Welding & Gases Today | Q4 2020

The Official Publication of the Gases and Welding Distributors Association

THE

SALES &

MARKETING ISSUE

Practical advice on leading your business during uncertain times

FEATURE

MEMBER PROFILE

GAWDA CONSULTANTS

ITR REPORT

Leading Through Adversity

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Lasting Practices

Lingering Impact of COVID-19

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contents Fourth Quarter • Fall 2020 • Volume 19, No. 4

DEPARTMENTS

06 10 12

COVER STORIES

PRESIDENT’S VIEW 2020 Hindsight

BY ABYDEE BUTLER MOORE

C E L E B R AT I N G

DIRECTOR’S DESK Looking Back on 2020

75 YEARS

BY JOHN OSPINA

1945-2020

EDITOR’S NOTE Sales and Marketing in a Post-COVID World

DURING A MILESTONE ANNIVERSARY 34 SERVING GAWDA’s Executive Committee reflects on where the

BY STEVE GUGLIELMO

GAWDA CONSULTANTS

14

association has been and where it is heading

Best Practices Going Forward

BY STEVE GUGLIELMO, JOHN OSPINA, ABYDEE BUTLER MOORE, BOB EWING, GARY HALTER AND ROBERT ANDERS

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

20

GAWDA’s 75th

40 Anniversary

Commemorate 42 Members

Special-Edition Apparel

Driver and Facility Security

GAWDA’s 75th Anniversary

BY MARILYN DEMPSEY

22

MCSA Hours of F Service Update

24

BY MICHAEL DODD

GA & GAWDA C Co-Sponsor Groundbreaking 2020 Young & Emerging Professionals Summit

86

BY RICHARD GOTTWALD

I TR FOURTH-QUARTER OUTLOOK: The Impact of Recent Black Swans on our Macroeconomic Outlook

BY BRIAN BEAULIEU

STAY CONNECTED

GAWDAMEDIA.COM

2 • Fall 2020

MEMBER PROFILE

OXYGEN SERVICE COMPANY An Ownership Culture

BY STEVE GUGLIELMO

PAGE 28

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 editor@gawdamedia.com. Advertising correspondence and materials should be sent to William Brod, Data Key Holdings, LLC, 1415 W. Genesee St., Syracuse, NY 13204; telephone (315) 445-2347, fax (315) 422-1721. • Postmaster: Send address changes to Welding & Gases Today, Gases and Welding Distributors Association, One Oakwood Blvd, Suite 195, Hollywood, FL 33020 • Welding & Gases Today is the official journal of the Gases and Welding Distributors Association (GAWDA) and carries news and announcements concerning GAWDA. • It is not responsible for contents or opinions other than association activities. • Contents are copyright ©2020 Data Key Holdings, LLC. • All rights reserved. • Nothing may be reproduced in whole or in part without written permission of the publisher. • Questions and comments can be sent via e-mail to Editors, c/o editorial@gawdamedia.com. • Data Key Holdings, LLC reserves the right to print portions of or all of 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.org. Statement of Ownership Publication Title Welding & Gases Today. Publication number 22-975. Filing date 10/2020. Issue frequency quarterly + 2 special issues. # of issues published annually: 6. Subscription price part of member dues. Mailing address of known office of publication and headquarters: One Oakwood Boulevard, Suite 195, Hollywood, FL 33020. Headquarters address same. Publisher: William Brod, Data Key Communications, 1415 W. Genesee St., Syracuse, NY 13204. Editor: John C. Ospina, GAWDA Executive Director, One Oakwood Boulevard, Suite 195, Hollywood, FL 33020. Editor in Chief: Steve Guglielmo Data Key Holdings, LLC, 1415 W. Genesee St., Syracuse, NY 13204. Owner: GAWDA, One Oakwood Boulevard, Suite 195, Hollywood, FL 33020. Average net press run 1835/2127. Outside county paid/requested mail subscriptions 1706/1727.

In-county paid/requested mail subscriptions 0/0. Sales through dealers and carriers 0/0. Requested copies by other mail classes 0/0. Total paid and or requested circulation 1710/1727. Outside county nonrequested copies 0/0. In-county nonrequested copies 0/0. Nonrequested copies distributed through USPS by other classes 0/0. Nonrequested copies distributed outside the mail 150/400. Total nonrequested distribution 150/400. Total distribution 1857/2007. Copies not distributed 100/100. Total 1960/2227. Percent paid and/or requested circulation 91.9/81.1.

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contents Fourth Quarter • Fall 2020 • Volume 19, No. 4

NEWS ROUNDUP

77 78

FEATURES

2021 SCHEDULE

THE

SALES &

GAWDA 2020 VIRTUAL CONVENTION RECAP

GAWDA MEMBER GET82

MARKETING

A-MEMBER PROGRAM

85 ARCHIVED 2020 EVENTS 99 INDUSTRY NEWS MERGERS & 105 ACQUISITIONS

106 107 110 111 112

I SSUE

46

IN MEMORIAM NEW OFFERINGS NEW MEMBERS

BY STEVE GUGLIELMO

to Replace Your Website 50 SAndix Reasons six considerations when you do

BY BRIAN BLUFF

ADVERTISERS INDEX THE LAST WORD

se the Online GAWDA Buyers Guide to Help 54 UFind Social Media Content The guide is rich with supplier content including articles, videos, deals and more

THE TEAM EXECUTIVE EDITOR

John Ospina jospina@gawda.org PUBLISHER

Bill Brod billb@gawdamedia.com EDITOR IN CHIEF

Steve Guglielmo steveg@gawdamedia.com CONTRIBUTING EDITORS

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

Robin Barnes robinb@gawdamedia.com VICE PRESIDENT, SALES

Tim Hudson timh@gawdamedia.com RELATIONSHIP MANAGER

Hannah Gray hannahg@gawdamedia.com 4 • Fall 2020

RICHES IN THE NICHES The Need for a Comprehensive Digital Strategy How digital marketing has gone from a luxury to a necessity

Engine Trends for 56 Stheearch Gases & Welding Industry

58

Selling on the Phone in the “New Normal”

60

Leading Through Adversity

62

The Perfect Zoom Shirt and Other Lessons from 2020

64

The Next Generation Sales Manager

BY JAY SPIELVOGEL

BY SEAN COYLE

BY JOHN TAPLEY

BY ART WASKEY

ases/Hardgoods Sales Have Been Hit Hard by COVID 68 GImprovements are required in communications between manufacturer, distributor and the customer

BY J.R. “BUZZ” CAMPBELL AND KEN THOMPSON

he Two Ares of Business Distributors 72 TMust Focus on if they Want to Win

BY MIKE MARKS AND DAN HORAN

PRACTICES 74 BEST Tips for Transitioning Out of Your Family Business

BY RANDY SQUIBB

PRESIDENT’S VIEW

2020 Hindsight

BY ABYDEE BUTLER MOORE

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

hat doesn’t kill you makes you stronger, right? This year has been many things, and 365 days of cliché is no exception. Guilty as charged on the overuse of the terms pivot, weather the storm, and cautiously optimistic. We cling to clichés when times are uncertain because our brains know no clear language to describe the unseen. The rear-view mirror, however, is much less forgiving and ambiguous. The past is fact and a diamond mine for lessons learned. What did our industry learn this year?

WE ARE ESSENTIAL If nothing else, this year has reminded us that we are extremely fortunate to be in the gases and welding industry. We are life sustaining. For my fellow family-owned businesses, we gained a new level of gratitude for our ancestors and their founding vision to start a business in an industry with such a diversified customer base.

WE LEARNED HOW TO RUN LEAN This year gave us a live stress test of what happens when business revenue is off 60%. What do you do this week, when 50% of your customers are closed? Maybe I was absent that day, but I don’t remember those lessons in business school. Those lessons come from the School of Hard Knocks. I imagine many next-gens feel like I do, that we were very fortunate this year to endure those lessons with our parents/mentors still active in the business. We 6 • Fall 2020

learned to work the middle of the P&L and find the islands of profit throughout our businesses.

WE FOCUSED ON SAFETY Operational safety must always be at the forefront of our industry. However, this year called upon us to master the personal side - employee health and wellness. From implementing temperature screenings to training on handwashing techniques, we broadened our scope of safety and compliance to better support our associates and customers.

WE DEVELOPED BENCH STRENGTH Split shifts, job rotation, and teleworking all got our junior varsity in the game, with many now advancing to the starting lineups. Sink or swim moments have been plentiful this year, and they have allowed us to clearly identify the strong swimmers. A technique that we implemented in our business this year (thank you to our friends in the BIG Group), was a Three-Deep exercise, identifying critical functions across various departments and quantifying the first string, second string, and third string player for each.

WE LED WITH OUR HEARTS I am a Pittsburgher, so you know I love my Fred Rogers. Mr. Rogers once shared, “When I was a boy and I would see scary things in the news, my mother would say to me, ‘Look for the helpers.

You will always find people who are helping.’”

Our businesses have assisted our communities with

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medical supplies, we have volunteered together, we have sent care packages to our employees, and offered financial job security to thousands of families.

WE STRENGTHENED OUR MEDICAL GAS CAPABILITIES AND RELATIONSHIPS I would imagine none of us has collaborated more with our medical gas customers and supply chain partners than we have this year. From the industry’s medical gas safety alerts from CGA to the modified delivery procedures suggested in the GAWDA Business Continuity Plan, those businesses who are surviving this year are coming out stronger and more well connected in their supply chains.

WE STUCK TOGETHER GAWDA, CGA, IOMA, and our buying groups all focused on member engagement and learned new virtual techniques on the fly. When I speak with peers across other industries, the types of resources and connectivity we have are rare. In our industry, especially in North America, we are so extremely fortunate to have the Associations that we do. These networks of suppliers and distributors, of gas producers and standards organizations, make the industry safer and stronger.

To our industry’s business owners, drivers, executives, cylinder fillers, salespeople, and technicians: thank you! Thank you for taking the time away from your families this year to drive our industry forward. Whether your allegiance lies with ‘Hindsight is 2020’ and you enjoy reflecting on the year’s silver linings, or you would rather give the year the boot on the way out with ‘2020 is Hindsight!’ one thing is certain – the moments when everything goes right in life teach us very little. You always win when you learn something and apply it to the next time for a better outcome.

8 • Fall 2020

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DIRECTOR’S DESK

Looking Back on 2020

BY JOHN OSPINA

W John Ospina is GAWDA’s executive director.

He can be reached at GAWDA Headquarters in Hollywood, FL, via telephone at 844-2513219 or via email at jospina@gawda.org.

10 • Fall 2020

hat a year this has been. As we wrap up 2020, we have a lot to think back on. And, for the most part, it has shown us how resilient we can truly be. Even though we’re still fighting to get through the pandemic, social distancing and the economic uncertainty, there is a sense that we’re getting closer to the light at the end of the tunnel.

Communication has been key in successfully navigating through the issues we have faced this year. That same level of communication will be what gets us through the coming year.

As you read through the articles in this issue of Welding and Gases Today, there’s no question that we’re all moving forward with more confidence in our ability to keep up with any challenges that come our way. Our current GAWDA president, Abydee Moore, provides some great insight in her article on page 6 on what we’ve learned this year. Our Editor in Chief, Steve Guglielmo also interviewed the members of our Executive Committee to get their perspective as GAWDA leaders. Our consultants continue to provide insight on current issues and what areas we need to keep an eye on as we go into 2021.

GAWDA will continue to be with you to provide whatever information and support you may need as we face these new challenges. We will continue to listen for your feedback on what timely topics you need us to cover, what meetings to hold and what other resources you need available to keep you moving forward.

We also need your support as we move into the new year. Our annual membership drive is at hand, and we need all our members to keep in mind that your dues are critical to our success.

They help us bring you all the information and resources that you’ve come to expect and rely on.

DECEMBER

If you pay your dues before December 31st, you can avoid paying the 5% increase in the regular dues amount.

So please, renew your membership as soon as possible. If you pay your dues before December 31st, you can avoid paying the 5% increase in the regular dues amount.

With your support, we can continue to provide more virtual meetings that bring you consultant updates, training webinars and cooperative virtual events with other industry groups. We will continue to make improvements and updates to existing programs and also provide all the safety protocols to our in-person meetings in 2021.

As we get closer to the end of the year, we plan to hold another virtual town hall meeting.

During this meeting, we’ll discuss the Spring Management conference, where we are at that time with state restrictions on group meeting sizes, social distancing and the state of the pandemic.

We will be looking for member feedback on what travel restrictions our members may still have in place and what the general comfort levels are with in-person meetings.

As always, thank you for your continued support as a member of GAWDA and this great industry.

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FROM THE EDITOR

Sales and Marketing in a Post-COVID World

BY STEVE GUGLIELMO

I Steve Guglielmo is GAWDA Media’s Editor-in-Chief. He has more than a decade of experience working with industrial associations.

He can be reached at steveg@gawdamedia.com.

12 • Fall 2020

n my editor’s note in the Q3 Issue of Welding & Gases Today, I discussed what “normal” will look like in a post-pandemic world. The term “new normal” has become a buzz word again, after becoming so popular after the Great Recession and then going away for a while. But, while buzz words are important (“culture” was the 2014 Meriam-Webster word of the year, after all), “new normal” doesn’t actually mean anything without exploring what constitutes both “new” and “normal.”

Some things I wondered aloud about in that column included whether social distancing was here to stay? I feel pretty good about that prediction, though it is too early to tell for sure.

Another thing I guessed was that telecommuting would become a more permanent fixture in corporate America. Again, it’s too early to say for sure, but it seems like there is no putting the genie back in the bottle on that one. Finally, I asked if the handshake might become a thing of the past. That was probably a bridge too far. It might become less prevalent, but I don’t think it will go away altogether.

But in putting together this issue of Welding & Gases Today one thing seems certain. The sales and marketing process in our industry and across Corporate America is changing. Or, more accurately, it has changed. And those changes might not all remain permanently, but I feel good in saying that there’s no going back to a pre-COVID world.

I thought Justin Yoder put it best in the Riches in the Niches article on page 46, “Our industry has been behind. It needs to have a plan to get existing customers online options. And now, all of a sudden, COVID is accelerating that need.

What might have been something 3-5 years away, is now 3-5 months.”

Before the in-person Annual Convention was canceled, this issue was going to be a Convention Recap. We decided to audible to the “Sales and Marketing Issue.” But it could be more aptly described as “Sales and Marketing Post-COVID.” There are so many great articles discussing how the process has changed. From the need to have a viable and visible digital strategy, website and e-commerce option, to Selling on the Phone in the New Normal (page 58), to Leading through Adversity (page 60) and much more.

Here at GAWDA Media, we have also used the pandemic as an opportunity to bolster our digital offerings. I’m very proud of the work that our team has done to build up the online GAWDA Buyers Guide as a key source of information in our industry. Read about how the Buyers Guide can be used to bolster your social strategy on page 54.

The following pages serve as both a snapshot in time of the state of our industry during COVID-19, but also a springboard to help launch members forward into the new normal. I know we are up to the challenge!

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CONSULTANTS ROUNDTABLE

Consultant Roundtable:

BEST PRACTICES GOING FORWARD COVID-19 has impacted all of our businesses in some way, shape or form.

What lasting impacts will this experience have on our industry and the regulatory agencies that oversee it?

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

A

s we enter the Fall, it seems like we have lived with COVID-19 for several decades, not six months. We have moved on from this being a novel threat to dealing with the reality of this being a part of our day-to-day lives. As we experience this “New Normal” and continue to work toward getting back to where we were before March, GAWDA’s Consultants have been with us every step of the way. They have been holding webinars and roundtables with members since the pandemic started. For this issue, Welding & Gases Today had the opportunity to speak with these consultants about trends that have emerged from this period that will be long-lasting. What best practices will continue even after we “return to normal?” What old practices will be phased out?

For this issue, we spoke with GAWDA’s newest consultant, Marilyn Dempsey, who advises members on topics related to DHS, EPA and OSHA, Michael Dodd, GAWDA’s DOT Consultant, Tom Badstubner, GAWDA’s FDA and Medical Gases Consultant, and Rick Schweitzer, GAWDA’s Government Affairs and Human Resources Consultant. The following is a lightly edited transcript of that conversation.

WELDING & GASES TODAY: This year has been anything but business as usual, so companies have had to really adapt to some pretty unexpected situations. What best practices have we seen emerge from this year and what practices do we think are not going to return? Are there outdated practices that we had clung to that you think might go away permanently?

14 • Fall 2020

TOM BADSTUBNER: I think we are seeing many examples of new work practices. For example, we are seeing a lot more FDA Medical Gas training happening remotely. We even troubleshoot gas chromatographs remotely now. This makes the service more responsive and less expensive since travel costs are often avoided.

WGT: With the remote training, do you feel that there is any effectiveness loss with it not being in person? Do you find people tuning out more easily?

For me, personally, I struggle with anything more than an hour.

TOM: People tune out - even in face-to-face meetings. You absolutely lose effectiveness on video calls. It makes it harder on the presenter (and the viewer) to keep interest. But what you gain is access. A lot more people can attend, even if the effectiveness is a little bit lower. It’s not a perfect solution, but I do think we will see a lot more of it.

RICK SCHWEITZER: But you’re right, Steve. My clients have realized that an hour or an hour and 15 minutes max is the attention span of people and then everybody starts doing other things at that point. But it also gives you the opportunity to provide written materials. And people do follow up on those, so that is helpful.

MARILYN DEMPSEY: I think it makes us up our game.

When you are in person, you can read people. You can look at them and see when they are zoning out, or if they have a question. Being remote, you can’t read their body language.

And so, you have to make the presentation much more appealing.

CONSULTANTS ROUNDTABLE

WGT: So, aside from the remote communication, have you seen any best practices that have come out of this year and the way we have had to do things that you think will be long-term solutions?

Or things that we have evolved past?

MARILYN: From the membership standpoint, I’ve certainly seen some things come out. And I think they are going to stick and be with us long-term. One of the main things that we have always had an issue with is housekeeping. You know, when you get busy and you have to get the product out the door and to the customer. But now, there is a new emphasis on cleaning.

And I think that is going to be ingrained in our culture now.

I think communication has been increased significantly, between managers and floor personnel and drivers. I also think, with customers, it has opened up a new way of speaking and has increased the ability or sharpened a skillset with our salespeople in giving that added value to the customer. Because now, you’re not just calling about, “This is what our product can do for you.” Now it’s, “This is what our company does, and this is how we’re going to keep our company safe. How can we work together to have a clean, basically no-touch system as

much as we can?” That value-add can be really emphasized.

And it may take us to a whole new level.

One of the neatest things I have seen is that some of our members are doing remote pickup. Similar to the remote pick-up at a grocery store or at Home Depot. Members are taking technology and saying, “How can we make it so that we can have remote access where the customer can enter a code and get their things?” That, I think, is wonderful. It makes it easier, there is no contact and there’s no time constraint. The downside is that there used to be a coffee klatch first thing in the morning. Customers would come in and chat. That is gone.

WGT: Do you think that, whenever it is that we move past this, that we will start to return to some of those things? As you said, there is a safety aspect but there is also the networking and communication aspect that has, necessarily, gone by the wayside.

MARILYN: I do think that we will get back to that, a bit.

Human beings are social creatures. And we need interaction. I think that is one of the hardest things that our society is dealing with right now. I was on a webinar with the head of NIOSH

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CONSULTANTS ROUNDTABLE

and he said, “Get used to this, because it’s not going away for at least two years.” That’s his prediction. So, we are going to need to develop new skill sets. And it will be really interesting to see how this goes forward and morphs into having the human connection while keeping our distance.

TOM: Just to build on one thing Marilyn is saying, we have a somewhat different expectation from our customers now. In the past, in some cases, we may have been more casual about assuring the empty cylinders we received were clean and appropriate. It seems more important now that we have an understanding with the customer of exactly what they are doing to our cylinders. Is the cylinder properly prepared for refilling?

Has the cylinder been properly cleaned by the customer, where needed? We need to know the customers actions because we may need to do some additional cleaning ourselves.

RICK: The one significant change that I have seen is not from business, but from government. I go back to the President’s May 19 Executive Order on regulatory relief to support economic recovery. It’s a significant Executive Order.

Most of them are generally ignored, but this one directs all the federal agencies to do a couple of things. One is to look at all their current regulations and see which ones can either be waived or exempted, or even permanently gotten rid of to promote economic recovery. This was in response to the COVID pandemic, but it’s not limited to that. There is also a part of this that talks about enforcement discretion. Agencies should look at enforcement discretion in order to help companies that might have technical violations of the regulations but have been working in reasonably good faith to comply. I have used that argument in a number of scenarios, both for rulemakings and for, most recently, an enforcement action against a company that was shipping hazardous materials.

There are some teeth to this now. And the question is, is it going to survive the pandemic? I think that depends, largely, on the election, frankly. If the President is re-elected, then I think this is something that will last at least into the next four-year term. But I think it is driving what is going on in the federal agencies right now. Mike and I deal with DOT, and we have seen the extensions of the CDL and Medical Carts and extending cylinder retests. The agencies are really trying to help companies not be hamstrung by regulatory compliance issues. And I think that comes from the top.

MIKE DODD: From the regulatory side, we talked about this in the last magazine article. Not much has really changed from when we wrote that article to today, in terms of compliance, other than the fact that we were seeing only a couple of remote audits when we wrote the last article. Now, I’m on my sixth or seventh remote audit. I think it is going to become the thing 16 • Fall 2020

of the future. They did it so that the inspectors wouldn’t have to do in-person and expose the member and themselves. But, I think, what they have found is that they can do a lot more of them with less effort. And saving on their travel expenses and out of office expenses. I think they are really happy with the results, because they’re doing more and more of them.

The other thing is that it used to be that these agencies would come in and spend half a day, a day, sometimes two days, and on the very rare occasion we would have an inspector stay a week, two, or three at a member company. But now, we are noticing that with this remote audit it is taking anywhere from a week to three or four weeks. It only involves a few minutes each day. They will come ask a few questions and say, “Email this stuff to me. Or attach it send it to me.” And then they will digest that and then come back and ask some more questions.

I think what is going on from the inspector standpoint is that they may have a whole bunch of them going on at the same time and they are just going from one to the other. Or, I think it has given the inspectors the chance that when they get this information, they can research it, research past interpretations, read the rules, talk to their supervisors, and then come back with a more pointed question. I have noticed that some of the questions are a little bit more detailed than they used to be when they were in person. But, so far, it has been an OK experience for our distributors. They don’t like the time and how drawn out it is, but they sure like the fact that they don’t have somebody sitting across the desk from them and that they have got time to find stuff and put it together to respond.

So, I think this is going to be the wave of the future and we are probably going to see a lot more of it.

TOM: The FDA has, on the food side and on the drug side, sent questionnaires out to plants. We have not seen those questionnaires result in the type of audits that Mike is describing.

But we have seen them ask very specific questions about our plants. Some of the surveys were very simple and some were clearly pre-audit questionnaires. The FDA and state agencies are beginning some face-to-face audits again at GAWDA members and at the majors.

MARILYN: I talked to a member of Texas OSHA, and she had a couple of comments. Tom brought up the fact that FDA and OSHA collaborated COVID information. She told me that they are collaborating with other agencies for COVID and there is, like Mike said, some discretion that is given to the inspector also to the district manager, to look at the whole picture before passing judgement. They are going to stay with remote inspections, except for fatalities, serious immediate dangers, and serious complaints. She said, “Some complaints, like, ‘We don’t have enough toilet paper,’ will not result in

CONSULTANTS ROUNDTABLE

an onsite inspection.” Overall, they are being very judicious in how they send agents out, because of the health risks that are involved.

WGT: It sounds like there is some enforcement going on, beyond COVID. Do you feel like we are back to where we had been pre-COVID as far as enforcement and inspections and things like that?

Or are we still shifting? How much of the agencies’ time is being consumed with COVID, versus how much is being consumed with the actual business of the regulatory agency as it was before March?

RICK: I think we are transitioning towards more of an enforcement or pre-COVID environment. I see that from a number of different agencies. But what I would also say is that one of the benefits of this pandemic is that, in a certain weird way, it has made agency personnel more available. You’ve got webinars and video conferencing and such. It’s a lot easier to schedule a video conference with an agency than it is to schedule a face-to-face meeting. Obviously, there is no travel involved. And they are trying to make themselves available.

For instance, the head of the Federal Motor Carriers Safety Administration has done any number of industry updates. These are things that they might have done in the past, but not nearly with the same frequency that they do now. And you can call up now and schedule these kinds of things. They are much more available than they used to be.

TOM: We’re seeing the same with the FDA. It used to be a long process to get a meeting with them. And now, we have had several meetings with the food side of the FDA and the device side of the FDA very quickly via teleconference. I also agree with Rick’s comment. During the first part of the pandemic we saw a lot less inspections. Now they are picking up a bit.

MIKE: I agree. The first part of COVID, there were no roadsides. Now, I have been answering a lot of roadside inspection questions, in just the last week or so. And I’ve been seeing them on the side of the road. And they are not necessarily just roadside inspections. I made a short trip yesterday, and I have seen more law enforcement stopping people on the side of the road, whereas before you didn’t see that at all. So, I think, in our area, which is a lot more open and not nearly as locked down as a lot of the coastal places are, it looks like

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CONSULTANTS ROUNDTABLE

things are getting right back to normal. So, I think our roadside inspections are going to get right back to normal.

WGT: We discussed in our last issue that as we began the shutdown, there was going to be a big backlog of inspections. People that were due for an inspection, that they would have to work through that before things got back to normal. Have you seen that backlog clear a bit?

MIKE: From a DOT standpoint, I don’t know that they had a schedule. If there is one out there, I don’t know about it. I think things have just started back up. I don’t know if there is an effort to catch back up. If they had people booked in April and May and June, I think they are just taking the schedule and picking it back up and starting again.

MARILYN: I think communication is opening back up.

I have had a few inquiries about DHS letters that have been received. Agency communication is slowly starting to get back to normal.

WGT: I don’t even want to entertain the idea, but if there was a second wave and we have to go back to where we were in March, where a good portion of the country is forced to shut down again, are the agencies better prepared having experienced this once than they were the first time?

RICK: Experience is the best teacher. So, I would say the answer is yes. First, everyone knows how to work from home now. Everybody has figured out these half a dozen Zoom and office platforms. We have all done this a million times now.

So, from a purely administrative, office standpoint, yes. But the key to that is businesses. Another business shut down would be devastating.

WGT: Are there any new initiatives that you are seeing come out of the agencies, even beyond as the pertain to COVID? Or is it all quiet on the Western front until we get a little bit more guidance?

RICK: I can think of three initiatives that came out of the Federal Motor Carrier Safety Administration just from this year.

The first is the Drug and Alcohol Clearinghouse that came out January 6. That fundamentally changed how people handled drug and alcohol testing. The second was making permanent their crash preventability program, so that companies can go online and present evidence that a crash that is held against them in the system was determined to not be their driver’s fault.

And the third is the new driver hours of service rules that are supposed to go into effect on September 29. All of these are 18 • Fall 2020

Members need to take a step back and look at their training records and their spread sheets and make sure to get caught back up. actually very positive developments for industry. I think that they make things more efficient and hopefully they will make operations safer, too.

MIKE: I agree with that. In the past, we have had compliance things come to us that have been a hindrance. They cost us money, time, and effort. These last three that Rick talked about, those are all positives for our membership. It is actually helping them. They might not think that the Clearinghouse is helping them, but trust me, now that it is settling down and people are starting to use it, I think that this is going to be a really nice tool for them. And when the hours of service kick in, that is going to be a very big thing for our membership, because so many people will be able to take advantage of the 150 miles and the 14 hours on duty. That will be a nice thing for our people.

MARILYN: From my standpoint, I think the biggest changes are coming from certain the states. There are several states that requiring pandemic safety plans for any business that wants to reopen. Illinois and New York come to mind.

Federally, OSHA, just like the FDA, will be more remote. It is a more efficient use of their inspectors. I have had members call about security issues, as it relates to civil unrest, and DHS was very responsive.

TOM: Mostly, we see the FDA continuing the previous initiatives that they had in place. Some initiatives have been slowed down. For example, the release of the new proposed regulations for medical gases was postponed another year. We have also seen a more proactive position on maintaining the drug supply system and avoiding shortages from the FDA. WGT: This will be in the Q4 Magazine. So, any last bits of wisdom you want to leave members with for this year?

MIKE: I would like to reiterate that I’ve got a real concern that we have been very involved with the pandemic and taking care of business and getting things back to normal. I understand that. But I’ve got a real concern that people might be getting behind on their refresher training. It has just not been the forefront of their mind. And I think, as the audits pick up and they start asking questions, I think our members may be caught short when they find out that they have not done their

CONSULTANTS ROUNDTABLE

three refreshers or that they haven’t done their new employee training. I know they are not bringing on a lot of new employees, but they are bringing on some new employees. And they tend to forget about those. And I know that at least one, if not two, of the recent audits that has been the thing that has been caught. They forgot to do the new person. They were busy taking care of business. Which, of course, I understand. But I think our members need to take a step back and look at their training records and look at their spreadsheets and just make sure to get caught back up again.

RICK: Looking back on last year, I think we can pat ourselves on the back to a certain extent that we have all survived this. We have all had to learn new skills. And, I think it’s emphasized the need for the GAWDA membership to rely on the association and its communications and its consultants. I think it has emphasized the benefit of the association to the distributors and to the manufacturers in this industry. I think we have all helped each other get through this. And here’s hoping 2021 will be a bright and safe environment for us all.

TOM: I really think that GAWDA and GAWDA members have been very responsive. I agree with Rick. The way that

GAWDA and the members have responded during the rush of the pandemic, in the communications and initiatives during this really challenging time I think has been outstanding.

For members, my advice would be to look carefully at things that may have slipped during the rush of the pandemic.

I’m thinking, particularly, of tamper-proof connections on liquid containers. That is an issue that has, in the past, caused fatalities among our customers. It would be a good time to look at our medical liquid containers and make sure that all of the connections are still tamper-proof.

MARILYN: I have to agree, GAWDA has been very responsive. We had considerations for a business contingency program weeks before we heard anything from the government. The industry has really been quite responsive. And the members have been really resilient. It’s, “You’re not going to get us down.

We’re going to keep going forward.” Mike and Tom brought up we have to go back to the basics. We know what this “new normal” is and it’s going to continue to morph, but get back to the basics. Make sure that we have our basics covered. For training, for equipment, for our safety devices. And we, as consultants, will be supporting getting back to the basics.

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Fall 2020 • 19

CONSULTANTS DOT & SAFETY

FMCSA Hours of Service Update


BY MICHAEL DODD, GAWDA DOT CONSULTANT

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

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

O

n June 1, 2020, FMCSA revised the hours of service (HOS) regulations to provide greater flexibility for drivers without adversely affecting safety.

Motor carriers are required to comply with the new HOS regulations starting on September 29, 2020, not before.

WHAT IS CHANGING? 1. Short-haul Exception Expands the short-haul exception to 150 air-miles and allows a 14-hour work shift to take place as part of the exception.

2. Adverse Driving Conditions Exception Expands the driving window during adverse driving conditions by up to an additional 2 hours.

3. 30-Minute Break Requirement Requires a 30-minute break after 8 hours of driving time (instead of on-duty time) and allows an on-duty/not driving period to qualify as the required break.

4. Sleeper Berth Provision Modifies the sleeper berth exception to allow a driver to meet the 10-hour minimum off-duty requirement by spending at least 7, rather than at least 8, hours of that period in the berth and a minimum off-duty period of at least 2 hours spent inside or outside the berth, provided the two periods total at least 10 hours, and that neither qualify period counts against the 14-hour driving window.

Here is a URL to a great presentation and summary about the new changes. This is provided

by DOT. https://csa.fmcsa.dot.gov/Documents/ Jun9_HOS_Presentation_508.pdf.

This DOT URL is a presentation done after their Q&A session. It provides more details on the common questions: https://csa.fmcsa.dot.gov/ Documents/HOS_QA_Webinar_July2020.pdf 20 • Fall 2020

HANDOUTS FOR THE DRIVERS Here is a link that has several handouts that you can print. Again, a great job by DOT to help get the word out and to explain how the changes work and affect our operations: https://csa.fmcsa.dot. gov/Documents/All_HOS_Fact_Sheets_508.pdf If there are any questions, please contact me.

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CONSULTANTS SAFETY

Driver and Facility Security

BY MARILYN R. DEMPSEY, SAFETY DRAGONS WORKPLACE CONSULTANTS, LLC

The following is an excerpt from the GAWDA Safety Organizer, a monthly bulletin sent to GAWDA members.

For more information on the GAWDA Safety Organizer, or to read past issues, visit the GAWDA.org Members-Only Section

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

D

river safety is paramount to our businesses and, more importantly, to our business families.

Drivers are on the frontline for exposure to COVID-19 and now they have to prepare for protests and driving in areas ravaged by riots. We can help them with a little preparation. Below are some suggestions to help keep your drivers safe:

SCHEDULE APPROPRIATELY •

•

MEASURES TAKEN BY THE DRIVER • •

COMMUNICATION IS CRITICAL •

• •

•

22 • Fall 2020

Call customers in areas of unrest and ask about the situation: Are any protests planned?

Have they changed their hours of operation?

Drivers should stay in close contact with dispatchers.

Drivers and dispatchers should monitor local news to make sure routes are open to their destination.

Consider a “No Stop” policy to thwart hijackings. Such a policy instructs drivers, in most situations, not to stop their vehicles if someone is attempting to get them to do so. Even at low speeds, large trucks are difficult to stop if the driver is intent on not stopping.

Timing of deliveries. Most of the violence, looting and rioting has happened at night, so nighttime deliveries should be avoided.

If you have regular runs, try to vary routes the drivers take in case cargo thieves are conducting surveillance on your trucks and have planned a hijacking along your known route of travel.

• •

Conduct thorough Pre-trip and Post-trip inspections to detect vehicle issues early.

Lock doors at all times.

Listen to the local news radio station.

Avoid areas where large crowds gather.

AFTER-DARK DELIVERIES • •

Park in well-lit areas away from crowds.

Nighttime breaks should be taken at well-lit truck stops with on-site security and video surveillance.

IF DRIVER ENCOUNTERS A CROWD •

•

Open windows half an inch. Windows that are down approximately half an inch are actually harder to break than windows that are tightly closed.

Turn off the ventilation system so any smoke or tear gas that is in the air is not

CONSULTANTS

SAFETY

•

•

• •

pulled into the vehicle.

Make sure recording devices are on. Recorded events could assist the police if anything happens to the driver or truck.

Don’t leave the cab. Assess the situation before leaving the cab and abort the delivery if it’s too dangerous. Doors and windows should remain locked.

Remove keys from unattended vehicles.

Call the police if drivers see an emergency situation.

FACILITY SECURITY During this time of unrest, we must also be mindful of site security. The GAWDA Safety Committee’s Facility Securement is available in the MembersOnly Section on GAWDA.org. I would suggest that you include a site security review walk around on regular basis.

If you have any questions about either of these subjects or would like assistance building a Facility security plan, please feel free to contact me.

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MEMBER BENEFIT

CGA & GAWDA Co-Sponsor Groundbreaking 2020 Young & Emerging Professionals Summit

BY RICH GOTTWALD, CGA PRESIDENT & CEO

K

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

nowledge management and succession planning are both vital to the continued growth and success of our industry. According to data from the Bureau of Labor Statistics, more than one-third of the U.S. science and engineering labor force will turn over in the next 10 years. Coupled with economic growth, that retirement rate is projected to create more than 511,000 job openings in science and engineering fields. While the gases industry represents a small portion of the national figure, those statistics hold true for Compressed Gas Association (CGA) committee participants, as well as our industry at large.

As Hector Villarreal, President of Weldcoa, points out, “It’s estimated that 10,000 Baby Boomers are now turning 65 each day. By the year 2030, the entire Baby Boom generation will be 65 or older. While we may have experienced brain drain in our industry before, it’s now accelerated.

We have all these knowledgeable people in senior positions, with many years of experience, who are walking out the door, and they’re taking their expertise with them. It’s essential that we find ways to address and prevent this knowledge loss.”

CGA & GAWDA PARTNER TO ADDRESS KNOWLEDGE LOSS THROUGH TRAINING As an industry, we are fortunate to have many well-documented safety standards and guidelines. However, it is critical that the next generation have the opportunity to learn why those requirements were implemented. One of the most valuable assets of our companies is the collective knowledge gained through trial and experience. Yet, gaps left by workers who have spent decades in the profession are increasingly 24 • Fall 2020

difficult to fill. Transitioning this knowledge must be a priority for all of us in the industry.

With that goal in mind, CGA and GAWDA partnered together to co-host an innovative virtual training series: the 2020 Young & Emerging Professionals Summit. This groundbreaking series of online events is designed to provide unparalleled learning opportunities for the compressed gas industry’s next generation of great safety thinkers and leaders. Sponsored by Weldcoa, the Summit consists of 10 webinars offered from mid-August through the end of September, and is free for all qualifying participants.

Individual webinars cover an exceptional lineup of educational topics, including: cylinder filling; oxygen safety; cylinder valves, pressure relief devices (PRDs), regulators, and connections; hydrogen; container filling (cryogenic liquefied gases); carbon dioxide; air separation unit pumps and compressors; and cylinder and valve failure analysis. These sessions focus on communicating the reasons for requirements in today’s safety standards, including lessons learned through incidents, near misses, and the personal experiences of speakers and panelists.

Each session features an hour-long presentation, followed by a moderated panel and open question and answer session with 3 to 4 subject matter experts.

The Summit will close out with a final session on how new participants can gain the most from their participation in CGA and GAWDA. The session will feature a joint presentation from Rich Gottwald, CGA President & CEO, and John Ospina, GAWDA Executive Director. Following the presentation, a panel discussion will be held with young professionals from both CGA and

MEMBER BENEFIT GAWDA who will provide insights on their experiences with participation in both associations as well as their thoughts on what the industry can do to attract and retain young professionals in the near future.

Summit attendance is limited to young and emerging professionals who work for member companies in good standing with CGA or GAWDA (in order to register through GAWDA, an individual’s company must participate in the CGA publications subscription program.)

Young and emerging professionals are defined as those aged 45 years or younger, OR someone who is new to their area of industry operations.

As of late August, 650 emerging safety leaders from 90 companies across CGA’s and GAWDA’s membership had signed up to participate in the Summit.

SESSION ONE HIGHLIGHTS STRATEGIES TO COMBAT KNOWLEDGE LOSS On August 18, the Summit got off to a great start with Session one: “Succession P l a n n i n g – Key C o nve r s a t i o n s , Combating Knowledge Loss, and Preparing for Advancement” with Dr. David Delong of Smart Workforce Strategies. Dr. Delong’s keynote presentation was followed by a panel discussion with seasoned industry experts Jack Finn (FIBA Technologies), Richard Pawulski (Air Liquide), Kelvin Dixon (Matheson), and Allison Earlbeck (Earlbeck Gases & Technologies), with Hector Villarreal serving as moderator.

During his keynote, Dr. Delong emphasized that overcoming generational differences can provide a source of competitive advantage.

He reviewed a number of critical knowledge transfer issues including succession planning, sustaining capabilities, tribal knowledge, historical/incident knowledge, and routine operations and customer knowledge. While present across many sectors, Dr. Delong suggested that the cost of critical knowledge loss poses a significant challenge to the compressed gases industry.

Finally, he shared three questions that can be asked to support a learning culture: • Play: What did you learn this week?

• Purpose: What impact did you have?

• Potential: What do you want to learn next week?

During the panel discussion, participants were asked to share their thoughts and suggested approaches regarding a number of issues, including:

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MEMBER BENEFIT How is your company addressing training and development for your employees?

• How do we attract a more diverse workforce to our industry, including more women and minorities?

• What career development planning advice would you give to those seeking a more technical path to help them focus on what’s most important?

In response to the last question, one panelist said, “Innovation can come from the most surprising places. Nobody owns the patent on great ideas. You never know where they’re going to come from.

You give someone a little freedom and the reward you get from that can be exceptional. I would suggest to younger people, don’t build your own walls, the world will do that for you. Go out, chase your passion, do what you’re good at, and see what happens.”

•

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SESSION TWO FOCUSES ON THE SAFE OPERATION OF ASU PUMPS & COMPRESSORS

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On August 25, we held Session two, “Air Separation Unit (ASU) Pumps and Compressors,” with long time industry safety expert John Bernard as speaker.

Panelists included John Bernard (CGA consultant), Dr. John Somavarapu (Air Liquide), and Patrick Smith (Air Products and Chemicals), with Anu George (Air Liquide) serving as moderator.

John Bernard, an expert with more than 40 years of industry experience, provided attendees with an overview of requirements for the safe operation of liquid oxygen pumps and compressors in ASUs. He advised listeners that with the evolution of liquid oxygen pump design and configuration leading to higher pressures and higher flows, liquid oxygen pump safe operation needs to be

MEMBER BENEFIT a complete package of design, material selection, operation, and maintenance.

Yet, despite multiple precautions, hazards can still exist.

Regarding ASU compressors, Bernard acknowledged that oxygen compressor fires can occur, making it critical to understand potential causes, common factors in compressor fires, factors that can influence the ignition and severity of fires, and, most importantly, key practices for the safe operation of ASU compressors.

At the end of the panel discussion, panelists were asked “What is one thing you wish you had known when you were new to ASU operations?” One panelist advised, “Learn as much as you can by reading books and safety standards, listening to people that have been around a long time, and participating as much as you can in field activities. I really do think you learn a lot more being out in the field than you do being in the office.” Another panelist said the one thing they wished they had known was, “How the smallest thing can make a system unsafe.”

Session three panelists included Kevin Klotz and Don Renner (Weldcoa), John Willenbrock (CGA), Terran Bergdale (A-OX Welding Supply Company), and Rob Stauder (Linde), with Zachary Fowler (Praxair Distribution, a member of Linde) serving as session moderator.

When asked, “What are your best practices for training new employees on the fill process?” One panelist said they operate by the motto, “See one, do one, teach one,” meaning that they’ll train a new employee until the trainee masters the new procedure to the point that they can teach it to the instructor.

In addition, panelists were asked, “How has new technology changed the way the industry manages safety and risk?” One panelist responded,

“The increased use of engineered solutions built-in to the filling systems and alarms, as well as the use of atmospheric monitors in filling areas, have led to better management of risk and increased safety.” Another panelist added, “The use of residual pressure valves (RPVs) to assist in making sure the cylinder is not contaminated during fill and methodologies to keep a cylinder’s temperature down, such as using water baths, have also improved safety.”

The CGA & GAWDA 2020 Young & Emerging Professionals Summit ran through September 29. Registration closes two days before each event date.

For more information and a full calendar of Summit sessions, see https://bit. ly/2020YPSummit.

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MEMBER PROFILE

AN OWNERSHIP CULTURE How Oxygen Service’s ownership mindset has enabled it to thrive for more than 60 years

BY STEVE GUGLIELMO

O

xygen Service Company was founded in 1959 as Wagner Welding. The company was founded by a group of owners including Bill Lund and Bill Huber. In 1965, the ownership group decided to go their separate ways with Lund and Huber taking full ownership of the company and rebranding it as Oxygen Service Company.

More than 60 years later, the foundational tenets that Lund and Huber put in place still carry through today.

“I think the philosophy that our original owners had has carried through the 60 years of being in business,” says Ryan Diekow, President and CEO of Oxygen Service Co. “And that’s doing our absolute best to service our customers and running an ethical business. It is great how those values have stayed in place the entire time that we have been in business.”

28 • Fall 2020

CULTURE Culture is paramount at Oxygen Service Co. It’s a company that prides itself not only on the amount of business it does, but also on the way it conducts its business.

“From the beginning, there has been a commitment to customer service, and I think they (Bill and Bill) were willing to do things that other companies weren’t willing to do at the time,” says Diekow.

“Whether it was carrying inventory in house, making deliveries on weekends, putting deliveries in their own vehicles and delivering it themselves. It’s truly been a commitment to the customer.”

The company continues to operate according to its “Five Core Values.”

These values include: 1. Get Stuff Done or GSD 2. Be Professional and Respectful. This applies not only to customers and suppliers but also internally among fellow staff.

3. Be Customer Focused 4. Do the Right Thing 5. Have a Positive Attitude “A number of years ago, we went through an exercise and determined what our core values are,” says Diekow. “It

was a great exercise. The entire leadership team selected a group of our best employees that we felt truly exemplified the type of company we are. Then we tried to figure out what the commonalities were between those employees.”

He continues, “Our Core Values are not in place simply to check the box that says we have them. It is who we are as a company. Those five things are truly the backbone of Oxygen Service Company.”

For years, while not codified, Huber and Lund cultivated that culture within the company.

“We don’t just say it, we live it,” Diekow says. “It’s a very family-oriented feel. That’s very much who we are.

We do things socially in order to make sure that we have those strong bonds with people. And that’s not only among employees, but also their families. I think some larger corporations lose sight of that. We don’t ever want our people to feel like a number. I tell our employees all the time, ‘Without our people, we are just four walls. It’s the people that make us special.’”

Because maintaining that culture that Fall 2020 • 29

MEMBER PROFILE

has been so carefully cultivated is so important, Oxygen Service often takes longer to hire than is typical. They want to make sure that any new hire will fit in well with the team and within the culture.

“I think sometimes that actually frustrates some candidates,” says Diekow.

“We are slow to hire. We want to make sure, through multiple interviews, that these people truly are a fit and not just telling us what they think we want to hear. Our turnover rate is extremely low.

Most people, when they come to Oxygen Service, retire from Oxygen Service.”

Another way that the company has found success in recruiting “the right fit” is by leaning on its employees for referrals.

“Many of our really good employees come from referrals and relationships that we have in the industry,” Diekow says. “If you work somewhere, you’re not going to refer somebody else to work there unless you think it will be a fit.

Both for the employer and the employee.

Your reputation is on the line.”

ESOP With such a strong culture in place, having been cultivated over decades by the original owners, it is perhaps not a 30 • Fall 2020

surprise that when Lund and Huber began approaching retirement age they decided to sell the company to its employees, rather than be acquired.

“When Bill and Bill got to retirement age, they had a couple of different options,” Diekow says. “They could sell the business to a multi-national public company and get top dollar. Or, they could reward the people who helped build Oxygen Service into the company it became and form an ESOP. They most likely sacrificed a bit of potential profit by selling to the employees. But, for them, it was a natural progression.

They wanted to give back to the people who had helped them build a successful business and had made them financially successful.”

Oxygen Service Company officially became a 100% employee-owned company in 1993. While Bill Huber has since passed away, Bill Lund still comes into the office at least once per month.

“Bill Lund hasn’t owned the company in 27 years, but he still comes into the office just to say hello,” says Diekow. “He likes to be a part of the business. He’s 88 years old and he’ll still call me up and give me sales leads. This industry and this company are in his blood.”

For Oxygen Service Company, becoming an ESOP was a watershed moment in the company’s history.

“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 customer.

We believe that employees are not 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.”

But maintaining a successful ESOP is not as easy as set it and forget it. It requires a lot of work and TLC. The Internet is littered with stories of ESOPs that ended badly. Diekow and the team at Oxygen Service Company are steadfast in their commitment to not become another statistic.

“I think having ethical leadership is a key reason why we have been successful,” says Diekow. “Our team has a servant leadership mentality. Where everyone truly wants what is best for their fellow employees and for the company. There’s a thought process that if you’re always doing what is best for the company, that it will also be what is best for you as well.”

Another reason why Oxygen Service Company has found success is by working with a group of outside advisors.

“I think that working with highly-competent advisors is important,” Diekow says. “Those aren’t always the cheapest people to work with. But they do help keep you on the right path. When you’re at a crossroad, they’re the ones who might say, ‘Let’s go this direction.’ I think that’s been helpful.”

Finally, Diekow credits the company’s success as an ESOP to a devotion to continuous improvement.

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game,” he says. “We run our ESOP the same way that we run our company. We don’t sit back on our laurels and say, ‘We’ve always been successful, so we’re always going to be successful.’ We’re continuously pushing the envelope and saying, ‘What can we learn? How can we do it different or better?’ I think because we constantly challenge ourselves to say how can we improve this process, it helps us to do it better.”

For Oxygen Service Company, the proof is in the pudding. The company has won multiple awards for success in running its ESOP. In 2019, it was named the ESOP Company of the Year by the MN/Dakotas ESOP Chapter and also won a national award for Communication Excellence Regarding ESOPs.

GROWTH Diekow joined Oxygen Service Company in 1997 as a Cylinder Painter.

Over the next 20+ years, he has worked his way through the company, eventually becoming President in 2016 and CEO one year later.

“I think that having worked my way up helps me identify with our employees better,” says Diekow. “When I go out and talk to somebody in the plant and they are having a bad day, I can empathize with them because I’ve been there. When people know you’ve been in their shoes, I think it goes a long way.”

He describes his leadership style as “Follow Me.” “I heard once from another leader that the two most important words in 32 • Fall 2020

leadership are ‘follow me,’” he says.

“I’ve always taken that on myself. I’m not going to ask somebody to do something that either I’m not willing to do myself or that I haven’t done myself. I think, unfortunately, there are leaders out there that aren’t willing to do some of the dirty jobs. I think it goes a long way with people to know I’ve been there and done it.”

Diekow’s tenure as President and CEO has been marked with a robust growth in the company’s footprint and offerings. Today, Oxygen Service has 115 employees and five locations, four of which are retail locations and one automation center. Three of those locations have opened in the last five years.

“We have been growing strategically,” says Diekow. “That’s one thing we’ve discussed with the team is that we never want to do anything by default. We want to make these decisions by design.”

In addition to expanding its footprint, Oxygen Service Company has also been focused on becoming more of a “solutions provider.”

“It seems like in the last ten years customers have gone down one of two paths,” says Diekow. “There are customers who are looking for more of a strictly transactional relationship. And there are those who are looking for a solutions-based relationship. We tend to lean more toward the solutions side.

GOING FORWARD In a post-COVID world, companies like Oxygen Service Company are

poised to thrive. Those companies with strong cultures, self-motivated staff and relationships with the strongest suppliers in the industry will be able to hit the ground running when things “go back to normal.” And Oxygen Service Company has those in spades. It has relationships with top suppliers including: Miller/ITW, Hypertherm, Praxair and ESAB, as well as regional exclusive relationships with Fronius, Exocor, ABB and ALM. Diekow and the team worked tirelessly to ensure that the team didn’t lose a step during the pandemic.

“The strength of our leadership team really has shown through,” says Diekow.

“We have six people with can-do attitudes.

We said we were going to figure it out.

And I think, to be honest, we are going to come out of this stronger than when we went in. We pulled together as a company, rather than split apart. We sent out an email every single day to the entire company explaining what was going on.

Reiterating that our staff was important and how much we appreciated them. And when we started to come through it, our employees said that they appreciated the constant communication. We wanted to make sure that we kept in contact with them and kept people feeling they were still a part of something. And I think it helped.”

With a group of employee-owners as dedicated as the current staff at Oxygen Service, the company is poised to make the next 60 years even more successful than the first.

Y E A RS O F

Serving During a Milestone Anniversary GAWDA’s Executive Committee reflects on where the association has been and where it is heading

BY STEVE GUGLIELMO, JOHN OSPINA, ABYDEE BUTLER MOORE, BOB EWING, GARY HALTER AND ROBERT ANDERS

W

e have spent 2020 celebrating GAWDA’s 75th Anniversary. We have shared fun memories, reflected on GAWDA’s founding, its road to independence and everything in between. But 75 years is not the end of GAWDA’s story. Not by a long shot. As we near the end of 2020, we asked GAWDA’s current President Abydee Butler Moore, Executive Director John Ospina, and the next three presidents in line, to answer some questions about GAWDA’s history and what they expect to see as we continue our march forward. We thank John, Abydee, Bob, Gary and Robert for their help in putting together these thoughtful answers and look forward to continuing to work with you to make GAWDA an indispensable resource for all members.

Welding & Gases Today: What do you feel has been GAWDA’s legacy over the first 75 years of its existence? How has GAWDA made a tangible improvement on the gases and welding industry?

ABYDEE BUTLER MOORE: GAWDA is a networking powerhouse. We have gotten really good at throwing value-adding, content-rich, trade show conventions. This focus on networking and business relationship-building has left us with an industry that is a family. When people travel and learn together, they bond. GAWDA has bonded the industry.

34 • Fall 2020

BOB EWING: GAWDA makes its members stronger, more resilient. That is our primary legacy. Despite all the huge changes in our industry, we’re still standing! We have seen a lot of disruption - consolidation, technology adoption, new business models, even a pandemic. But, we continue to thrive. Trees grow in stands for a reason. That is why GAWDA is so valuable – it’s tough to grow a business alone. I also think our association has helped its members operate safely, which is one of the key reasons our industry has such a good reputation in the communities we serve. It’s like every member of GAWDA, regardless of size, has a safety director, a quality director, a lobbyist, and an attorney.

That’s a lot of value contributing the strength of our respective businesses.

GARY HALTER: Without GAWDA, there would be no standardization, no industry-wide accepted “Best Business Practices.” Because GAWDA has brought educational programs to its membership, all members, regardless of size can maximize profits, minimize risks, and run their businesses as efficiently as any member company. When I first started in this industry, there was much less “sharing.” Some companies felt that if they shared their “secret sauce,” their competitors might overtake them. But GAWDA has proven that the more our member companies practice smarter tactics, the entire industry benefits.

ROBERT ANDERS: When I came into the industry, in 1984, we were the NWSA and there were many more independents in the U.S than there are today. I quickly learned that, although there was spirited competition between the companies, there was also a strong sense of shared benefit for each of us to operate safely and reputably. NWSA then and now GAWDA now have provided the mechanism for distributors to share best practices and explore solutions to the mutual challenges we all face on a daily basis. This organization has always been about its members - that’s why it has remained an integral part of our industry.

JOHN OSPINA: From the beginning, GAWDA has been working to strengthen relationships between fellow distributors as well as between distributors and suppliers. Together, the members have evolved these relationships to proactively discuss and address changes affecting things like

C E L E B R AT I N G

75 YEARS

1945-2020

supply chain issues, inventory management, transportation, education, succession planning, consolidations, safety and best practices, expanding regulations and much more. These relationships have helped guide many member companies to expand and strengthen their businesses over the past 75 years. continued on next page

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Y E A RS O F Abydee Butler Moore speaking about her 2020 Vision at the 2019 Annual Convention.

WGT: What does it mean to you to be on the Board of Directors as GAWDA celebrates this milestone anniversary?

ABM: I am honored to serve this Association that has meant so much to our family and our business. This has been a humbling year – not quite the 2020 VISION I imagined when I addressed the group in Washington, D.C., in fall 2019. Helping steer the GAWDA ship this year has tested our creativity and adaptability. The skills we learned and resources we deployed this year will bear fruit in the industry hopefully for years to come. That should be what Anniversary milestones are all about – if you always do what you’ve always done, you’ll always get what you’ve always gotten.

BE: It’s an honor to serve on the board. So very many folks in this industry have provided help and guidance through the years, and this is a meaningful way to show my appreciation for that. We have great volunteers that help the association in many ways. It’s so much fun to work with them and learn from them. It’s awesome to reflect on what those before us have built, and you naturally feel a great sense of accountability to keep it going.

GH: First of all, it is a true honor to be associated with such an outstanding organization. This is a unique organization - we all truly care about our industry, our vendors, our customers and other independent distributors and the continued success of everyone. 75 years is a milestone that many organizations never see, and I am glad to be a small part of its longevity and success.

36 • Fall 2020

Gary Halter networking at the 2019 Annual Convention Presidents Welcome Reception.

RA: When I think back on my 36 years in the industry, and all of the icons that served on the board of directors, I am totally humbled. I would hope that they would look upon the organization that they built with pride and I feel a deep sense of responsibility to do my part to maintain their legacy of service.

JO: As Executive Director for the past 10 years, I’ve been fortunate and privileged to have served under so many amazing GAWDA leaders. As the next generation of leaders come in, I can see huge potential for GAWDA to embrace change, grow, and provide more value to our members.

WGT: As GAWDA enters its next 75 years, how do you see the association evolving to continue to serve a rapidly changing industry?

ABM: This year, we embarked upon a critical strategic mission with CGA: Young and Emerging Professional Development. With more than 650 registered attendees for the inaugural YP Summit, the outcry of need is evident. I see GAWDA continuing to evolve in training and engaging the next generation. GAWDA being a volunteer-centric Association helps this work in our favor – it is as simple as getting more young people involved and continuing to collaborate with our sister Associations industry-wide.

BE: 75 years is an impressive milestone, but it won’t be the last one we reach by a long shot! Hard to say exactly what the future holds, but I know our association is really good at

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Y E A RS O F listening to our members and adapting to continue to add value.

We are also learning some new tricks during this pandemic – delivering digital content and virtual meetings. It’s exciting to see us reach a broader audience of folks that might not otherwise be able to attend an in-person meeting. So, I think you will see more of that. And, of course, we need to keep doing what we do well, engaging the best consultants in our industry, disseminating timely and useful information, and hosting meetings that are packed with take-home business content and fun networking opportunities.

GH: GAWDA will have an important role in keeping its member companies on the “Edge of Change.” For example, with COVID-19, our retail store hardgoods sales dropped somewhat initially. However, our online sales jumped significantly, showing the flexibility of our industry! Is THIS the “new normal” or is it just a “blip?” GAWDA has access to the data to spot trends vs. fads. For example: one large Indiana Bank is going to be closing 125 of its bank branches over the next 18 months. Why? Because all those senior citizens who didn’t want to do “online banking” and preferred to bank with a teller, found out during COVID-19 that online banking isn’t that hard after all! Bank branch walk-ins are down and may stay down.

Will that be the path for the welding supply stores? GAWDA is the best clearing house for data to interpret these changes.

RA: Most of the core issues distributors’ face haven’t changed in 75 years. How do you recruit, train, and retain talented people? How do you bring value to the marketplace to maximize customer retention? How do you stay on top of the ever-changing regulatory environment? How do you manage your finances to ensure healthy cash flow? What is changing is how we gather the data to provide real tangible answers to these questions and how do we disseminate that information to our membership. We need to embrace the technology available today but guard against the temptation to take the personal interaction that is so vital to our organization out of the equation.

JO: As the age of electronic communications and the introduction of AI evolves, there will be huge opportunities for further collaboration between members. We can all see that the speed of change is increasing dramatically each year.

Without the support and collaboration between GAWDA members, you can fall behind very quickly. GAWDA will continue to evolve to keep up with member needs and provide valuable solutions for the next 75 years.

38 • Fall 2020

WGT: Because this is an election year, do you have a “campaign promise” you would like to make about your time on the GAWDA board?

ABM: Those who know me personally know I am apolitical, so the idea of a campaign promise gives me the creeps.

To be a good sport, I’ll share this, that I promise to do my best to leave our Association somehow better than I found it.

I vow to be present and to work really hard on implementing improvements that bring our members value and a return on their investment of membership.

BE: A chicken in every pot! No extravagant promises from me. I think our association is in good shape, in spite of the craziness we’ve all endured this year. Abydee, John, the GAWDA HQ staff and consultants have been amazing. True pictures of grace under pressure. I know we are all looking forward to the day that we can see each other in person. Really looking forward to that first meeting back in Nashville. In terms of my board time, I will listen closely and work hard.

Fortunately, there are smarter and more talented folks on the board, and our GAWDA staff does an incredible job, so it will be hard to fail.

GH: Due to COVID-19 and changes made within the timing of GAWDA leadership, I have five more years on the board, as 2024 is my year to become GAWDA president. I pledge to commit the necessary time to be active in the role I am currently in and to participate in activities to hopefully impact positive changes needed within GAWDA and the industry.

RA: I promise to do everything in my power not to screw up.

JO: As Executive Director, I want to affirm that the GAWDA board will continue to provide up-to-the-minute information to help members navigate through whatever changes come out of the elections and the proceeding months.

WGT: What do you feel is the biggest benefit to GAWDA membership?

ABM: GAWDA membership gives the independent distributors a network of resources collectively that we otherwise would not be able to commission or afford individually. The access to safety consultants, economists, legal counsel, online

Bob Ewing addressing the GAWDA membership at the 2018 Annual Convetnion.

training courses, equipment manufacturers, and technology suppliers, as well as to each other, is unrivaled. GAWDA makes our industry a community.

BE: Relationships, without a doubt. Good friends, mentors, business partners. In that respect, GAWDA pays back what you put into it 10 to 1.

GH: Accumulating and sharing data to keep all GAWDA members abreast of things happening in our industry at this very moment! Networking is a critical way to share and learn.

GAWDA provides the very best platform to promote networking.

RA: I think that it is the ability for our members to draw on the collective experience and knowledge of the incredible team of consultants provided by this organization. GAWDA provides the expertise and support once only possessed by the largest of distributors to all members equally.

Robert Anders receiving an award from John Ospina for his service to the board of directors of GAWDA at the 2016 Annual Convention.

GAWDA provides a great forum for the open exchange of ideas and best industry practices in an environment that is open and comfortable. I am always so impressed with how freely and enthusiastically our members help each other.

Getting to interact with some of the best people in the world is our greatest benefit.

JO: GAWDA’s biggest benefit is the strength of our member relationships and the common goal of improving the economic vitality of the industry. All of our member benefits are built with that premise in mind.

WGT: What would you like to say to GAWDA members as we enter the next 75 years?

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Fall 2020 • 39

Y E A RS O F

Celebrate in style!

SHOW YOUR GAWDA PRIDE

C E L E B R AT I N G

75 YEARS

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

Visit GAWDA.org for more information 40 • Fall 2020

ABM: Get involved and show up. GAWDA is an independent, volunteer-driven Association and we need you. Our industry has the most incredible people; bring your company’s incredible people to GAWDA. Attending GAWDA meetings and engaging in its resources enrich all of us; our industry and our companies are safer because of GAWDA. BE: Thanks for supporting your association. There will always be work to do and challenges to overcome, but it’s nice to know there are really good people in the foxhole with you.

GH: With the pandemic that the world is experiencing, change is definitely in the air and it is here to stay. If we have not been flexible and nimble in the past, we are being forced to be now. Decisions that once took months, and in some cases, years to make, we now have to make them in days and sometimes hours. With the technology we have today, and it will only continue to improve, change is constant. Success at almost anything rests upon this single principle – do the basics, do them well, and do them every day, even when you don’t feel like doing them. The owner of our company, Wally Brant, offered the following piece of advice that I wanted to pass on to membership, “To the independent distributors or vendors: “Don’t Sell the Farm!” Whether you are an owner or a top executive outside the family, there is uncommon value and pleasure in nurturing a multi-generation reputable company.

If you’re not the owner, there is tremendous gratification in mentoring the upcoming generation to ensure success for the next 25 years. There are countless examples of owners who have sold their businesses because they thought the value of the company had hit the top, only to realize that the $125K car or beach house didn’t fill the gap from the respect earned by guiding a community-leading company to greater success.”

RA: I would say, “Hold on- it’s going to be a wild ride!”

If the industry changes half as much as it did in the last 75 years, you better be ready to adapt quickly and understand that paradigm shifts will come - those that see those shifts coming and position their companies to change with the times, without compromising their core beliefs, will grow and prosper just as the forward thinking companies of the 70’s, 80’s and 90’s did.

JO: I want to encourage members to continue to get more involved in GAWDA meetings, both virtual and face-to-face.

Review all our services and see what makes sense to you depending on your company role. Get involved in our volunteer committees. Finally, continue to build your network. The more industry relationship you form, the more resources you’ll have when you need them most.

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Y E A RS O F

Members Commemorate GAWDA’s 75th Anniversary

A

ll year, we have been celebrating GAWDA’s 75th Anniversary. We have told the story of GAWDA’s Road from Dayton to today. In this issue, we asked the Executive Committee where GAWDA is heading (see page 34).

But we also wanted to give GAWDA members the opportunity to share what GAWDA has meant to the industry. See a sampling of testimonials from GAWDA members below. *Please note, some of these responses have been edited for clarity.

“I attended my first NWSA meeting when my dad was President in 1970, I was 18 years old. I remember how friendly everybody was and how willing folks were to share information about how to be more successful. Dad told me after that meeting that the people I met during that week are the finest people in the world and “GAWDA provides will always be there to help one another. a great opportunity to share Wow, how true that statement was. This ideas and best practices is an industry and association that will among industry peers,” give you back way more than you could – GARY KONARSKA, CEO, ever imagine. To the young members, AMERICAN WELDING SOCIETY you have the opportunity to make lifelong friends, so get involved! Thank you NWSA and GAWDA for all you have done for the Squibb family and Happy 75th!”

– RANDY SQUIBB, PAST PRESIDENT

42 • Fall 2020

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1945-2020

“GAWDA is a great place for like-minded industries to share and network. Congrats on 75 years!”

– KRYSTA CYR, HR MANAGER, RED BALL OXYGEN

“GAWDA has been the most important institution and support for industrial gas companies.

Congratulations to the entire GAWDA family for the 75th Anniversary. Thank you for all the great things you do in the good times and for all the support in the difficult times. Together, we will overcome every obstacle and become stronger.

We love you, GAWDA!”

“GAWDA has been very important. It’s huge for vendors to have an opportunity to interface with distributors and also other vendors to identify optimal solutions for the industry.

Also, distributors are able to learn from their peers and gain best practices to share with their customers as well.

Congratulations GAWDA on your first 75! Looking forward to celebrating many more together!”

- SAM FATOOHI, HEAD OF BUSINESS DEVELOPMENT, PULSA

- RAFAEL ARVELO, GENERAL MANAGER, EQUIGAS, INC.

Fall 2020 • 43

Y E A RS O F “I think everyone benefits from a thirdparty organizing body that works to bring everyone together to collaborate and improve our industry as a whole.

We are all better together. It is so important to learn from one another, to share ideas, and to collaborate to ensure our industry is in the best possible position to best serve our customers.”

– NATE BOYD, ENGINEERING PARTNER, CRYOVATION

“GAWDA is my link to the industry through independent distributors.

Happy 75th! Stay strong for another 75!”

– JEFF JOHNSON, VP OF SALES, ARC3 GASES

“GAWDA has provided a structure where the majority of independent distributors and suppliers can spend time with each other to understand more about opportunities, build relationships that last for many years, and offer best practices and educational offerings to assist in our business growth. From my Grandfather, to my Father working with the NWSA and for myself with serving in different roles with GAWDA - this association has been valuable and I hope that will continue to always improve for many more years to come! Thank you!”

– DOUG MORTON, VP-SALES, ELEET CRYOGENICS, INC.

44 • Fall 2020

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75 YEARS

1945-2020

“GAWDA has meant everything to the industry. The association is the central piece that brings us all together by providing information, events, and knowledge to progress our business in ways that we would never be able to do without it. Thank you and congrats on 75 years! The Horton Group and all of our customers in the industry are better because of you. We couldn’t do what we do, as effectively, without you! While I appreciate the 75th, I am really looking forward to the 76th anniversary, in hopes that we will all be able to get back together in person again. Miss you all!”

– TONY HOPKINS, VICE PRESIDENT, THE HORTON GROUP

“GAWDA has meant so much to me. It is where I have met lifelong friends and mentors.

My business would not be where it is today had it not been for my membership in GAWDA. Thank you for being the best industry association.

Here is to the next 75 years!”

“GAWDA has given the distributors support through member relations, access to vendors and guidance from consultants. GAWDA is strong only through the participation of its members. I am proud to be a part of this organization and I look forward to our next chapter.”

– MARILYN DEMPSEY, CONSULTANT, GAWDA/SAFETY DRAGONS WORKPLACE CONSULTANTS

– LLOYD ROBINSON, PRESIDENT, AWISCO

Fall 2020 • 45

The Need for a Comprehensive Digital Marketing Strategy How digital marketing has gone from a luxury to a necessity

BY STEVE GUGLIELMO

T

here is a school of thought that COVID-19 has not so much created new business trends and norms, as much as accelerated trends that were already coming. One of those trends is the importance of having a comprehensive digital strategy. With state and local governments across the country shutting down businesses and unnecessary travel, it became paramount for customers to be able to find distributors and buy goods and services online. While not universal, a very common theme among companies who were forced to shut their doors for good was that they did not have a strong and strategic plan to serve their existing customers once traditional sales methods were upended.

A Digital Strategy, for all intents and purposes, is using technology to reimagine current processes. It is multi-faceted, with many different avenues available.

But what it essentially boils down to is: can your customers find your business and, therefore, your products online? And once they do, is it easy to do business with you?

One GAWDA Member that has had massive success in the digital realm and has been selling goods online since the days of dial-up internet and eBay is Indiana Oxygen.

“The driving force behind our digital strategy is that we want to provide a platform for buyers and potential buyers

46 • Fall 2020

to interact with our business however they prefer to shop. If that’s in one of our stores, we want to provide a firstclass experience. If they prefer to buy online, we want to provide the best online experience possible,” says Justin Yoder, Chief Digital Officer at Indiana Oxygen. “However a customer may want to transact business, we want to provide the platform to do that.”

He adds, “From a digital point of view, we don’t consider ourselves only a gases and welding distributor. We consider ourselves a marketing company that happens to sell gases and welding equipment. We’re consistently working with our IT team and our sales team to ensure that we’re providing assets, materials, and experience that are consistent with our strategy.”

THE IMPORTANCE OF BEING ONLINE According to a Digital Commerce 360 Study, e-commerce sales accounted for $602 billion in 2019, a 14.9% increase over 2018. According to a separate study by ShawSpring Research, based off data from Bank of America and the U.S. Department of Commerce, in 2019, e-commerce sales accounted for 16% of all retail sales. In 2009, that number was 5.6%. The trend toward e-commerce was already well-established, long before COVID-19.

However, according to that same ShawSpring Research study, through

April 2020, e-commerce accounted for a staggering 27% of all retail sales in the United States. That equals the growth over the previous ten years in just three months of 2020.

“Our industry has been behind,” says Yoder. “It needs to have a plan to offer its existing customers online options.

And now, all of a sudden, COVID is accelerating that need. What might have been something 3-5 years away, is now 3-5 months. If your customers can’t buy products online from you, they’ll find somewhere they can.”

There is no putting the genie back in the bottle. Customers are increasingly growing accustomed to using social media and search engines to find companies and using e-commerce platforms to transact business.

“Once something happens, it doesn’t go back,” Yoder says. “I saw a graphic that said, ‘What’s driving the digital transformation in your company? A) the CEO, B) the CTO or C) COVID?’ The coronavirus pandemic has accelerated all these trends and we’re not going back to the way things were.”

GET IN THE GAME While in years past, having a strong digital presence might have been considered a luxury, today it is table stakes for getting into the game.

According to an article entitled, “How Lincoln Electric is Winning the Digital

According to a survey in the August 1 Marketing Game,” author Joshua Fischer says, “I hear all the time that ‘manufacturers can’t sell online.’ Regardless of what people mean by ‘sell,’ this statement isn’t true. The web is a new media platform.

That’s all. It’s part of a lineage of other media platforms like television and radio.

But this media platform is far more interactive and democratic. It’s an engaging virtual space where people come together to share ideas, discuss important aspects of their lives and offer help to others. If your brand isn’t in that ‘pool’ of engagement, you are going to be left behind. Don’t be left behind. Follow others leads and Lincoln Electric is a great example of a manufacturer that is ‘doing it right.’”

If your company does not have a digital presence, it is not too late to start.

But time is against you.

BE VISIBLE ONLINE The first step in developing your digital strategy is to take inventory of your existing presence.

“If potential customers are online and looking for you, make sure they can find you,” Yoder says. “Make sure your Google My Business page is set up, your hours are there, and you’ve got a picture of your branch. Make sure your house is in order. Make sure the website you put up six years ago is as current as can be. Have your hours changed? Have the names of your branch managers changed? Is someone checking the email for the ‘Contact Us’ portion of that? Just make sure that your fundamentals are good before you go out and start trying to drum up awareness, otherwise you will be sending potential customers to something that’s horribly outdated and basically turns them off right away.”

Your website will act as your salesperson, so make sure that the information is current, your product lines are listed, your contact information is up-to-date, and the aesthetic is inviting to customers.

Issue of the GAWDA Connection: 15.4% of GAWDA Members rate their company’s digital marketing strategy as Very Strong 15.4% of GAWDA Members rate their company’s digital marketing strategy as Strong 15.4% of GAWDA Members rate their company’s digital marketing strategy as Intermediate 46.2% of GAWDA Members rate their company’s digital marketing strategy as Beginner

Once your website is in order, it’s time to start driving people to it.

According to Yoder, Facebook is a great place to start a digital campaign.

“For the GAWDA membership, Facebook is going to be the lowest barrier to entry,” he says. “I think Facebook is a platform that our industry proudly still lives on. So, things like geo-targeting on Facebook are easy to set up and can be a driver. You don’t have to be an expert to set that up. Find somebody in your company who knows Facebook enough to create an account, create a page and then spend a little bit of money going after people in a geographic region where you have customers. Let them know that you are there and that you’re an option.”

Facebook makes it very easy to find a segment of people who you think should know your business. It allows you to target people based on specific criteria.

“You can say, ‘Show me everybody who works in this segment of business and lives within 25 miles of this zip code.’

Suddenly, you have a segment to target.

And you can show them an ad that says, ‘Come in to visit ABC Supply!’ That’s the easiest way to get into it,” says Yoder.

Other low-cost options for increasing your digital presence include direct email marketing campaigns promoting

things like YouTube videos, case studies, or deals and specials. Companies have been collecting email addresses for years; it’s time to put those emails lists to use.

Fischer relays a story about how he was added to Lincoln Electric’s “Sales Funnel” through an interaction at FabTech.

Visit joshuafischer.com/lincoln-electric-marketing/ to read the full article.

“A few weeks later, I received my first email,” he says. “It wasn’t a “remember us?” email or a “do you want to buy something?” email. Instead it was a teaser for a YouTube video about building an awesome looking metal shelf for your home. Clicking on the teaser took me to their YouTube Channel and played the instructional (and fun) video. The video was informative and mentioned a forum where free plans were offered for the project (community building and an ethical bribe).

I watched about half of the video, then I went to their channel and looked at all their videos. At that time there were about 50 or so videos. Their content included “How To” instructional videos about creating designs for laser cutting projects, customer testimonials and a few product introductions.”

He continues by listing a few other things that he finds Lincoln is doing well: Fall 2020 • 47

• They don’t overwhelm me. I only get emails every now and again. Not every week. The emails are typically what I’ve described, but some are introducing products or special offers.

I don’t mind them sending me special offer emails, frankly, because I like them as a brand.

• I don’t watch every video that they share, but I do skim over every email.

• They don’t push me to engage with them. As I mentioned before, I’ve never been on their Twitter or Facebook profiles. Honestly, I don’t even know if they have any. That’s not where I’d want to engage with them, and I don’t get the impression they are overly concerned about it.

• They do have a “Fabricators Forum” which I only really focused on today.

I have not signed up for that, but it’s a

great idea on their part and something I will likely check out. Building a community around your brand (especially a lively community with good people sharing great information) is a terrific way to build brand loyalty.

• If you break it down, there are only 2 important components to this marketing engagement – Email Marketing and YouTube. As I mentioned before, I haven’t spent a lot of time on their website. It’s not to say that their website isn’t important. Instead, it’s to say that a multiple channel approach to communications is important.

Like Indiana Oxygen, Lincoln Electric has a robust marketing budget.

However, email marketing and YouTube videos are very low-cost options that can lead to a great impression and drive engagement.

GIVE YOUR CUSTOMERS A WAY TO BUY ONLINE While much of Yoder’s work at Indiana Oxygen over the years has focused on driving b2c transactions, b2b has been a huge focus over the past 12 months. “You always hear the analogy of progress being equated to running a marathon. Well, we’re not. We’re in a sprint to advance our b2b platform as quickly as possible.

We’ve had a platform for customers to order products, pay bills, and check their cylinder balances, but we need to improve the look and experience with all the ecommerce capabilities they’ve come to expect over the past few years, and months. COVID has really expedited this process for us.”

“GAWDA members need to be focusing on offering their existing

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According to a survey in the August 15 Issue of the GAWDA Connection: customers this type of online experience,” he says. “Your sales team has already done the hard work and earned the business. Can you offer them an environment where they can browse the 50,000 products that they didn’t even know you carried? Can you take them from a $20,000/yr account to $30,000 simply by letting them interact with your products digitally and on their terms?”

“It’s making your customers aware that, “We’ve got this digital environment that you can live in now,’” says Yoder.

“Because now, the procurement guy is 24 and doesn’t really want to talk to an outside salesperson. That needs to be the future of a GAWDA member. Having a digital strategy is important, and giving your customers a way to buy online is paramount.”

15.4% of GAWDA Members rate their company’s digital marketing strategy as Very Strong 12.5% of GAWDA Members find Social Media Extremely Valuable to their company’s Success and find it Helps Drives Sales 12.5% of GAWDA Members find Social Media Valuable to their company’s success and find it Helps Drives Sales 62.5% of GAWDA Members find Social Media Valuable to their company’s success but find that it Does Not Help Drive Sales 12.5% of GAWDA Members find Social Media Not Valuable

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Six Reasons to Replace Your Website And six considerations when you do

BY BRIAN BLUFF, SITE-SEEKER, INC.

T Brian Bluff is the president and cofounder of Site-Seeker, Inc., an Internet marketing firm specializing in SEO, SEM, social media and web development, with a strong focus on the B2B manufacturing and distribution arena.

Together with his brother, Eddie Bluff, vice president of key accounts, Brian has grown the company into a successful source of search engine and social media marketing solutions.

50 • Fall 2020

he other day, I unpacked a box from storage and came across four old iPhones.

I replaced them because the batteries stopped holding a charge, they started running slow, and because I really wanted a better camera and larger screen size.

The decision to upgrade my phone was relatively easy; but what about the decision to replace a website?

Below are six reasons why you should replace your website.

1. It’s over three years old. As a general rule, a website should be replaced every three years. In that time, the technology available to give your customers and prospects a good user experience will have changed enough to make it possible for the investment to quickly payoff.

2. It provides poor mobile experience. While your website might pass Google’s Mobile Friendly website test (check by visiting https://search.google.com/test/mobile-friendly), the mobile version still could be difficult to navigate and lousy at converting mobile visitors into leads or customers. If it is, it’s time to go.

3. Your website is slow. Today, we expect websites to operate at lightning speed. When they don’t, we show our disappointment with a click of our mouse to leave. Google knows this and has incorporated speed as a primary element of its ranking algorithm.

4. It doesn’t convert. When you can’t remember the last time your website generated a good lead or sale, it is time to take action.

The cause of this is usually one of two things. Your website either doesn’t get any

traffic or it’s not configured to convert visitors into prospects or customers.

A lack of traffic could be due to poor technical or content SEO, a lack of an effective advertising program, or low brand awareness.

A poor conversion rate could be due to the site’s navigational structure, inadequate content, or ineffective calls to action.

Any of these issues, if not easily fixable, would be reason enough to replace your website.

5. Your brand message or look have changed.

6. Your site looks old. This is no different than when your store starts to show its age, or your conference room is outfitted with furniture from 1950. It’s time for a facelift. Out with the old, in with the new.

SIX CONSIDERATIONS FOR YOUR NEW WEBSITE Building a new website can change the trajectory of your business for the next several years.

Therefore, it is important that you get it right.

But, unless you build websites for a living, you can’t be familiar enough with all the options to make the best decisions. After nearly 20 years in the digital marketing business and building hundreds of websites, here are my top six items to consider when scoping out a website project.

1. Decide on your primary message. What message do you want visitors to take away from a visit to your website? Most likely the answer is what you do and who you do it for.

Although controversial as to their impact on conversion rate, large banner images (or rotating banners) are the current standard for sending that message.

SALES & MARKETING

PRACTICAL ADVICE DURING UNCERTAIN TIMES

2. Design great navigation bars. How can you make it extremely easy for prospects to find what they are looking for?

With the popularity of long scrolling pages and an increasing amount of content on websites, a traditional top navigation menu doesn’t provide enough information to facilitate a good user experience.

Mega menus, or larger more informative menus that expand from a top navigation bar, can help simplify your site’s navigation. The photo above is an example of one

we developed for a client, Excel Dryer (manufacturer of the XLERATOR hand dryer.)

You should also consider making your top navigation bar sticky, so that it remains pinned to the top of a browser window as visitors scroll down a page.

3. Include useful tools. What tools can you offer to make buying from you an easier decision? While every situation is unique, cost savings calculators are effective as are product quote tools or configurators.

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Two great examples from clients we work with are Excel Dryer’s paper towel vs. hand dryer cost savings calculator (https://www.exceldryer.com/calculator-dial/) and WireCrafters request a quote tool (https://www. wirecrafters.com/products/request-a-quote/).

4. Define content functionality. How often will you change the information on your website?

This is important to know because while virtually any content manipulation or display functionality is possible from a coding standpoint, making something a requirement limits your technology choices and adds to the cost of the project.

Control your impulse to add a content bell or whistle unless that feature will be used often enough to justify the expense.

I recently worked with a client to develop a very tight website requirements document. By the time we were done “dreaming,” the project price had grown to the point that we couldn’t see a path to recover the costs of the project in a reasonable period.

This made us take a second pass at the requirements document and we were able to cut 33% out of the project cost.

As an example, we eliminated the development of back end functionality, which would have automated the way content was replicated on different parts of the website. While this tool would have saved labor over time, the content on the front end of the website was not planned to change with enough frequency to justify the development cost.

5. Add multiple conversion paths. How do your visitors want to connect with you? Sometimes a form is fine, but when time is of the essence, or your visitors are using a mobile device, a phone number or live chat tool are better options.

For phone numbers, a best practice is to use a call tracking solution that allows you to dynamically change the phone number that appears on your website depending on how the visitor found you. This allows data to be recorded in Google Analytics so that you can associate value to individual marketing tactics.

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I would argue that in many cases the appearance and functionality of your website are more important than that of your office.

6. Add great content. How can you best demonstrate the advantages of your product or service?

Ideally, your website should contain content sufficient to answer the questions prospects have as they move through their buying process - identification of a problem, search for solutions, evaluate options and buy (and rebuy).

Many of those questions can be answered in blog articles, case studies and testimonials.

Product/service pages are great for descriptions, specifications, install/use manuals, and other related documentation.

Too many companies fall short of delivering great content when they skimp on the use of high-quality images and video.

Suppliers would be well served to make product descriptions, data, images, and video available to channel partners.

Distributors should focus on creating content that demonstrates their value added - service and expertise. Application, installation and repair videos and images are great here.

SUMMARY Developing a website is a long process. In addition to the outsourced labor cost, it requires an internal commitment for the company to support the project by developing content or applying its knowledge of the industry to shape a site that will be seen as valuable to visitors.

In this article, we’ve talked about why and when you should replace your website, and the items you should consider when you do.

While many business owners head into the office five or more days per week, they can go weeks or months without visiting their company website. These folks are sure to notice any peeling paint, or a stray cigarette butt outside the entrance to their store or facility, but the chances of them noticing a broken website link or difficult to navigate form are minimal.

Today, though, I would argue that in many cases the appearance and functionality of your website are more important than that of your office.

It is time to expand your area of focus to include your website and apply your high standards to the online experience you provide customers and prospects.

Doing this will pay off in a big way!

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Fall 2020 • 53

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Use the Online GAWDA Buyers Guide to Help Find Social Media Content The guide is rich with supplier content including articles, videos, classifieds and more

T

he theme of this issue of Welding & Gases Today is the Sales and Marketing issue. In this issue, we have articles from digital marketing experts, sales consultants and GAWDA members who have all found success blending their traditional and digital marketing operations.

The largest barrier for entry among companies developing a social media and digital marketing campaign is finding the time to craft and promote content. The Online GAWDA Buyers Guide can be a great resource for those members.

Every active GAWDA Supplier has a presence on the Buyers Guide. The most active Suppliers utilize the Buyers Guide to craft their message in many ways. Distributors who work with those Suppliers are encouraged to share that relevant content with their customers.

54 • Fall 2020

ARTICLES The Online Buyers Guide features articles from GAWDA Suppliers covering topics such as new products, new services, awards, new hires, retirements and much more that would be perfect for sharing on social media. Each article has a built-in button that allows users to share the posts directly to their Facebook or Twitter feeds from the page.

EVENTS The Events section of the Buyers Guide is where Suppliers can publish upcoming trainings, open house events, member appreciation events and much more. Share this information with your customers to keep them in the loop on all of the most up-to-date information in our industry.

SALES & MARKETING

PRACTICAL ADVICE DURING UNCERTAIN TIMES

LISTINGS Each GAWDA Supplier has a listing on the Buyers Guide. The listing is the central hub for information from that member. If you would like to share information from a specific Supplier, search for that company on buyersguide.gawdamedia.com. The listing includes: Articles published by the company on topics such as new products, new solutions, awards, new hires and more.

Used equipment and deals offered by suppliers Upcoming events hosted by suppliers Embedded social media feeds that can be liked and shared directly from the listing Videos, including new product releases, demonstrations and training videos that can be viewed and shared directly from the Buyers Guide Much more

All of this and much, much more when you visit: buyersguide.gawdamedia.com

ISSUE ARCHIVE Was there an article in a recent issue of Welding & Gases Today that you would like to share with your customers? Was your company featured in the magazine? Make sure your customers have a chance to read your article.

The entire archive of WGT can be found on the Buyers Guide. Read the digital issue of the full magazines all in one place and share to specific pages through your social media feeds.

Fall 2020 • 55

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SEARCH ENGINE TRENDS

I

n the 4th Quarter 2019 issue of Welding & Gases Today, we debuted a new feature called “Search Engine Trends for the Gases & Welding Industry.” This feature is designed to help readers understand the terms and searches that are ranking highly in Google Trends.

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

for the Gases & Welding Industry

BY STEVE GUGLIELMO

the given region and time-period. So, a value of 100 is the peak popularity for the term.

Another alternative is “Google Keyword Planner.” To use this tool, you must have a Google Ads account. The Keyword Planner lets you search keywords and suggests other words or phrases related to your products and services. It lets you research the trend information for how often certain words are searched and how those searches have changed over time and also gives you suggested bid estimates for each keyword so you can determine your advertising budget.

In today’s digital environment, we strongly encourage members to capitalize on this growing trend and ensure that your company is visible in the place where people search the most.

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TOP RELATED SEARCH QUERIES • Average Search Volume has increased 16.7% YoY • Average Search Volume has increased 350% over the past 5 years

56 • Fall 2020

1.

2.

3.

4.

5.

Welding jobs near me Welding jobs Jobs near me Welding supply near me Welding Supply

SALES & MARKETING

PRACTICAL ADVICE DURING UNCERTAIN TIMES

E-COMMERCE

• Average Search Volume has increased 23.9% YoY • Average Search Volume has increased 26% over the past 5 years

TOP RELATED SEARCH QUERIES 1.

2.

3.

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OXYGEN CYLINDER

• Average Search Volume has increased 17.9% YoY • Average Search Volume has increased 4.1% over the past 5 years

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2.

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PLASMA CUTTING

• Average Search Volume has increased 35.6% YoY • Average Search Volume has increased 9.9% over the last 5 years

TOP RELATED SEARCH QUERIES 1.

2.

3.

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Plasma cutter CNC plasma cutter Plasma cutting table Plasma table Plasma cutting machine Fall 2020 • 57

SALES & MARKETING

PRACTICAL ADVICE DURING UNCERTAIN TIMES

Selling on the Phone in the “New Normal”

BY JAY SPIELVOGEL, VENATOR SALES GROUP, LLC

“I

Jay Spielvogel is CEO of Venator Sales Group, a sales consulting and training firm specializing in boosting Welding and Gas distribution sales performance.

Contact him at: Jay@venatorsalesgroup. com.

58 • Fall 2020

am a face-to-face type of salesperson” “I don’t do well on the phone vs. physically meeting with people” “I like to press the flesh and sell in-person” Sound familiar?

These are common responses to management when salespeople are asked why they fail to leverage the phone for selling. As a response to virtual selling during the pandemic, webinars and articles abound, presenting tips and tricks for even the most seasoned salespeople on how to sell in the virtual world. “Be energetic; ask how they are impacted by COVID; use video when engaging and clean up before getting on the call.” This is all great advice, but are we ignoring a deeper issue?

Selling over the phone requires a comfort level with asking questions, listening actively, and, most of all, engaging in honest dialogue. Compare this to the face-to-face meeting, where the salesperson is a guest walking around the operational facility, asking technical questions, gathering information, and presenting. There is a safety-net provided by the walk-in visit that disappears when a salesperson is forced to fully engage on the phone without all the props and distractions.

In spite of an incredible amount of investment in sales training, most salespeople are still defaulting to their old habits, where they schedule a site visit to collect technical needs, bring their subject matter experts in to educate on solutions, and present proposals. This common sales approach lacks any qualification steps, including drilling down into the business drivers, inquiring about, and getting access to, key stakeholders, clarifying budget allocation process and remediating roadblocks.

HAS THE PANDEMIC CAUSED A NEW ISSUE OR SIMPLY EXPOSED AN EXISTING ONE? The answer to this question becomes obvious when reviewing opportunities that were carried into 2020 from the prior year. If you dig deep into the deals that were “stalled by COVID,” the stark reality is that most were in distress for months prior to the onset of the pandemic. Before the shutdown, the “business tide” was so high that there was no time or need to dig deep past the dollar value and close dates for each opportunity.

Now that business has slowed down, sales managers across the globe are beginning to look at the opportunity pipeline with a more observant eye for what is real and what is wishful thinking. It is only now that we are seeing these deep-rooted pre-pandemic issues, including a total lack of alignment with the real decision makers, next steps, budget, and timeline.

Since the phone is a much less forgiving medium, and less comfortable than face-to-face selling, we need to retrain even the most seasoned relationship sellers on how to engage at a deeper level. Most salespeople see themselves as engaging when they are simply educating, presenting, and proposing. However, there must be a deeper connection with the prospect. Juxtapose this with the way VP or C-level team members approach selling when asked to join a salesperson on a call.

For the most part, they are not detail-oriented and are not to be relied upon for the proposal and pricing follow-up. What they are good at is engaging with prospects, especially when asked to make a phone call on behalf of the salesperson.

So, what is their superpower? They are amazing at sharing stories, drawing the prospect

into deep dialogue, and asking engaging “power” questions. The stories they tell are much different than the solution presentations most salespeople offer. They share past stories related to the issues, concerns and unrealized visions other prospect companies have experienced.

They demonstrate credibility through experience rather than knowledge. Call it confidence, posturing or simply an amazing ability to articulate past situations and draw prospects into the story.

HOW DO WE TEACH OUR SALESPEOPLE TO DO THIS? 1) D emonstrate credibility through experience rather than knowledge (otherwise known as effective storytelling).

The mistake most companies make is they focus all the training on providing their salespeople with benefit-based presentations. The salespeople become experts at presenting the products, services, and value proposition. This approach is meant to drive interest in receiving additional solution information and pricing, but lacks any triggers for engaging the prospect to open. Therefore, we hear so many salespeople in meeting debriefs, say, “They loved our presentation and they are interested in getting more info and pricing.” This approach works well for in-person meetings, because it leaves the reps with the feeling that they had a “great” meeting leading to an opportunity to send a proposal. Unfortunately, this approach falls short for phone-based selling.

To help salespeople transition to using the phone more often and qualifying better, we need to provide them with a library of stories that focus on the operational and business impact of the issues and concerns other clients were experiencing prior to engaging with our company. Much like a commercial on TV, the sales rep needs to be able to tell stories that evoke emotional engagement.

The key here is to help our salespeople get comfortable with using stories as a bridge, engaging the prospect to share their similar experiences. This brings us to the second tool we need to provide the sales team.

2) Ask Power Questions When placed in a selling situation, a high-level executive does not waste time with basic technical questions.

They leverage the sales opportunity to ask a handful of powerful questions that are meant to create a bi-directional flow of dialogue. Where most salespeople focus on asking technical needs-based questions that help in crafting a solution presentation or proposal, the VP of Sales or CEO will focus the questions on business impact and internal politics.

These questions require a certain level of sales posturing and confidence. Some examples of these questions include: • Is there pressure on your department to fix this?

• Is this having any effect on your team’s operational or financial goals?

• Is the issue affecting other project timelines or goals?

• How is this impacting the overall company, operationally and financially?

• Is there a corporate objective or vision that is being hurt by this issue?

• How will this influence overall annual goals? Long term goals?

• What is the scale of this issue if it is not resolved?

• Is there external pressure from shareholders or customers to fix?

Most training programs focus on role playing the basic clarification questions as well as presentation skills. It is critical that salespeople are coached in using effective storytelling and “power” questions, especially if they are going to expand their use of the phone as a selling tool.

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STAFDA_2021 Directory_Welding and Gasses Today Mag_One Third 8/20/20 Resized 2:20 Ad-R1 PM

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Leading Through Adversity

BY SEAN COYLE, CEO OF SANDLER TRAINING

O

Sean Coyle is CEO of Sandler Training by Peak Performance Management. Peak Performance has been a top-rated Sandler Training center within the Sandler worldwide network for 20 plus years.

Sean possesses vast experience in training and coaching tens of thousands of leaders and sales professionals in a diverse range of industry verticals. Sandler Training has been rated as a toprated sales curriculum by Inc. Magazine since 1999.

60 • Fall 2020

ur businesses, people, families and lives have experienced unprecedented difficulties in 2020. That is not under debate. How leaders address these difficulties now, and in the future, will forever measure their lasting impact on their organizations. Twenty percent of leaders have tackled their situation head on, attacking the market, focused solely on getting better than they were in March. Twenty percent of leaders have buried their heads in the sand, waiting for things to get back to normal, waiting out the storm. Sixty percent of leaders want to attack, but haven’t yet figured out where to begin and what to do. Which leader are you?

Effective leaders are actionable. Effective leaders are committed. Effective leaders see the big picture.

LEADERSHIP IS MORE THAN SPONSORSHIP Having authority does not define a leader.

Leaders must prioritize the top initiatives within their organizations and actively participate in execution. Reflect on a key initiative you sponsored in the past that didn’t gain the momentum you had hoped it would gain. Were you sponsoring or participating? People measure themselves based on intent and all others on action. Your intent is important, your action is critical. A parent can’t effectively teach their children not to speed by articulating the importance of following posted speed limits while driving through a school zone at 45 miles per hour. Know your people. Take the time to assess their strengths and help them take advantage of those strengths. Take the time to assess their weaknesses and help them overcome those weaknesses. Take the time to understand their

motivational filters and leverage that information to help people maintain commitment to success.

Clearly articulate a vision for your organization, embrace those who will follow that vision and extract those who will not.

DELETE DAMAGING RECORDS What people feel and believe is undeniable to them. Beliefs have been shaped over years, based on parenting, peers, colleagues, bosses, education, faith and experiences. Beliefs are one’s reality, but not always the reality. Think back to childhood. What did many five year olds believe to be absolute fact and reality? Fat guy. Red suit. Down the chimney with a sack of gifts. Flying reindeer. Santa? What “Santa” exists in our people’s psyche today? What beliefs do people have that are negatively impacting their actions? Do people believe that it was immoral to be actively selling over the last eight months?

Do people believe the price of their product and service is too high? Do people believe that cold calling doesn’t work? Are these beliefs based on an experience? Yes. Are these beliefs reality? No. Identify the damaging record. Re-write it. Define the actions of an individual with that re-defined belief. Set a goal for that new action. Track, measure and celebrate new results. Don’t allow people’s beliefs to dictate their actions, rather let their actions dictate their beliefs.

WHAT GETS MEASURED GETS DONE How metric-centered is your organization?

Has the team agreed upon accountability? Are you measuring the correct and effective key performance indicators? Define the appropriate behaviors to track and measure. Identify the proper

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PRACTICAL ADVICE DURING UNCERTAIN TIMES

leading indicators, like meaningful prospecting conversations and first appointments booked. Focus on the necessary lagging indicators, such as new clients acquired, or new contracts signed.

Obviously, keep your eyes on the results like revenue and profit.

A cookbook should be developed in four key areas of a business that a leader should K.A.R.E. about. What clients do you want to KEEP and what are the activities required to achieve your defined goals? Who are the prospects you want to ACQUIRE and what is the business development plan to accomplishing that result? What past relationships do you wish to RECAPTURE and how will your people do it? What clients do you want to EXPAND and how will you strategically do so? Create a cadence for accountability. If what you are currently measuring does not affect your people’s actions, you’re probably wasting your time measuring those things.

DRIVE REPEATABLE METHODOLOGY A business development process should be empowered by INSURANCE PROGRAM a repeatable methodology. Repeatability in prospecting, selling and delivering enables confidence, conviction and consistency. The most effective sales organizations have created and

speak a common sales language. Creating a common language requires ongoing practice and reinforcement. Pre-call planning and post-call debriefing is a great initial step to identify gaps in selling language. Every sales meeting of significance should have a defined objective with pre-determined outcomes.

Script out how to articulate the agenda and gain agreement for the outcomes in advance. Write out all the questions that need to be asked and may be asked during a call. Prepare a meaningful mindset to successfully accomplish your meeting objective. Don’t carry baggage into a call. Debriefing a call is an immediate way to identify consistency. Debrief everything, that’s the fastest way to learn lessons and shorten the learning curve. If a sales person doesn’t bring “it” with them prior to a call they won’t find “it” during the call.

The bottom line is that leaders need to be intentionally engaged in arming their people to battle through adversity.

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The Perfect Zoom Shirt and Other Lessons From 2020

BY JOHN TAPLEY

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

62 • Fall 2020

here are so many possibilities to open with, so many stories to tell, so many lessons learned from the unimaginable turmoil this year has turned to.

Unpredictable and unprecedented are understatements. Who in their wildest dreams could have seen this coming? The business world was still and quiet for a while but thank goodness it’s picking up again. We’ve learned our lessons and discovered new ways to move forward. New customer buying habits are being created, but “business as usual,” or the way it was before, is not likely to resurface anytime soon, if ever. Virtual and cloud options have shown us that physical presence can be optional. And now, to reflect on a few lessons and moments in time from this year.

TO ZOOM OR NOT TO ZOOM? It was here before the pandemic, but Zoom has now been elevated to every person’s description of our movement to virtual connections and communications. Families are saying, “Let’s Zoom tonight!” Local government organizations are saying, “Let’s get on Zoom and plan our capital campaign,” and new prospects are saying, “Hit me with a Zoom invite and show me how this new piece of equipment works.”

There are other virtual platforms, Teams and Skype to name a few. The key is to get comfortable with whatever you use, understand all the features and then practice. Learn how to use the whiteboard, share screens, annotate, split into breakout rooms and more. The more you use, the better it gets and, surprise, there will be times after this is over where the better choice may be virtual. Travel for business meetings, for one, will scale back. A few of

the business activities I’ve had virtual success with include: • Product and sales training. Rather than pure lecture and listen, implement interactive events into the schedule and use breakout features to split into sub-groups for team activities • Business review and planning sessions. There are opportunities to still have lunch together, even in a virtual setting. Send in an Uber meal to your guests or “Dunkin’Delivers” for your customers.

And, if you haven’t heard the term “Zoom shirt,” it’s one of my favorites. Business casual has a whole new meaning now. We’re at our desk in front of a camera and visible only from the waist up. Shorts and flip flops can be the norm, as long as you remember not to stand during the meeting.

YOU’RE ON MUTE

What? I’m talking, can’t you hear me? You’re on mute… Oh, thanks. How many times have you seen that happen? And you’ve likely been the culprit more than once. Or, you’re not on mute and thought you were. Oh, those background noises you really don’t want others to hear. And the video on/off feature, you really don’t want to be caught off-guard by accident on video without your Zoom shirt on. The lesson is, be very familiar with all mute and video features on every platform you enter. Practice in advance.

Even a sticky note on your monitor as a constant reminder is a wise move.

THE IN-PERSON COLD CALL IS HISTORY For now, anyway, and maybe forever. The pandemic has created silos around every business previously open for walk in, even with a no so-

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liciting sign. It just won’t be the same.

Who is going to feel comfortable with strangers walking into their building? So, expect much tighter security in and out, with appointments being the only way forward. For those that have relied on this method, a few ideas you can consider as alternatives and/or supplements: • Digital and social connections.

LinkedIn is at the top of my list for reaching people beyond the walls. View targeted profiles and connect. Be active in posts of those you’re connected to and post your own content. Becoming skilled in all things social is key, as digital will only continue to accelerate.

• Join and become active in industry groups for the segments that your prospects belong to.

For example, the Association of Laboratory Managers (ALMA) and the American Welding Society (AWS) to name a few. And, of course, the GAWDA groups.

There are virtual activities where you can make connections with key contacts and opportunities to promote yourself and the business you’re in.

• And, of course, the local chamber(s) and trade associations within range of your business, using the Georgia Manufacturing Alliance (GMA) as an example.

KINDNESS IS KEY We’ve all been impacted by the pandemic to some extent. Some worse than others. If you are fortunate enough, and

have the means, do something good for someone – a stranger, a friend, a co-worker or someone serving you.

Get involved in community programs to serve the less fortunate. A simple smile (through your mask of course), an unexpected compliment, an open door, a good listen and acknowledgement, a greeting and introduction, and on and on. Pay it forward by covering the tab for that person behind you in the Starbucks line. Be sensitive to everyone. You have no idea what others might be dealing with in these times. Start something positive and encourage others to follow suit. Perhaps start a daily kindness journal. Make it your goal to give out at least one kindness moment every day.

In fact, kindness is contagious too, so spread something good!

Fall 2020 • 63

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The Next Generation Sales Manager

BY ART WASKEY

I Art Waskey has over 45 years’ experience in the welding and industrial gas industry. He travels across the country consulting and giving seminars on business skills and has published 3 books of sales skills stories. He holds a BS in Mechanical Engineering, a Master of Ministry in Leadership Development, and is currently pursuing a Doctor of Ministry. You can subscribe to Art’s weekly sales tips and monthly articles on his website. Also, check out his posts on LinkedIn. For services, contact Art at 720-341-9405, artwaskey@ispeakd.com, www.impactspeaking dynamics.com.

have had the privilege of working with some very bright Millennials (born 1980 through 1994), individuals who have excelled in their use of effective sales tools. Among them, a select few have shown the passion and skill set necessary to become “best in class” sales managers. There was one person, in particular, who I felt was very talented. Her goal was to develop a career in executive distribution management at the regional level. To achieve that, we worked together on sharpening her expertise in the areas necessary for success as a next generation sales manager.

Here are some of the things we focused on.

A CULTURE OF ACCOUNTABILITY The next generation manager, like all good managers, must be able to assert strong beliefs in the company’s systems and lead her team through them. Salespeople must be held accountable for meeting specific targets, on a monthly basis, with accurate and timely reporting, steady sales and margin growth, and consistent call frequency on existing and new accounts. Any other corporate measurements, such as the number of new products/services sold, signed contracts, key account visits, etc., must also be understood and accounted for in a timely manner. The manager must be able to command the respect of her sales force to ensure that each rep comes to monthly meetings prepared, on time, and with the necessary information to review all targets and measurements.

DEFINE THE SALES CYCLE There are five basic steps in a sales cycle: (1) building trust in relationships, (2) discovering pain/need, (3) validating the decision-maker, (4) identifying the required investment, and (5) 64 • Fall 2020

providing the solution. In a well-managed team, these steps are clearly defined and tracked for all accounts. Sales reps are able to provide information to the manager, at any time, on where they are in the sales cycle, including for their top five key prospects.

IMPLEMENT EFFECTIVE SALES MANAGEMENT TOOLS A manager must be clear as to what constitutes sales success. Here are ten tools a manager can use to help ensure that each rep’s sales activity is on the right path: (1) daily call reports, (2) a monthly calendar planner, (3) monthly looking back/looking forward activity summaries, (4) new/penetration next step funnels, (5) top five prospects with next steps to closure, (6) account results focused on new business and penetration margins, and overall territory margin growth, (7) dashboard performance goals in 6 to 8 key areas, (8) monthly assessment dates with the manager to review sales tools, (9) coaching travel days wherein the sales manager spends at least one day per month with each rep, and (10) sales rep performance review meetings that include a top ten customer.

DEALING WITH UPSET CUSTOMERS Your sales team must have a consistent plan for dealing with an upset customer. Experience has taught me that problems are normally related to technical issues about 20% of the time and to faulty communication in about 80% of cases.

Heed the expression, “We have two ears, but only one mouth, so we should listen twice as much as we talk.” Under the right conditions, even the most upset customer can become a

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good friend if you listen carefully. The best resolution must contain: (1) a timely response (frustration builds with time), (2) an apology — assume responsibility even if you believe it is not totally your fault, (3) listen intently, ask questions, and empathize with the customer, (4) “Take him to the couch”— wait until the customer has fully vented his concerns, (5) ask the customer for a resolution— you may be surprised by what they actually have in mind, and finally, (6) offer more than the customer expects as part of your resolution. Conflict, if handled correctly, can actually become an opportunity to build a long-lasting working relationship.

RESOLVE PERFORMANCE ISSUES Monthly face-to-face reviews with your reps are essential for maintaining an open and accurate performance evaluation of their use of the sales management tools identified above. While several of these metrics are micro functions (call reporting, monthly calendar planning, and sales funnel), they support the overall macro outcomes (account results and dashboard) that are critical to success. If reps are repeatedly meeting bottom line results, but lack some detail on the micro functions, grace

should be given. However, if key results aren’t being demonstrated, there should be little tolerance for slack in reporting micro detail. When the macro indicators are not moving in the right direction for three consecutive months (barring some specific economic or non-performance related circumstances beyond the control of the sales rep) this is cause for concern.

If a rep continues to under-perform for two quarters despite increased coaching by the manager, career counseling is necessary to determine if the rep’s skill set is better suited for another position in the company or employment elsewhere.

MOVING FROM PEER TO MANAGER One of the great privileges of holding an executive level office is being able to recognize individuals with sales and leadership talent, and promoting them accordingly. There is great satisfaction in being able to move someone’s career forward, but with that ability comes the responsibility to make sure the transition to a more demanding role goes smoothly for that individual. Using a proven consultant to assist in the training of new managers is often a good idea as it allows exposure to a broader scope of skills that may not be available

Fall 2020 • 65

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within your organization. Make a general announcement to recognize any new achievement promptly and initiate a group meeting with the sales team and other support people to celebrate and acknowledge the reasons for the promotion. During the individual’s transition to a new post, hold joint monthly reviews with the old and new teams to ensure the transfer of pertinent relational, behavioral, and skill characteristics and to ensure the smooth transfer of newly acquired responsibilities.

DEVELOP OTHER SALES MANAGERS Recognizing and developing new talent ensures the growth of a company and it is the sales manager who is responsible for identifying and validating the next generation of leaders. To do this, he or she must be able to teach all the above concepts as well as other new tools as they are introduced. In our age of constantly improving information and technology systems, the next generation leader must be a continuous learner with the ability to recommend new ideas and strategies to the executive team.

Heed the expression, “We have two ears, but only one mouth, so we should listen twice as much as we talk.”

The best of the next generation leaders find the above tools easy to deploy. They are naturally gifted with respect for authority, assertive with strong views, proponents of organized schedules, fast and immediate processors, and have a desire to work with people face-to-face. Importantly, they have the ability to execute their talents in a nurturing and relaxed work environment, in other words, they are not tyrants.

In a rapidly changing marketplace made even more challenging by a worldwide pandemic, we need bright young minds to find new ways to sell our products. As the Baby Boomers pass the management torch, we need to be active in recognizing and encouraging the next generation of leaders.

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Gases/Hardgoods Sales Have Been Hit Hard by COVID Improvements Are Required in Communications Between Manufacturer, Distributor and the Customer

BY J. R. (BUZZ) CAMPBELL & KEN THOMPSON

68 • Fall 2020

I

n this article, we’ll look at what’s happened in the U.S. economy relative to our Gases and Hardgoods (HG) business, make a quick review of three of the biggest Gas Majors’ first calendar half for 2020 (H1/20) financial reports, review some key products and markets affected by the Coronavirus pandemic (COVID), and discuss new challenges in selling and the need for further integration of communications between the manufacturer, distributor and customer in Hardgoods.

According to the July 30, 2020, U.S. Bureau of Economic Analysis (BEA) Report, the Q1/20 U.S. GDP dropped 3.4% from Q4/19, with Q2/20 dropping 34.3% from Q1/20 (in current $, annual rates). The Q2/20 drop was annualized as $2.15 trillion (or a $537 billion actual for 2Q20). While a significant part of the Q1/20 drop was in Durable Goods, the Q2/20 drop included drops from Non-Residential construction and Non-Durable Goods, with a huge drop in Services. As many of you are experiencing, these abrupt changes have significantly affected the U.S. hardgoods side of our businesses, with the U.S. gases segment more moderately impacted.

Three major Gas Companies: Air Liquide, Air Products, and Linde, reported their H1/20 with those results in late July showing the following of interest: Air Liquide – H1/20 world revenues for 2020 of $12.2 B (€10.3B, “comparable”) were reduced from the same period in 2019 by -3.2%; with Q2/20 reduced from Q2/19 by -6.9%. Total Gases & Services sales represents 96% of total world sales.

H1/20 Gases & Services-Americas, was about $4.7B or 39% of world revenues, with that segment’s Q2/20 sales reduced by -6.5% from Q2/19.

Air Products – H1/20 world revenues of $4.3B were reduced from the same period of 2019 by -3%, with Q2/20 reduced by -7% from Q2/19. Total Industrial

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Gases sales represent 94% of world sales.

Industrial Gases-Americas sales represent $1.8B or 42% of total world sales, with Q2/20 reduced from Q2/19 by -11%.

Linde – H1/20 world sales of $13.1B were reduced from the same period in 2019 by -2.7%, with Q2/20 reduced by -13% from Q2/19. With engineering representing a significant part of total Linde world revenues, Industrial Gas revenues represent about 85% of total world sales. For H1/20 revenues for Gases-Americas was $5.1B roughly 39% of total world sales, with Q2/20 reduced by -6.5% from Q2/19.

The 2019 run rate for the combination of the above three companies indicates a total aggregate annual revenue run rate of about $60B. The current aggregate Market Cap for those three companies is about $235B, or about four times the combined 2019 revenue run rate. We further estimate that the three companies generate gas and related revenues, excluding hardgoods, of $19.5B in the U.S., with another $4.2B generated from Canada, Mexico, and South America.

This is a clear indication that investment in the world’s industrial gases businesses, though a comparatively small business, is generating a healthy return for its operators and investors. Another observation relative to the current COVID difficulties is that a large part of our gases business is based on long-life fixed assets, the cost and profit of which are covered by long-term supply agreements with steady coverage of all costs and a continuing stream of positive cash flows. That, plus our relatively low employment costs, provides a combination of employment opportunity and stability in the face of COVID business challenges.

Finally, our industry is strategically placed to service a large combination of the world’s primary resource businesses, as well as the future expansion of hightech, including the solutions to the two

looming problems of climate change and universal health challenges.

While the combination of these three Gases-Americas players took a profit hit in the Q2/20 of -7.5% year-on-year (YOY), the industries “distributor type businesses” (DTB’s) took a much larger hit, with their mix favoring a heavy mix of hardgoods revenues, which took a big revenue and income toll from the COVID pandemic. In an interview with Maura Garvey of Intelligas Consulting, Garvey provided some positive insights on the first half of 2020, with specific relevance to the U.S. Gases businesses.

In addition to the slowdowns in the industrial and manufacturing world, Garvey noted that, “We have seen increases in medical gases, particularly medical O2 in bulk liquid and cylinder O2 in regular

large and small clinics and hospitals, and in the setup and equipping of ‘pop-up’ hospitals like the Javits Center in New York City. Those emergency facilities, plus the large increases in ventilator use and intubation in ICU’s increased normal medical O2 use by a factor of five. That severely stretched the production and delivery of O2 to the point of putting under-utilized capacity back in service and in using special portable liquid O2 (LOX) storage and delivery vehicles.

There was also a period where the supply of cylinders was severely constrained.

Watching the rapid increase in medical O2 and emergency equipment increases in NYC from Feb into May was particularly impressive and showed the real strengths of our gas industry in such trying times.”

According to Garvey, “Helium supply

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was very tight leading up to the coronavirus pandemic, then hit the skids and went into surplus following the March economic shut-down, as normal end-users curtailed businesses and demand dropped quickly. Demand for some large end-users like MRI did not slow, as manufacturing worked to complete significant backorders. However, the field service side of the MRI business saw a drop off as non-essential surgeries and diagnoses were shut off. The field servicing of the MRI installed base is about two-thirds of helium consumption, so it also declined along with electronics, welding, and analytical/specialty gas for labs dropping off with workers staying home and clinics closed to nonCOVID-19 care.”

Interestingly, helium for balloons kept up demand during social distancing because people used helium filled balloons to celebrate graduations and birthdays while keeping socially distant.

Garvey noted that, “Helium demand has picked back up, as businesses have slowly opened back up. However, the strong possibility of a resurgence of COVID in the fall means that demand will probably remain down until a safe and widely accessible vaccine is available in early 2021.”

Garvey noted that the CO 2 business was also impacted by COVID. “Disruptions to the supply of food-grade CO2 for soft drinks and beer, healthcare and dry ice for food packaging followed reduction in CO2 sourcing from ethanol plants shut down due to a drop in fuel demand caused by the COVID lockdown beginning in March. Some independent industrial gas distributors have also experienced being put on allocation and hit with price increases during the pandemic.”

A coalition, including representatives from multiple food and beverage groups and led by the Compressed Gas Association (CGA), submitted a letter 70 • Fall 2020

INDUSTRIAL GAS COMPANY DTB VS INDEPENDENT DISTRIBUTOR

By Gases vs Hardgoods - 2019

GASES

GAS COS

IND DIST

TOTAL

MICROBULK

0.5

0.2

0.7

PACKAGED

5.3

2.9

8.2

OTHER

0.4

0

0.4

6.2

3.1

9.3

% CHANNEL SHARE

67%

33%

100%

% PRODUCT SHARE

70%

46%

60%

2.6

3.6

6.2

% CHANNEL SHARE

42%

58%

100%

% PRODUCT SHARE

30%

54%

40%

8.8

6.7

15.5

SUBTOTAL GASES

HARDGOODS

TOTAL

in early April to Vice President Mike Pence expressing strong concern that the current coronavirus pandemic creates a significant risk of a shortage in carbon dioxide (CO2). The coalition requested the assistance of the federal government during the temporary emergency to prevent a substantial CO2 shortage before it creates any food and beverage shortages and significantly other essential sectors of the U.S. economy.

With relevance to U.S. Distributor Type Businesses, Maura briefly describes the U.S. DTB as “representing $9.3B in gases of the $26.5B total U.S. Industrial Gas business with $6.2B from the three major gas producers with strong DTB’s (e.g., Air Liquide, Praxair/Linde, and Matheson) with the remaining $3.1B from Independent Distributors.”

The other part of the DTB is that of welding & cutting (W&C) hardgoods split between the three majors and Independent Distributors, with sales of $2.6B and $3.6B, makes up an estimated total U.S.

DTB business of $15.5B (see Table 1). In addition, we estimate that W&C hardgoods sales in the U.S. by small, medium and large W&C manufacturers and the net of U.S. manufacturing and imports is about $11.3B with $4.3B of U.S. manufacturers feeding U.S DTB’s hardgoods sales.

The Baird Survey in July for Q2/20 vs.

Q1/20, of the U.S. Welding and Industrial Gas business indicated changes in Sales at the Distributor level of -13% in Hardgoods and -10% in Gases. That, compared with sales changes from Q4/19 to Q1/20 of -0.1% in Hardgoods and +2.5% for Gases.

Our discussions with individual distributors on their hardgoods sales from late March reaching into the end of May, with some distributors experiencing sales reduced by as much as 40%.

While April was terrible, a rebound did occur during June and July, restoring about 20%, driven predominately by cylinder and machine rental incomes.

Independent packaged gas distributors

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continue to focus on growing their gases businesses given the uniqueness of those products and their delivery systems, which separate them from the general industrial distribution sector. However, hard goods still remain important to W&C distributors, with those operating incomes underwriting many infrastructure costs.

Also, the relationships and connections between hardgoods and gas sales continue to leverage the sales of both. Sadly, the hard goods manufacturing sector did not experience similar recoveries, pressured by both lower end market demand and the reluctance of distributors to replenish inventories, all to protect cash reserves.

On a different tack, we find that the traditional distributor emphasis on “proactive selling and marketing” is shifting to “Safe Order Fulfillment.” During the restrictions of COVID, most distributor retail facilities have been shuttered with customer contacts being accomplished through remote modern media like Zoom. With these new and ever-changing protocols and their lack of effective “face-to-face” contact, the requirements in both selling and service have shifted to increase the reliability of safely providing hardgoods and gases to users with constant all-hands performance.

As our businesses rebound, we will see a dramatic change and further development of this new sales methodology.

Recognizing that selling and servicing gas products in cryogenic liquid and gas cylinders is totally different from handling W&C equipment and systems, our hard goods manufacturing and distribution segments should be observing how other SKU-oriented businesses are serving customers under COVID sales and service restrictions . Under COVID, personal contacts by in-person sales and service contacts have become severely limited. So, remote connections of many varieties have been created.

As we have examined, the flow of maintenance, repair, and operations (MRO)

products, we see online originated sales representing 60% to 70% of total revenues.

With brick and mortar facilities closing, large order taking and distribution centers are being built, with supporting electronic business platforms being expanded in scale and with advanced sophistication at a supersonic rate. In our hardgoods industry, our high-profile capital equipment manufacturers (i.e., Lincoln Electric - Harris, Victor, Rego, etc.) are all moving rapidly to improve their BRAND recognition with online technology and business methods.

Sophisticated content models are being built by computer graphics professionals to give online researchers and shoppers the best possible brand image and the most powerful product and performance descriptions to help them differentiate their products from those of their competitors.

Our industry’s regional independent distributors must, therefore, consider this type of BRANDING strategy, to improve the remote presentation of their company and products to the rapidly increasing cadre of online buyers.

The ultimate goal is to drive the “cost to serve” as low as possible. In the “perfect world,” the manufacturers’ enterprise resource planning (ERP) will talk seamlessly to the end users’ ERP system with as little human interaction as possible and without losing the traditional positive effect of face-to-face communication.

Embedded data will permit research, configuration, all transaction related activity, and invoice payment without human touch point. While Logistics will be a separate third-party logistics (3PL) activity it will also have to be well integrated as a total customer service function. Problems will always occur, but resolution will be accomplished with very sophisticated customer relationship management (CRM) platforms supported by a few highly trained “resolution specialists.”

In such a perfect world, the histor-

ically effective industrial supply chain, where the manufacturer is considered as “owner of the product” and the distributor as “owner of the customer” superior total service performance must be maintained in the new world of fast changing and enabling technology. Regardless of the degree of electronic sophistication and more remote communications, the manufacturer will not have the same local presence as the distributor and his high level of “relationship selling.” However, for these supply chain relationships to be preserved and advanced, there must be collaboration between the trading parties of manufacturer, distributor and customer and as much integration as possible between ERP platforms. That will most likely come about by successfully linking evolving application programming interface (API) software. Our industry is at that crossroads today. In recent weeks, possible solutions providers are emerging.

Our industry trading partners must pay close attention to those developments.

Buzz Campbell and Ken Thompson represent 118 years of a wide variety of experience in the U.S and international Gases and Welding & Cutting Systems.

As an executive and advisor, Ken Thompson has been dedicated for over 60 years to strengthening manufacturers’ and distributors’ supply chain relationships through the sharing of best practices, managing disruptions, and coordinating visions and implementation of systemic technological change to further solid strategic alliances.

Since 1962 Campbell has been involved in most parts of the industrial, medical and gases business as a performer, executive and advisor. They are now collaborating on performance improvement projects in the Gases & Hardgoods business.

Fall 2020 • 71

SALES & MARKETING

PRACTICAL ADVICE DURING UNCERTAIN TIMES

The Two Areas of Business Distributors Must Focus on if They Want to Win

BY MIKE MARKS AND DAN HORAN, INDIAN RIVER CONSULTING GROUP

A

s practices continue to shift, there are two trends distributors should be paying close attention to in today’s market. One is understanding the role of technology, and the other is attracting and retaining talent.

ATTRACTING AND KEEPING TALENT Recruiting qualified talent is no easy task. There is always a generational tension between the way “things used to be” and “how it is today.” The tensions between mature leaders and young professionals remain the same.

Distributors must revisit their recruitment strategies to reflect these different perspectives. Training and education opportunities must remain at the top of this list, but it can’t end there. Compensation packages alone are not enough to lure potential applicants; they want to work for a company that values work-life balance and prioritizes social responsibility.

Like it or not, that’s the truth.

More and more employees are seeking flexibility and the ability to work from home. Tasks you may have never thought could be done remotely are moving that way. We’ve heard stories from clients who have closed part of their office and moved most of their inside sales team to work from home exclusively. They set up software systems for employees to be able to work from anywhere. This not only changes your building needs but also your recruiting and retention. Will you need to lose someone just because their spouse moves for a job and they must move too? Why couldn’t they keep working for you? In fact, why do they even have to be in your territory or region when you recruit or hire them?

In terms of retaining top sales talent, there are additional considerations. Instead of throwing them to the wolves, as 72 • Fall 2020

was common in the day, build them a playbook. Consider each employee as a part of the team and teach them the plays they need to win. Specialize your sales team. Give each player their own job and their own function on the field based on their experience and ability. This will free up your most expensive workers to do the most valuable work at the greatest return.

There is no reason your top-performing salesperson should be doing inventory counts.

The “we can attract millennials by having cool breakrooms” trend is over. One of our previous clients went so far as to put a golf simulator in to try and attract millennial talent. It was never used. In fact, it became a company joke that the only employees that used it were already on their way out (or high enough up that no one could fire them for not looking busy all the time). Focus instead on training and work flexibility.

USING TECHNOLOGY AND DATA TO ADD VALUE Along with securing top talent, it is no secret that technology and data are driving the future - yet there are pitfalls to collecting data that you will never use. If you are a data geek, you can never have enough data. But, if you are like most people, eventually the data becomes overwhelming and you suffer from data fatigue. Even if you collect every piece of data under the sun, you should only share what your employees really need.

Some distributors are utilizing adjustable dashboards where leaders see the full picture, but employees only see what is necessary to their function. They are changeable in real time and data can be removed and added as needed, even throughout the day, week or month, removing the noise of historical or non-essential data at the end of a day when everyone is in crunch mode trying to get orders loaded.

SALES & MARKETING

PRACTICAL ADVICE DURING UNCERTAIN TIMES

Rather than throwing money at the latest and greatest software, invest in effective technology that can collect data that will help predict customer needs, anticipate market fluctuation, and make better business decisions.

At the same time, invest in getting employees comfortable with data. Investing in a CRM system and collecting data doesn’t go far if employees are not onboard. One recent client had a robust Power BI setup that no one was using. The company was trying to force and mandate usage even as employees actively avoided using it. Based on our recommendation, they were able to shift their approach and pull employees along by demonstrating the value the system could have for them.

Employees that embraced and checked their Power BI page were able to see how they were making more money (or catch a sale or error they would have normally missed). The key was to not get too frustrated with the lack of adaptability and instead prove the value in dollars to the sales reps.

Above all, blend experience with the data. Even the best data models couldn’t have predicted the rapid change that COVID-19 has brought about. The models that have survived the best are the ones that utilized both data and the expertise/

experience of people that have been through uncertain times.

Trust and verify. Finding someone that can call BS when the data has holes (or no historical precedent) will be invaluable in times of uncertainty and rapid change. Distributors must know that if they continue to play using the old set of rules, they will lose.

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

Dan Horan is a Senior Associate consultant at the Indian River Consulting Group. Joining in 2016, Dan brings his expertise in sales, marketing, branding and communications strategy to the IRCG team.

Fall 2020 • 73

BEST PRACTICES

Tips for Transitioning Out of Your Family Business

BY RANDY SQUIBB

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

74 • Fall 2020

have spent the last year writing articles for Welding & Gases Today talking about my experiences working in the gases and welding industry and specifically working within the dynamics of a family business. In my last article, “Tips for Young People Considering Joining the Family Business,” I spoke at length about the transition process for a family business. As we all know, family businesses make up a huge percentage of GAWDA’s memberships and the transition process can be a difficult thing for both the younger and older generation to go through.

As I said in my last article, working in a family business can be the most rewarding experience in the world, or it can be a disaster that has the potential to not only destroy the business but also ruin family relationships permanently.

Since I retired from my day-to-day role within Welders Supply, I have been asked to consult with other family businesses in our area and in our industry. Specifically, I have been asked to come and speak during times of business transition within family businesses. And I have developed a process for when I go in and meet with these

businesses. First, I speak with the younger up-andcomers who are poised to take over the keys to the kingdom. Next, I ask to speak with the older folks who are transitioning out of the business.

Finally, all three of us come together and have a big discussion, often over dinner.

My last column, which can be read in the Third Quarter Issue of Welding & Gases Today starting on page 92, spoke directly to the Younger Generation.

I discussed the potential pitfalls and stumbling blocks, how to make sure that you’re doing this for the right reason and finally gave some advice on what to expect once they officially took the reins.

Today, I would like to speak directly to the generation that is transitioning out of the business.

Because, aside from your decision to get married and have kids, this might be the most important most difficult decision you ever make.

MAKING THE DECISION I think it’s important for both parties to understand that. For the older generation, this isn’t a decision to be taken lightly. This is your baby.

And if you didn’t start the business, you may not

BEST PRACTICES have birthed the company, but you sure had a hand in raising it. And for the younger generation, this isn’t something that you’re entitled to by virtue of winning the genetic lottery.

Blood, sweat, and tears have been poured into this company and if you’re just looking for a big paycheck owing to your last name, you should step back and evaluate if you really want this.

That may sound flippant, but I can’t tell you how many times I’ve gone into a business where the older generation was getting ready to retire and hadn’t even spoken with the kids about the next step. They just assumed that they would take over. That’s what happened with my dad. He didn’t have a choice. And that’s why I always start by speaking to the younger generation first, to make sure, “Do you want this?”

One thing I’ve always said, and I firmly believe to be true, is that, as the older generation, it is your responsibility to open the door and let the younger generation come in. It is NOT your responsibility to push them through the door.

I can’t tell you how many times I’ve spoken to the younger generation who was being groomed to take over and heard, “You know, mom and dad expect me to come into this business.

And I don’t have the heart to tell them that this is not really what I want to do.” Coming from a third party, I can say that to the older generation. My dad used to say that, “Gray hair gets you respect.” I can kind of let them know that this isn’t what the kids want. And I’ve had Dads sitting at dinner in tears when they heard the news. But this is information you want to find out BEFORE you transition the business, not after.

And, on the other side of the coin, sometimes the younger generation is eager and ready to go but they aren’t up to the task. And that’s an even harder conversation to have. I can tell within the first two or three meetings with a family whether or not the younger generation is going to be ready to take over the business in two or three years. A lot can happen during that period of time, but a zebra doesn’t change its stripes very often. And that’s a tough thing for a parent to hear. They’ve put their whole life into the business, and they want to transition, and the younger generation isn’t ready. It can be a terrible mistake. continued on next page

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BEST PRACTICES TRANSITION PERIOD But those situations are the exception, not the norm. Most of the time, I come into the business and both generations are on the same page and it’s going to be a great fit. But, even then, this shouldn’t be something that takes place over 60 days or 90 days. Ideally, this is a three-year process. At Welders, it was actually a 15-year process. My dad rounded up the employees when he was 40 years old in 1970 and told them, “I would like to retire in 1985. I need you to help me train these two young men, my brother and me, and eventually their sister, and I would like to transition out of the business in 1985.”

Not many 40-year olds have the foresight to plan that far in advance. But on July 1, 1985, my dad retired. That was the culmination of a 15-year plan. Now, it’s not realistic to think that every company is going to have a 15-year plan. But you need a long runway. You need to make sure you’re setting the company up for success. There will be long-term employees who are nervous about the transition. Customers will be nervous about the transition. Give them enough time to get used to the idea and, ideally, on the day you retire there shouldn’t

Aside from your decision to get married and have kids, this might be the most important most difficult decision you ever make. be any interruption to business at all.

As Dr. Leon Danco always said, “If you don’t have a transition plan in place, don’t worry about it. Those plans will get made three cars back from the black limousine on the day of your funeral.” Don’t let your company’s next chapter be written on the day of your funeral. Plan in advance.

When done correctly, there is nothing more rewarding than working in a family business. But, like anything else, if it’s worth doing, it’s worth doing right. Don’t throw away your life’s work with a sloppy transition plan. Make sure you set your kids and your employees up for success. Then, you can enjoy that time on the beach or on the golf course in peace, knowing that the company is in good hands.

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u p c o m i ng industry events

Here are some of the events scheduled for 2020 and beyond. Check the EVENTS tab on the GAWDA website at www.gawda.org for more information.

OCTOBER 2020

JUNE 2021

OCTOBER 2021

OCTOBER 2022

IWDC Owners Meeting Virtual Meeting OCTOBER 20-22, 2020

GAWDA East/Midwest Regional Meeting Seven Springs, PA JUNE 9-11, 2021

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

GAWDA Annual Convention San Diego, CA OCTOBER 5-8, 2022

IWDC Sales and Purchasing Convention Las Vegas, NV JUNE 22-24, 2021

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

NOVEMBER 2022

MARCH 2021 GAWDA Spring Management Conference Nashville, TN MARCH 29-31, 2021

APRIL 2021 GAWDA Southwest Regional Meeting League City, TX APRIL 19-20, 2021 AIWD Convention Colorado Springs, CO APRIL 30 - MAY 3, 2021

MAY 2021 GAWDA Northeast Regional Meeting Galloway, NJ MAY 18-21, 2021

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

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

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

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

IWDC Owners Meeting Park City, UT NOVEMBER 1-4, 2022 FABTECH Atlanta, GA NOVEMBER 8-10, 2022

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

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

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

Fall 2020 • 77

2020 VIRTUAL ANNUAL CONVENTION RECAP

G

AWDA held its first ever virtual Annual Convention on Friday, September 25, 2020. The hour-long virtual event was the “Business Session” of the Convention, which was supposed to have been held in Phoenix, Arizona. Members of GAWDA’s Executive Committee, including Abydee Butler Moore, Bob Ewing, Gary Halter, Robert Anders, Brad Peterson, and Ned Lane, as well as GAWDA Executive Director John Ospina were on camera and spoke during the event.

Abydee welcomed members to the event, saying, “When I stood before you in fall 2019 in Washington DC, I laid out our 2020 VISION for this year.

That vision included a new format for the Spring Management Conference, targeting operational decision makers within our member companies, focusing on tactical take-home content. We looked forward to launching the educational breakout sessions in Austin, and we vowed to increase distributor engagement in GAWDA through Committee/Board 78 • Fall 2020

alignment and the best meeting content in the industry. They say, ‘hindsight is 2020’ and I know many of us cannot wait to say, ‘2020 is hindsight!’ as we move into the New Year. However, by no means was this a year lost. In fact, it was quite the opposite. This year, on our 75th birthday as an Association, this old dog learned many new tricks. We learned critical new skills in web-based content, and acted with conviction as we quickly brought business continuity resources to our members at the onset of the pandemic. Perhaps the best 2020 VISION we had was in January when we expanded our Consultants team with the hiring of Marilyn Dempsey. We also tackled a huge strategic initiative this year in Young Professional development as we co-hosted the inaugural Young and Emerging Professionals Summit with CGA. Personally, I am not sure there has ever been a year where our company has needed GAWDA more than this one. I imagine our fellow independent companies feel the same. GAWDA provided resources we would never have

been able to commission on our own weekly risk mitigation advisory sessions, sales training on how to be productive virtually, economic intel, CGA medical gas safety alerts, and business continuity plan templates. Resources available for all members to ensure our industry not only survived but thrived in any areas we could as essential businesses within our communities. That is the beauty of GAWDA. We exist to promote the safe operation and economic vitality of the gases and welding industry. Together, we are stronger.”

EYES UP While the 2020 Vision didn’t work out exactly as planned, Abydee announced the theme of 2021 as “Eyes Up.” She acknowledged that tough times, for better or worse, make us inwardly focused and encouraged GAWDA members to keep their eyes up to spot opportunities, threats, inflection points in the market and to lead their businesses forward.

She then laid out where GAWDA is heading in 2021.

NEWS FROM GAWDA The SMC will be held in Nashville, Tennessee, from Monday, March 29, 2021 – Wednesday, March 31, 2021, at the Gaylord Opryland Hotel. Patrick Lencioni, who had been meant to be the keynote speaker at the SMC in Austin, will be the keynote speaker.

• The 2021 Annual Convention will be held at The Broadmoor in Colorado Springs, Colorado, from Wednesday, October 5 – Saturday, October 9, 2021.

• GAWDA will hold five regional events in 2021: Southwest Regional will be held in League City, Texas, from April 19-20; Northeast Regional will be held in Galloway, New Jersey, from May 18-21; East/ Midwest Regional will be held in Seven Springs, Pennsylvania, from June 9-11; Northwest Regional will be held in Sunriver, Oregon, from July 21-23; Central Regional will be held in Oregon, Ohio, from August 9-10.

•

THANK YOU FOR YOUR SERVICE

First Past President Brad Peterson, then took the opportunity to thank GAWDA’s volunteers for their service.

“Volunteers bring their passion, dedication and knowledge to the table. They push us forward and guide the staff at GAWDA so that we can all benefit as an industry. We need to continually recruit and celebrate their commitment to GAWDA,” said Peterson. Thank you to the following individuals for their years of support of GAWDA and for helping to advance the industry: Melissa Stephen Perkins, for her Rosenthal, for outstanding and his outstanding valued service as and valued sera member of the vice as co-chair GAWDA Board of the Member of Directors Services Committee.

Evan Bennear, for his outstanding and valued service as a member of the GAWDA Board of Directors

Thank you for your investment in the Future Leaders of our Industry!

AIRWELD, INC. ARC3 GASES INC.

KEEN COMPRESSED GAS COMPANY

ATLAS WELDING SUPPLY CO., INC.

MISSISSIPPI WELDERS SUPPLY COMPANY, INC.

CARBIDE INDUSTRIES, LLC

O.E. MEYER COMPANY

CRAIG WOOD EXOCOR HOLSTON GASES, INC.

OXYGEN SERVICE COMPANY RED BALL OXYGEN COMPANY, INC.

Bill Proctor, for his outstanding and valued service as a member of the GAWDA Board of Directors

GAWDA SCHOLARSHIP The GAWDA Scholarship was created in 2011 to promote education within the gases and welding industry. The mission of the Foundation is to, “Help educate, attract and keep quality individuals in the industry.” Since 2013, which was the first year the scholarships were awarded, GAWDA has awarded $196,000 in scholarships to 98 students.

This year, $30,000 was awarded to 15 students. The Scholarship Foundation received $8,600 in donations, which GAWDA matched, to bring the total to $17, 200.

Congratulations to the 2020 Scholarship Friend and Family Winners! And thank you to the donor companies and individuals who partnered with the Scholarship Foundation to invest in our Future Leaders!

Fall 2020 • 79

NEWS FROM GAWDA

2020 – 2021 Slate of Officers

Abydee Moore President

Bob Ewing

President Elect

Brad Armstrong

Joshua Haun

Vice President

Vice President

Rick Schweitzer

Rich Gottwald

Legal Counsel

CGA

Robert Anders

1st Vice President

George Ratermann Vice President

John Ospina

Executive Director

2020-2021 SLATE OF OFFICERS/ COMMITTEE CHAIRS As Evan, Melissa and Bill depart the Board of Directors, GAWDA is excited to announce their successors on the Board of Directors: Allie Earlbeck, Colleen Kohler, and Linda Smith. Thank you for agreeing to serve on the Board of Directors!

Joining Allie, Colleen and Linda on the 2020-2021 Board of Directors are the returning Board Members: • President – Abydee Moore • President Elect – Bob Ewing • First Vice President – Robert Anders • Second Vice President – Gary Halter • First Past President –Brad Peterson • Second Past President – Ned Lane • Vice President – Brad Armstrong • Vice President – Joshua Haun • Vice President – George Ratermann • Vice President – Stephen Rosenthal • Vice President – Eric Wood In addition to the slate of Board Members for next year, the Chair and Co-Chair of the GAWDA Committees were also announced.

AWARD WINNERS At the Virtual Convention, the WEMCO and CGA & GAWDA Safety Program Award Winners were also named.

80 • Fall 2020

Gary Halter

2nd Vice President

Stephen Rosenthal Vice President

Allie Earlbeck Vice President

Brad Peterson

1st Past President

Eric Wood

Vice President

Colleen Kohler Vice President

Ned Lane

2nd Past President

David Walker Treasurer

Linda Smith

Vice President

Congratulations to the following companies and individuals who were recognized: The WEMCO 2019 Excellence in Welding Awards Winners: • Exceptional: Jeff Deckrow • Individual: Tom Kostreba • Educator: Elmer Swank • Educational Facility: Ferris State • Veteran: Derek Beecher • Small Business: Major Tool & Machine • Large Business: Lincoln Electric • Distributor: Coastal Welding Supply • AWS Section: Los Angeles/Inland Empire • Medica Category Award: Jody Collier • Excellence in Welding: Arc3 Gases CGA Distributor Awards: • Fewer than 100,000 Employee Exposure Hours Award Winner: Andy Oxy Company, Inc. “Andy Oxy Co, Inc. would like to thank the CGA for their continued support in the industrial gas industry. We would like to thank all our employees for their tireless effort to make Andy Oxy a safe place to work. We look forward to many more years of safe work environment,” said N. Britt Lovin, Vice President of Andy Oxy. • M o r e t h a n 1 0 0 , 0 0 0 E m p l o y e e E x p o s u r e

NEWS FROM GAWDA

Committee Chairs GOVERNMENT AFFAIRS

FOUNDATION & LEADERSHIP DEVELOPMENT

Charles Beal & Rick Schweitzer

MEMBER SERVICES

Jimmy Walker & Brian McLaughlin SAFETY

Jim Herring & Bill Woods

Justin Johnson & Terry Scanlan

Brad Peterson

INSURANCE TRUSTEES

INDUSTRY PARTNERING

Dana Sorenson & Rafael Arvelo

WOMEN OF GASES & WELDING

Linda Smith

Hours Award Winner: Industrial Source, Inc. “It is an honor to accept this award on behalf of the team at Industrial Source. It highlights our company’s ongoing commitment to Safety in all aspects of our operations. On behalf of our entire team, thank you very much!” – Pam Jones, Gas Operations Manager, Industrial Source, Inc.

LOOKING AHEAD Finally, the Convention concluded by previewing the next three years of GAWDA SMCs and ACs. Over the next three years, we will be going to: • 2021 SMC: Nashville, Tennessee, from Monday, March 29 - Wednesday, March 31, 2021, at the Gaylord Opryland Hotel.

• 2021 AC: Colorado Springs, Colorado, from Wednesday, October 5 – Saturday, October 9, 2021, at The Broadmoor.

• 2022 SMC: Indianapolis, Indiana, from Wednesday, April 3 – Friday, April 5, 2022, at the JW Marriott Indianapolis • 2022 AC: San Diego, California, from Wednesday October 5 – Saturday, October 8, 2022, at the Marriott Marquis San Diego Marina.

• 2023 SMC: Philadelphia, Pennsylvania, from Saturday, May 6 – Monday, May 8, 2023, at the Philadelphia Marriott Downtown.

• 2023 AC: Maui, Hawaii, from Monday, October 2 – Thursday, October 5, 2023, at the Grand Wailea Resort.

YOUNG PROFESSIONALS

Liz Stanley & Cody Patrick

THANK YOU

Virtual Annual Convention Business Session Sponsors

PLATINUM

GOLD

SILVER

Fall 2020 • 81

Member Get-a-Member Program GAWDA’s Member Get-A-Member is our Membership Referral Recruitment Program. Study after study has shown that people are more likely to join an Association when they are invited by someone they know. And we’ve successfully put that power to work for GAWDA!

What’s it in for you?

RECOGNITION — See your name in Welding & Gases Today AWARDS — S ponsor the most new members & join our President onstage at the Annual Convention for your plaque REWARDS — Receive $100 for each new Distributor member you sponsor EXCEPTIONAL OPPORTUNITY — G reat new GAWDA members Invite your business friends, colleagues or business associates to join GAWDA. When they join GAWDA, you will officially become a Sponsor in our Recruitment Recognition Program.

All Sponsors that bring in new members will be acknowledged to GAWDA membership, and if your new member is a Distributor you will receive a $100 reward from GAWDA. Please see official program rules and guidelines for details.

82 • Fall 2020

Member Get-a-Member Program RECOGNITION PROGRAM RULES* Annual Program Period & Eligible Member Categories The annual program period for the “Recognition Program” is between Annual Conventions. A new reporting period begins after the presentation ceremony at the Annual Convention.

Only new “Distributor” and “Supplier” member categories will be counted. A new member is any company that has either never been a GAWDA member or has not been an active GAWDA member for two or more years.

Individuals and Manufacturers Representatives, while welcome to join GAWDA, are not included in this program.

Sponsorship Sponsors must be employed by an active GAWDA Distributor or Supplier member company to qualify for program participation.

There can only be one sponsor per new member.

The “sponsor name” provided on the new member application form will be listed as the official sponsor.

If no sponsor name appears on a new member application form, GAWDA Staff will contact the new member for a name. If no name is given and there is an issue regarding claims for sponsorship, GAWDA staff will make a final determination based on the information available.

New Member Announcements New members (and their sponsors) are announced monthly in the GAWDA Connection e-newsletter and in the quarterly Welding & Gases Today magazine.

Sponsor Recognition, Awards, & Gift Card Distribution The member who sponsors the most new members in an annual period will be invited to join the GAWDA President on stage to receive a plaque during the Annual Convention, as well as have their name prominently displayed on the big screen.

A list of all sponsor members and their corresponding new member(s) will be displayed during the business sessions “award ceremony” at the Annual Convention.

Any member who sponsors a new Distributor member will receive a $100 reward for each new Distributor member they sponsor. Sponsor rewards will be mailed at the end of each Annual reporting period. GAWDA staff will contact the sponsor as to where to mail the reward.

For more information on the Member Get-A-Member Program, including the GAWDA Member Benefit Chart, Membership Application and a downloadable flyer about the program, visit https://www.gawda.org/join/ gawda-member-get-member

Learn more about the program & how to earn your $100 reward at www.gawda.org/join/gawda-member-get-member

Fall 2020 • 83

INDIVIDUAL

MANUFACTURER’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 the benefits of joining the Gases and Welding Distributors Association, please contact Andrea Levy, Director, Member Services and Programs, 954-367-7728, ext. 260, alevy@gawda.org.

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

AWDA’s 75th Anniversary Video – Available G at GAWDA.org/75video, this video features

members reminiscing about GAWDA’s 75th Anniversary and discussing the winding road of how we ended up where we are today as an association and an industry.

AWDA Annual Industry Analysis Webinar G – “Looking Past the Fear and Noise” is a webinar presented by ITR Economics Analyst Alex Chausovsky. The hour-long webinar covered GDP, stimulus packages, leading financial indicators and a review of best practices for using the GAWDA quarterly outlook report. It is available through the members-only section of GAWDA.org.

019 SMC and AC Presentations – 2 Presentations from the 2019 Spring Management Conference and Annual Convention are available through the members-only section of GAWDA. org. Relive some of the amazing speakers and presentations from the 2019 live events.

Fall 2020 • 85

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

ITR FOURTH-QUARTER OUTLOOK

The Impact of Recent Black Swans on Our Macroeconomic Outlook

BY BRIAN BEAULIEU

S

econd-quarter GDP data was released since the last ITR Trends Report™. We knew conditions were bad, but the results were worse than we anticipated. The GDP figure is the lowest in five years. Think about that. Five years of GDP growth effectively wiped out in just six months (combining 1Q20 and 2Q20 results). Second-quarter GDP was down 9.5% from the second quarter of 2019 (measured in constant dollars). This is the steepest year-over-year decline since 1946. ITR Senior Forecaster Connor Lokar just recorded a great TrendsTalk on how to put this result into perspective with the seasonally adjusted annualized rate figure frequently cited in the media. Connor also addresses how the U.S. result compares to the EU’s. Visit itreconomics.com/ hashing-out-headlines to listen.

The more-severe-than-projected 2Q20 result necessitated a downward revision to our pre-COVID-data outlook. Here are some aspects of our forecast that did not change, and some that did change.

wave of COVID-19 that causes governors and other governments to shut down their economies again. While we have seen some rollbacks, the type of shutdowns that occurred in March/April have not recurred.

7. The single biggest health-related risk for 2021 is our assumption that a vaccine will be available beginning in 1Q21.

8. An upside risk to the forecast is that results will come in above our forecast because we are underestimating the upside impact of the fiscal and monetary policy stimuli. Specifically, we intentionally left some upside potential out of the forecast for 4Q20 as a result of “COVID Concerns” we have related to a second wave.

This content is exclusive to GAWDA Members.

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

UNCHANGED HIGHLIGHTS FROM THE PRIOR OUTLOOK INCLUDE:

U.S. Real Gross Domestic Product DATE

3MMA

3/12

September 2020

17.761

-7.2%

December 2020

17.922

-6.9%

March 2021

17.998

-5.3%

June 2021

18.395

6.9%

1. 2Q20 is still expected to be the low for GDP (quarterly data).

2. That means you should be seeing – or soon will be experiencing

September 2021

18.770

5.7%

December 2021

18.894

5.4%

– some recovery in your business if you move approximately coincident to GDP. 3. You should have already felt the improvement as you passed through midyear if you tend to move through business cycles ahead of GDP. 4. The 12/12 low is still expected to occur during 1Q21.

5. Recovery is probable for 2021, with ongoing rise in 2022 (unchanged from the prior outlook).

6. The single biggest risk to the near-term rise remains a second

March 2022

18.868

4.8%

June 2022

19.112

3.9%

September 2022

19.281

2.7%

December 2022

19.313

2.2%

86 • Fall 2020

March 2023

19.214

1.8%

June 2023

19.499

2.0%

September 2023

19.727

2.3%

December 2023

19.819

2.6%

Note: The December 2019 3MMA was 19.254.

ITR FOR GAWDA CHANGES IN THE FORECAST HIGHLIGHTS FROM THE PRIOR OUTLOOK INCLUDE: The GDP forecast values (quarterly data) are lower because of the deeper hole we find ourselves in. For the remainder of 2020, we decreased the quarterly data points by an average of 4.6% relative to the prior forecast. For 2021, the average decline in 3MMA values is 4.1%. The change decreases to 2.9% for 2022 and to 1.9% for 2023.

◼

We are projecting that the recovery from the downturn will not be complete until 3Q22. This is essentially a year later than we previously forecasted, also because the 2Q20 hole is simply so deep.

◼

We raised the projected year-over-year gains for 2022 and 2023 because of an improved measurement and deeper analysis of the consequences of the fiscal and monetary policy stimulus packages. The average growth-rate increase is 1.3 percentage points for 2022 and 1.0 percentage points for 2023.

◼

We are now calling for a 1Q23 decline in GDP. The decline will not turn into a recession. The one quarter of decline reflects

The table on page 86 presents our revised GDP forecast (adjusted for inflation).

ITR LEADING INDICATOR DASHBOARD UPDATE The ITR Leading Indicator™ turned upward with the July 2020 data, and rise persisted in August. Our analysis suggests that the June low, which is still classified as tentative, will hold.

We now have 10 of the 12 leading indicators in ascent on our primary Leading Indicator Dashboard.

Not yet ready to signal “Rise” for our Dashboard but an encouraging change is the year-over-year increase in SingleFamily Housing Permits. July 2020 permits came in 18.5% above the July 2019 level. Coupled with the strong Retail Sales data for July, this is another sign that the consumer has more than a pulse; they are out in the economy making things happen.

This content is exclusive to GAWDA Members.

U.S. Single-Family Housing Permits 1/12 Rate-of-Change 25

20

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

25

20

Jul-20

Jun-20

Apr-20

May-20

Feb-20

Mar-20

Jan-20

Dec-19

Oct-19

Nov-19

Sep-19

Jul-19

Aug-19

Jun-19

Apr-19

-20

Feb-19

-20

Mar-19

-15

Jan-19

-15

Dec-18

-10

Oct-18

-10

Nov-18

-5

Sep-18

-5

Jul-18

0

Aug-18

0

Jun-18

5

Apr-18

5

May-18

10

Feb-18

10

Mar-18

15

Jan-18

15

May-19

◼

our concerns for the stock market in 2022-23 and the potential for a shift in thinking in the body politic regarding taxes and spending.

Fall 2020 • 87

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

You should be seeing – or soon will be experiencing – some recovery in your business if you move approximately coincident to GDP.

CORE DASHBOARD 12/12 U.S. INDUSTRIAL PRODUCTION

12MMT/A

CURRENT 12/12

2020

2021

2022

HIGHLIGHTS

-5.0

-11.1

4.9

4.7

Leading indicators signal a business cycle low is likely to form in the early months of 2021.

Low industrial sector utilization rates suggest few manufacturers will be adding new capacity in the near term.

This content is exclusive to GAWDA Members.

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS

-1.0

-12.6

0.4

7.4

For more information on GAWDA and association We revised our Employment outlook membership, contact Andrea Levy: U.S. PRIVATE SECTOR -2.9 -6.6 2.9 2.8 upward for 2020 and 2021 and EMPLOYMENT downward for 2022.

(844) 251-3219 / alevy@gawda.org U.S. TOTAL RETAIL SALES

0.6

-11.1

5.9

5.9

Retail Sales are tracking the upper end of the forecast range. Retail Sales 12MMT decline is expected into early 2021.

U.S. WHOLESALE TRADE OF DURABLE GOODS

-4.2

-11.5

5.9

8.0

We lowered our 12MMT outlook for 2020 and 2021. The 2022 outlook is virtually unchanged.

6.2

We revised our Wholesale Trade 12MMT forecast downward. The timing of the early-221 12MMT low is unchanged.

2.2

We revised the forecast downward.

The 3MMA will rise through 2022, returning to record territory in the second half of 2022.

U.S. WHOLESALE TRADE OF NONDURABLE GOODS

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

-2.9

-9.1

-12.0

-6.9

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

88 • Fall 2020

5.1

5.4

ITR FOR GAWDA LEADING INDICATORS INDICATOR TENTATIVELY SUGGESTS EARLY-2021 LOW FOR INDUSTRIAL PRODUCTION The ITR Leading Indicator™ rose in July, with rise extending into August. More data is needed to confirm a rising trend, but if the June low holds, it would suggest an early-2021 low for the U.S. Industrial Production 12/12, in line with our expectations. An increase in the number of states reversing their reopening strategies would, depending on the severity of such reversals, pose the primary risk to the tentative Indicator low.

ITR Leading Indicator™ Production

Rates-of-Change

Leading Indicator

15.0

21

10.0

14

5.0

7

0.0

0

-10.0

-6.3

-5.0

-5.0

US Industrial Production - 12/12

-7 -14

ITR Leading Indicator

-15.0

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

-21

This content is exclusive to GAWDA Members.

Industry Capacity Utilization Rate For more informationU.S. on Total GAWDA and association U.S. TOTAL contact Andrea Levy: Rates-of-Change INDUSTRY CAPACITYmembership, Production 15.0 UTILIZATION RATE (844) 251-3219 / alevy@gawda.org 1/12 RISE SUGGESTS RECOVERY IN INDUSTRIAL ACTIVITY MOVING INTO 2021

Rate

21

10.0

The U.S. Total Industry Capacity 5.0 Utilization Rate 1/12 rose from June to July, posting the sharpest month of rise in 0.0 the 50-plus-year data history. If it holds, the tentative April 2020 Rate 1/12 low puts U.S. industrial activity on track to -5.0 recover heading into 2021. The primary risk to the low holding is the possibility of -10.0 more significant and widespread reversals of states’ reopenings.

-15.0

14 7 0 -5.0

-5.9 -7

US Industrial Production - 12/12

-14

US Total Capacity Utilization Rate - 1/12

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

-21

Fall 2020 • 89

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

THE CONFERENCE BOARD’S U.S. LEADING INDICATOR

U.S. Conference Board Leading Indicator Production

Rates-of-Change

Leading Indicator

LEADING INDICATOR RISE PERSISTED IN JULY

15.0

30

The Conference Board’s U.S. Leading Indicator 1/12 rose in July, further supporting a tentative April low.

This points to an early-2021 transition to recovery for U.S. Industrial Production, consistent with our expectations. The potential for extended shutdowns poses continued risk to this recovery.

10.0

20

5.0

10

0.0

0 -6.8 -5.0

-5.0

-10

US Industrial Production - 12/12

-10.0

-20

US Leading Indicator - 1/12

-15.0

-30

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

This content is exclusive to GAWDA Members.

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

U.S. ISM PMI (PURCHASING MANAGERS INDEX)

PMI RISE PERSISTED IN AUGUST The U.S. ISM PMI (Purchasing Managers Index) 1/12 posted a fifth consecutive month of rise. The rise gives further credence to our expectation for an early-2021 low and subsequent rise for the U.S. Industrial Production 12/12. The potential for additional or more extensive state reclosures poses a downside risk to our expectations.

U.S. ISM PMI (Purchasing Managers Index)

Production

Rates-of-Change

Index

15.0

75

10.0

50

5.0

14.8

0.0 -5.0 -10.0

25 0

-5.0 US Industrial Production - 12/12

-25 -50

US Purchasing Managers Index - 1/12

-15.0

90 • Fall 2020

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

-75

ITR FOR GAWDA

GAWDA EXECUTIVE SUMMARY/DASHBOARD: GAWDA INDUSTRY INDICATORS

INDICATORS

HIGHLIGHTS

CURRENT GROWTH PHASE RATE (12/12)

U.S. INDUSTRIAL PRODUCTION INDEX

Tentative rise in a plethora of leading indicators supports our expectation for annual Production to begin recovering in early 2021.

-5.0%

D

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

The Producer Price Index moved further along the back side of the business cycle in July, but Prices are still rising.

2.1%

C

Oil Futures Prices broke above $40 per barrel, but are still below the cost of extraction.

-25.5%

D

Corporate Profits are declining. This will reduce investment for new capital goods for at least the remainder of this year.

-1.0%

D

U.S. CRUDE OIL FUTURES PRICES U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS WITHOUT AIRCRAFT

This content is exclusive to GAWDA Members.

U.S. ELECTRICAL EQUIPMENT NEW ORDERS

Prior sharp decline in industry utilization rate data suggests Phase D in New Orders will persist in at least the near term.

D

For more information on GAWDA and association-2.3% membership, contact Andrea Levy: Decline in the auto industry is particularly severe this business U.S. FABRICATED METAL (844) 251-3219 / alevy@gawda.org 3.0% PRODUCTS NEW ORDERS cycle, contributing to decline in New Orders.

D

U.S. DURABLE GOODS NEW ORDERS WITHOUT AIRCRAFT

Elevated U.S Economic Policy Uncertainty will likely hinder New Orders spending in at least the near term.

-4.2%

D

ITR LEADING INDICATOR (MONTHLY)

The ITR Leading Indicator rose in July and August. The tentative June Indicator low suggests an early-2021 business cycle low in U.S. Industrial Production.

-6.3 (Monthly)

A

Each GAWDA industry outlined in the table above is moving along the back side of the business cycle as a result of the COVID-19 pandemic and resulting shutdowns. Annual U.S. Industrial Production (down 5.0%) and U.S. Nondefense Capital Goods New Orders (down 1.0%) are expected to move further along the back side of the business cycle into early 2021. However, there are some encouraging signals for recovery next year. Tentative rise in the

ITR Leading Indicator™ bodes well for future economic activity.

This trend, along with rise in other key leading indicators, supports our outlook for macroeconomic recovery next year. The diversity of the indicators signaling rise coupled with the consistency of rise is encouraging, as it offers empirical evidence that COVID19’s second wave has to date been insufficient to trigger a broad retrenchment in the U.S. macroeconomic recovery.

Fall 2020 • 91

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. INDUSTRIAL PRODUCTION

D

U.S. Industrial Production Index Data Trend Index 120

12MMA Forecast 12MMA 3MMA

RECESSION

2020 2021 2022

-11.1% 4.9% 4.7%

97.3* 102.1* 106.8*

Index 120

110

110

104.1

* Index based to 2012 = 100.

HIGHLIGHTS: Monthly Production rose 1.4% from June to July

◼

◼

◼

Delays and reversals in state reopenings are concerning for the second half of 2020

100

90

Leading indicators are tentatively signaling Phase A for the industrial sector in early 2021:

100

'12

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'19

'20

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'23

90

This content is exclusive to GAWDA Members.

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

Monthly U.S. Industrial Production rose 1.4% from June to July – the strongest June-to-July percentage change since 1946 – as the economy worked to regain its footing. July Production was still 8.3% below the same month one year earlier.

Renewed shutdowns and delayed openings in some states could pull the economy down further during the second half of this year; we are closely monitoring the situation. We anticipate that, while noticeable rise will characterize the Production 12MMA in most of 2021 and all of 2022, the economy will not return to the August 2019 record level during this time.

While media reports may not always be encouraging, we have seen multiple leading indicators tick up with the most recent data. The Conference Board’s U.S. Leading Indicator 1/12, U.S. ISM PMI (Purchasing Managers Index) 1/12, and U.S. Total Industry Capacity Utilization Rate 1/12 have all tentatively ticked up, signaling Phase A, Recovery, in the industrial sector by early 2021.

For more information on GAWDA and association 15 membership, contact Andrea Levy: 10 (844) 251-3219 / alevy@gawda.org

92 • Fall 2020

15 10

5

5 -5.0

0 -5

0 -5

12/12 Forecast Range 12/12

-10

-10

3/12 -15

'12

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Management Note: During this time, create competitive advantages and marketing campaigns that you can use to maintain or gain market share during your industry’s recovery in early 2021.

ITR FOR GAWDA

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

D

-12.6% 0.4% 7.4%

$693.4 billion $696.2 billion $747.7 billion

HIGHLIGHTS: ◼ Monthly New Orders in June were down 0.7% from June 2019 ◼

◼

New Orders spending (12MMT) will decline into early 2021

Bils of $ 1200

300 12MMT Forecast 12MMT 3MMT

250

RECESSION

2020 2021 2022

Bils of $

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

1000

784.4

200

800

150

100

Low industrial utilization rates suggest manufacturers will not be adding new capacity in the near term

600

'12

'13

'14

'15

'16

'17

'18

'19

'20

'21

'22

'23

400

This content is exclusiveU.S. to Nondefense GAWDACapital Members.

Goods

Monthly U.S. Nondefense Capital Goods New Orders in June were down just 0.7% from June 2019, following respective declines of 8.2% and 7.3% for April and May relative to year-ago levels. Results came in 2.0% above the forecast range.

However, leading indicator trends do not support an upward revision to the forecast.

The forecast is therefore unchanged. The New Orders 12MMT will decline into early 2021; subsequent rise will extend through at least year-end 2022.

The U.S. Total Industry Capacity Utilization Rate rose to 70.6% in July.

While an improvement over the record-low 64.2% Utilization in April, the July figure is still well below the five-year average of 76.2%. Low Utilization means that U.S. manufacturers are unlikely to be looking to add capacity, which does not bode well for New Orders in the coming quarters.

Nascent rise in several leading indicators supports the New Orders recovery we are forecasting for much of 2021.

New Orders (excluding aircraft) Rate-of-Change

For more information on GAWDA and association 20 membership, contact Andrea Levy: (844) 251-3219 / alevy@gawda.org 10

20 10

-0.8

0

0

-10

-10 12/12 Forecast Range

-20

-20

12/12 3/12

-30

'12

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'18

'19

'20

'21

'22

'23

-30

Management Note: Use the coming quarters to prepare your company for rising New Orders during the majority of 2021 and throughout 2022. With New Orders trending below 2019 levels, focus on improving profitability.

Fall 2020 • 93

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. CRUDE OIL FUTURES COMMODITY PRICES

D

RECESSION

Sep 2020 Dec 2020 Mar 2021 Jun 2021

$42.07 per barrel $43.08 per barrel $47.38 per barrel $52.41 per barrel

HIGHLIGHTS: Prices were likely to outperform our forecast, necessitating a revision

◼

◼

We lifted the 3MMA outlook for the upcoming quarters

◼

Likely improvements in demand fundamentals will push Prices above $50 per barrel by the middle of next year

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

$/bbl.

120

120 3MMA Forecast 3MMA Actual

100

100

80

80

60

60

40.72

40

40

20

20

0

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This content is exclusive to GAWDA Members.

U.S. Crude Oil Futures Prices ended August at $42.61. Our analysis of the leading indicators and supply-demand characteristics suggested Prices would outperform our expectations, necessitating a revision to our forecast. Prices will generally rise into at least mid-2021, breaking above $50 per barrel around the second quarter of next year, as demand fundamentals are projected to improve.

Cyclical rise in indicators such as the OECD Plus Six Non-Member Economies Leading Indicator, the stock market, and the U.S. ISM PMI, combined with a weakening dollar and OPEC supply restrictions, is supporting higher prices. The severity of rise in Prices will likely moderate in the near term, as demand remains well below year-ago levels.

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

Management Note: Budget for higher oil prices next year.

94 • Fall 2020

80

12/12

40

40

3/12

0

0 -25.5

-40

-80

-40

'12

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-80

ITR FOR GAWDA U.S. STEEL SCRAP PRODUCER PRICE INDEX

D

RECESSION

Sep 2020 366.53* Dec 2020 347.00* Mar 2021 408.00* Jun 2021 422.08* * Index based to 1982 = 100.

U.S. Steel Scrap Futures Commodity Prices Data Trend $/GT 900

$/GT 900

3MMA Forecast 3MMA Actual

700

700

500

HIGHLIGHTS: The forecast was revised upward due to tight supply and robust foreign demand

300

A lackluster industrial sector is keeping Prices relatively low despite supply constraints

100

500

374.3

◼

◼

◼

Plan for the low point of the Price cycle to occur late this year

300

'12

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100

This content is exclusive to GAWDA Members.

The Prices quarterly average was 19.4% above the forecast median in the second quarter. This necessitated a revision to the forecast. We lifted the forecast for the next four quarters by an average of 19.4%.

We continue to expect a brief secondary downward movement in the Prices quarterly average in the fourth quarter. Prices will then rise into at least mid-2021.

Market commentary suggests that tight supply due to low utilization rates and robust foreign demand is keeping prices more elevated than the macroeconomic indicators otherwise suggest. This demand is particularly evident in Chinese building indicators. These indicators suggest the Prices quarterly average will rise during at least the first half of 2021.

For more information on and association U.S.GAWDA Steel Scrap Futures Commodity Prices Rate-of-Change membership, contact Andrea Levy: 100 (844) 251-3219 / alevy@gawda.org 12/12 Forecast Range

Management Note: If steel is an input cost for your business, time purchases or long-term contract agreements to coincide with the low point of the price cycle. For steel scrap, the low will likely occur late this year.

12/12

50

100

50

3/12

0

0 -20.4

-50

-100

-50

'12

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-100

Fall 2020 • 95

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. FABRICATED METAL PRODUCTS NEW ORDERS

D

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

12MMT Forecast 12MMT 3MMT

RECESSION

2020 -12.7% 2021 1.3% 2022 3.2%

$331.7 billion $336.1 billion $346.8 billion

HIGHLIGHTS: The annual data trend forecast was adjusted to account for a data revision by the U.S. Census Bureau

Bils of $ 600

125

500

100

400

365.8

◼

◼

◼

The timing analysis of the forecast is unchanged

75

50

Leading indicators signal a New Orders business cycle low will form around early 2021

300

'12

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200

This content is exclusive to GAWDA Members.

Second-quarter U.S. Fabricated Metal Products New Orders were down 12.7% from the same quarter one year ago. The New Orders annual data trend was 4.6% below the forecast range in June as a result of a data revision by the U.S. Census Bureau. However, the revision had little impact on the annual growth rate. As such, we adjusted the annual data trend but left the growth-rate outlook in place.

On average, the annual data trend was lowered by 5.8% for the next 10 quarters.

We maintain our expectation for annual New Orders to decline into early 2021, followed by rise into the first half of 2022. We do not expect annual New Orders to return to pre-pandemic levels during that time.

Trends in quarterly U.S. Small Business Capital Expenditures Plans suggest a business cycle low in New Orders will form around the first quarter of 2021, informing our outlook. Our expectation for recovery in U.S. industrial sector activity for the majority of 2021 suggests there will be growing demand for New Orders during the same time period.

Fabricated Metal Products For more information on U.S. GAWDA and association New Orders Rate-of-Change membership, contact Andrea Levy: 100 (844) 251-3219 / 12/12 alevy@gawda.org Forecast Range

96 • Fall 2020

100

12/12

50

50

3/12

0

0 -20.4

-50

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-50

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Management Note: Take advantage of downtime to develop training programs that will help your business minimize labor and maximize capacity in preparation for New Orders recovery and rise next year.

ITR FOR GAWDA

NORTH AMERICA LIGHT VEHICLE PRODUCTION

D

North America Light Vehicle Production Data Trend Mils of Units 8

6

◼

We expect a Production 12MMT low by early 2021

4

◼

Low inventory levels and increased Retail Sales will put upward pressure on the Production 3MMT in 2H20

32

12MMT Forecast 12MMT 3MMT

RECESSION

HIGHLIGHTS: Monthly Production in July was 4.6% above the July 2019 level

Mils of Units

24

◼

Monthly North America Light Vehicle Production rose for the third consecutive month in July, coming in 4.6% above the July 2019 level. A sustainable rising trend in the Production 12MMT is expected to take hold during the first half of 2021 as both the industrial and consumer sectors of the economy transition to business cycle rising trends. The Production 12MMT is forecasted to rise through at least 2022 but not to pre-pandemic levels.

Production’s persistent monthly rise is the result of state-level reopenings and low inventory levels. A nascent rising trend in U.S. Retail Sales of Light Vehicles coupled with low inventories is a promising sign of the need for higher Production (3MMT basis) in the second half of 2020. However, rising auto loan default rates and expiring stimulus suggest there may still be obstacles ahead for Production.

16

12.9

2

0

8

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For more information on GAWDA and association North America Light Vehicle membership, contact AndreaRates-of-Change Levy: Production 75 (844) 251-3219 / alevy@gawda.org

Management Note: Consider targeting the repair market, if feasible; U.S. Retail Sales at Used Car Dealers in May (latest data available) were virtually even with one year ago.

75

50

50

25

25

0

0 -3.6

-25

-25

12/12 Forecast Range 12/12

-50

-50

3/12 -75

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-75

Fall 2020 • 97

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

ITR ECONOMICS – METHODOLOGY MOVING TOTAL/MOVING AVERAGE:

12MMT/A:

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

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

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

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

RATE-OF-CHANGE: A rate-of-change figure is the ratio comparing a data series during a specified time period to the same period one year ago.

Rates-of-change are expressed in terms of the annual percent change in an MMT or MMA. Rates-of-change reveal whether activity levels are getting progressively better or worse compared to last year. Consecutive rate-of-change illustrates and measures cyclical change and trends.

ITR Economics’ three commonly used rates-of-change are the 1/12, 3/12 and 12/12, which represent the year-over-year percent change of a single month, 3MMT(A) and 12MMT(A), respectively.

A rate-of-change above zero indicates a rise in the data relative to one year prior, while a rate-of-change below zero indicates decline.

This content is exclusive to GAWDA Members.

For more information on GAWDA and association membership, contact Andrea Levy: BUSINESS CYCLE POSITIONS: The data trends and rates-of-change identify positions in the business cycle. Those positions are: 251-3219 / alevy@gawda.org 12/12 is rising below zero and(844) the data trend is either heading toward a low or is in the early stages of recovery.

A

RECOVERY

This is the first positive phase of the business cycle.

B

ACCELERATING GROWTH

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

This is the second positive phase of the business cycle.

C

D

SLOWER GROWTH

RECESSION

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

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

This is the first negative phase of the business cycle.

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

ITR Economics for GAWDA | Welding & Gases Today ITR ECONOMICS | P: 603-796-2500 | www.itreconomics.com 98 • Fall 2020

INDUSTRY N E W S

Red Ball Oxygen Promotes Mark Patten to Vice President

Red Ball Oxygen announced that Mark Patten has been promoted to Vice-President, Technical Gas Services (TGS). Patten has been with the company since 2000. He helped found Red Ball’s Technical Gas Services division in 2003.

Under his leadership, the division has experienced rapid growth and has dramatically expanded its product portfolio.

“We’ve grown Mark Patten our specialty gas business by listening to our customers and responding with urgency to their requirements. In that respect, Mark is the perfect person to lead the charge for us, because he is customer-driven to the core,” says Alex Kennedy, the company’s CEO. “Growth happens when we give our customers the all-out effort they deserve.

Keep getting the little things right, and the big things will take care of themselves,” said Patten.

Haun Welding Supply Relocates Batavia Store Haun Welding Supply is excited to announce the relocation of its Batavia store. On August 31, 2020, Haun moved into its new facility at 8 Apollo Dr., Batavia, New York. The move allows Haun to have more space to better service its customer’s needs.

Store information is below: 8 Apollo Dr., Batavia, NY 14020 PHONE: (585) 343-5729 EMAIL: Batavia@TheHaunEdge.com

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CGA Moves Locations On August 28, 2020, the Compressed Gas Association (CGA) moved its location. The association’s new location is: 8484 Westpark Drive, Suite 220, McLean, Virginia 22102. According to the CGA, “We’re moving to Tyson’s Corner, a central business hub in northern Virginia. In walkable distance to metrorail, our new office provides easy access to Washington, D.C. as well as Reagan National and Dulles International airports.” Due to the COVID-19 pandemic, CGA staff will continue to work remotely until further notice.

A New Take on Angle Grinder Wheels

EspriGas Promotes Schrantz, Expands Role of Sawyer EspriGas announced that Lauren Schrantz has been promoted to Director of Supply Chain Network and that Taylor Sawyer’s role has expanded to include additional responsibilities.

As Director of Supply Chain Network, Schrantz will be responsible for leading the Supply Chain department and ensuring a high-functioning supply chain network. In this role, she will maintain executive-level relationships with strategic supply partners with a focus on strong joint operational effectiveness to deliver a seamless experience for suppliers and customers through the use of technology.

Schrantz joined EspriGas in 2013 from Linde, where she was an Industrial Engineer in the Management Development Program. She graduated from Lehigh University with a BS in Industrial Engineering and holds an MBA from University of Georgia’s Terry College of Business. She is active in GAWDA and helps coordinate the EspriGas Ambassador Program, which teaches elementary school students

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INDUSTRY NEWS about atmospheric gases through science demonstrations.

Taylor Sawyer, who has served as the General Manager of the Operations Center since 2018, is adding additional responsibilities focused on the overall quality of service delivery as well as the scalability of the organization. With these additional duties, she will be working closely with the Supply Chain and Account Management teams to ensure consistent delivery of a world-class customer experience.

Sawyer joined EspriGas in 2014 from Chart Industries, where she was in the Marketing Department, and previously served as a Regional Account Manager and Director of Marketing at EspriGas. In addition, she is a past recipient of the EspriGas Salesperson of the Year award.

Sawyer is a graduate of College of Charleston and holds an MBA from University of Georgia’s Terry College of Business. She has also completed the Six Sigma Green Belt program at Villanova University and is a graduate of the HARDI Emerging Leaders program.

She has been an active volunteer with the Make-A-Wish foundation for more than ten years.

“Lauren and Taylor are great representations of the talent and culture we seek to develop and foster at EspriGas,” said Mike Walsh, CEO of EspriGas. “We are exceptionally proud of their personal growth during their time at EspriGas, including utilizing our tuition reimbursement program to obtain graduate degrees, and know that they will continue to push our organization to new heights.”

Holston Gases Moves to Larger Location Holston Gases moved to a larger location. In a company statement, the company said, “To meet the increasing needs of our customers, our Somerset location will move to a larger location 100 • Fall 2020

in late August. The new address is 530 Enterprise Dr. Somerset, KY 42501, and we look forward to seeing you there!”

Messer Distributor Group Celebrates Annual Meeting and Election of New Board Members The Messer Distributor Group (MDG) announced new additions to the group’s Board and pivoted from a planned in-person annual meeting to a highly successful virtual event.

Established in 1993, the MDG helps independent gases and equipment distributor members to leverage their purchasing power to achieve volume discounts and earn rebates from equipment suppliers.

The organization offers joint marketing programs to improve sales effectiveness and hosts educational discussion forums on common business challenges.

“It is critical that MDG members stay abreast of all new products and services vendors offer, as well as various future industry and technology trends,” said Chris Ebeling, Executive Vice President, Sales & Marketing, U.S. Bulk at Messer.

“These meetings, and our ability to adapt to a virtual format during these unique times, make that possible. We’re very pleased to continue providing value to the industry in this digital manner, as we continue to grow in the U.S. market.”

“Great organizations are built to be nimble and flexible to react to market changes, but this year our industry faced unprecedented events,” said Bryan Keen, Co-Chairman of the MDG and President of Keen Compressed Gas Company. “I am proud of the MDG, including distributor members, important suppliers and the Messer team, as they pivoted from our traditional annual meeting to a virtual program in a short period. The MDG program really has demonstrated its unique value proposition to independent distributors.”

After discussing membership and vendors, the MDG elected to have a two-week virtual program that included a general membership meeting and 26 half-hour vendor webinars. The approach proved successful as all programs received positive support and engagement from the members.

“In retrospect, the 2020 annual meeting was a particularly valuable event,” said Ed Mueller, President Welders Supply and Chairman of the MDG Resale and Assets Committee. “We had great show specials from the vendors, unique and educational webinars and celebrated with Radio MDG that gave the entire distributors’ organization an opportunity to participate.”

In addition to the virtual webinars, the MDG announced changes to its Board of Directors. Elected to the Board at the annual meeting were John Mark McMurtry, President of Volunteer Welding Supply and Richelle Smith-Brecht, President and CEO of S.J. Smith Company. The Board also elected Bryan Keen as CoChairman to serve alongside Terry Hall, representing Messer.

The 2021 Annual Membership Meeting will be held at the Eden Roc Hotel in Miami Beach from June 6 through June 8. For more information visit the MDG website or call: 800755-9277.

Monika Goss Named to Propane Industry’s 30 Under 30 Leaders Thirty young propane professionals, who were nominated by others in the industry, have been selected as Charter Members o f t h e Yo u n g Gassers’ 30 Under 30 Program. Each Monika Goss of these young

INDUSTRY NEWS adults will receive a variety of assignments, perks, and recognition within the propane industry for their participation.

Among the recipients of the award were R.N. Goss Gas Products’ Monika Goss. The description of Monika’s achievements is as follows: Monika Goss earned her master’s degree in biomedical engineering and had an exciting career managing a neural engineering research laboratory, but knew she always wanted to return as fourth generation to her family’s business in industrial gases, propane, and welding supplies. She returned in the spring of 2018 and served as the purchasing and inventory manager before taking on the responsibilities of assistant general manager in 2019.

Monika enjoys working with her father, third-generation Dave Goss, and

having the opportunity to be a part of the next chapter at R.N. Goss Gas Products and Provanta Inc., both celebrating 85 years in business, and RenovEx Inc. Monika is excited for the future of the companies which includes projects such as converting the entire delivery fleet to propane-powered vehicles. In her free time, Monika loves to backpack, bake, and travel.

Messer America’s Website Wins Creative Industry Awards Messer announced that the company recently won three industry awards for their new digital web presence in the Americas. Messer’s enhanced websites earned the following honors for 2020: AVA Digital Awards – Gold Winner for planning, concept, direction, design

and production of digital communication.

MUSE Creative – Gold Award in the Corporate Website category; Silver Award in the Business-to-Business (B2B) website category.

“These awards recognize our website as among the best in class for a corporate web presence in 2020,” said Gina Gibbs Foster, Vice President, Communications, Messer Americas. “The team at Messer is committed to improving our website’s overall user experience and bringing our web presence to the cutting edge.”

Messer’s digital media journey will continue through the year as the company works to further enhance its existing website. Additional features will be launched that address functionality and interactivity. To view Messer’s award-winning web presence, visit www. messeramericas.com.

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INDUSTRY NEWS Air Products Appoints Executive Vice President Dr. Samir J. Serhan as Chief Operating Officer Air Products announced Dr. Samir J. Serhan, executive vice president, has been appointed chief operating officer of the company.

Seifi Ghasemi, Air Products’ chairman, president and chief executive officer, said, “Samir has been key to our ability to win and execute the largest and most complex projects in our company’s history. He has also successfully transformed our Global Engineering, Manufacturing, Technology and Equipment organization as well as the businesses under his responsibility. As Air Products continues to provide industrial gases and applications expertise that improve productivity, efficiency and environmental performance, we also are deploying gasification, carbon capture and hydrogen for mobility and energy transition solutions to help meet the world’s needs for clean, sustainable energy and higher-value end products.

I look forward to Samir’s continued leadership across these areas, serving our customers and creating value for our shareholders.”

Dr. Serhan joined Air Products in 2016 as executive vice president, leading the company’s Technology, Engineering, Project Execution, Procurement, Manufacturing, Construction and Startup functions and having profit and loss responsibility for the Equipment Sales and Plant Support, Liquefied Natural Gas technology and equipment, PRISM® Membrane Systems, Gardner Cryogenics and Rotoflow businesses.

In 2018, Dr. Serhan’s role was expanded to include the identification, development and commercial negotiation for all large projects. In 2019, 102 • Fall 2020

he assumed full responsibility for the company’s business in the Middle East.

In January 2020, he assumed reporting responsibility for Americas Operations and HyCO franchises and stand-alone plants. With his appointment as COO, Dr. Serhan further assumes full profit and loss responsibility for the Americas, Air Products’ largest operating region, representing 45% of total company sales in fiscal 2019.

Commenting on the appointment, Dr. Serhan said, “Each day affords us new opportunities to help our customers improve their operations and meet pressing energy and environmental needs around the world. I am honored to work with our talented and high-performing Air Products teams around the globe to make this a reality, and I look forward to progressing the many opportunities in front of us.”

Dr. Serhan brings more than 25 years of industry experience over his career at Air Products and with previous companies. He holds a Ph.D. in engineering mechanics from Virginia Tech.

of an independent welding distributor.

Vic was an IWDC Member and sat on the Marketing Committee for nine years.

Vic has extensive knowledge of welding, welding supplies and gases. For the last four years, Vic has been working for a welding machine manufacturer as a Product Manager helping guide the company in the design and manufacturing of a new line of welders as well as doing international product sourcing.

Born in Whitehorse, Yukon Territory, Canada, Vic lived most of his life in Canada. He immigrated to the United States in 2016. Vic is an avid fan of the Vancouver Canucks and Houston Texans. He has two grown daughters that still live in Canada and he recently moved from Fort Collins, Colorado to Indianapolis.

In his spare time, Vic is a car enthusiast, likes to attend car shows and likes to hot rod cars. He also enjoys camping and being outside in nature.

IWDC Hires New Southern Regional Sales Manager

Matthew Rodriquez has joined Ratermann as Account Manager, Industrial Products for the Southern United States.

He has over 25 years in the industrial gas business, working for both independent distributors and majors. “His diMatthew Rodriguez verse experience in many aspects of our customers’ businesses make him tremendous fit for our team as we execute our growth strategies and provide reliable solutions in the U.S.,” said National Sales Manager, Craig Pagano.

The IWDC announced that Vic Wilson joined the IWDC, reporting to Keith Werkley as the Southern Regional Sales Manager. In this role, he will be responsible for promoting IWDC’s value proposition to the Membership as well as driving profitable growth of its Vendor partner brands and Weldmark® brand.

During Vic’s 27-year career he has held several positions from Inside Sales to General Manager Vic Wilson and Shareholder

Ratermann Manufacturing Welcomes Matthew Rodriguez

INDUSTRY NEWS

GAWDA Media would like to recognize those industry veterans who have retired over the past quarter and wish them well in the next chapter of their lives!

Lincoln Announces the Retirement of George D. Blankenship Lincoln Electric Holdings, Inc. announced that George D. Blankenship, Executive Vice President, President Americas Welding segment retired effecGeorge D. tive May 31, 2020. Christopher L. Mapes, Blankenship Chairman, President and Chief Executive Officer, will oversee the Americas Welding organization until an internal successor to Blankenship is named.

Blankenship joined Lincoln Electric in 1985 as an engineering trainee and held various engineering and product development management positions until 2009, when he was promoted to Senior Vice President and President North America. In 2016, he was named Executive Vice President and President of Americas Welding. During his thirty-five-year tenure, his technical, strategic and operational contributions have advanced the Company’s competitive position and reinforced its leadership position.

“We thank George for his tremendous leadership and contributions, which position Lincoln Electric for future success,” said Mapes. “We congratulate him on an exceptional career that oversaw the development of over 60 patents, the digitization and automation of our solutions, the advent of IoT, additive manufacturing, enhanced commercial and operational excellence, and the development of a strong segment leadership team,” Mapes continued. “We wish him our best in retirement.”

“It’s been an honor and privilege to have had the opportunity to lead in this great company and be part of such an amazing

industry,” said Blankenship. “I have infinite confidence in our organization, our products, our people, and our succession planning process which will provide for a smooth leadership transition. We are successful because of our team’s dedication to our customers, our focus on winning, and operating by a strong ethical foundation.” Blankenship continued, “I am confident in the team’s execution of our short-term action plans and our ability to achieve our 2025 Higher Standard Strategy which will build upon our strong leadership position.”

Cyl-Tec Announces Retirement of Greg Adamson After ten successful years in sales at Cyl-Tec, Greg Adamson retired from Cyl-Tec on August 31, 2020.

Greg has spent a total of 45 years working in the gas industry in some shape or form, and has been a great team member within Cyl-Tec for the past decade.

Greg Adamson “We are very appreciative for his industry expertise, his extensive knowledge base, and his warm, positive nature as a strong member of our Cyl-Tec sales team,” Cyl-Tec wrote in a Facebook post.

Taking over his role for the West/Southwest region is Cyl-Tec’s newest sales team regional manager, Jim Murphy.

The company wrote on Facebook, “We sincerely wish you all the best in your new adventures as an “official” retiree, Greg. Thanks for all you did for Cyl-Tec. You will be missed!”

Fall 2020 • 103

INDUSTRY NEWS Jim O’Connor Retires from Norton Company After a distinguished career spanning 41 years with Norton Company and Saint-Gobain, Jim O’Connor, Director National Distribution, Sales & Marketing, Abrasives North America, retired on July 1, 2020.

Jim’s career started in 1979 as a sales trainee, and, upon graduation, he would Jim O’Connor be promoted and move three times over the next seven years. After first landing in Kalamazoo, MI, he moved to Grand Rapids, MI, and was then promoted to a territory in Hartford, CT, where he had responsibility for Pratt & Whitney Aircraft.

In 1986, Jim moved to New Jersey and took his first management role as Assistant District Sales Manager for NYC metro area. Within six months, he was promoted again, moved to Philadelphia, PA, and served as District Sales Manager for the next three years.

Jim’s next move took him to Canada, where he lived in Burlington, ON, and served as the National Sales Manager

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for Canada. During this time, he also took on additional responsibilities including overseeing Bonded Manufacturing in Hamilton, ON, as well the role of Business Manager for the Pulpstone business, which at the time was Norton’s most profitable business segment.

In 1994, 6 moves and 15 years after joining SGA, Jim made his last move to Atlanta, GA. Over the next 26 years, he’d build an extensive resume of wins in various roles including, Dir., Norton Construction; National Sales Manager, Welding; RSM, Stock Solutions; and his current role of Dir, National Distribution.

In retirement, Jim plans to stay in Atlanta with his wife Dedra where they will play golf and tennis, and travel to see their 4 children, Sean, Caroline, Jordan and Annabelle.

If your company has had an employee retire that you would like to see recognized by GAWDA Media, please email steveg@gawdamedia.com.

INDUSTRY NEWS

MA SCORECARD

Holston Gases Acquires Todays Gases Holston Gases announced the acquisition of Todays Gases in Springfield, KY. Effective August 1, the Today Gases location at 1090 Bardstown Rd. Springfield, KY 40069 operates under the Holston Gases name. Holston Gases is very pleased to bring the Todays Gases customer base and product lines into the Holston family.

Chart Industries Signs Definitive Agreement to Divest Cryobiological Products Business for $320 Million to Cryoport, Inc. Chart Industries, Inc. announced that it has signed a definitive agreement to divest its cryobiological products business (MVE Biological Products) within the Distribution & Storage Western Hemisphere (“D&S West”) segment to Cryoport, Inc. for $320 million in cash. The sale is expected to close early in the fourth quarter 2020, following the satisfaction of customary closing conditions, including regulatory requirements. Strategic highlights of the sale and other recent events include: • Supports Chart’s strategic expansion into additional clean energy offerings that fit the core cryogenic engineering and products for industrial gas and renewable energy while exiting non-core life science and animal breeding products • Debt paydown from proceeds expected to result in pro forma July 31, 2020 net leverage ratio of 1.78X • Announces partnership with FirstElement Fuel to continue to develop equipment for the hydrogen fuel and mobility market • Entered into memorandum of understanding (“MOU”) with a major industrial gas customer to develop specific hydrogen applications in Asia • Investment in expanded leasing fleet expected to drive over $15 million incremental revenue per year, such as the already awarded $8 million, 5-year leasing contract for ISO containers with New Fortress Energy • Booked orders with 84 new customers in the third quarter 2020 to date, bringing year-to-date new customers to 344 • 2020 full year guidance for continuing operations revenue

of approximately $1.2 billion and associated adjusted diluted EPS of approximately $2.25 • Releases 2021 outlook for continuing operations of $1.25 to $1.325 billion of revenue and associated adjusted diluted EPS of $2.90 to $3.25 with no additional Big LNG projects The strategic decision to divest the cryobiological products business reflects Chart’s strategy and capital allocation approach to focus on its core capabilities and offerings while continuing to expand its presence in clean energy applications including LNG, hydrogen, biogas/biomethane, carbon capture and other renewable fueling sources. This divestiture follows the 2018 sale of Chart’s oxygen-related products business, which at the time was a portion of the previous BioMedical segment. The other portion of the BioMedical segment was cryobiological products, which have since been managed by and reported through the D&S West segment. Cryobiological products are used for transport of biological samples and storage of vaccinations, tissue, cells, blood and plasma as well as animal breeder applications. Chart’s medical oxygen related products for critical care applications such as COVID-19 will remain with the Chart business, as they are bulk, microbulk and mobile equipment that serve various industrial gas applications in addition to medical grade oxygen, and have been reported in our D&S West and D&S East segments.

The cryobiological products have virtually no overlapping customers with the rest of Chart’s business and require specialty sales relationships with high knowledge in life sciences and breeding. Additionally, these products go into highly regulated applications and have a significantly higher risk profile than our other product offerings. The three cryobiological manufacturing locations are standalone with no other Chart products produced in any of these locations.

“This is a logical next step in our strategy to stay disciplined in our core cryogenic businesses that share common customers, technologies and end markets. Having a strategic life sciences buyer like Cryoport will provide a platform for the cryobiological products business to grow in medical and animal breeding spaces that are non-core to Chart,” stated Jill Fall 2020 • 105

INDUSTRY NEWS Evanko, Chart’s President and Chief Executive Officer. “We will initially utilize the proceeds from the sale to pay down debt and subsequently continue to expand our presence, both organically and inorganically, into our high-growth focus areas, including hydrogen, carbon capture and other specialty markets.”

AWG Acquires Bestway Welding Supply American Welding & Gas (AWG) an independently owned producer and distributor of industrial, medical and specialty gases, purchased Medical Gas Supply, which does business as Bestway Welding Supply.

“The AWG brand is nationally recognized for excellent customer service, loyalty to employees and, above all else, operating with integrity,” says ​​​​​​​Ernest “Cotton” Speed III, president of Bestway. “I can’t think of a better partner to help Bestway’s employees usher in this next phase of growth.”

Speed has participated in the sale of more than a half-dozen operating businesses in the industrial, medical and specialty gases space. After selling his prior venture in late 2014, Speed

acquired Bestway in early 2016 and established the business as a regional player serving customers in the greater Houston area and surrounding regions.

Joined by Merced Cavazos, vice president of operations, and Jake Juker, head of sales, Speed expanded Bestway’s distribution capabilities, namely its entry into the bulk distribution market.

“We are very pleased to welcome Bestway and their impressive team to AWG,” says Jason Krieger, president and CEO of AWG. “Their focus on service first has provided them great growth in Houston. It also aligns well with our mission of providing productivity solutions for our clients with superior customer service. Together, we have a strong platform for growth in Texas.”

Matrix Capital Markets Group managed the transaction.

Matrix’s team included David Shoulders, managing director and head of consumer and industrial investment banking; William O’Flaherty, director; John Mosser, associate; Matt Oldhouser, senior analyst; and Duncan Rogers, analyst.

Balch & Bingham served as legal counsel for Bestway.

IN MEMORIAM James McGarry McKenna GAWDA extends its condolences to the friends and family of James McGarry McKenna, who passed away on Friday, July 31, 2020, after a long battle with Alzheimer’s disease. He was 86.

James was the beloved husband for over 62 years of Marie Staab McKenna; loving father to daughters Linda Smith (husband Gary), Carol Lee Woodley (husband Dan), Mari Beth King (husband Rob), and son Garry McKenna, Jr; proud grandfather of Tyler King (wife Anna), Courtney Smith Massee (husband Luke), Kara King Brunelle (husband Parker), Colby Woodley (deceased), Kelsey King, Leah Woodley, Morgan Smith, and McKenna Woodley, and proud great-grandfather to Rhett and Reed Massee, Holden and Bennett Brunelle, and Slone and Madison King.

He is preceded in death by his parents, Charles Raymond McKenna and Mary Ellen McGarry McKenna and siblings William Joseph (Billy), Charles Raymond (Charlie/Ray), Rosemary McKenna Slack, Catherine Eileen McKenna 106 • Fall 2020

Ingold Mickelson, John Edward ( Jack), Thomas Daniel (Tom), and survived by sister Ellen Elizabeth McKenna (Betty) McCullough; fondly remembered by his many nieces, nephews, cousins, extended family, and many good friends.

Garry graduated from St. Luke’s High School, Carnegie, PA in 1952, played football as a freshman at Saint Francis University in Loretta, PA, then entered the Navy to serve his country in the Korean War. He earned his Bachelor of Business Administration from Duquesne University in Pittsburgh. Garry was the founder and owner of Chemweld, Inc., which supplies industrial fuel to the metalworking industry. He was also a real estate investor owning several properties in Georgia and Florida.

He was a funny and gregarious gentleman holding the highest integrity in business and family life. He was always happy and fondly remembered by his grandchildren as Happy Pappy! He loved playing tennis in the early years and really enjoyed golf with his wife Marie during their time at Country Club of the South. He loved socializing with his friends and family the most.

In lieu of flowers, memorial donations in Garry’s memory may be made to the Alzheimer’s Association at alz.org.

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Dial pressure gauge with purge valve • 12-inch coiled hose The kits are also available with 20 or 40 cubic ft. nitrogen cylinders in a steel carrying stand.

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Lincoln Electric® introduces a new option to its versatile family of Ranger® welder/generators with the new Ranger® 260MPX™ welder/generator. This new machine delivers 260 amps in the industry-leading compact design that operators have enjoyed with the Ranger® 330MPX™ welder/generator, which entered the market in 2019.

The Ranger 260MPX welder/generator does more with less, with a footprint that’s up to 20% smaller than other welder/ generators in its class. It’s also 25% lighter and 31% smaller by volume. The compact size makes it easier to maneuver around the jobsite, creates more space for additional tools and makes overall operations more streamlined. The 260MPX welder/ generator is also 60% quieter than other machines in its class, which helps promote worker safety and comfort on the jobsite.

In addition to its compact dimensions, the Ranger 260MPX welder/generator is also designed with an innovative and easyto-use digital interface. Simple push-and-turn controls give the operator immediate access to advanced technology. The combination of Ready. Set. Weld®, Chopper Technology® and CrossLinc® technology enables quick setup and improved arc control at every stage of the welding process, from anywhere on the jobsite. continued on next page

Fall 2020 • 107

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5 Maintenance alerts track the status of engine functions and provide real-time data and notifications when service is required. The easily accessible maintenance screen clearly displays hours remaining, and settings can be customized to issue alerts at preferred intervals. This eliminates the need for maintenance-related calculating and scheduling, so the operator can put more focus on the work at hand.

And the Ranger 260MPX welder/generator enables the operator to do more than just weld. With 9.5kW of clean AC generator power, this machine accommodates a variety of auxiliary tools and equipment. You can even operate sensitive electronics, like laptops, without concern, thanks to a total harmonic distortion level of 5%. And you can get more done faster by running generator power – while welding – without interruption.

For more information about Lincoln Electric’s Ranger 260MPX welder/generator, visit www.lincolnelectric.com/ ranger-260

4. Admiral Valve LLC dba CPV

Manufacturing Introduces Game Changing Master Valve

CPV Manufacturing is pleased to introduce the GSB Valve, a master valve rated for 6000 PSI Oxygen and up to 7800 PSI in inert service. These products were developed based on a growing demand for valves that can achieve higher pressures than what was currently offered by other manufacturers of master valves. CPV Manufacturing met and exceeded its goals for achieving these high operating pressure valves, even in Oxygen service.

CPV Manufacturing has created 3 GSB versions – 2 versions with FNPT end connections ( ½” and ¾” versions) rated for 108 • Fall 2020

6000 PSI / 414 BAR in both oxygen and inert service.

To achieve even higher pressures, the 3rd valve is a union style valve which is rated at 7800 PSI / 538 BAR in inert and 6000 PSI / 414 Bar in oxygen.

In addition, all of the valves are soft seated for bubble-tight shut-off, just like its other product lines, and CPV has been able to achieve very high flow rates compared to other brand offerings. Every valve is cleaned and ready for Oxygen service, regardless of the intended service.

These valves offer significant value considering the improvement in pressure capability and associated safety this brings to your operations as well as the quality you’ve come to expect with any CPV Manufacturing brand product. CPV Manufacturing believes that you will find the GSB valves to be very competitively priced compared to other master valves you may be familiar with.

For data sheets, visit https://www.cpvmfg.com/master-valves/ Contact the team at salesadm@cpvmfg.com for additional technical information or to request a quotation.

5. Norton Saint-Gobain Abrasives New Next

Generation Norton BlazeX F970 Fiber and Quick-Change Discs

Saint-Gobain Abrasives’ Norton BlazeX F970 Fiber and Quick Change Discs are the next generation of Blaze. The new Norton BlazeX Discs enable faster rust removal, and enhanced cleaning and detailing processes for better finishes.

Users performing right angle grinding on a routine basis will see immediate results using Norton BlazeX F970 Fiber and Quick-Change Discs due to improved micro-fracturing grain. By consistently exposing sharper grain edges, this

NEW OFFERINGS

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improvement delivers a better cut rate, and longer disc life when compared to blended ceramic alumina discs. True to the success of the Norton Blaze portfolio, BlazeX F970 Fiber and Quick-Change Discs enhance operator control in stock removal, deburring, blending and other applications. A heavy fiber backing not only provides a better disc face to surface grinding advantage, it also resists tearing in heavy applications, extending disc life, and requiring fewer changeovers, resulting in less labor time.

“Intended for carbon steel and other soft-to-grind materials, the new Norton BlazeX fiber and quick-change 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. “BlazeX F970 is an excellent complement to our existing Blaze F980 discs, which are engineered for stainless steel and other harder-to-grind materials. Together, both the BlazeX F970 and Blaze F980 fully cover right angle grinding in MRO, metal fabrication, welding, oil and gas, energy, and ship building markets, to name a few.”

Norton BlazeX F970 Fiber Discs are available in three sizes consisting of 4-1/2”, 5” and 7” fiber discs, and in 7/8” hole or speed-change attachments. The Norton BlazeX F970 Quick-Change Discs are available in 2” and 3” sizes. Coarse grinding applications are supported through the four key grits of 36, 50, 60, and 80. “We are also offering test kits which include a box of BlazeX F970 and Blaze F980 36 grit fiber discs in each size for testing,” adds Carroll. The kits are ideal for users who wish to see the difference between the two on their respective materials.

6. John Tillman 1477 TrueFit Gloves Handling and work gloves need to protect your hands while providing the everyday comfort and durability you demand. Enter the Tillman 1477 TrueFit glove with ANSI A7 cut resistance, and Level 4 Abrasion and Puncture resistance.

The 1477 defines quality, accentuates comfort, and delivers the protection you need.

The 1477 features: • ANSI A7 cut resistance is achieved with a Para-Aramid lining for unbeatable cut resistance, dexterity and comfort • Para-Aramid lining on the fingers, palm and back of hand for complete protection • Level 4 Puncture and Level 4 Abrasion ratings • Offers that great TrueFit feel you expect from Tillman • High-Vis color keeps hands seen and safe • Soft, abrasion resistant Goatskin • Rough side out double palm for longer life and better gripping power • Reinforced thumb to protect severe stress areas • Top grain leather side bolsters add additional protection for side surface work • An elastic cuff with a Thermoplastic Rubber (TPR) and hook and loop closure provides a secure fit • Breathable form fitting spandex back keeps hands cool and provides a precision fit • All fingertips covered in leather for heavy wear area protection and double stitched for extra strength • Smooth surface fingers for improved handling • Offered in sizes S, M, L, XL, 2X, 3X. Fall 2020 • 109

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

AERO ALL-GAS COMPANY 3150 Main Street Hartford, CT 06120 (860) 724-6788 http://allgas.com Paul McNerney, Manager paul@allgas.com

VIRTAIR 101 Nassau Terminal Road New Hyde Park, NY 11040 (718) 847-8247 www.virtair.com William Wasserman, President william@virtair.com

SUPPLIER MEMBERS CRUM & FORSTER INSURANCE COMPANY 11490 Westheimer Road Suite 300 Houston, TX 77077 (615) 499-2073 cfins.com/industrial-gas-welding-supply/ Mike Gray, Vice President mike.gray@cfins.com

ICS INDUSTRIES, INC. 6106 Technology Drive Browns Summit, NC 27214 (336) 285-5364 http://icsind.com Kevin Shanks, President Kevin@ICSIND.COM

PREMIER CRYOGENIC SERVICES, LLC 615 N. 6th Street La Porte, TX 77571 (281) 830-2557 http://premiercryollc.com Joe Morreale, COO/Owner

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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ADVERTISERS INDEX Acme Cryogenics....................................................26

SafTCart.................................................................13

AmWINS Program Underwriters.............................61

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

Anthony Welded Products......................................33

Sherwood Valve........................................................5

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

Superflash Compressed Gas Equipment..................9

ASM/American Standard Manufacturing................75

Thermacut...............................................................23

Black Stallion/Revco Industries................................8

Thermco.................................................................49

BTIC America..........................................................25

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

California Cylinder..................................................66

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

Carborundum Abrasives.........................................35

Voestalpine Bohler..................................................41

Catalina Cylinders...................................................39

Watson Coatings....................................................69

Cavagna North America..........................................52

Weldcoa..................................................................11

Chart.......................................................................31

Weldship.................................................................48

Computers Unlimited..............................................65

Winton Products.....................................................73

Controlled Efficiencies............................................53

Wire Wizard...........................................................101

CPV Manufacturing.................................................21 Cryogenic Industrial Solutions..............................111 Cryoworks..............................................................66 Eleet Cryogenics.....................................................15 FIBA Technologies..................................................51 Flexovit USA...........................................................99 Gas Innovations....................................................104 Generant Company...............................................104 H&H Sales Company............................................101 Harris Products Group.......................................... IFC Hobart Institute of Technology................................73 Hypertherm.............................................................17 Kaplan Industries....................................................37 Lincoln Electric.........................................................7 McDantim...............................................................76 NorLab Calibration Gases.......................................27 Norton Abrasives....................................................19 ORS Nasco.............................................................59 Prism Visual Software.............................................76 Rotarex...................................................................67

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@lincolnelectric Teach them young and teach them well! Thank you to #WeldRedNation member Brad Arthur for sending us this pic! #WeldRed

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

@hihectorv1 To date the CGA/ GAWDA Young & Emerging Professional Summit has attracted over 640 registered participants from all over the world!

This historic effort between CGA & GAWDA continues next week, September 1, and will cover Hydrogen Production, Storage, Transport & Emerging Applications. On September 3rd they will cover Cylinder Valves, Pressure Relief Devices, Regulators and Connections. Registration closes on Saturday August 29. Register at CGANET.COM go to events.

@harrisproducts @black.stallion.bsx Dirty Hands Fabrication is a welding & fabrication services company in the Denver area. They host a monthly Women in Welding Workshop where women can come to a safe place & learn the basics of welding. After closing due to COVID-19, workshops resumed in July & it looks like the students had a great time!

Black Stallion is pleased to support the efforts of Dirty Hands Fabrication with product donations for their Women in Welding program. You can learn more @dirtyhandsfabrication.

112 • Fall 2020

#FlashbackFriday The @harrisproducts team lined up for a group photo in 1928!

We are continuously thankful for our team.

We know that our success from then until now is due to the people who dedicate their time, hard work and wisdom to make sure the Harris Products thrive! #TurnToThePros #Teamwork #History

@equigas Limited Edition 2020 Workshop for Warriors Veterans Tribute Helmets are instock now and only $99 while supplies last! #EQUIGAS

Arcos Delivers Solutions to Stainless Steel Alloy Welding Challenges.

Arcos Industries, LLC offers over 100 stainless steel electrode products to handle the countless array of demanding welding applications that challenge you daily. Our reputation for exceptional quality and outstanding service ensures that you can depend on Arcos to provide you with the finest in bare wire, covered and tubular stainless steel alloy welding electrodes.

Discover for yourself how Arcos stainless steel alloy electrodes can help you solve your critical welding problems. Call us today at 800-233-8460 or visit our website at www.arcos.us.

BUY THE BEST SelectAlloy 308L – Horizontal

BUY AMERICAN SelectAlloy 308L-AP – Vertical Up

Ask your local distributor for SelectAlloy flux cored stainless products.

800-341-5215 | www.select-arc.com