer service and a commitment to dynamic product innovation. That vision will help carry Black Stallion over the next 45 years.

the fruits of his labor. He was really instrumental in putting together the original version of the Gastrend software. There are still programs with his name on them and our employees and customers that knew him still comment about some of the complex ideas that he developed and the feature-rich programs that are still being used today.” Once the Gastrend software was developed and tested with a gas distributor, Trendex installed the software at a larger distributor’s company where the software performed extremely well. With the help of this one distributor, Trendex was able to install ten other distributors in its first year. “To this day, our growth is attributed to the referrals from our customers and our reputation for the service provided after the sale,” Soumitra says. “Looking back 35 years, we are very proud of what we have accomplished over the years and the amazing software that our team at Trendex has been able to create. Their passion is the result of our reliable, high-quality software and our unparalleled service.”

25 YEARS IWDC’s original warehouse in Modesto, California

Independent Welding Distributors Cooperative (IWDC) Indianapolis, Indiana The Independent Welding Distributors Cooperative (IWDC) was officially formed on January 1, 1994. However, the IWDC’s story goes back much further than that, to the formation of the Independent Welding Distributors Association, which was formed in 1948. The I.W.D.A. was a buying group which, by the early 1980’s, became the largest unified welding distributor organization in the western United States, Mexico and Canada. At the 1992 annual meeting, the main topic focused on defining what I.W.D.A. needed to do to be most effective for its Members. A steering committee reported on the concept of forming a “Cooperative,” and a unanimous Member vote authorized the committee to proceed with its recommendations. The IWDC was incorporated and on March 7, 1994, the membership voted to become a cooperative corporation retroactive to January 1. The purpose of the cooperative was stated as the furtherance of its membership through the manufacturing, warehousing, and distribution of welding and related industrial equipment and supplies. “Most people just look at us and say it’s a buying group. Well, we’re very different than a buying group,” says Frank Kasnick, president & CEO of IWDC. “At the core we do buying, for sure, but there is more of a sense of ownership inside of a coop. Beyond that we have a proprietary invoicing system, two regional distribution centers, two prevalent industry brands in Weldmark hardgoods and PurityPlus Specialty Gases, an online university and another half a dozen other programs that strengthen bonds between our Members and Vendor Partners.” continued on next page

Summer 2019 • 59

C elebrating Our History GAWDA MEMBER ANNIVERSARIES

IWDC’s current distribution centers in Indianapolis, Indiana and Reno, Nevada

Twenty-five years after its incorporation, the IWDC’s goal remains the same: to create an environment that allows the Membership to either compete on an equal playing field with the national chains, or majors, or to have a competitive edge in the marketplace. “IWDC is proud to do our piece in helping independents flourish,” Kasnick says.

To celebrate its 25th anniversary, IWDC developed a special anniversary logo and has planned special recognition events at both of its two key annual meetings. Says Kasnick, “In recognition of our 25th we are redoubling our support for Workshops for Warriors. Last year we raised over $27K and this year we set our sights to raise over $50K We are almost there!”

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Celebrating Our History GAWDA MEMBER ANNIVERSARIES

20 YEARS

S - Ratermann Manufacturing, Inc. Livermore, California The core division of Ratermann Manufacturing is celebrating their 20th anniversary. Founded by George Ratermann out of the shed of his house, the company has now grown thanks to the support of customers and employees. Ratermann manufacturing opened its doors with two parts to sell, and now houses more than 20,000 individual parts and supplies for cryogenic and high-pressure gases. George reflects back on Ratermann’s growth, “It is hard to believe we are 20 years old. The only way this was able to happen is from the relationships and support of our great customers and the dedication from our employees that value their role in helping our customers. We just got done printing our newest catalog and it was both baffling and humbling to see the scope and size of our product offering compared to our first catalog. I am tremendously thankful to our customers and employees and excited for the next 20 years to come!”

George Ratermann circa 2000 assembling parts to send to customers.

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A new ultra-high quality line of cylinders for our Select Series specialty and calibration gases. • High-tech cylinders from Luxfer • Made with SGS (superior gas stability) technology • Internal cylinder wall is conducive to greater gas stability • Improved shelf life

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To find out more about our Select Series contact Norlab at 800-657-6672 or by email at norlabcs@norco-inc.com. Visit us at www.norlab-gas.com to find a Norlab distributor in your area. Brent Lockhart (vice president) circa 2000 assembling parts to send to customers.

dependable • versatile • recyclable Summer 2019 • 61

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C elebrating Our History GAWDA MEMBER ANNIVERSARIES

10 YEARS

– Cryoworks, Inc. Jurupa Valley, California CryoWorks, Inc. began ten years ago after an idea from Donna Mast. Tim Mast, CEO and owner of CryoWorks, was working as a salesperson from his home office. Since Donna was also home with their children, the entire family was gaining first-hand experience in the cryogenic piping industry. Tim was helping a customer who was having issues with the products and services that his previous employer was providing. “I got off the phone that day and Donna said to me, ‘Why don’t we do this ourselves?’” says Mast. “So, we started planning it and about a month later we were doing it.” The company began as a reseller, selling piping to customers out of the Masts’ house. A year later, one of the couple’s rental homes became empty and CryoWorks moved its operations next door. Two years later, CryoWorks transitioned from a reseller S

Tim and Donna Mast

to manufacturing its own piping. Their company has grown and moved, time and again. “That was the major change,” Mast says. “When we could control our own quality and control our lead times. That’s when our growth really took off.” Now, a decade later, CryoWorks has never had a negative

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Celebrating Our History GAWDA MEMBER ANNIVERSARIES year, something Mast attributes to the company’s employees and culture. To celebrate its tenth anniversary, the company is hosting a “Tacos and Tours” event for employees, their families, vendors and customers, which will include food and a facility tour. As CryoWorks looks ahead to its next ten years, it remains a family business, with Donna as the company’s vice president and their children, Tim Mast, Jr. as vice president of operations, and Nick Theiss as vice president of engineering and sales. The company is also updating its website, which is scheduled for launch at the anniversary event.

“Our website for the first ten years was a very simple website. It basically said, ‘We sell piping,’” Mast says. “To have customers come to us and have the confidence, even on big projects, to work with us is a real testament to the personality of our salespeople and the good word of mouth reviews from our customers.” When you visit their new website, you will see the CryoWorks Mission Statement, which sums it all up: “Make it Happen, Make it Easy, and Make it Fun so that all customers, vendors, employees, and their families value their relationship with CryoWorks as much as we value them.”

- Tekno Valves North America

Baton Rouge, Louisiana While Tekno Valves North America incorporated in 2009, Greg Leumas and Jim Guitreau actually began selling Tekno Valves products in North America four years earlier. Guitreau and Leumas were working together at another company that sold chlorine valves when they met a Tekno Valves representative at a Chlorine Institute Meeting. “We started talking to them about representing their product in North America,” says Leumas, president of Tekno Valves North America. “We began selling the product in 2005.” Four years later, the company that they had been working for was being sold and Leumas and Guitreau decided to strike out on their own. “Tekno said to us, ‘If you start your own company, would you represent the line in North America?’” Leumas says. “It was a scary venture, because neither of us had ever owned our own business. But in 2009, we decided to go into business ourselves and represent Tekno Valves.”

Greg Leumas, Jim Guitreau and Justin Guitreau

Guitreau and Leumas had built a list of clients from the previous four years but now had to go through the process of starting a new business from scratch. “The nice part was that we had already generated quite a bit of sales, so we had an idea of what the profits could be,” Leumas says. “That was enough to get the ball rolling.” Ten years later, the company is completely debt-free and has continually

grown. The company plans to move into a new office/warehouse in 2020 that will enable continued growth in inventory and product offerings that will take Tekno Valves North America into the future. “The cylinder valve market in North America is huge,” Leumas says. “Over the next several years, we hope to become a primary player in that market. I feel the growth curve is going to be very steep.”

Summer 2019 • 63

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Celebrating Our History GAWDA MEMBER ANNIVERSARIES

65 YEARS

30 YEARS

DuPuy Oxygen & Supply Company Gullco International Inc. * Humphries Incorporated K/C Welding, Inc. T.J. Nowak Supply Company, Inc.

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35 YEARS Jones Welding & Industrial Supply

* Indicates a write-up included in the online feature, which can be found on gawdamedia.com. This is current at the time of printing, others may have been added since.

Summer 2019 • 65

RICHES IN THE NICHES

Riches Niches COMPRESSED GAS CYLINDER MAINTENANCE

IN THE

“C

ylinders that are 100 years old will be good for another 100 years if they are properly taken care of and maintained,” says Hydrostat Inc. Owner and CEO Stacy Schraut. “The beauty of the packaged gas industry is that we have assets that are 100 years old that can continue to generate revenue. How many other industries can say that?” Compressed Gas Cylinders are over-engineered, due to the critical nature of their purpose, according to Airgenics, Inc. COO Jonathan Balbi. When properly maintained, these cylinders should last for hundreds of years. The key to this is proper maintenance coupled with mandatory cylinder testing as prescribed by the Department of Transportation (DOT), the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Compressed Gas Association (CGA.) “Doing the absolute bare minimum will not extend the lifespan of a cylinder,” says Balbi. “It will only let you know that your aging inventory is going bad at an exponential rate. Companies that have kept good care of their cylinders still see them passing back into service. I have seen plenty of cylinders from the 66 • Summer 2019

1970s up to the 2000s fail expansion tests because of obvious neglect that could have been prevented for a lot less than the cost of a new cylinder.”

HOW TESTING WORKS The DOT and PHMSA regulate the transport of hazardous materials through Title 49 of the Code of Federal Regulations (49 CFR), subchapter C, “Hazardous Materials Regulations.” As mandated by CFR Title 49, “Each cylinder used for the transportation of hazardous materials must be an authorized packaging. To qualify as an authorized packaging, each cylinder must conform to this subpart, the applicable requirements specified in part 173 of this subchapter, and the applicable requirements of subpart C of part 178 of this subchapter.” Every five or ten years, a standard DOT-rated cylinder must be requalified before it can be filled and transported by one of two accepted methods. The first method is a volumetric expansion test to determine the elasticity of the cylinders. The other option is an ultrasonic inspection that scans the cylinder and checks for defects in the metal and compares the average wall thickness against the

manufacturer’s specifications and a calibration of a similar metal. If the cylinder passes either of these tests and a visual inspection, it is deemed to be an authorized package and can be stamped and filled for another service cycle. Reject cylinders are condemned and destroyed as prescribed by the CFR 49.

HYDROTESTING “I’ve been an advocate in our industry for hydrotesting ever since our customers started pushing for more ultrasonic testing,” says Schraut. “In very rare circumstances, a cylinder has passed an ultrasonic test but would have failed a hydrotest. In the last seven years of ultrasonic testing this has happened on no more than three or four occasions out of more than 500,000 cylinders tested. That’s a very small number but in our opinion it’s still too high.” A hydrostatic test involves vacating any residual gas from the cylinder, removing the valve, filling the cylinder with water, placing the cylinder into a sealed water environment, introducing pressure greater than that of the service pressure for a standard period of time (usually 30 seconds), releasing the pressure and measuring the expansion (permanent and elastic), removing the cylinder from

RICHES IN THE NICHES

COMPRESSED GAS CYLINDER MAINTENANCE

MAKING CYLINDERS LAST BEYOND 100 YEARS by jonathan r. balbi and steve guglielmo

the sealed environment, emptying the water, drying the cylinder, performing an internal visual inspection, stamping the cylinder and reinstalling an acceptable valve (usually the same valve that was previously in the cylinder unless it does not conform to thread count specifications or having a service change done.) An ultrasonic test, by comparison, involves placing the cylinder in the ultrasonic machine and testing it under ideal circumstances (exterior in good condition, empty of liquified gases, valve closed.) “Part of the requalification of a cylinder is to do an internal inspection on that cylinder, according to the 49 CFR,” Schraut says. “So, in my opinion if you’re not removing the valve for an ultrasonic test, you’re not really satisfying the guidelines of the 49 CFR.” Says Balbi, “When you have removed the valve, a host of optional procedures are opened up and each one can extend the cylinder life if coupled with a good in-house procedure, so that the owner of the asset is ultimately determining the cylinders function. This does take some planning and forethought but can mean the difference between a reject asset and a good cylinder. If the asset base of a company is 40,000 cylinders of mixed

Photo courtesy of Hydrostat, Inc. Summer 2019 • 67

RICHES IN THE NICHES

COMPRESSED GAS CYLINDER MAINTENANCE

Left: Haun Welding Supply Right: Photo courtesy of Hydrostat, Inc.

manufacture dates, around 5,400 cylinder per year would need to be tested to maintain an in-service asset base, with an average of 45% of cylinders being over 60 years of age, without maintenance beyond standard testing expect to lose around 95 cylinders per year more than with above and beyond upkeep. In dollars that can equate to more than $20,000 dollars per year on new cylinders just to make up what is lost.”

WHAT SHOULD MY SERVICE PROVIDER BE PROVIDING? In the August 2019 GAWDA Monthly Safety Organizer, GAWDA DOT, Security, OSHA and EPA Consultant Michael Dodd wrote an article entitled, “Auditing Your Hydrotest Vendor.” In the article, he provided a checklist GAWDA member companies can use to ensure that the cylinders that you send out for requalification are being done properly and that the facility is in compliance. 68 • Summer 2019

At a minimum, the service provider should be able to provide an inventory of cylinders that are inhouse and what service they are in, including a breakdown by size and gas type, along with confirmation that the cylinders sent in can go back into the same service. (A good requalification company will know if they can put an asset back into a specific service. More often than is realized, a fair number of cylinders may no longer be able to go into a service that is needed.) “If a cylinder fails a test and no longer can get a star or a plus rating or the cylinder’s age doesn’t allow it to get a star or plus rating, that doesn’t necessarily condemn it to be scrapped,” says Schraut. “Oftentimes a cylinder can be taken out of oxygen service or nitrogen service and put into CO2 service. That’s one of the ways you can extend the life of a cylinder is simply by changing the service that it is in, when it no longer meets the requirements for the service it was in.”

The service provider should also provide a copy of test reports with notations for work done to: • Assigned ownership notation • Manufacturer name • Manufacture date • DOT specification • Physical dimensions • Previous gas service • Notes • Required test pressure • Pressure reached • Required test time • Actual test time • Date and time tested • Operator name • Determined reject elastic expansion and source for REE • Actual permeant expansion • Actual elastic expansion • Marking eligibility (e.g., + *) • Pass/fail determination If any data is missing, the cylinder may not be treated as though it is an

RICHES IN THE NICHES

COMPRESSED GAS CYLINDER MAINTENANCE authorized package. All of this together is what an authorized requalification company should provide with every order.

ASSET MANAGEMENT So why can a cylinder made in 1970 be condemned from service before a cylinder from 1904? “It all boils down to asset management, storage and communication,” says Balbi. “Having a simple yet comprehensive plan in place to sort assets as they come up for service that encompass a packaged gas companies near future needs, anticipated growth sectors, and an effective prefill inspection that can isolate assets that requires a secondary service to extend total life, regardless of service date; herein lies the difference between caring about cylinders and filling and billing.” According to Schraut, asset management and distributors having positions dedicated to asset management is one of the biggest changes in our industry in the last 20 years. “There are created positions now, where somebody is overseeing their assets to make sure that if a customer has an overabundance of oxygen cylinders in their inventory and a shortage of nitrogen cylinders, rather than spend $250-$300 per cylinder to buy 100 nitrogen cylinders, they can send those oxygen cylinders in and have them blasted and painted, washed and outfitted with a new valve and for a tenth of the cost of buying a brand new cylinder, they can get what’s functionally a new cylinder for a new service,” he says. “Rather than having those cylinders sitting out in the yard not being utilized, they’re sending them in to be converted to the gases that they’re in need of at the time.” The unsure economic future of metal manufacturing as well as the turmoil in trade will make new cylinders more expensive with longer lead times for delivery. Now is the time to evaluate

the age of your inventory and forecast any future needs. If planned properly, a company can maintain assets and keep them in service longer than originally anticipated, giving them a slight edge over the competition. Growing pains of purchasing new asset acquisition and shrinkage caused by asset misappropria-

tion can be mitigated to figures that will allow for less capital investment in steel and more investments in infrastructure. For more information on cylinder care best practices, be on the lookout for the follow up article in the 4th Quarter Issue of Welding & Gases Today.

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Summer 2019 • 69

Making the Customer Comfortable by art waskey

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

70 • Summer 2019

hate shopping! Fortunately, my wife, Sandy, enjoys it and is willing to put in the time to make the right purchase at the right price. Whenever I need shirts or pants, she will bring home several selections so I can choose what looks best on me. This personal shopping system works well for casual attire, but I find that buying a suit requires a more concerted effort on my part. Early in my career, I was promoted from sales engineer to sales manager. At that time, the company’s vice president advised me to buy a suit, noting that people would view me differently in more formal attire. What he didn’t tell me was why that was so. As it turns out, customers paid more attention to the man in the suit because I felt differently — I exuded success! Today, I am more involved in writing, consulting and motivational speaking than sales but I’m still committed to dressing for success. When fortunate enough to be chosen as a keynote conference speaker, I am most confident at the podium when I look like I’m worth a billion dollars. Recently, I needed to buy some new suits. I carefully considered the merchandise at several stores before deciding to work with a prestigious

clothier, which had a store manager named Justin. This option was by no means the cheapest: Justin’s suits were custom-made and tailored. I felt confident in my choice, however, because Justin was a true sales professional. Whether your products are suits or welding supplies, selling is all about making the customer comfortable. Here are some key takeaways from my recent shopping experience. The right purpose – The late, great sales motivator Zig Ziglar said, “People don’t care how much you know until they know how much you care.” I learned early in my career to spend less time worrying about my sales goals and more time focusing on my purpose, caring for the customer. Justin put a lot of effort into getting to know me. I trusted him to understand what I needed to feel successful when addressing an audience. Your purpose, as a sales professional, is to make sure you think less about what you want and more about your customer’s needs. Be attentive – In a warm, relaxed manner, Justin engaged me in conversation. He realized that if he could get to know me, I would think that I knew him. This is reverse psychology, or

SALES & MARKETING

“the practice of subtly encouraging a behavior or belief by advocating its opposite.” By employing the 80/20 principle — the method of listening and asking questions 80% of the time and talking only 20% of the time — Justin was able to gain my trust and understand my need. I remember working with a sales rep in the gases and welding industry who practiced good active listening skills but went too quickly into sales mode when the customer started sharing his need. Always remember to listen long enough to know why your clients want to buy. Self-confidence – I was in the process of exploring several store options for a suit when I met Justin. I was open with him about this and he encouraged me to take my time. He showed genuine concern that I make the right decision, and he put my needs above his personal sales goal. Many salespeople, when confronted with a client who is comparing goods and prices, feel a sense of rejection. Some even react with anger. Justin’s confidence in his sales and products was apparent. He understood that if I chose to patronize another store, I wasn’t rejecting him —I was rejecting his offer. As a sales professional, are you self-confident enough to see rejection as a business transaction and not a personal affront? Integrity – I was intrigued by Justin’s self-assuredness. He told me his military father had drilled into him strong moral principles, which had prepared him for his own four-year stint in active duty. He had a great deal of integrity and explained, “If I can’t be honest with myself, how can my customers expect me to be truthful with them?” This reminded me of a time when a manager instructed me to make a dishonest claim to one of our clients. I thought about his directive and went back to his office and asked, “If I’m not honest with the customer, how could you expect me to be forthright with you?” He responded by telling me to leave his office! Years later, that same manager tried to get me to come back and work with him. He said, “I need you in a key position in my new organization because you are the only one I know I can trust to tell me the truth in critical circumstances!” Justin demonstrated to me that he was entirely truthful. In any sales situation, honesty really is the best policy. Product knowledge – Now in his mid-thirties, Justin has sold and tailored fine clothing for 11 years. He has thoroughly studied the quality and advantages of suit materials and only recommends the best. Knowing the features and benefits of his products enables Justin to remove any confusion in the buying process.

Justin takes advantage of technology to customize his sales and educate his customers as well. He took me online so I could make specific pattern, breast and jacket pocket, collar, and lapel selections from a range of choices. I even learned about a section of the suit unknown to me – the gorge— the configuration of which is altered depending on your height. After being so well informed by Justin, I wondered — did I do the best I could during my sales career to provide product knowledge? Are you delivering product information at the highest possible level? Service guarantee – Justin told me up front that it would take three weeks to get my suits made and that there would be a final fitting. If he didn’t like the way the suits looked, they would be replaced. Until my custom suits arrived, I would be provided and fitted with a suit that was in stock. Are you confident enough in your product and service to make a guarantee like that? Follow-up – After finalizing my order, I returned home to find an email from Justin with a thank you note, a short customer satisfaction survey and a tentative Outlook appointment for the fitting in three weeks. Justin also called to ask if I had any regrets about my purchase. He knew I might feel some “buyer’s remorse” and wanted to assure me that I had made the right decision. I had my new suits a week before they were promised, and the fittings were done promptly. The sale wasn’t completed until Justin was sure that I was satisfied. Can you under promise, but over deliver in this way? Referral – Smart salespeople get referrals from satisfied customers. When I picked up my suits, Justin asked for referrals and if he could use my name for recommendations. I gladly agreed to both. The quickest way to grow your business is through endorsements from your existing customers. When I wear the new suits, I get compliments and Justin gets referrals. Don’t hesitate to ask your customers for recommendations and referrals. Justin didn’t close the sale— I did. By doing his homework, he led me to make the purchase. He knew me, understood why I was buying suits and what I was looking for. He presented me with the right options for making the right purchase and made the entire buying process stress-free. I feel like a billion dollars when I give my presentations in my new suits. Mission accomplished. Strive to make your customers feel the same way about the products they buy from you. Summer 2019 • 71

SALES & MARKETING

Text Messaging – 7 Use Cases Beyond Immediate Sales by adam nathan

I Adam Nathan is the CEO and founder of the Bartlett System (www. bartlettsystem.com), a business coaching consultancy dedicated to providing management and analytics tools to support rapid-growth entrepreneurs. He can be reached at adam@ bartlettsystem.com and 718-763-7163.

n the previous issue of Welding & Gases Today, I looked at the remarkable ability of text messaging (SMS) to drive immediate sales. No other direct marketing tool comes close. Because of its phenomenal message open and response rates, text has unparalleled access to your customer’s attention. And yet, in the business-to-business landscape for distributors, SMS is a technology that is just beginning to make it into the distributor’s marketing toolkit. In this article, I’d like to highlight an additional seven use cases for text messaging that bring additional value to your relationship with your customers. Understanding this wide array of capabilities will enable an educated decision about whether text messaging can be a valuable tool for your own business.

DRIVING TIMELY CYLINDER ORDERS The truck for tomorrow’s delivery will be loaded by 6:00 p.m., but, as usual, there are orders that aren’t in yet. Maybe someone is on vacation. Maybe somebody has forgotten the audit. But the bottom line is that the gases that your client demands are going to need to be specially delivered. This incurs a cost to you in fuel, driver overtime and more. For your customer, of course, there are additional charges. Scheduled texts to your clients to keep them aware of the countdown to getting their orders in can provide value for everyone. A scheduled message, 24 hours and 4 hours prior, can be the simple reminder that gets the job done and saves your clients fees that can really add up. One client of ours is currently considering adding this notification as a for-fee service. 72 • Summer 2019

Whether canister audit reminders are a potential revenue stream for you or just an added value service, you can be sure that few, if any, of your competitors have automated this service. Yet.

CUSTOMER SUPPORT Service is the game. If our customers need something or aren’t happy with something, we want to make sure there is no additional friction involved with letting us know about it. The quicker and more easily a customer can let us know that something is wrong, get a question answered or, better yet, order something, the better. The more channels that we can enable for this conversation, the more likely we can address dissatisfaction, answer questions or fill an order. As the workforce becomes younger and more tech-savvy, more points of digital access are open. Of course, customers will always call or email. But, as studies have shown, a call often requires more engagement and potential direct confrontation than a customer wants, and an email can require more effort – particularly if the issue is experienced away from an office computer. A monitored text channel with highly proactive responses can reach a client where they are so that they don’t have to come to you.

VIDEO Text messaging also enables the transmission of messages greater than the standard limitation of 160 characters. This longer format is called MMS (Multimedia Messaging Service.) With MMS you can get almost 1,600 characters and can embed up to 40 seconds of video. The ability to send video is a game changer.

SALES & MARKETING If you have created marketing content that you want to drive your customers to view, a short video from the shop floor or a safety tip can capture your customer’s attention. We are an increasingly video-driven culture and your ability to tell a quick story can bring value to your audience and drive sales. Moreover, MMS texts can become a complementary part of driving traffic to other marketing channels. A new Facebook post getting an underwhelming response can be fixed with a quick video. More and more, the ability to develop cross-channel campaigns is key to successful outcomes. Best of all, the video doesn’t even need to be high quality. Your marketing team doesn’t need an elaborate set up or production quality. A simple video message from a key salesperson or leader in your organization will immediately capture eyeballs and there is little expectation from them that a video over text will be high quality. It is a visual text and no more.

THE MICRO SURVEY Text offers about the fastest and most effortless way to get your customer’s opinion. I don’t know about you, but when I am given an email link to a survey, I don’t trust that it won’t turn into ten screens of questions and finish up by asking me to write an essay. When I call a service line and the auto-router then asks me to answer a survey, I find it irritating. I’m already wasting time chasing a problem down; why are they asking for even more of my time? Because of this saturated need for customer input, it is getting harder and harder for marketers to get the information they need – whether it is about untapped needs, quality of service or anything else.

But there’s no way around it: We all still need to understand our customers. If we don’t understand the value we create and the problem “frictions” in our service, then we can’t increase or manage their experience effectively. And if we can’t listen, we’re flying blind. Consider the micro-survey: It’s a single question. “Let us know how your delivery went today from 1-10. If 1 is terrible and 10 is amazing, how did we do?” If a question is super easy to answer – a single number! - your customers are highly likely to respond. Micro-survey question creation is almost effortless and response rates are an estimated 31%. That should be eye-opening.

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EVENTS Text has two important functions in supporting events. The first is the event countdown and reminder. You are undoubtedly familiar with the doctor’s office reminder or the airline boarding text. A text might alert us to an event a day or so before and then several hours prior. Texts can have a huge impact on attendance by keeping an event top of mind. Of course, these reminders can also include links to supplemental information to maintain or heighten interest. So, imagine your next store opening, trade show, webinar or annual sale preceded by a carefully crafted event countdown via text. It doesn’t make sense not to drive participation with text.

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SALES & MARKETING THE NEW PRODUCT As the workforce becomes younger and more tech-savvy, more points of digital access are open.

Text is a great way to feature new products. The rich video capabilities of text, the ability to link to supplemental information, the channel to provide discounts, coupons, timed deals and more are unlimited. Your pictures are worth a thousand words, and if one of your manufacturers has something special on the way, make sure to count it down for your customers and let them know when it’s available so they can take a look. Perhaps your manufacturer would even like to be part of the effort. If your customers are interested in your products, they’ll be open to information and they’ll be far more likely to come to your store to purchase it. Staying

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out in front with new products can make the difference between a purchase from a big box store and one at your branch location.

SAFETY UPDATES AND PRODUCT RECALLS Finally, text messaging is a great tool to notify about product recalls, safety and other informational content that is a service to your customers. In summary, driving immediate sales isn’t the only powerful application of text marketing. These additional capabilities make it a valuable tool to consider for your company. It is well worth your marketing team’s time to make a deliberate decision on whether you are “in” or “out.” It’s too powerful a tool to ignore.

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Adopting the Entrepreneurial Mindset in your Company Culture Accept that failure can be okay by john tapley

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

76 • Summer 2019

elcome to the world of an entrepreneur. The concept that failure can be okay can be so difficult to absorb. Do we really need to experience failure to learn and succeed? Maybe not, but tried and true success does come with bumps and bruises and lessons learned from the experience of failure. What is the “entrepreneurial mindset?” According to a common misconception, an entrepreneur is a bold, risk-taking, rules-breaking individual with the reputation of a riverboat gambler. Why would you want that in your company culture? But, in reality, an entrepreneur is confident and decisive, understands risk clearly and knows when to challenge the status quo. Above all, an entrepreneur truly believes “Anything is possible.” An entrepreneur is not just an individual associated with a business startup. It’s common to find them scattered throughout any business or organization, thus the term “corporate entrepreneur.”

UNDERSTANDING YOUR COMPANY CULTURE Can you describe your company culture? Are your employees able to articulate it in simple terms to your customers, prospects and the business

community? Culture is the personality of your company, which flows from the work environment, mission and vision, values and goals. Some traits are subtle, beneath the surface, while others are very prominent. Do you see any traits of the entrepreneurial mindset in your culture? Are you comfortable with risk? Do you minimize failure? Do you make decisions quickly? Above all, do you show extreme optimism when developing a new business model, evaluating a new product or considering change against the status quo? By shifting your culture to reward entrepreneurial thinking, you tend to become more creative and innovative. Employee morale, in general, tends to rise with a more positive outlook toward risk, failure and difficult situations. Stress levels trend downward when you migrate toward “anything is possible” and a “no fear of failure” mentality. Some cultures in this industry tend to be steeped in conservative and deep traditions of doing it a certain way and not moving toward change as quickly as other industries. That could be attributed to the very unique skill set of the gas and welding business. Knowledge is often home-grown and self-taught. There are no classes in the universities

SALES & MARKETING or trade schools on selecting the right gas blend for a welding application, creating solutions to manage cylinder inventory, understanding a customer’s need to go bulk, troubleshooting a frozen liquid cylinder and on and on. If you’re looking for reasons or justifications your culture might need an adjustment, consider these: • Are you working harder for smaller efficiency gains? How much more cost saving can you squeeze from your existing business model? • Is your cost to acquire new customers and market share rising per unit? How much more revenue growth can you get from the same business? • When you compare strategies with your closest competitor, is it getting harder to differentiate? If any of these hit home or you just have the intuition that change is needed, read on.

INTRODUCING THE MINDSET INTO YOUR CULTURE Depending on how deeply you want to embrace entrepreneurial thinking into your culture, here are ideas and levels

“You miss 100% of the shots you don’t take.” – THE GREAT ONE, WAYNE GRETZKY

of commitment to consider. The flow is in order of go lightly and start small to go big and be bold. Basic knowledge and introduction Introduce the concept throughout your organization in short training workshop(s) and involve employees in feedback with ideas on how to implement and to what level. “Homegrown” Champion Is there someone in the organization who exhibits traits of an entrepreneur? Consider them for a special assignment and/or add duties to their existing position where they teach

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SALES & MARKETING and/or mentor others on thinking the entrepreneurial way. This could also be opportunity for career advancement. Recruiting new talent Is there a vacant position you’re recruiting for? Add heavy emphasis on entrepreneurial thinking to the skill set in the search. Open it up to any position—sales, admin or operations. “Celebrate failure” Find an opportunity to make a point of minimizing a failure someone in the organization has made. Reward them for trying and missing. And then look for the next opportunity to celebrate another failure. Obviously not trying to fail but releasing the tension of trying something new without fear of retribution if it fails. Create an “Entrepreneurship” Department Develop a new department tasked with innovation, ideas and new business model opportunities. This is a big one; you’re all in when you go this route. But why not? The rewards can be significant.

Innovation and creativity are key to driving success. Everyone stands to benefit by adopting one or more traits of an entrepreneur, and when the mindset works its way into your company culture, positive change will follow. Confident and clear decision making, no fear of failure and the belief that anything is possible are characteristics of a winning team. Throughout the company, no matter the skill or position, learning to think like an entrepreneur is bound to lead to a more enriching work environment and ultimately to more success with your business strategy. Seeing the positive in failure We began this article with the concept of tolerance of failure, which is central to the philosophy of entrepreneurship. I’ll leave you with a few quotes on failure from well-known individuals who never let it get in the way of their success: • “Anyone who has never made a mistake has never tried anything new.” - Albert Einstein • “I have not failed; I’ve just found 10,000 ways that won’t work.” - Thomas Edison • “If you do what you’ve always done, you’ll get what you’ve always gotten.” - Tony Robbins

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ANNUAL CONVENTION 2019

ANNUAL CONVENTION SEPTEMBER 28-OCTOBER 1, 2019 WASH IN G T O N , D . C

It’s All About

Service Held at the

Photo: Marriott Marquis Washington, DC

MARRIOTT MARQUIS WASHINGTON, DC

80 • Summer 2019

901 Massachusetts Avenue NW Wa s h i n g t o n , D i s t r i c t O f C o l u m b i a The average high temperature in Washington, D.C. in late September is 74 degrees and the average low is 57 degrees. Attire for the Annual Convention is business casual. The President’s Farewell Gala is Semi-Formal Cocktail. Jackets required, ties optional.

ANNUAL CONVENTION 2019

SCHEDULE OF EVENTS TIME

MEETING

LOCATION

F R I D AY, S E P T E M B E R 2 7 , 2 0 1 9 12:00 p.m. – 6:00 p.m.

Early Badge Pickup

M2 Level - Marquis Ballroom Registration Area

S AT U R D AY, S E P T E M B E R 2 8 , 2 0 1 9 8:00 a.m. – 6:00 p.m.

Convention Registration

M2 Level - Marquis Ballroom Registration Area

8:00 a.m. – 9:00 a.m.

Executive Committee Meeting For the GAWDA Executive Committee only

Mezzanine Level - Tulip Room

9:00 a.m. – 12:00 p.m.

Board of Directors Meeting For the GAWDA Board of Directors only

Mezzanine Level - Tulip Room

1:00 p.m. – 2:00 p.m.

Regional Chairs Meeting For Chairs of Regional Meetings

Mezzanine Level - Tulip Room

2:00 p.m. – 3:00 p.m.

Committee Meetings For Committee members only

Mezzanine Level -Dogwood, Cherry Blossom, Scarlet Oak Rooms

3:00 p.m. – 4:00 p.m.

Young Professional Steering Committee For Committee members only

Mezzanine Level Scarlet Oak Room

4:00 p.m. – 5:00 p.m.

First Timers’ Reception GAWDA welcomes all those new to the Mezzanine Level - Tulip Room organization who are attending their first GAWDA Annual Convention. Attire: Business Casual

5:00 p.m. – 7:00 p.m.

President’s Welcome Reception Connect with colleagues and customers while enjoying a taste of the nation’s capital. Attire: Business Casual

7:00 p.m.

Industry Hospitalities

M2 Level - Marquis Ballroom

S U N D AY, S E P T E M B E R 2 9 , 2 0 1 9 7:00 a.m. – 1:00 p.m.

Convention Registration

M2 Level - Marquis Ballroom Registration Area

7:00 a.m. – 8:00 a.m.

Networking Breakfast

M4 Level - Independence Ballroom

8:00 a.m. – 12:00 p.m.

Opening General Business Session Speakers: Brian Beaulieu, Admiral William H. McRaven USN (Ret.)

M4 Level - Liberty Ballroom

12:00 p.m. – 1:30 p.m.

Past Presidents Luncheon For GAWDA Past Presidents only

Mezzanine Level - Tulip Room

12:30 p.m. – 5:30 p.m.

Tours & Activities See page 83 for details

Offsite Summer 2019 • 81

ANNUAL CONVENTION 2019

SCHEDULE OF EVENTS TIME

MEETING

LOCATION

12:30 p.m. – 5:00 p.m.

Young Professionals Event The Great Escape Room followed by Happy Hour: Pre-registration is required; space is limited. Meet in the Marriott Marquis Lobby.

Offsite

1:00 p.m. – 5:00 p.m.

Exhibitor Booth Setup

M2 Level - Marquis Ballroom

1:00 p.m.

Industry Hospitalities

M O N D AY, S E P T E M B E R 3 0 , 2 0 1 9 6:00 a.m. – 8:00 a.m.

Exhibitor Booth Setup

M2 Level - Marquis Ballroom

7:00 a.m. – 12:30 p.m.

Convention Registration

M2 Level - Marquis Ballroom Registration Area

7:00 a.m. – 8:00 a.m.

Networking Breakfast

M4 Level - Independence Ballroom

8:00 a.m. – 12:00 p.m.

Contact Booth Program There’s no better place for face-to-face information exchange than the Contact Booth Program. It’s a huge and highly informative showcase of vendor and supplier offerings and an M2 Level - Marquis Ballroom outstanding networking opportunity. More than 100 GAWDA member suppliers will display their newest products and services and be on hand for one-on-one conversations with distributors. The Prize Program is a highlight of this event, with more prizes this year than ever before!

12:00 p.m. – 5:00 p.m.

Tours & Activities

12:00 p.m.

Industry Hospitalities

12:30 p.m. – 4:00 p.m.

Women of Gases & Welding Event Yacht Cruise along the Potomac River: SOLD OUT - wait list is available

Offsite

Offsite: Meet at L Street entrance at 12:15 p.m.

T U E S D AY, O C T O B E R 1 , 2 0 1 9 7:00 a.m. – 1:30 p.m.

Convention Registration

M2 Level - Marquis Ballroom Registration Area

7:00 a.m. – 8:00 a.m.

Networking Breakfast

M4 Level - Independence Ballroom

8:00 a.m. – 12:00 p.m.

Closing General Business Session Speakers: Don McMillan, Phil Kornbluth

M4 Level - Liberty Ballroom

6:00 p.m. – 10:00 p.m.

President’s Farewell Gala

Offsite: National Building Museum

82 • Summer 2019

ANNUAL CONVENTION 2019

YOUNG PROFESSIONALS NETWORKING EVENT

t a e r G The om o R e Escap

S u n d a y, S e p t e m b e r 2 9 12:30 p.m. – 5:00 p.m. The Great Escape Room 1730 Connecticut Ave. NW Join GAWDA Young Professionals at a fun, interactive networking event at The Great Escape Room followed by happy hour at Mission Dupont Circle. The adventure starts when we meet in the Marriott Marquis Lobby. Pre-registration is required; space is limited. thegreatescaperoom.com/washington-dc

TOURS & ACTIVITIES Explore D.C. Your Way! During your free time you’ll want to experience the many unique sights of Washington, D.C. The Marriott Marquis Concierge Desk has a variety of guided tours and self-guided exploration opportunities available for GAWDA members to choose from. Whether you are looking for culture at the Smithsonian Museums, exploring The National Mall to see Monuments and Memorials, taking a scenic cruise along the Potomac, visiting the U.S. Capitol, or exploring D.C. at Dusk, they will have a tour for you. Want to explore D.C. on your own? The Concierge will assist you with hop-on/hop-off options including all-weather Old Town Trolley tours and Big Bus Tours open-top rides. To pre-book call 202-824-9331.

Photo by Kevin Allen Photography

PRESIDENT’S FA R E W E L L G A L A Tu e s d a y , O c t o b e r 1 6:00 p.m. – 10:00 p.m. National Building Museum 401 F Street NW Join us for dinner and dancing at the National Building Museum. Explore the greatest stories of architecture, engineering and design in one of the most beautiful buildings in Washington, D.C. Dress code for the event is semi-formal/cocktail. Jackets are required but ties are optional. Summer 2019 • 83

ANNUAL CONVENTION 2019

ANNUAL CONVENTION PRESENTERS Experts in economics, trends, engineering, leadership and strategy highlight all-star list of presenters at the Annual Convention Brian Beaulieu CEO and Principal ITR Economics Familiar to members of GAWDA and the industry, Brian Beaulieu is the CEO of ITR Economics. ITR Economics is the GAWDA Chief Economist and authors the GAWDA Industry Analysis Report published quarterly in Welding & Gases Today. Brian is a well-known and sought-after economist who has led workshops and seminars for 35 years. During this presentation at the Annual

Convention, Brian will review the Industry Analysis Report and provide further updates. Don McMillan Futurist and Engineer Don McMillan has a Master’s Degree in Electrical Engineering from Stanford University. He was a member of the design team on the world’s first 32-bit microprocessor. He went on to become a founding member of the startup company

VLSI Technology. He’s designed more than 20 Integrated circuit chips and holds numerous patents. Don has been seen on “The Tonight Show,” HBO, and ALL over the Internet. His unique discussion combines smart observations with his one-of-a-kind PowerPoint presentation. Don spends most of his time writing and performing customized corporate shows for companies like Google, Apple, IBM, Ford, ExxonMobil and now GAWDA. He has appeared at more than 800 corporate shows in the last 25 years.

GAWDA Gives Back GAWDA President Brad Peterson and his wife, Gaby, have selected two Washington, D.C. charities as recipients of donations from the 2019 GAWDA Gives Back Program. Donations from the Gives Back campaign will fund specific projects at these two worthy organizations: Community Lodgings – This group was founded in 1987 by a group of eight churches. At the time, the need was to provide shelter for the homeless, so the churches came together to buy three properties. They continue to own those properties to this day, but the mission of the organization has greatly expanded. In addition to providing belowmarket housing on a rental basis, the group provides for the greater family and community need in helping to educate and lift people out of the cycle of poverty. Our Military Kids – This organization provides scholarships to children of military members who are deployed or hospitalized, for extra-curricular activities. These activities help the children focus on something other than their parents’ absence or disability and keep them connected to “regular” kids and activities. These scholarships might provide the opportunity for a camp, for karate lessons, or for some other “normal” activity 84 • Summer 2019

ANNUAL CONVENTION 2019 Phil Kornbluth President, Kornbluth Helium Consulting Phil Kornbluth is the founder and president of Kornbluth Helium Consulting, LLC, a heliumfocused consultancy that advises clients on all commercial aspects of the Global Helium Business. Phil is recognized as one of the world’s foremost commercial experts in the Global Helium Business. He has been employed by several leading industrial gas companies over the last 38 years, including The BOC Group, plc (BOC), the Matheson Gas subsidiary of Taiyo Nippon Sanso Corporation (TNSC) and Global Gases Group FZE and has worked in various roles related to the Helium Business for the last 36 years. While at both BOC and TNSC, Phil held executive positions that included general management and P&L responsibility for their global helium businesses. As VP, Global Helium at BOC, Phil led BOC’s Helium Business to a co-number 1 worldwide position in the industry. Phil has been a frequent speaker on helium-related topics at industry conferences, has contributed to and authored numerous heliumrelated articles and has made important contributions to U.S. helium legislation passed in 1996 and 2013. Kornbluth holds a BS in Economics degree from the University of Pennsylvania’s Wharton School of Business and received a Master’s in Business Administration degree from Rider University.

Admiral William H. McRaven USN (Ret.) Retired U.S. Navy Four-Star Admiral Former Chancellor of the University of Texas System “Without daring greatly, you will never know what is truly possible.” Admiral William McRaven, a retired U.S. Navy Four-Star admiral, best-selling author and former Chancellor of the University of Texas System draws on his extraordinary experiences to offer audiences insight on U.S. foreign policy, the current geopolitical environment, authority amidst uncertainty, overcoming adversity and the determination to succeed. McRaven is a recognized national authority on U.S. foreign policy and has advised Presidents George W. Bush, Barack Obama and other U.S. leaders on defense issues. During his time in the military, he commanded special operations forces at every level, eventually taking charge of the U.S. Special Operations Command. His career included combat during Desert Storm and both the Iraq and Afghanistan wars. He commanded the troops that captured Saddam Hussein and rescued Captain Phillips. McRaven is also credited with developing the plan and leading the Osama bin Laden mission in 2011.

Don’t miss the Contact Booth Prize Program! See the prizes being offered on

gawdamedia.com

STAY INFORMED WITH GAWDA’S MOBILE APP Make sure to download the GAWDA event app (called Attendee Hub in the app store) and search for the GAWDA 2019 Annual Convention. Here are nine important reasons to download the GAWDA Mobile App. 1. Stay up-to-date with announcements and event reminders 2. Get full access to the attendee list 3. Message and set up meetings with other attendees 4. View the schedule of events and set your own personal schedule 5. Learn about featured Convention Speakers 6. Post and share on the social media wall 7. Easily view area maps and meeting locations 8. Plan your Contact Booth Experience with interactive floorplans and Exhibitor Info 9. Call an UBER to the airport when it’s time to go home Summer 2019 • 85

HQ & PROGRAM NEWS

SPRING MANAGEMENT CONFERENCE

RECAP

early 650 members and guests of the Gases and Welding Distributors Association came together on May 4 - 6 to enjoy great speakers, collect industry information, network and reconnect with friends and colleagues from all over the country at the GAWDA Spring Management Conference in Minneapolis. As has become custom at GAWDA events, the 2019 SMC offered attendees indispensable value and information that could be brought back to their companies and applied at all levels of the operation. President Brad Peterson was able to combine insightful educational sessions with opportunities to network with like-minded professionals from across the industry in fun, casual settings. The Contact Booth Program continues to prove immensely valuable to suppliers and distributors alike, as more than 560 attendees gathered together at the extended-hours event. In addition, suppliers offered 70 raffle prizes to attendees. 86 â&#x20AC;˘ Summer 2019

In the photo: from left, Brad Peterson, Scott Myran, Ben Sadowski (Mississippi Welders Supply Company)

HQ & PROGRAM NEWS

GAWDA President Brad Peterson Led an Industry Roundtable with GAWDA Consultants and Members GAWDA Consultants Tom Badstubner (FDA and Medical Gases), Michael Dodd (DOT and Security) and Rick Schweitzer, Esq. (Government Affairs and Human Resources) fielded questions from GAWDA members in an engaging round table discussion. Each consultant listed the types of questions they answer most often, the

best ways to reach them and where they expect the industry to be headed in the near future. When asked whether they had been helped by their GAWDA consultants in the past, more than 90% of the hands in the room shot up. Then it was the members’ turn, and they asked questions and received clarifications on a wide variety of topics. Many of the

questions related to the cannabis market. GAWDA consultant Tom Badstubner pointed out the importance of making sure that the products of one customer don’t make their way to other customers. Methods of ensuring this include: labeling and segregating cylinders, evacuating cylinders and using RPV valves.

Lumberjacks Descend on Nicollet Island Attendees were welcomed to Convention with a First Timers’ Reception and President’s Welcome Reception at the Nicollet Island Pavilion. Members were encouraged to wear flannel shirts and jeans to the Lumberjack Themed events, which included dinner, drinks, live music and a lumberjack show.

All photos taken by Daiana Sanchez Summer 2019 • 87

HQ & PROGRAM NEWS

Contact Booth Program

The A-OX Team Discussed Lessons Learned in the Aftermath of an Enormous Fire Tom Elliott and his team received a standing ovation for their gripping tale of the enormous fire at A-OX last May. The fire occurred just after 5:00 p.m. and resulted in losses of $2.236 million, including $1.2 million in building damage and the loss of thousands of cylinders. Eight fellow GAWDA members provided an immediate response to the crisis at A-OX, offering assistance in the form of equipment, inventory and cylinders. “Because of the people in this room, we were operational by 2:00 p.m. the next day,” Elliott said. He continued, “It’s unfortunate that this happened to us. But if I can prevent something similar from happening to anybody else by giving this presentation, then I am happy to talk about this experience.” Some of the other takeaways: Elliott noted that your local fire marshal is an invaluable resource; ask if they will come on site and conduct fire safety training. Often, they are willing to conduct controlled fires to train both their firefighters and your employees in the safe response to a gas fire. Conduct safety training often enough that it becomes muscle memory for your employees. In a crisis, they will react automatically. Because the cylinders were tagged, A-OX had a record of losses for insurance purposes. This fire occurred as the result of static electricity buildup. The Propane Council offers a FREE training manual on the hazards of static electricity that you can access at propane.com. After Elliott’s speech, his team fielded dozens of questions from GAWDA members in a Q&A session. To see the PowerPoint Presentation and video from Tom’s presentation, as well as many others from the 2019 SMC, visit the Member’s-Only section of GAWDA.org.

88 • Summer 2019

HQ & PROGRAM NEWS

Traci and Lori Tapani Shared Solutions to the Skilled Labor Shortage Traci and Lori Tapani shared approaches that have worked for Wyoming Machine in attracting great employees in a tight labor market. Some of their ideas included the following: Establish partnerships with technical and community colleges, including promoting events for younger students, such as Gold Collar Career Days and Women in Tech events. Offer tours of your facility so the community can gain an understanding of what you do. Expand your view of who’s right for a manufacturing job. Be innovative: if you don’t have applicants with the specific hard skills, look for transferable soft skills. Provide employees with the necessary training and an opportunity for advancement.

90 • Summer 2019

Craig MacFarlane Inspired the Crowd as He Spoke of Finding a Purpose and Reaching His Goals From carrying an Olympic torch to meeting the Pope, living with Mickey Mantle, being a good friend of former President George H.W. Bush and winning more than 100 gold medals in a variety of sports, Craig MacFarlane has led an extraordinary life. Blinded in a backyard accident at the age of two, MacFarlane was sent 500 miles away from home to attend a school for the blind and used his desire to return home to drive him to achieve incredible success. Some of his advice included: Never let your challenges be bigger than you. Subscribe to a philosophy of being consistently good and you will have occasional flashes of greatness.

Happiness is a choice. We’re not entitled, it doesn’t just come to you and if you’re looking for a shortcut, it doesn’t exist. You don’t have to be pushed when you are working for something you really believe in. Fight procrastination; people who say they work better under pressure typically produce inferior work. Most highly successful people are willing to fail more often than other people are willing to try. Ask yourself, does everything you do make the people around you better? Give people a reason why they should look forward to coming to work for you.

Visit GAWDAMEDIA.COM to view all of the SMC photo galleries.

13 Scholarships Awarded The GAWDA Foundation announced it is awarding 13 college scholarships of $2,000 each this year to students around the country who plan to further their studies in fields applicable to the welding and gases industry. The GAWDA Foundation scholarship is designed to help educate, attract and keep quality individuals in the industry. Since the program began in 2013, 83 scholarships have been presented for a total of $166,000. A total of 379 applications for the awards have been received. Members donated $14,000 towards the scholarship program this year, and GAWDA is matching that amount, making the total contributed $28,000. The 2019 winners, and the colleges they plan to attend, are: 1. Nate Ackerman, University of Akron

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2. John Austin Brewer, Mississippi State University

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5. Andres Marquez, Northeastern University 6. Justin McGee, Saint Joseph’s University 7. Eoin O’Malley, University of Tennessee

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8. Erica Pokorney, University of Nebraska at Omaha 9. Katie Rimes, Indian River State College 10. Fariha Khalid Sheikh, Rowan College 11. Geoffrey Sonenson, Fort Hays State University 12. Madeleine Stenzel, University of Minnesota-Rochester 13. Joshua Wilfong, Penn State Behrend

The GAWDA members who contributed to this year’s scholarship fund are: Airweld, Arc3 Gases, ATLAS Welding Supply, Carbide Industries, Central McGowan Inc., Chesterfield Special Cylinders, Cramer Decker Industries, CryoVation & TheCryoShop.com, Dale Oxygen, Inc., Delille Oxygen Co., Exocor Filler Metals, Four Corners Welding & Gas Supply, Holston Gases, Inweld Corporation, Keen Compressed Gas, Minneapolis Oxygen Company, Mississippi Welders Supply, Norco, O.E. Meyer Company, Otto Arc Systems, Red Ball Oxygen, The Horton Group, TOMCO2 Systems, T.W. Smith Corp, and Volunteer Welding Supply.

406-255-9500 | www.cu.net/industrial Summer 2019 • 91

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

ITR Third-Quarter Outlook: Inflection Points by alan beaulieu

EXECUTIVE SUMMARY The table at right lists 12 leading indicators to the U.S. economy, specifically U.S. Total Industrial Production. U.S. Total Industrial Production and GDP move through the same business cycles at the same time; the former is simply more current at any given time. These 12 indicators comprise part of the system of leading indicators used at ITR Economics to see into the future for our keynote presentations and consulting programs with individual companies. We are beginning to see instances of potential rise in some of the indicators, while others are maintaining declining trends. This is normal as the economy goes through the downside of the business cycle and approaches within two to four quarters of the eventual low. There will be false lows, making it necessary to run calculations regarding the likelihood of a low “holding.” By running the trend reversal analysis, potential lows will be replaced by probable lows when they meet a statistical threshold, and then the lows become full-fledged cyclical reversals after meeting a higher statistical standard. Expect to see further on-again and offagain upside signals in the next one to two quarters. The U.S. ISM Purchasing Managers Index and the JPMorgan Global PMI are recent examples of lows that did not “hold.” Stay tuned, because we will very likely see more and more probable lows as we approach the end of 2019. Their occurrence should reinforce your conviction to employ Phase B or Phase A Management Objectives™ in 2020 while others are still wondering if the weakness in the economy is going to extend deep into 2020.

U.S. ECONOMIC LEADING INDICATORS Trend

Comments

Lead time (months)

ITR Retail Sales Leading Indicator™

Rise

1/12 and raw data rising

ITR Financial Leading Indicator™

Rise

Trend weakened in the last two months

Purchasing Managers Index (PMI)

Decline

Tentative reversal did not hold

JPMorgan Global PMI

Decline

Tentative reversal did not hold

Indicator

Potentially approaching a This content is exclusiveDecline to GAWDA Members. near-term low OECD Leading Indicator

For more information on GAWDA G7 Leading Indicator Decline Perhaps curving into a low and association membership, contact: ITR Leading Rise Potential low; < 50% probability Indicator™ Stephen Hill, GAWDA Membership Services Manager Wilshire Total x 220 / shill@gawda.org 954-367-7728 Rise Too soon to call a “probable” low

92 • Summer 2019

Market Cap

10 10 8 8

U.S. Leading Indicator

Decline

No sign of a low

Single-Family Housing Starts

Decline

Further descent probable

Total Industry Capacity Utilization

Decline

No statistically significant upside signal

U.S. Exports – World

Decline

Further descent probable

NON-U.S. LEADING INDICATORS The next table (top right of next page) provides some of the non-U.S. leading indicators used by ITR Economics. There are noticeably more “Rise” trend designations. The potential lows associated with China, Japan, and Australia PMI trends are “potential” at best. Data over the last two-to-four months shows weakness that belies the statistically correct “Rise” designation. We won’t be surprised if in a couple of months those indicators revert

ITR FOR GAWDA to “Decline.” The Eurozone Composite PMI is in a more stable situation, and its low is probably going to hold. This makes sense, given that Europe began the business cycle weakness trend prior to the U.S. However, our concern is that it may not be possible for Europe to sustain any upside cyclical momentum given the weakness in the U.S., Brexit, and trade issues with the U.S.

LONG-TERM OUTLOOK The chart below illustrates the long-term trend in Bond Prices (scaled on the right) and the S&P 500 (3MMA values in both cases to reduce some of the monthly noise). This is a great chart. It shows that what we know based on what we, as individuals, have experienced is not necessarily what the future holds for us. Before delving into the chart, a reminder that Bond Prices move inversely to interest rates. Bond Prices go down when interest rates go up. The reverse is true as well. It was safe to assume the following for the period from the early 1980s until recently: 1. Stocks and bonds rose in price through the period. 2. Bonds became a safe-haven for times when the stock market declined (indeed, bonds experienced rapid acceleration during such times). The reason the long-term synchronization of rise occurred (point 1) was that interest rates were generally declining through the period. This was in large part because of globalization and the forces of deflation unleashed by that landmark trend. The reason bonds became a favored offset to stock prices was that times of economic stress (resulting in a decline in the S&P 500) created an environment where the marketplace drove interest rates down. Note that this relationship does not apply to the earlier period shown on the chart. Post-WWII through the early 1980s, the longterm price trend for bonds was protracted decline because of the long-term rising trend in interest rates. That trend became so ingrained in the psychology of the times that by the time of the early 1980s, when ITR

NON-U.S. LEADING INDICATORS Indicator

Trend

Comments

Eurozone Composite PMI

Rise

1/12 and raw data rising

China PMI

Rise

Tenuous 1Q19 low; trend is weakening

Japan PMI

Rise

Tenuous 1Q19 low; trend is weakening

Decline

Tentative reversal did not hold

India PMI

Rise

Tenuous low; trend is weakening

Brazil PMI

Rise

1/12 up two months but not yet statistically significant

Australia PMI

Rise

Tenuous March ‘19 low; trend is weakening

UK PMI

Economics was advising to place more of Members. a focus on bonds for some rapid capital This content is exclusive topeopleGAWDA

appreciation, few heeded that advice. Our ability to foresee the coming period of interest rate decline is the reason we could make that forecast for our clients. Now, look at the early 1930s until about the beginning of World War II. You will see that while Bond Prices performed very well during the last Great Depression, Stock Prices did not. Declining interest rates fed the bond appreciation trend; struggling profits created the lackluster decade for the stock market. This chart holds the key to what to expect in the 2020s and how that expectation must radically change for the 2030s. Look at the “crosshairs” drawn on the chart. They are placed there because we are at another major inflection point regarding the underlying trend for interest rates. It should change your approach to protecting your wealth or maximizing your capital appreciation.

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

Corporate AAA Bond Yields Inverted for Prices to U.S. Stock Prices Index 3MMA S&P 500

Bonds

2879.9

3000

3.5% 5

10 S&P 500 Bond Yield (inverted) 1 '1930

'1940

'1950

'1960

'1970

'1980

'1990

'2000

'2010

'2020

'2030

15 '2040

Sources: FRB, Wall Street Journal

Summer 2019 • 93

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

CORE ECONOMY AT A GLANCE 12/12

12MMT/A CURRENT 2019 2020 2021

HIGHLIGHTS

U.S. INDUSTRIAL PRODUCTION

3.3

0.5

0.7

2.0

Production will peak imminently before declining into early next year.

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS

4.2

-0.6

4.4

4.1

New Orders will decline in the second half of this year and in the early part of next year.

U.S. PRIVATE SECTOR EMPLOYMENT

1.9

1.6

1.3

2.0

Employment will rise at a slowing pace through the remainder of this year and much of 2020.

U.S. TOTAL RETAIL SALES

4.0

2.4

3.1

3.0

Retail Sales will rise through at least 2021, but the pace of growth will slow into mid-2020.

U.S. WHOLESALE TRADE OF DURABLE GOODS

5.5

2.1

3.1

6.4

The pace of growth for Wholesale Trade will slow through the remainder of this year and the first half of next year.

U.S. WHOLESALE TRADE OF NONDURABLE GOODS

5.4

-0.2

2.2

5.9

Wholesale Trade will plateau near the current level into mid-2020.

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

This content is exclusive to GAWDA Members.

LEADING INDICATORS For more information on GAWDA and associationITR membership, contact: Retail Sales Leading Indicator™ ITR RETAIL SALES LEADING INDICATOR™ Stephen Hill, GAWDA Membership Services Manager Rates-of-Change PACE OF GROWTH FOR RETAIL Leading Indicator Retail Sales 15.0 15 954-367-7728 x 220 / shill@gawda.org SALES TO SLOW INTO MID-2020 The ITR Retail Sales Leading Indicator™ is rising from an early-2019 low. This indicator typically leads U.S. Retail Sales by about a year and a half, which indicates that Retail Sales could transition to business cycle rise around the middle of 2020. In the meantime, plan for Retail Sales to grow at a slowing rate into 2020.

10.0 4.0

5.0

1.5

0.0

-5.0

-5 US Total Retail Sales - 12/12

-10.0 -15.0

94 • Summer 2019

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Leading Indicator - Monthly

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ITR FOR GAWDA U.S. TOTAL INDUSTRY CAPACITY UTILIZATION RATE CYCLICAL DECLINE LIKELY INTO AT LEAST LATE THIS YEAR The U.S. Total Industry Capacity Utilization Rate 1/12 ticked up in May. This rise of one month does not yet have the statistical significance needed to identify the start of a prolonged rising trend for this indicator. The Utilization Rate is signaling that cyclical decline will occur in U.S. Industrial Production into at least late this year. If the rise in the Utilization Rate 1/12 persists, it would be a positive sign for Production in early 2020.

U.S. Total Industry Capacity Utilization Rate Rates-of-Change

Production

Rate

15.0

10.0

5.0

3.3 3.0

0.0 -5.0

0 -7

US Industrial Production - 12/12

-10.0 -15.0

US Total Capacity Utilization Rate - 1/12

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This content is exclusive to GAWDA Members. For more information on GAWDA U.S. Conference Board Leading Indicator U.S. CONFERENCE BOARD and association membership, contact: LEADING INDICATOR Stephen Hill, GAWDA MembershipRates-of-Change Services Manager Leading Indicator Production U.S. INDUSTRIAL 15.0 30 PRODUCTION 12/12 TO 954-367-7728 x 220 / shill@gawda.org DECLINE THROUGH 2019

The U.S. Conference Board Leading Indicator 1/12 declined in April. Based on its typical lead time of about eight months, this indicator is signaling that the U.S. Industrial Production 12/12 will decline through at least the end of 2019.

10.0

5.0

3.3 2.2

0.0 -5.0

0 -10

US Industrial Production - 12/12

-10.0 -15.0

-20

US Leading Indicator - 1/12

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Summer 2019 â&#x20AC;¢ 95

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. ISM PMI (PURCHASING MANAGERS INDEX) PMI INDICATES CYCLICAL DECLINE IN INDUSTRIAL PRODUCTION LIKELY INTO MID2020 The U.S. ISM PMI (Purchasing Managers Index) 1/12 declined further in June. Given its typical lead time of about a year, this indicator signals that cyclical decline in U.S. Industrial Production will likely persist into at least the middle of next year.

U.S. ISM PMI (Purchasing Managers Index) Rates-of-Change

Production

Index

15.0

10.0

5.0

3.3

0.0

0 -13.8

-5.0

-25

US Industrial Production - 12/12

-10.0 -15.0

-50

US Purchasing Managers Index - 1/12

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GAWDA EXECUTIVE SUMMARY/DASHBOARD:

This content isGAWDA-SPECIFIC exclusiveINDICATORS to GAWDA Members.

CURRENT GROWTH

INDICATORS

HIGHLIGHTS RATE (12/12) For more information on GAWDA Annual Production will dip lower during the second half of the year association U.S. INDUSTRIAL PRODUCTION INDEX and and in early 2020. Ensure youmembership, have a contingency plan incontact: place in 3.3% case decline lasts longer than anticipated. Stephen Hill, GAWDA Membership Services Manager Prices of commodities such as steel, copper, and oil will likely be U.S. PROCESSED GOODS FOR relatively low during thisxbusiness but labor costs 2.7% INTERMEDIATE DEMAND PRODUCER 954-367-7728 220cycle/downturn, shill@gawda.org PRICE INDEX will be relatively high.

PHASE

C C

U.S. CRUDE OIL FUTURES PRICES

We expect Prices to trend in the mid-$50s to low $60s during the next three quarters. Geopolitical instability in the Middle East presents an upside risk.

0.1%

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS WITHOUT AIRCRAFT

Decline in Capacity Utilization indicates further business cycle decline in New Orders is likely in at least the coming quarters.

4.2%

U.S. ELECTRICAL EQUIPMENT NEW ORDERS

Falling activity in the new housing construction market will likely limit demand for electrical equipment related to residential power.

4.2%

U.S. FABRICATED METAL PRODUCTS NEW ORDERS

Annual New Orders will likely decline by the end of the year as fading business optimism manifests in decreased capital expenditures.

4.8%

U.S. DURABLE GOODS NEW ORDERS WITHOUT AIRCRAFT

A strong U.S. dollar could weigh on durable good exports. Business cycle decline in New Orders will likely persist in at least the coming quarters.

5.7%

ITR LEADING INDICATOR (MONTHLY)

The Indicator has formed a potential low; however, further decline is probable. This signals that business cycle decline will persist during the second half of the year.

-0.1 (Monthly)

96 • Summer 2019

ITR FOR GAWDA All the GAWDA industry indicators are in business cycle decline (Phase C, Slowing Growth, or Phase D, Recession). The current macroeconomic business cycle declining trend is expected to last into the first half of 2020; we are closely monitoring our system of leading indicators to confirm this timing. Cash flow may become constrained as business cycle decline progresses; increase criteria for expenditures and focus on protecting your profit margin.

RECOVERY

Companies more closely tied to the automotive sector may feel business cycle decline more acutely whereas companies tied to other sectors, such as defense, may feel less of a strain. Lead with confidence as decline will be temporary. Remember to look forward to the next period of rise starting around mid-2020 and utilize the downturn to answer the question: what can you do to propel your business forward during the next rising trend?

ACCELERATING GROWTH

U.S. INDUSTRIAL PRODUCTION

C - SLOWER GROWTH 2019 0.5% 109.0* 2020 0.7% 109.8* 2021 2.0% 112.0* *Index based to 2012 = 100 HIGHLIGHTS: ◼◼ Production was up 3.3% from the year-ago level

ACCELERATING GROWTH

SLOWER GROWTH

RECESSION

SLOWER GROWTH

U.S. Industrial Production Index Data Trend

Index 120

12MMA Forecast 12MMA 3MMA

Index 120

109.5

110

This content is exclusive to GAWDA Members.

◼◼

Activity will peak in the near term

◼◼

Slowing growth in the consumer sector is hindering growth in the industrial sector

100

For more information on GAWDA and association membership, contact: 90 Stephen Hill, GAWDA Membership Services Manager '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 U.S. Total Industrial Production during the 12 months through May 954-367-7728 x 220 / shill@gawda.org

was up 3.3% from a year ago. Industrial activity will peak in the near term. Production will then decline mildly late this year and early next year before subsequently rising through much of 2020 and 2021. Industrial activity is slowing in its pace of growth, in sync with slowing growth in the consumer sector. U.S. Total Retail Sales will rise at a diminishing rate through the remainder of this year and into next year. Retail Sales are unlikely to enter a recession during this business cycle, which will limit the severity of the recession expected in U.S. Industrial Production. However, firms should not plan for the consumer sector to present the same level of growth opportunities in the next few quarters that it did in the last few.

U.S. Industrial Production Index Rate-of-Change

100

15 10

3.3

-5

12/12 Forecast Range

-10 -15

RECESSION

-10

12/12 3/12 '12

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Management Note: Use the forecasts in the GAWDA industry analysis report to determine if your markets are likely headed for a recession during this business cycle. If so, look for areas to cut costs. Summer 2019 • 97

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

NDF NOs: U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS (EXCLUDING AIRCRAFT) C - SLOWER GROWTH 2019

-0.6% $826.0 billion

2020

4.4%

$862.3 billion

2021

4.1%

$897.7 billion

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

Bils of $ 1200

300 12MMT Forecast 12MMT 3MMT

250

1000

HIGHLIGHTS: ◼◼

New Orders were up 4.2% from one year ago

◼◼

828.2 200

800

150

600

New Orders spending will peak imminently before declining into early next year

◼◼

Exports are unlikely to present opportunities for growth in the near term

100

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400

This content is exclusive to GAWDA Members.

U.S. Nondefense Capital Goods New Orders during the 12 months through May totaled $828.2 billion, up 4.2% from the year-ago level. New Orders spending will peak imminently before declining through the remainder of 2019 and into early 2020. The New Orders 12MMT will subsequently rise through the remainder of 2020 and through at least 2021. U.S. Exports during the three months through April (latest data available) were down 0.5% from the same period one year ago. As growth slows in the global economy, demand for U.S. goods in foreign markets will likely wane, pushing down U.S. Exports. This trend will likely be exacerbated by general rise in the strength of the U.S. dollar. Do not budget for Exports to present significant growth opportunities in

U.S. Nondefense Capital Goods

For more information on GAWDA New Orders (excluding aircraft) Rate-of-Change and association membership, contact: 20 20 Stephen Hill, GAWDA Membership Services Manager 954-367-7728 x 220 / shill@gawda.org 4.2 10 10

the near term.

98 • Summer 2019

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-20 -30

12/12 3/12 '12

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Management Note: Maintain vigilance regarding unnecessary expenses if you are dependent upon this sector as a market driver. The second half of 2020 will see improvement, but you must protect profits between now and the middle of next year.

ITR FOR GAWDA

OIL PRICES: U.S. OIL FUTURES COMMODITY PRICES C - SLOWER GROWTH Sep 2019

$55.32 per barrel

Dec 2019

$57.49 per barrel

Mar 2020

$60.08 per barrel

June 2020

$64.84 per barrel

U.S. Oil Futures Commodity Prices Data Trend $/bbl. 120

3MMA Forecast 3MMA Actual

100

The Prices 3MMA was down 15.5% from a year ago

◼◼

The percentage rise in Prices

100

HIGHLIGHTS: ◼◼

$/bbl. 120

59.09

from May to June was the second highest on record ◼◼

OPEC plans to extend production

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This content is exclusive to GAWDA Members.

cuts into 2020

U.S. Crude Oil Futures Prices

U.S. Oil Futures Commodity Prices

For more informationRate-of-Change on GAWDA June averaged $59.09 per barrel, and association membership, contact: down 15.5% from the same period 80 one year ago. Prices rose 11.9% from Stephen Hill, GAWDA12/12 Membership Services Manager Forecast Range the last day of May to the last day 954-367-772812/12 x 220 / shill@gawda.org of June. This is the second-highest during the three months through

May-to-June increase on record.

3/12

Prices will be near the current level through the remainder of this year. OPEC and its allies, including

0.1

Russia, will be extending production cuts by another nine months. This will likely result in Prices being

-40

higher than they would otherwise be during that time. However, slowing growth in the global economy will

-80

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also be limiting the demand for oil. These pressures will somewhat counteract each other, and Prices are therefore unlikely to rise much above their current level.

Management Note: Prices will not rise much above the current level during the remainder of this year. Evaluate your purchasing needs accordingly.

Summer 2019 • 99

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. Steel Scrap Futures Commodity Prices Data Trend

STEEL PRICES: U.S. STEEL SCRAP PRODUCER PRICE INDEX C - SLOWER GROWTH Jun 2019 467.21* Sep 2019 429.94* Dec 2019 422.04* Mar 2019 442.20* * Index based to 1982 = 100.

$/GT 900

3MMA Forecast 3MMA Actual

700

HIGHLIGHTS: ◼◼ The Prices 3MMA was down 15.4% from a year ago

500

◼◼

Slowing growth in the global industrial economy is driving down Prices

300

◼◼

Prices will fall through the remainder of 2019

100

700

465.97

500

300

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100

This content is exclusive to GAWDA Members.

U.S. Iron and Steel Scrap Producer Prices during the three months through May were down 15.4% from the same period one year ago. Prices will fall through the remainder of this year before rising early next year. Slowing growth in the global industrial economy is reducing demand for metals, which is contributing to driving down Steel Prices. We expect Prices to fall further throughout this year as World Industrial Production slows further in its pace of growth and U.S. Industrial Production declines. Consider delaying steel purchases until later this year, where possible, to take advantage of this declining trend.

U.S. Steel Scrap Futures Commodity Prices

For more informationRate-of-Change on GAWDA and association membership, contact: 100 Stephen Hill, GAWDA Membership Services Manager 100 12/12 Forecast Range 954-367-7728 x 220 / shill@gawda.org 12/12 50

3/12 3.6

-50

-100

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Management Note: If you use steel as an input, take caution before raising your own prices. Ensure that your prices are competitive within your industry.

100 • Summer 2019

ITR FOR GAWDA

U.S. Fabricated Metal Products New Orders Data Trend

U.S. FABRICATED METAL PRODUCTS NEW ORDERS C - SLOWER GROWTH 2019 -0.3% $401.7 billion 2020 4.4% $419.4 billion $439.5 billion 2021 4.8% HIGHLIGHTS: ◼◼ Annual New Orders are flattening out and will likely decline late in the year ◼◼

◼◼

Reduced capital expenditures will likely hinder New Orders The next business cycle rising trend is expected to start around mid-2020

Bils of $ 150

Bils of $ 600

12MMT Forecast 12MMT 3MMT

125

500 402.6

100

400

300

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This content is exclusive to GAWDA Members.

Annual U.S. Fabricated Metal Products New Orders in May totaled $402.6 billion, 4.8% higher than one year prior. New Orders flattened out in recent months and are expected to decline late in the year and in early 2020. New Orders will then rise through the remainder of 2020 and throughout 2021. The U.S. Business Confidence Index in April edged down below 100 for the first time since the New Orders recession of 2015-16 and was 1.1% below the year-ago level. Waning momentum in Business Confidence may inhibit capital expenditures and New Orders in at least the coming quarters. This likelihood is also reflected in U.S. Small Business Capital Expenditure Plans, which were down 5.7% in the second quarter compared to the same quarter last year. Be prepared for tougher market conditions during approximately the next four quarters.

U.S. Fabricated Metal Products For more information on GAWDA New Orders Rate-of-Change and association membership, contact: 30 Stephen Hill, GAWDA Membership Services Manager 20 954-367-7728 x 220 / shill@gawda.org 10

20 10

4.8

-10

12/12 Forecast Range 12/12

-20 -30

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Management Note: Identify your competitive advantages and make sure they are communicated to your clients. Building your brand could give you more flexibility to protect your profit margins.

Summer 2019 • 101

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. Food Production Index Data Trend

FOODX: U.S. FOOD PRODUCTION INDEX C - SLOWER GROWTH HIGHLIGHTS: ◼◼

120

Production activity will generally plateau in at least the coming quarters

◼◼

Index 120

12MMA

Production was up 1.7% from one year ago

◼◼

Index

109.5

3MMA

115

110

105

100

The Fruit and Vegetable Preserving and Specialty Food Manufacturing Production component is in a recession U.S. Food Production during the

12 months through May was up

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This content is exclusive to GAWDA Members.

1.7% on a year-over-year basis. Our analysis suggests that the Production

U.S. Food Production Index

For more informationRate-of-Change on GAWDA least the near term. and association membership, contact: U.S. Animal Slaughtering and 6 6 Processing (Including Poultry) Hill, GAWDA Membership Services Manager Stephen Production, which accounts for 4 4 954-367-7728 x 220 / shill@gawda.org approximately 21.8% of Food

12MMA will generally plateau in at

Production, is growing at a slowing pace, up 1.8% from the year-ago level. Our analysis indicates that cyclical decline will likely persist for at least the next one to two quarters. Meanwhile, U.S. Fruit and Vegetable Preserving and Specialty Food Manufacturing Production, which accounts for approximately 11.4% of Food Production, is an area

1.7

-2

-4 -6

12/12

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3/12

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of weakness, down 4.3% from one year ago. Opportunities may be present in U.S. Snack Food Production,

Management Note:

which is up 9.6% year over year and

Exercise caution before expanding capacity; the industry utilization rate is below the five-

accelerating in its ascent.

year average, and Production activity is likely to plateau in at least the coming quarters.

102 • Summer 2019

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

12MMT/A:

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

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

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

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

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

This content is exclusive to GAWDA Members.

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

RECOVERY

ACCELERATING GROWTH

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

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

This is the first positive phase of the business cycle.

This is the second positive phase of the business cycle.

SLOWER GROWTH

RECESSION

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

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

This is the first negative phase of the business cycle.

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

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

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

SPECGAS, INC. (2019)

YOUNG WELDING SUPPLY (2019)

PG 86 Vincent Circle Warminster, PA 18974 215-443-2600 FAX: 215-443-2665 www.specgasinc.com ALFRED BOEHM, President alfredboehm@specgasinc.com MARCO BOEHM, Operations Manager marcoboehm@specgasinc.com RAY IMHOF, Plant Manager ray@specgasinc.com

EL – GA – GP – GS – LX – MG – PG – RW

SpecGas, Inc. manufactures stable highpressure gas mixtures and high-purity gases.

104 • Summer 2019

101 East 1st Street Sheffield, AL 35660-3029 256-383-5429 www.youngwelding.com ROBBY YOUNG, Vice President robby@youngwelding.com Young Welding Supply carries all major brands of welding and cutting equipment. In addition, they offer oxy-acetylene cutting outfits, gloves, grinding and cutting wheels, fire extinguishers and many other safety and industrial supplies. They also supply, install and service beverage CO2 systems.

TORCO SUPPLY COMPANY (2019) EL – GA – GS – GT - MG 800 Interchange Rd Lehighton, PA 18235-9286 610-377-9733 FAX: 610-377-9734 www.torcosupply.com TIM ROBB, Owner tim@torcosupply.com PAUL GIORGI, Sales Manager paul@torcosupply.com Torco Supply Company offers a complete line of welding and safety equipment, supplies and gases. They also rent and sell equipment and have machining capabilities INSURANCE PROGRAM that allow them to customize any product to meet customer requirements.

BIG OATS INDUSTRIAL GAS (2019)

PURE AIR LTD. (2019)

EL – GA – GS – GT – MG – PG 38700 Pelton Road Willoughby, OH 44094-7745 440-942-1800 FAX: 440-942-1818 www.big-oats.com/industrial-gases.aspx STEVE JOHNSON, Compliance Officer sjohnson@big-oats.com JOHN CESSNA, General Manager jcessna@big-oats.com DANA RYMARCZ, Assistant Manager pia@big-oats.com

EL-GS-GT-LX-MG 1706 Landry Street Opelousas, LA 70570 337-942-3785 MICHAEL CRAMBES, Vice President SE US & Caribbean michael.crambes@pureairltd.com Pure Air offers a complete line of welding equipment and supplies. They also supply welding and medical gases.

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APPALACHIAN INDUSTRIAL GAS (2019)

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

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KOOL GAS, LLC (2019) EL-GA-GS-GT-MG-PG-PS-RW-GP 720 Murray Ave. Wynne, AR 72396-4088 870-208-8586 FAX: 870-208-8747 www.koolgas.com TIMOTHY MAKOOL, President koolgas@sbsglobal.net JOSH GOLDEN, General Manager KATHY DAVIS, Office Manager koolgasoffice@gmail.com

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SUPPLIER MEMBERS CAIMAN GLOVES/PRIMAX (2019)

MILLER CARBONIC, INC. (2019) 1691 Landmark Rd Aurora, IL 60506-1146 888-562-0299 FAX: 773-624-2580 www.milcarb.com SCOTT ROSENBAUM, Vice President Operations scott@milcarb.com TAYLOR TURNER, Product Engineer taylor@milcarb.com

16233 Heron Ave. La Mirada, CA 90638-5518 714-523-2532 FAX: 714-523-2542 www.caimangloves.com PAUL SUNG paul@caimangloves.com Innovative and functional designs of protective gloves and garments.

NATHAN MESSAGING (2019) 220 Water St., Suite 120 Brooklyn, NY 11201-1156 425-891-4925 www.nathanmessaging.com ADAM NATHAN, CEO EMAIL: adam@bartlettsystem.com Principal service sold to welding supply distributors: text message marketing.

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INDUSTRY NEWS Lincoln Electric’s NC3 Partnership Poised to Raise Welding Education Standards

Lincoln Electric is embarking on a multifaceted plan to raise welding education standards across the nation and beyond through a newly approved partnership with the National Coalition of Certification Centers (NC3). NC3 is a nonprofit network of education providers and corporations focused on bridging the gap between education and industry workforce needs. The new partnership with Lincoln Electric gives NC3 the authorization to administer Lincoln Electric’s Education Partnerships Schools (LEEPS) program and offer new certifications to provide community colleges, technical schools and other post-secondary trade schools with a complete suite of portable, stackable national welding certifications. As part of the agreement, NC3 will develop and issue the LEEPS program’s world-class industry certifications, ensur-

ing strong national standards for welding instructor training, classroom curriculum, competency labs, qualification exams and digital certification issuance. Lincoln Electric will ensure the certifications are in alignment with standards set by the American Welding Society. The plan also calls for establishing a series of national-standard Lincoln Electric training centers across the country as extensions of Lincoln Electric’s Welding Technology & Training Center located in Cleveland, Ohio. “We are excited to have this partnership with NC3,” said Jason Scales, Ph.D., business manager for Lincoln Electric’s education products and services. “This will provide us with an incredible platform to share Lincoln Electric’s more than 100 years’ worth of knowledge in welding training, research and instruction with these institutions and redefine what a quality welding education program should look like.” Certificates are among the fastest growing credential, providing workers with specialized and advanced training that demonstrates a greater understanding of the key attributes demanded by employers in specific industries. To date, NC3 has supported 110,000 students and awarded 180,000 certificates.

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INDUSTRY NEWS Left to Right: Larry Booth, Norco Industrial Products Manager; George Douzenis, Norco Eastern Zone VP; Scott Weaver, Norco Product and Automation Specialist; Scott Olson, Utah Sculptor; Aaron Weight, UBTech President and Tony Baumgardner, Norco Outside Sales Rep.

and quality supplies to help them develop the skilled labor force of the future. The UBTech welding program has a history of turning out students who claim top honors nationally as well as internationally with six students who attended the national Skills USA welding competition and another who placed fifth in the world, during a global competition in Abu Dhabi.

Norco, Miller and UBTech Team Up to Support Workforce Education

Norco partnered with Miller Electric to support Uintah Basin Technical College’s (UBTech) new welding technology building, a 13,570-square-foot, $4.5 million state-of-the-industry facility with scholarship funding, modern equipment

Maxey Promoted to Vice President and General Manager of AWG

AWG has named a new top executive. Mike Maxey, current vice president of sales for AWG’s central division, has been promoted to vice president and general manager with sales and opera-

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INDUSTRY NEWS Weiler Abrasives Wins People’s Choice Innovation Impact Award

tions oversight for AWG’s locations in Illinois, Indiana and southern Wisconsin. A 25-year veteran of the industry, Mike joined AWG in 2017. Under his leadership, AWG has continued to build its brand and develop new partnerships in the central division by providing premier customer care and innovative solutions to gas supply challenges.

Weiler Abrasives Recognized for ‘Leading a Warriors Charge’ Campaign

Weiler Abrasives received the People’s Choice Innovation Impact Award at the 2019 Industrial Supply Association Convention on April 8. The award, which honors manufacturers who bring innovative products or services to the industrial MROP channel, is in recognition of the “Leading a Warriors

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INDUSTRY NEWS Charge” campaign the company launched in May 2018. The campaign supports Workshops for Warriors, a nonprofit school providing machining and welding training to veterans, wounded warriors and transitioning service members with the mission to “Rebuild American Manufacturing One Veteran at a Time.” “We are excited to be recognized by our peers in our efforts to bring awareness about Workshops for Warriors,” said Nate Schmid, director of marketing – Americas, Weiler Abrasives. “It’s taken a lot of hard work to bring the campaign to life, but we are proud to be able to support our veterans as they train to have successful careers in the advanced manufacturing sector. We hope that other manufacturers and industrial distributors will follow in our footsteps.”

Cee Kay Supply Promotes Brad Dunn to Executive Vice President Cee Kay Supply announced the promotion of Brad Dunn to executive vice president. Dunn earned a B.S. from Rockhurst University and an MBA from the University of Denver and has 10 years of industry experience, having

previously served as Cee Kay Supply’s director of business development, focused on opportunities to provide technical expertise and distribution of gases and related products. “Brad is an extremely valuable asset to Cee Kay Supply and has demonstrated strong business skills and leadership Brad Dunn abilities,” said Cee Kay Supply President Ned Lane. In his new role, Dunn will continue to focus on new business opportunities and share in the management responsibilities of the organization.

IWDC Achieves Charity Goal and Sets New AllTime Sales Record Coming off a highly successful Sales & Purchasing Convention, IWDC set an all-time monthly record in May with $27 million in member spending. “Prior to last month, we had never broken through $26 million and are excited to raise the bar again,” said Frank

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INDUSTRY NEWS Kasnick, IWDC president and CEO. “This is a testament to the strength and resilience of the independents in our welding and gas industry and reflects the strong support from our vendor partners.” “We are thrilled to announce that our staff, member owners and vendor partners accomplished our goal to raise $50,000 for Workshops for Warriors during our May 2019 Sales & Purchasing Annual Convention,” reported Keith Werkley, IWDC director of sales and vendor management. “We would like to thank our members, vendors and employees for their generous donations to this worthy cause,” commented Jessica Keck, manager of vendor engagement. “We take great pride in our affiliation and look forward to supporting future campaigns.”

DeLille Oxygen Co. Leases Two eCOs Units for Onsite CO Production DeLille Oxygen Company has moved beyond tube trailer or cylinder supply of carbon monoxide (CO) and chosen Haldor Topsoe’s eCOs solution for cost-competitive onsite

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production of ultra-high-purity CO for a customer in the isotopes labeling industry. An eCOs is a fully automated and flexible onsite solution, delivering CO to the customer’s specifications and demand, based on pay-per-use. DeLille Oxygen Co. has opted for two eCOs units. One is located at their customer’s site for reliable and flexible over-the-fence delivery of CO. The other will deliver on-demand CO for the rest of DeLille’s customers from the company’s headquarters in Columbus, Ohio. “We are convinced that the eCOs solution will support us in delivering an even better customer experience,” said Josh Weinmann, DeLille’s president. “With this onsite unit, our customer will never have to worry about monitoring stock, ordering new supplies or dealing with logistics. The eCOs produces the volume and quality of gas needed, when it is needed. It can’t get simpler and more reliable than that.” The eCOs solution reduces carbon dioxide (CO2) to CO by electrolysis. The process emits only oxygen and can be powered by green electricity from wind turbines or solar panels. In this case, the production is completely carbon neutral. The eCOs technology opens up a whole new segment of green and

INDUSTRY NEWS sustainable chemicals from renewable carbon sources. It can be applied at industrial complexes in order to utilize CO2 as a feedstock to produce valuable chemicals and significantly reduce CO2 emissions to the atmosphere.

Greg Mayer Joins Independent Welding Distributors Cooperative

with Weldcraft, a division of ITW, as a regional sales manager and national sales manager. While employed at Weldcraft, he successfully negotiated bid proposals with Matheson, Airgas and major buying groups. Mayer then accepted a position at Jackson Welding in his hometown of Pittsburgh, Pennsylvania. In 2014, Greg was offered a sales position with ORS Nasco selling into the welding/industrial channels. Most recently, Mayer served as national sales manager for Direct Wire & Cable.

Greg Mayer has joined 106-8212 1/4 pg. 4C _3.375 x 4.375_Welding & Gases Today_Jan. 2017 the Independent Welding Distributors Oxygen Service Company Honored with ESOP Cooperative as northern regional sales Awards manager. In this role, he will be responsible for promoting IWDC’s value Oxygen Service Company was selected as Company of proposition to membership as well as the Year by the MN/Dakotas ESOP Chapter. This honor is driving profitable growth of its vendor awarded to companies that demonstrate a strong and ongoing partner brands and Weldmark brand. commitment to employee ownership by enthusiastic involvement Greg Mayer Mayer has a degree from Robert in the ESOP Association, communication with employees and Morris University and over 23 years of experience in the the communities they serve about the features and benefits of welding hard goods business. He spent 10 years with Jackson employee ownership, and creation and support of activities Products as a district sales manager covering Pennsylvania, Ohio, that advance ownership culture. West Virginia and western New York. He then spent six years “It is truly an honor to be recognized as Company of the

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INDUSTRY NEWS The five-person panel of judges at this year’s AACE competition noted that Oxygen Service put on a well-rounded, diverse series of events that hit on all cylinders, offering strong social, community, educational and advocacy components. Charity-focused activities included placing flags at a cemetery, gathering school supplies for children in need, collecting Toys for Tots, a community parade, and a clothing drive.

Oxygen Service Company Named ESOP Company of the Year

Year with so many other great ESOPs located in the Midwest,” said president and CEO Ryan Diekow. In May, Oxygen Service Company was also presented with a distinguished AACE Award in the category of “Series of Special Events Companies with 250 and fewer employees” from the ESOP Association during its kickoff of the 42nd Annual National Conference in Washington, D.C. The Annual Awards for Communications Excellence celebrates outstanding companies in the ESOP community. Every year, AACE Awards are presented to companies who excel at communicating with their own employee owners and their surrounding communities about the benefits and advantages of ESOPs. “The AACE award is a great recognition for all of the hard work that our ESOP Committee has done to promote employee ownership and to effectively communicate that message to our employee owners,” Diekow said.

Expanded Oxygen Cleaning Room at Ratermann Ratermann Manufacturing has expanded their oxygen cleaning facility. The upgraded space houses state-of-the-art cleaning machines, drying stations and black lighting tools. The quality-controlled room ensures all oxygen-compatible products are shipped out oxygen cleaned for oxygen service per CGA 4.1. “A l l o f o u r o x y g e n cleaning technicians are put through Ratermann’s Reliability Training, holding the company’s work to the highest standard for customer products and experience,” said George Ratermann, Ratermann Oxygen president. Cleaning Facility

See us at booth 714 114 • Summer 2019

INDUSTRY NEWS have multiple next-gen talents in the business, not only with ownership. Having Hayley and Chelsea drive our success for the next 30 years like Sandy and Joe have for the past 30 years is what a true family business is all about.”

Airweld Receives Messer Centurion Award

Hayley Gobrish, Butler Gas Products Company

Butler Gas Recruits Next-Gen Leaders Hayley Gobrish and Chelsea Smilak

Butler Gas Products Company (Pittsburgh, PA) has recruited two next-generation Butler Gas family members into vital roles within the 71-yearold organization. Hayley Gobrish leads compliance and Chelsea Smilak leads customer service. Hayley is the daughter of Vice President of Services Sandy Chelsea Smilak Gobrish (34 years with Butler Gas). Chelsea is the daughter of General Manager of Operations Joe Wilhelm (27 years with Butler Gas). “We are live in our ownership succession plan between the second and third generations,” shares third generation President and COO Abydee Butler Moore. “I love that we

Airweld was presented with the Messer Centurion Award at the Messer Distributor Group’s (MDG) annual meeting June 3 in Louisville, Kentucky. The award recognizes Airweld’s 102 years of commitment and dedication to the gases and welding supply industry. “I’ve been blessed to spend more than 48 years offering solutions and top service to our customer partners,” said Airweld CEO John Zak, Sr. “I love this business and the cherished friends I have made along the way.” J o h n ’s s o n and Airweld CFO, J o h n Z a k , J r. , said, “This award is significant because it entails so many people with

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Summer 2019 • 115

INDUSTRY NEWS so many relationships among customers and suppliers over a very long time period. What this means to me is that I had better keep it going!” Airweld President Eric Lundquist praised long-standing relationships with vendor partners. “Our success is predicated on our partners’ responsiveness to our needs and that of our customers,” he pointed out. Airweld Vice President and former GAWDA President Tom Biederman added, “In my 42 years with the organization, I have witnessed positive changes and tremendous growth. I am pleased that my son, Zach, has joined the organization and is carrying on the tradition.”

Indiana Oxygen Announces New Branch in Richmond, Indiana Indiana Oxygen Company announced the opening of a new Richmond, Indiana, branch. While Indiana Oxygen has been serving eastern Indiana for decades from its Muncie location, the new branch cements its commitment to the Richmond community. “We didn’t decide upon the Richmond market to simply continue fueling expansion,” said Indiana Oxygen CEO Walter Brant. “We came to Richmond because we felt that there was no one left in that market who shared a similar outlook on business. We have the capabilities to handle any size job, but we’re agile enough to care about every job.” The new branch is located at: 1 East Main St. Richmond, Indiana 47374 Phone: (765) 200-6322

Earlbeck Gases & Technologies Promotes Three Allison Earlbeck has been named the company’s COO. Allison is the third generation of Earlbeck and has been with the company for nine years. She most recently served in the position of director of operations and has worked in almost all aspects of the business. She is an AWS Certified Welding Inspector and completed the NAW Distribution Program at OSU’s Fisher College of Business. She has served on the IWDC PurityPlus Marketing Committee, the IWDC Young Professionals Committee and the GAWDA Young Professionals Committee. Joe Vincent has been named VP of Sales. Joe has served as sales manager and has been a key part of company growth during his career at Earlbeck. Joe has been with Earlbeck Gases & Technologies for 20 years. He is also an AWS Certified Welding Inspector, and Certified Welding Educator. 116 • Summer 2019

Andrew Hess has been named VP of Engineering & Cristiano. Andrew has served as an account manager and welding engineer and has been with Earlbeck Gases & Te c h n o l o g i e s for nine years. Andrew is an AWS Certified Welding Earlbeck Gases & Technologies leadership I n s p e c t o r, a n d team (L-R) Allison Earlbeck, COO, Andrew Hess, Certified Welding VP of Engineering and VP of Cristiano Branch, Educator. He also Jim Earlbeck, President/CEO, Joe Vincent, VP completed the of Sales. NAW Distribution Program at OSU’s Fisher College of Business. Andrew serves on the GAWDA Industry Partnering Committee.

The Harris Products Group Expands Specialty Gas Solutions To meet the high standards required for manufacturing specialty gas products, Harris has extensively invested in its Gainesville, Georgia, operation to provide new turnkey gas distribution solutions that include in-house engineering design, manufacturing, testing and fulfillment of a full spectrum of standard and customized products at exceptional speeds. To help distributors support spec gas customers, the Harris customer service team now provides application recommendations for the most appropriate spec gas regulator from among the thousands of potential configurations. Once approved by the distributor, the order is sent into production and shipped within 24 to 48 hours on most models. “The decision to expand our specialty gas group advances our growth strategy and enhances our ability to better serve our distributors,” said David Nangle, President of The Harris Products Group. “We bring together the best equipment, processes and personnel, which maximizes our value proposition to our customers.” As part of the expansion, Harris has invested in a new assembly line, a streamlined fulfillment process and a new cleanroom (class 7 according to ISO 14644-1:2002) for regulator assembly, helium leak detection, functional testing at nominal pressure and vacuum bag packaging. These investments are in addition to new solutions including manifolds, gas cabinets and beverage systems.

INDIVIDUAL

MANUFACTURERâ&#x20AC;&#x2122;S REPRESENTATIVE

SUPPLIER

DISTRIBUTOR

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

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

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

KNOWLEDGEABLE COMMUNICATIONS Quarterly Welding & Gases Today Subscription

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

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

M&A SCORECARD Lincoln Electric Acquires Baker Industries Lincoln Electric has announced the acquisition of Baker Industries, Inc. Baker is a privately held Detroit, Michigan-based provider of custom tooling, parts and fixtures primarily serving automotive and aerospace markets. Baker has extensive in-house design and manufacturing capabilities, including machining, fabricating, assembly and additive manufacturing. The Baker organization will complement Lincoln Electric’s automation portfolio and its new metal additive manufacturing service business that will launch in mid-2019. Leveraging Lincoln Electric’s core competencies in automation, software development and metallurgy, the new metal additive busi-

ness will manufacture large-scale printed metal parts, prototypes and tooling for industrial and aerospace customers. The Baker operation, along with a new Cleveland, Ohio-based additive manufacturing development center, will provide an additive manufacturing platform to help customers improve their lead times, designs and quality in their operations. “We are pleased to welcome Baker Industries to Lincoln Electric and to our automation portfolio’s new additive manufacturing platform,” said Christopher L. Mapes, chairman, president and chief executive officer. “Additive manufacturing is a key strategic growth area in automation, and Baker’s expertise and capabilities will assist in scaling our additive manufacturing services and expand our presence in attractive

aerospace and automotive end markets.” Lincoln Electric’s automation revenue is approximately $500 million in annualized sales with the addition of Baker Industries. Terms of the transaction were not disclosed.

Anova Incorporates the DataOnline, Wikon, WESROC and iTank Brands

Anova, a global provider of Industrial Internet of Things (IIoT) solutions to remotely monitor and manage industrial assets, has incorporated the DataOnline, Wikon, WESROC and iTank brands. The company now has offices in the U.S., Europe and Asia, with a growing network of over 350,000 cellular, satellite and LPWAN devices in over 65 countries around the globe.

Air Liquide Announces $12M Investment in U.S. Hydrogen Mobility Market

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Air Liquide has announced a $12 million equity investment in FirstElement Fuel, Inc. (“FEF”), a market leader in developing, owning and operating hydrogen refueling stations in California. This investment will help enable the ramp-up and deployment of hydrogen fueling infrastructure in California, including the further expansion of FEF’s “True Zero” branded retail hydrogen station network. California currently has the largest number of fuel cell electric vehicles (FCEVs) and the state’s initial retail hydrogen station network ranks as one of the largest in the world. This investment, combined with the long-term supply agreement Air Liquide recently announced with FEF, will help ensure robust and reliable fueling to accommodate the 40,000 FCEVs expected to be deployed in California by 2022. “With our investment and collaboration with FirstElement Fuel and the recent

M&A SCORECARD announcement of our new hydrogen production facility to be constructed in the western U.S., Air Liquide further commits as a leader in the energy transition and the development of hydrogen for mobility throughout the entire supply chain,” said Susan Ellerbusch, chairman of Air Liquide Hydrogen Energy U.S. “These investments build on existing collaborations with FEF, Toyota, Honda, Mitsui and others to help develop a robust and sustainable hydrogen fueling infrastructure in the U.S. and support the deployment of zero emission hydrogen Fuel Cell Electric Vehicles.”

Anova and ISA Join Forces

Anova has acquired Intelligent Sensing Anywhere (ISA), a remote telemetry company with nearly 30 years of expertise in LPG, oils, lubricants, natural gas and water. ISA is headquartered in Coimbra, Portugal, with additional offices in Brazil, the U.S. and Canada, and solutions deployed in more than 40 countries. “We cannot think of a better home for ISA,” said Diamantino Costa, chairman and CEO of ISA. “Anova is

dedicated to providing the best monitoring solutions, and we have been impressed with their professionalism, commitment and customer focus to-date and look forward to providing even better delivery and service to our customers.” ISA extends Anova’s range of monitoring solutions, as well as its ability to provide industry-leading service to Europe, North America, Latin America, Middle East, Africa and Asia Pacific markets where ISA has a significant presence. In addition, ISA’s premier engineering and software development teams will contribute to innovation in areas like reliability, product life, user experience and next-generation technologies. “ISA is a perfect complement to Anova, building on our vision to grow our presence in multiple geographies,” said Chet Reshamwala, CEO of Anova. “It is evident that ISA is built on great people with similar values, cultures and desires to exceed customer expectations by providing unparalleled service.” Along with ISA’s customer base, Anova now manages nearly 375,000 devices around the world.

Lincoln Electric Completes Purchase of the Controlling Stake in Askaynak Lincoln Electric Holdings, Inc. announced it has completed the purchase of the controlling stake of Kaynak Teknigi Sanayi ve Ticaret A.S. (“Askaynak”) to advance Lincoln Electric’s regional growth strategy in Europe, the Middle East and Africa. “We are pleased to welcome the Askaynak team into Lincoln Electric,” said Christopher L. Mapes, Chairman, President and Chief Executive Officer of Lincoln Electric. “Askaynak strengthens our position in the region and as one team; we will serve our customers with innovative solutions, superior service, and deliver operational excellence.” As previously disclosed, Askaynak is located in Turkey and is the country’s leading supplier and manufacturer of welding consumables, arc welding equipment, including plasma and oxy-fuel cutting equipment, and robotic welding systems. Askaynak generates approximately USD $70 million in annual revenue. Terms of the transaction were not disclosed.

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In Memoriam THEODORE A. KRUPNICKI Theodore (Ted) A. Krupnicki passed away on June 2, 2019. Ted was the patriarch of the Krupnicki family and Mahany Welding Supply. Krupnicki was born and raised on a farm in Wyoming County, New York. He served in World War II as a member of the U.S. Army, stationed in the Philippines. Upon his return, he moved to Rochester, New York, and took a job with Mahany Welding Supply. In 1959 he purchased the company. For 37 years Krupnicki was the owner and president of Mahany Welding Supply and worked there a total of 65 years. He loved the welding industry, particularly new technology. He was well-known and revered for his problem-solving skills, relishing opportunities to help make his customers more profitable. His warm nature, generosity and ability to tell a joke endeared him to all who knew him. Years after his retirement, customers continued to ask about him and comment on how much he was liked. His business philosophy of “we don’t have customers; we have friends who buy from us” is embedded in the culture of Mahany Welding Supply and a key component of the company’s continued success.

JOHN M. STROPKI, JR. Lincoln Electric mourns the loss of John M. Stropki, Jr., former chairman, president and chief executive officer of the company, who passed away on May 11, 2019, at the age of 68. “On behalf of the board of directors and the entire Lincoln Electric family worldwide, we extend our deepest condolences to John’s family at this difficult time,” stated Christopher L. Mapes, chairman, president and chief executive officer. “John was not only an icon at Lincoln Electric, but was one of the most respected leaders in our industry. His relentless passion for the company, its customers and the industry left an indelible mark that will continue to live on forever.” Stropki had a successful career at Lincoln Electric for 41 years and served as the company’s seventh CEO, from 2004 to 2012. He started at Lincoln Electric as an intern while attending college and rose through the sales organization to become executive vice president and president, North 120 • Summer 2019

America in 1996. He joined the board of directors in 1998 and was promoted to chairman, president and chief executive officer in 2004. During his tenure, he transformed operations, oversaw numerous acquisitions and product innovations, and expanded Lincoln Electric’s global footprint. Mapes noted that Stropki ultimately positioned Lincoln to be the clear leader in the industry while staying true to Lincoln Electric’s mission and values. Stropki earned a B.A. in industrial engineering from Purdue University and an MBA from Indiana University. He served on the boards of The Sherwin-Williams Company, Hyster-Yale Materials Handling, Inc. and Rexnord Corporation. He also dedicated his time and efforts to support numerous industry associations and non-profit organizations. He is survived by his wife of 45 years, Elizabeth (Liz); daughter, Suzanne Broda (Michael) of Charlotte, North Carolina; son, John Michael (Laura) of Hudson, Ohio; grandchildren Claire and Aubrey Broda and Lydia and James Stropki; sister Cathleen Spidalieri (Ben); brother Robert Stropki; and numerous nieces and nephews. “I am grateful to have had the opportunity to work with John and be his friend,” Mapes said. “I know I will honor him by continuing to lead and steward the company that he loved so much, and I hope you will also embrace his spirit, passion and excellence in all that you do.”

MICHAEL D. MAHONEY Michael D. Mahoney, 68, passed away on July 14, 2019, at his residence, surrounded by his loving family. Born in Troy, New York, he was a lifelong Waterford resident and the son of the late Joseph B. and Marie LeCuyer Mahoney. Mahoney was employed for 20 years at Noble Gas Solutions in Albany, and retired in 2009. He was a veteran of the U.S. Army and served as Grand Marshall of the 2019 Waterford Memorial Day Parade. Mahoney was a communicant of St. Mary of the Assumption Church in Waterford and member of the former Camps Bowling League, a former member of Knickerbocker Steamer Co. #1 and the Waterford Bocce League. He was a member of the Texas Hold’em group at the Waterford Senior Citizens. He was a sports enthusiast, was a New York Mets fan and loved horse racing. Survivors include his children Mikalia Vannucci (Tom), Felica Palmer (Todd) and Joseph Mahoney (Makensie Scorsone) and their mother Marilyn Piroli Mahoney, all of Mechanicville. He was the

In Memoriam proud grandfather of Leo and Dominic Vannucci, Carter, Wyatt, Ellie and Everett Palmer, all of Mechanicville. He is the brother of J. Bert Mahoney (Margie), Kathleen LaMarche (George) of Waterford, J. David Mahoney (Donna) of Loudonville, Sandra Brown (Steve) of Waterford and the late Daniel Mahoney. Also surviving is his sister-in-law Patricia Mahoney, his longtime companion Cate A. Benardo, his dear friend Sister Mary Clare Ciulla and numerous nieces and nephews.

JAMES VEITE James L. Veite passed away on August 12, 2019, after battling a lengthy illness. James was born in Youngstown, Ohio in 1941, where he attended South High School. He moved to North Ridgeville in 1975 and had been a resident of Avon since 1995. James was founder of Veite Cryogenic Equipment and Service. He was instrumental in the development and implementation of cryogenic pump equipment and services throughout the world. James was a longtime member of the North Ridgeville VFW. In his free time, James was a car enthusiast who enjoyed restoring historical vehicles, a private pilot, and a lover of life. He enjoyed spending time with his family in Lakeside, Marblehead, and Florida. James is survived by his children, Michael, James, Jr., and Dawn Merrill (Mike); his beloved grandchildren, Haley, Julia, and Travis; and, his longtime companion, Dawn Palmer. He is preceded in death by his parents, Harry and Angeline Veite (nee Guzzo) and siblings, Harry and Patricia Harris.

JIM HOFFMANN James Patrick Hoffmann, 68, Ponte Vedra, Florida passed away on August 18 2019. Born in Lancaster, Pennsylvania on March 20, 1951, to Kathern Curry Tabler Hoffmann and Norman David Hoffmann, both deceased. Jim leaves behind his loving wife of 45 years, Sherrell, brother Michael (Sharon) Hoffmann (Atlantic Beach), step father in law, Lee Overstreet (Jacksonville), Aunt Pat Tabler (Garner, North Carolina), Aunt Elisabeth Bridgers (Wernersville, Pennsylvania), prayer warrior friend, Joyce Westfall, Houston, Texas, and many cousins, nephews and nieces.

After graduating from Fletcher In Neptune Beach, in 1969, and following a three year stint in the U.S. Army, he married the love of his life, Sherrell Lynn Smith, (shout out to the Terry Parker class of 1971!) in 1973 and then started a 31 year career with UCC-Linde/Praxair in the Industrial Gases industry which involved nine relocations around the country and meeting and making life-long friends from all over the country. Following that retirement, Jim joined Gas Innovations, La Porte, Texas, the love of his professional life, for this past 11 years. He and Sherrell loved the international travel and cruises they were able to make together. He enjoyed playing golf, tennis and in later years, pickleball, and walking and “playing bone” with his sweet little Bichon Frise, Gracie Lucille.

KENNETH MICHAEL “MIKE” ANDRIES Kenneth Michael Andries, known to many as Mike, 61, lost his short battle with pancreatic cancer on July 22, 2019. A memorial service was held on Thursday, August 15, 2019, at Tiki Chapel, Tiki Island, Texas. Andries enjoyed his life in Dickinson, Texas, the past five years. He was a master griller, Orange Beach lover and a huge Disney fan. He was territory manager for Ratermann Manufacturing for the past 14 years. His greatest joy was calling on his customers and finding solutions for them. Many will miss his stories and laughter. “Mike was not only an integral member of our Ratermann team, but a sincerely loved and appreciated member of our Ratermann family,” says Ratermann Vice President Brent Lockhart. “To say that his tireless commitment to both our organization and to the customers he served will be missed immensely does not do his memory justice. His untimely departure from our lives leaves behind both a void that cannot be filled and a legacy that cannot be duplicated.” He is predeceased by his parents Doris and Luke Andries and his brothers Jim and John Andries. Survivors include his loving wife Stacy of Dickinson, Texas, son Thomas (Chelsey) and daughter Jennifer Israel (Allen) of Jackson, Mississippi; sisters Lucy (Cile) Phillips of Columbus, Mississippi, Mary Jane Mason, Linda Walshock, and Janet Keys of Jackson, Mississippi; grandchildren Tatum and Beckham Andries and Hannah, Jacob, Isaac and Noah Israel of Jackson, Mississippi. Summer 2019 • 121

NEW OFFERINGS

PRODUCTS | SERVICES | TECHNOLOGIES 1

1. Norton Introduces BlazeX F970 Fiber Discs

Saint-Gobain Abrasives has introduced new Norton BlazeX F970 Fiber Discs, the next generation of Blaze. The Norton BlazeX F970 Fiber Discs enable faster rust removal, enhanced cleaning and improved detailing processes for better finishes. Users performing right-angle grinding will see immediate results using Norton BlazeX F970 Fiber Discs due to the improved micro-fracturing grain. By consistently exposing sharper grain edges, this improvement delivers a better cut rate and longer disc life as compared to blended ceramic alumina discs. A heavy fiber backing provides a better disc face for surface grinding and resists tearing in heavy applications, extending disc life and requiring fewer changeovers. “Intended for carbon steel and other soft-to-grind materials, the new Norton BlazeX fiber discs were developed to provide cool cuts and to offer longer life due to a non-supersized design. We are seeing a 50% or greater cut rate using BlazeX on these materials when compared to Blaze F980,” said Patrick Carroll, Norton | Saint-Gobain Abrasives senior product manager. Norton BlazeX F970 Fiber Discs are available in 4-1/2, 5 and 7 in. fiber discs, and in 7/8 in. hole or speed-change attachments. Coarse grinding applications are supported through the four key grits of 36, 50, 60 and 80. Norton also offers test kits that include a box of BlazeX F970 and Blaze F980 36-grit fiber discs in each size for testing.

2. L incoln Electric Launches New Activ8X with CrossLinc Technology

Lincoln Electric has introduced a new wire feeder, the new Activ8X with CrossLinc Technology. The Activ8X has an impact-resistant, flame-retardant case 122 • Summer 2019

for durability and potted PC boards to protect against moisture and corrosion. The heavy-duty cast aluminum Maxtrac Wire Drive System provides reliable feeding and durability, with a tachometer to ensure accurate wire feed speed. The system accepts up to 8 in. (203 mm) diameter wire spools. Small enough to fit through manways and light enough to carry throughout the worksite, the Activ8X wire feeder also allows remote control of the power source without the need for control cables through the use of CrossLinc Technology. This includes True Voltage Technology (TVT) that automatically compensates for voltage drops across long welding cables and ensures users get the desired voltage set at the arc, even at hundreds of feet away from the power source.

3. W eiler Abrasives Introduces CrossFlex Honing Brushes

Weiler Abrasives has introduced its new line of CrossFlex honing brushes designed to provide machinists with performance and value for their professional honing applications. Available in small, medium and large diameters and with heavy-duty options, these brushes provide a surface finish free of metal burrs. CrossFlex brushes are designed to provide a long operational life, lowering the total cost of use compared to other brush options. They are available in a variety of grits — 120, 180, 240 and 320 grit — to achieve the desired finish, along with offering increased brush-to-part contact to remove even the heaviest burrs compared to nylon tube brushes. Flexible nylon stems distribute pressure evenly, self-centering within the part to create an accurate hone. Available collet-ready brushes deliver a true center rotation and exceptional brush balance for both handheld and automated applications. CrossFlex

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brushes also feature a consistent cross hatch pattern to ensure proper seating of piston rings and to retain oil for lubrication in combustion cylinders. Weiler Abrasives offers the option to work with one of its Weiler Process Solutions specialists to create custom CrossFlex brushes. Solutions include custom-sized brushes for specific bore diameters, brushes with longer or shorter stems, and brushes that are collet-ready or require another connection method. CrossFlex brushes can also be customized with the desired abrasive: silicon carbide, aluminum oxide, zirconia alumina or ceramic grains. For honing applications, Weiler Abrasives recommends using honing oil with its CrossFlex brushes for engine cylinders and hydraulic oil for hydraulic applications. In deburring applications, the brushes are compatible with water-soluble and synthetic coolants.

4. C omputers Unlimited Adds New Features to TIMS Assistant

Computers Unlimited has added new features to its TIMS Assistant mobile application, which gives sales staff the ability to meet the needs of customers on the spot and provides an up-to-the-minute link with TIMS Core back at the office. The new features include the following: • Open Orders & Quotes — Convert quotes into orders with a single click. View and make changes to existing orders and quotes, including notes and order comments. • Contract Pricing — Review individual contract prices and terms quickly and easily. No more guessing about specific pricing agreements for each customer. • Transfers — Create new warehouse transfer orders on the fly or process existing transfers in the queue.

5. Norton Introduces New Merit Pink Abrasives Saint-Gobain Abrasives has introduced new Norton Merit Pink R928 Flap Wheels and Specialty Abrasives, including cartridge/spiral rolls and square/cross pads that feature a superior ceramic grain for greater efficiency when beveling, blending, cleaning/detailing, deburring and finishing stainless steel and other hard-to-grind materials. A variety of Norton Merit Pink mounted points feature Norton 86A aluminum oxide abrasives, providing an excellent combination of friability and form holding. For hard-to-reach applications, a poly cotton backing on the Norton Merit Pink R928 Flap Wheels and Specialty Abrasives adds more durability compared to traditional cotton back products. Due to a coating on the grain/ bond that reduces friction for a greater grain holding ability, the R928 line cuts cooler and faster on hard-to-grind materials. “A clear trend in industry today is the growing use of smaller abrasives. Our new Norton Merit Pink Flap Wheels and Specialties answer this need, as well as provide excellent finishes and increased productivity,” said Patrick Carroll, Norton | Saint-Gobain Abrasives senior product manager. “When used with our new Handheld Pneumatic Die Grinder, customers have a lightweight, ergonomic grinding solution with more control.” The new line is ideally suited for manufacturers across a broad range of industries such as metal fabrication, welding, energy, oil and gas, foundry and castings, MRO and aerospace. Norton and Merit brands are joining forces to deliver a simpler, comprehensive one-stop shop product portfolio for all specialty abrasives for offhand and portable power tools, within a single “Norton Merit” brand. The Norton Merit Pink line is the first introduction under the new unique branding. continued on next page

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6. EQUIGAS Now Stocking CIMC ENRIC Bulk Tanks

EQUIGAS has announced that they are now a North American stocking distributor for CIMC ENRIC’s Cryogenic Bulk Tanks. EQUIGAS will be storing CIMC ENRIC’s Super Insulated Cryogenic Bulk Tanks in Greensboro North Carolina, beginning with tank sizes from 1,500 to 9,000 gallons. For tanks ranging from 9,000 up to 100,000 gallons, EQUIGAS and CIMC ENRIC will offer a made-to-order solution. “We offer nothing but the best quality products and CIMC ENRIC will perfectly complement our portfolio of cryogenic products with their impeccable quality and their amazing capacity to turn around projects with the best of lead times,” said Rafael Arvelo, EQUIGAS’s general manager.

7. Harris Products Group Introduces New Hydrocarbon Gas Cylinder Jackets

The Harris Products Group has introduced hydrocarbon gas cylinder jackets as part of its expanded specialty gas product line. The Harris cylinder jacket is designed to maintain elevate the temperature of mixed hydrocarbon gas components in applications where higher concentrations of the heavy components reduce the top pressure of the standard, elevated temperature equals elevated pressure such as natural gas pipelines. The jacket prevents the hydrocarbon mixtures from dropping below their dew point, stratifying and insulating the content from lower temperatures to prevent condensing. This jacket allows the hydrocarbon gas to stay in a homogenous state its mixture state. The gas cylinder jacket is constructed of a silicon-impregnated fiberglass liner and polyester exterior to provide superior 124 • Summer 2019

protection from the elements and features a self-limiting heated cable to prevent overheating. Fluoropolymer over the jacket protects the heat cable from corrosion. The D-rings have Velcro® lines for snug closures to maintain heat. All materials are approved by UL® for Class 1 Division 2, Group B, C, and D hazardous locations.

8. Weiler Abrasives Introduces Grinding and Mech

Notching Wheels Specifically for Midstream Pipeline Production Construction

Weiler Abrasives introduces its new Tiger Pipeliner Grinding Wheels and Tiger Mech Notching Wheels developed specifically for demanding pipeline applications. The company worked with pipeline welders and helpers, who tested the products and provided feedback on the wheels’ designs. Tiger Pipeliner Grinding Wheels aggressively dig in when grinding beads, facing the land or prepping transitions — throughout the life of the wheel. This eliminates operators’ inclination to chip the wheels to gain a bite, reducing downtime and increasing safety. A unique design, along with a special mix of top-quality abrasive grains, delivers a fast cut rate and easily removes wagon tracks from the weld bead, while a strong bond delivers long wheel life without glazing on fresh welds. In addition, the wheels’ bond has been formulated for reduced chatter and vibration, which provides more comfortable operator use and keeps the wheel from jumping out of the bevel. Weiler Abrasives offers these Type 27 wheels in 1/8-inch thickness, all with 5/8-11 threaded arbors, and in diameters of 4-1/2, 6, 7 and 9 inches. “These wheels were developed by input received from welder’s helpers and welders in the market,” says Tony Hufford, category manager – metal fabrication at Weiler Abrasives. “We worked

NEW OFFERINGS 10

the right of way with over 20 contractors in the Northeast and West Texas to develop, test and validate our unique design.” Tiger Mech Notching Wheels are manufactured slightly thinner than a 1/8-inch wheel to fit the thinner bevel. These wheels are capable of grinding the starts and stops of the weld bead without widening or scarring the narrower channel created by the mechanical pipe welding process. These ceramic-infused wheels for notching applications include a special blend of high-performance grains. They are designed to work on J and K bevels and are available in wheel diameters of 4-1/2, 5 and 7 inches. “Everyone we talk to on the right of way is just using a product that fits,” says Hufford. “Now they have the choice to use a product specifically designed for mechanical welding.”

9. Lincoln Electric Releases the 4th Generation of

VIKING 2450 and 3350 Series Welding Helmets

Lincoln Electric has launched the next generation in professional auto darkening welding helmets. The new VIKING 2450 and 3350 Series welding helmets feature industry leading 4C optics, innovative headgear to improve comfort and a low-profile external grind button to increase productivity. The new one-of-a-kind X6 Headgear contours to the operator’s head to evenly distribute weight across six key contact points. This improves balance, eliminates pressure points and provides a personalized fit for maximum comfort. The addition of the new external grind button allows the operator to switch quickly between weld to grind mode without having to remove their helmet or gloves. This significantly reduces operator downtime while offering additional safety benefits. Both the 2450 and 3350 Series helmets feature Lincoln

Electric’s industry-leading auto-darkening lens. The exclusive liquid crystal lens offers a number of features, including: • 4C Lens Technology • 1/1/1/1 Optical Clarity • 12.5 and 9.3 Square Inch Viewing Area’s • Premium Technical Specifications These features broaden the color range and hues that can be seen in both light and dark states. This eliminates imperfections and color saturation to create the clearest view of the base material, arc and puddle while reducing eyestrain. Both models live up to their professional grade with a number of features that were designed to enhance versatility and performance for use in any environment or application—all backed by a hassle-free 3-year warranty. The next generation of VIKING 2450 and 3350 Series welding helmets available in 24 different styles. Learn more at www.LincolnElectric.com/NextGeneration.

10. Flange Wizard Pipe Wrap Display

Flange Wizard’s distributors can now have all four of the most popular size wraps in a neat counter display. The new Pipe Wrap Display will arrive completely assembled with the product ready for your customers to purchase. The Pipe Wrap Display includes the following Flange Wizard wraps: • 12 WW-16 Small Wraps • 10 WW-17 Medium Wraps • 6 WW-17A Large Wraps • 4 WW-19 Ex-Large Wraps The FWI-WD1 Pipe Wrap Display is available from Flange Wizard to all distributors. Check your wholesaler for price and availability. Summer 2019 • 125

ADVERTISERS INDEX Acme Cryogenics, Inc...............................................51

HIAB USA................................................................45

American Torch Tip.................................................106

Hobart Institute of Welding Technology.....................112

Ameritanx, Inc..........................................................62

Hypertherm...........................................................107

AmWINS................................................................105

Kaplan Industries.....................................................13

Anthony Welded Products, Inc...................................31

Kobelco Welding of America......................................75

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

Lincoln Electric..........................................................9

ASM/American Standard Manufacturing....................60

McDantim................................................................21

Astaras....................................................................11

Mercer Industries.......................................................5

BTIC America Corporation.......................................109

Messer....................................................................26

Bug-O Systems International.....................................73

Metal Impact.........................................................114

California Cylinder..................................................110

NorLab Calibration Gases Division of Norco................61

Carborundum Abrasives...........................................74

Norton Abrasives......................................................19

Catalina Cylinders..................................................115

ORS Nasco..............................................................49

Cavagna North America............................................47

Prism Visual Software.............................................113

Chart Inc.................................................................79

Reelcraft..................................................................45

CK Worldwide........................................................104

Revco Industries/Black Stallion..................................59

Computers Unlimited................................................91

Rotarex...................................................................27

Controlled Efficiencies..............................................15

SafTCart..................................................................57

Cryoworks...............................................................62

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

Eleet Cryogenics......................................................78

Sherwood Valve.......................................................89

Equigas...................................................................69

Solution Source..........................................................3

ESAB.......................................................................35

Thermacut.............................................................119

Exocor...................................................................111

Thermco Instrument Corporation...............................77

Flexovit USA, Inc......................................................64

TomCO2 Systems Company........................................7

Gas Equipment Co., Inc..........................................110

Veite Cryogenic..........................................................1

Gas Innovations.....................................................111

Watson Coatings....................................................118

Generant Company Inc.............................................26

Weiler Abrasive Group..............................................46

Genstar Technologies...............................................53

Weldcoa....................................................................2

H & H Sales Company............................................113

Weldship Corporation.............................................108

The Harris Products Group................................. IFC, 17

Winton Products Co., Inc........................................112

126 â&#x20AC;¢ Summer 2019

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