Welding & Gases Today | Q4 2018

The Official Publication of the Gases and Welding Distributors Association

Casting a

wider net Multiple Strategies for

Improving Your Bottom Line

AC RECAP

New Contact Booth Program Record

Fourth Quarter 2018

MEMBER PROFILE

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co nt e n t s Fourth Quarter • Fall 2018 • Volume 17, No. 4

DEPARTMENTS 08

PRESIDENT’S VIEW Reflections on a Year of Progress

BY NED LANE

12

DIRECTOR’S DESK Improvements to the Members-Only Site

BY JOHN OSPINA

14

COVER STORIES

Casting a

wider net Multiple Strategies for

Improving Your Bottom Line

EDITOR’S NOTE An Exciting Time to Join the Industry

24

BY VERONICA WESTFAL

BY CHRISTY PERRY TUOHEY & VERONICA WESTFALL

GAWDA CONSULTANTS 16

pecialty Gas Sales S – Best Practices

20

28

BY THOMAS L. BADSTUBNER

22

34

ASSET MANAGEMENT Harnessing Technology to Increase Profitability

BY MICHAEL DODD

alifornia Decisions Could C Affect Rest of Nation

BY VERONICA WESTFALL

BY RICHARD P. SCHWEITZER, ESQ.

72

ITR ECONOMICS: Expect Accelerating Growth in Industrial Sector into 1Q19, but Watch for a Reversing Trend Later that Year

RICHES IN THE NICHES Distributor Opportunities in Cannabis Production

BY VERONICA WESTFALL

OT Audits, Roadside D Inspections and Approvals

BEST IN SHOW Trade Show Tips from Both Sides of the Table

BY ALAN BEAULIEU

PAGE

34

PAGE

28

GUEST VIEWPOINTS

MEMBER PROFILE 48

ED BALL OXYGEN R Regional Powerhouse and Problem-Solving Vendor

SALES & Marketing

BY AGNES H. BAKER

STAY CONNECTED

www.GAWDAmedia.com 4 • Fall 2018

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co nt e n t s Fourth Quarter • Fall 2018 • Volume 17, No. 4

THE TEAM

PAGE 54

EXECUTIVE EDITOR

John Ospina jospina@gawda.org PUBLISHER

Bill Brod billbrod@gawdamedia.com EDITOR IN CHIEF

Veronica Westfall veronicaw@gawdamedia.com CONTRIBUTING EDITOR

Natasha Alexis nalexis@gawda.org CONTRIBUTING WRITER

Agnes H. Baker CREATIVE DIRECTOR

Robin Barnes robinb@gawdamedia.com VICE PRESIDENT, SALES

NEWS FROM GAWDA 54

Tim Hudson timh@gawdamedia.com RELATIONSHIP MANAGER

Hannah Gray hannahg@gawdamedia.com

We’ve upgraded our website!

Visit it today at GAWDAMEDIA.COM

AC RECAP GAWDA in the Great Northwest

70

SAVE THE DATES! 2019 Events

71

2019 SMC PREVIEW May 4 – 6 in Minneapolis

OMEN OF GASES & W WELDING A Pictorial History

94

NEWS ROUNDUP 86

NEW MEMBERS

100

IN MEMORIAM

88

INDUSTRY NEWS

102

NEW OFFERINGS

98

MERGERS & ACQUISITIONS

104

ADVERTISERS INDEX

Welding & Gases Today (USPS 22-975) is published quarterly: Winter, Spring, Summer and Fall, with additional publications in Spring and Summer. • Non-member subscription rate is $195 per year. • GAWDA members (key contacts and branch locations) receive the magazine as part of their dues. • GAWDA members can order additional yearly subscriptions (4 issues) for $40. • Welding & Gases Today is published by Data Key Holdings, LLC on behalf of the Gases and Welding Distributors Association. • Periodicals postage paid at Ft. Lauderdale, FL, and at additional mailing offices (ISSN 1558-5344). • Editorial correspondence should be sent to Editors, c/o 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 ©2018 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 editor@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 09/2018. 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: Veronica Westfall, 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 2050/2400. Outside county paid/requested mail subscriptions 1706/1723. 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 1706/1723. 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 1856/2123. Copies not distributed 100/100. Total 1956/2223. Percent paid and/or requested circulation 92/81.

6 • Fall 2018

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P RESIDENT’S VIEW

Reflections on a Year of Progress by ned lane

I

began this year with a “Back to Basics” approach, focusing on finding methods of improving three key components of the GAWDA organization: “People, Process and Plan.” Looking back, I believe we made real progress on these objectives over the past year.

GAWDA’s 2017–2018 president, Ned Lane, serves as president of Cee Kay Supply, Inc. in St. Louis, MO. He’s worked in the welding and gases industry for 34 years on both the distributor and supplier sides. He can be reached at nedl@ceekay.com and 314-644-3500.

8 • Fall 2018

PEOPLE We evaluated our GAWDA staffing level, current workload, job responsibilities and future initiatives. This allowed us to determine our staffing plan. Based on this analysis, we recommended a new position of Member Services Director. With the development of the job description and board approval, we were able to hire Andrea Levy as part of the GAWDA team.

Andrea’s primary focus is to evaluate and document the GAWDA value we are delivering to existing and potential new members. It starts by measuring the utilization rate of our existing member benefits: • CGA Program • GAWDA University • ITR Economics • Life Insurance Program • GAWDA Publications • Consultant Utilization • Meeting Attendance (Annual, SMC and Regionals) By creating a tracking process, we can best determine which member benefits are being utilized and provide the most value to individual members. It also results in an improved metric for allocating future funding and evaluating the effectiveness of new initiatives. This process will

Remember — “Progress, not perfection.” also help us to create a “Value Proposition” to bring in new members.

We are excited to have Andrea on board to help serve our members.

PROCESS Many events have taken place behind the scenes that will help GAWDA achieve greater levels of growth and improved efficiencies. These include the following: • A new credit card processing provider was selected that will allow for greater flexibility and cost savings.

• The GAWDA website has undergone phase two of the improvement process, creating a fresh look that now also provides video capability.

• The 2019 renewal process will be available on the new website and allow for online payment as well as proper selection of dues category.

• We established a scorecard metric for evaluating our success in gaining and maintaining distributor members. The Net/Net report tracks and rewards the team for renewing existing members as well as recruiting new members. In 2018, we added 11 net distributor members.

• We worked on awareness of the GAWDA App and increased the app’s utilization rate through a contest at the Annual Convention.

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P RESIDENT’S VIEW PLAN

ANNUAL CONVENTION

We have achieved several of our goals to improve the GAWDA planning process. These include: • The board approved the addition of a Second Vice President to the Executive Committee. This will allow us to begin site selection a year earlier than we have in the past, giving the future president a better opportunity to secure the desired city, venue and dates for the SMC and Annual Convention. It will also help to avoid potential conflicts with other industry events, which impacts attendance for both groups.

• The Executive Committee Strategic Planning Meeting was moved from December to July/August to allow the incoming president to discuss potential initiatives and have them reflected in the budget for his/her year as president.

• We developed value statements for our GAWDA meetings.

The Annual Convention, SMC and Regional Meetings each have a specific purpose and target audience. The goal is to have every attendee realize the utmost value for the time and resources spent traveling to events.

Attendance was very strong at the 2018 Annual Convention in Seattle, with 881 attendees from 254 different companies.

Member feedback on the city, venue and speakers was very positive. The final GAWDA Gives Back total was $154,000, with $77,000 going to each charity. I will never forget standing on stage with the charity representatives when we revealed the check amounts — their expressions of genuine shock and gratitude will stay with me for the rest of my life. GAWDA members are so generous!

CLOSING THOUGHTS A special thanks to the GAWDA staff for their support over the last 12 months. You make GAWDA — GREAT. Remember — “Progress, not perfection.”

“If you measure it, it will improve.”

Last but not least, I want to thank the membership for supporting Jo Ann and I over the past year. It has meant the world to us.

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ALUMINOMICS

DIRECTOR’S DESK

Improvements to the Members-Only Site by john ospina

S

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.

12 • Fall 2018

ince going independent in 2015, we’ve gotten a lot of good feedback from our members on how we could make GAWDA services better and easier to use. Each year, we review that feedback and make incremental changes to continually improve the GAWDA experience for all members.

One area that needed some improvement was our members-only site, where users can go to renew their annual membership, access members-only documents and purchase various GAWDA products. Members wanted a more user-friendly experience, so we’ve made several changes to provide easier site navigation.

Members will have to do an initial password reset to log in to the new members-only site. Even if you have been a longtime member but never logged into the old site, as long as we have your contact information, you can go in and reset your login account. If we don’t have you in our database and you want to access the members-only site, you just need to fill out a profile and submit your access request. GAWDA will review and confirm your information and send you back an approval email that will allow you to log in.

As you may be aware, the membership renewal period is upon us. The board approved a 10 percent discount on the membership dues if paid before Dec. 31, 2018. Renewal notices were initially sent out in mid-October and will be followed up with several reminders in November and December. Renewals can be accessed through the new members-only site and have been improved from the old system.

The old site did not allow for changes in dues categories; the new site does.

The new site is much easier to navigate and requires fewer clicks to find the right folders.

Our old members-only document archives site was a bit cumbersome when accessing files.

It took several clicks to find the right folder, and the site didn’t allow for video archives. The new site is much easier to navigate and requires fewer clicks to find the right folders. The site also allows us to store video files, which will be used more often in the future. There are also several safety templates that can be formatted and used by your company. The files in the members-only site are searchable PDF files, which means that you can highlight, copy and paste the content into a Word file, add your logo, and the template is ready to use.

GAWDA has not traditionally had many products for sale outside of posters, tags, shirts and some manuals. The old process was to access a PDF order form and fax it in for processing.

As we add more products, the new e-commerce platform will bring us up to date by allowing members to order and pay online.

It’s our hope that these changes will increase the usefulness and activity of the members-only site. We welcome your feedback and suggestions on how we can continue to improve not only this site but all GAWDA services.

As always, thank you for your continued membership in GAWDA and your support of the industry.

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FROM THE EDITOR

An Exciting Time to Join the Welding and Gases Industry by veronica westfall

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

14 • Fall 2018

t has been a fast first few months for me here as the new editor in chief of Welding & Gases Today.

Thanks to the amazing team at GAWDA Media and the careful preparation of my predecessor, Diane Stirling, we were able to put out our first issue only three weeks after I joined the company. Then we were off to the Annual Convention, and as soon as we got back, it was time to get going on the next issue. It has been a whirlwind, and I have learned a lot — but, of course, the more I learn, the more I realize how much I still don’t know. This is an industry that is growing by leaps and bounds, with new markets and products popping up on a daily basis. It’s exciting and challenging, and for me, that’s what makes it so much fun!

After 25 years in curricula development for the construction trades, I knew coming in that the people in this industry would be warm and welcoming, but I must say, the GAWDA members and staff take that to a whole new level. I want to thank you all for being so gracious and informative as I find my way in the welding and gases world. I am extremely happy to be here.

Whenever we write a new textbook, we begin with the objectives: specific, measurable outcomes we expect a reader to learn from the text. When I began working at GAWDA Media, I was told that the primary editorial objective of the magazine is to help members make or save money, so that is where I chose to begin.

This issue focuses on various approaches to

PAGE 28 improving profitability, including two guest articles on sales strategies, tips for how to make the most of trade shows, a piece exploring the bottom-line boost provided by asset tracking and an article on distributor opportunities in the booming cannabis market.

The cannabis market article is the first in what I hope will be a series focusing on niche markets for the welding and gases industry. Rather than simply describing the application, I wanted to provide a more in-depth approach so that as a distributor, you will know not only what gases are being used, but also where and why. I look forward to hearing your feedback on it and investigating similar hidden gems in this industry in future issues.

Please feel free to reach out to me with comments, tips, story ideas or anything else you’d like to share. I can be reached at 315445-2347 or veronicaw@gawdamedia.com. I look forward to getting to know all of you and will strive to contribute value to your GAWDA membership.

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CONSULTANTS FDA & MEDICAL GASES

Specialty Gas Sales – Best Practices Expert Advice from Industry Professionals by thomas l. badstubner

S

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

uccessful specialty gas professionals consistently use sales techniques and systems to increase their performance. Of course, it is essential to understand the chemistry, operations and distribution of your products.

However, long-term success requires attention to the systematic behaviors that keep new, profitable prospects in the sales pipeline.

Here are examples of key systematic behaviors I have observed from the best specialty gas sales professionals.

RESPECT AND THANK YOUR CUSTOMER – ED PYLE You worked hard to find and cultivate your valued customer. You genuinely appreciate the trust he/she places in you to solve their problems and contribute to their success. Tell them. This respect goes far beyond being nice to them or showing interest in their hobbies and personal/ professional lives. This includes looking out for their best interests and aligning your organization to serve them.

Someday, there will be a problem with your specialty gas or delivery. This problem might well be out of your control and not actually caused by your company. Nevertheless, look at the problem as an opportunity to be a solution provider for your customer. This is a chance to show real respect and genuine concern for them. If done well, the problem will be solved in a way that enhances your relationship with your valued customer.

Do not miss an opportunity to genuinely thank your customer for their business and listen for opportunities to better serve them.

16 • Fall 2018

SILENCE IS WORSE THAN “NO” – ED PYLE The time will come when you need to give your customer bad news. It might be a price increase, delivery delay, non-conforming product, etc. No one likes to give or receive bad news; however, remember that a failure to communicate in a timely manner with your customer is WORSE than bad news. It shows cowardice and disrespects the customer. When you have bad news to give, do not delay. Remember the diaper principle: Delayed bad news is like a diaper that needs changing — it never gets better by postponing the responsibility to deal with it.

SALES/SAFETY SURVEYS – MARTI HYTHON/DON BOBYK You are the specialty gas expert and you know what a safe lab looks like. (If you don’t know what a safe lab looks like, consult your suppliers — they know.) Develop a specialty gas safety survey and offer it to your customers. Be sure each instrument is using the correct gas, grade and regulator. The benefit to your customer is that they get a second set of eyes on their laboratory process. This could help them solve quality or safety problems of which your customer may not be aware. Often, this will present an opportunity to sell a solution. Solutions might include: cylinder handling carts, regulator switch-over systems, higher-purity carrier gases, innovative delivery options, etc.

KEEP YOUR EYES OPEN AND ASK QUESTIONS – RON CORNS Look for opportunities to tour your customer’s facility and lab. As you are walking from

the reception area to the lab, keep your eyes open for sales opportunities that are being filled by someone else right now.

These opportunities may be small bulk chemicals, competitors’ products, innovative gas packages, etc. You never know what you might find, and it might be an opportunity for you to help your customer with new supply options.

“DO YOU WANT FRIES WITH THAT?” – ANONYMOUS When your customer orders a new or replacement cylinder, be sure his auxiliary needs are also being met. For example, if your customer requested a special mixture, consider what else they may need: • A NIST traceable certificate of analysis • An ISO 17025 accredited certificate • A regulator, flowmeter or gauge • Special purity guarantees • Special handling instructions These value-added items may be essential to your customer and improve your sales as well.

BE INTERESTED IN THEIR APPLICATIONS, INSTRUMENTS, PROCESSES AND PROBLEMS – TERRAN BERGDALE, A-OX Some lab personnel are insulated from the procurement process and may not exercise much discretion in the purchase.

However, if you can find the actual user of the gas, you might learn a lot about their real needs. Ask about their process, how they calibrate, what impurities they have the most trouble with, what they would most like to see in a supplier, what would help them avoid downtime, etc.

CHECK OUT THEIR INSTRUMENT MANUALS – TERRAN BERGDALE, A-OX Sometimes a lab will want to buy less expensive gas (e.g.

99.99 percent helium) as a support or carrier gas. Review the instrument manufacturer’s operating instructions and determine if the grade of gas is really best for their application. Often, an inferior gas can cause damage or void a warranty. This is also true of laser mixtures. A less expensive (non-guaranteed) grade of gas may not be in the best interests of your customer.

GET FAMILIAR WITH THEIR VOCABULARY AND BASIC CONCEPTS – TERRAN BERGDALE, A-OX You will not likely become an expert in your customers’ applications, but you can become an expert at selling to them.

Listen to their vocabulary and get a basic understanding of their Fall 2018 • 17

CONSULTANTS FDA & MEDICAL GASES processes. For example, they may prefer the words “span gas” over “calibration gas.” The scientist may also take offense if you call his/her beloved GC/MS a “machine.”

their medical gases from other companies. However, their maintenance shop might not be covered by the contract and may be able to get better service from you.

HAVE A FORMAL PROSPECTING PROCESS – DON BOBYK

SELL WHAT YOU CAN MAKE

Use your best efforts to find the specialty gas users in your target area. Consider using professional lead generation systems if you can refine the leads to people who need your help. LinkedIn and other social media sites often have search capabilities you can use to identify the influencers/decision makers in local companies. If you know the types of professional associations your best customers belong to, search those association websites.

Some membership lists are viewable by the public.

Search your existing customer database and identify the types of businesses already buying your gases. Then, search your market area for similar types of companies or industries. This is like cloning your customers. For example, if you sell carrier gases to a forensic lab, look for all the other forensic labs (and other medical, environmental and metallurgical labs) in your market area. It is highly likely that you can offer solutions to these new prospects as well. They may even use similar instruments.

Your best service and greatest margin will come from specialty gas products that you already produce within your company. Be sure you are fully selling what you produce locally.

SPECIALTY GAS IS EVERYWHERE You can find specialty gas sales opportunities in unlikely (and nearby) places. Grocery and specialty stores need helium for balloons. Fire departments, safety professionals and maintenance shops need portable calibration gases. Carbon dioxide monitors are being installed in many restaurants, and these monitors require calibration gases. Hospitals may buy

MAKE WHAT YOU ARE SELLING After you have maximized the sales of products you already make, look for opportunities to make higher grades or different mixtures of similar gases. For example, print a list of all the specialty gases you are buying from other companies. Sort the list by sales volume. You may be able to produce some of these outsourced gases yourself with little or no further investment. For example, you may already have the production and analytical capabilities to make Air, Zero or higher grades of nitrogen, air, carbon dioxide, argon, etc.

This internal survey could also identify other higher volume/ margin products that you do not presently have the capability to produce. With additional investment in production or analytical equipment, you may be able to bring these products in-house.

The potential benefits are improved margin, improved delivery and potentially lower inventory requirements.

Consider how these techniques could help you improve your sales and your margin. If you need more information or would like to be invited to the Specialty Gas Sales Essentials webinars, contact tom@asteriskllc.com.

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18 • Fall 2018

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CONSULTANTS DOT, SECURITY, OSHA & EPA

DOT Audits, Roadside Inspections and Approvals by michael dodd

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

here were several DOT Compliance Reviews (audits) conducted on GAWDA members in 2018. In the past, these audits were typically initiated as a security review, and while the inspectors were on site they reviewed other topics such as shipping papers, driver qualification files, alcohol and substance abuse programs, hours of service records, vehicle files and other DOT items as desired. Now that the Safety Measurement System (SMS) is in full swing, we have members with high scores being targeted for an on-site audit.

You will also be visited if you request to become a party to a special permit for the first time and have not been rated during a previous visit.

There were two vastly different results of audits completed on GAWDA members this past year.

Thankfully, the members where I had done mock DOT audits and training in the past and those that use my suggested DOT filing system had perfect scores and no fines assessed provided they kept the recordkeeping items current.

At sites that had not received training, the results were costly. Based on what the inspectors found and how they perceived the company’s compliance, the penalties ranged from a few hundred dollars to as high as $40,000 per company. Most averaged from $4,000 to $6,000 per audit if penalties were issued.

ROADSIDE INSPECTIONS For a sample audit checklist or help setting up a DOT filing system, contact MLDSafety@ hotmail.com.

20 • Fall 2018

Roadside audits were also up in 2018, with many inspectors taking a closer look at the shipping papers/manifests and other documentation.

We have had several customer tickets/invoices examined and written up because they were given to the inspector when the driver was asked for his/ her shipping papers. It is important to remember that a driver should only give the inspector the

shipping papers when requested and not any customer tickets/invoices. When asked for the other documents, the driver should make it a point to say that these are customer tickets and invoices and not shipping papers. Inspectors look at the customer tickets to determine hours of service compliance.

I always recommend keeping the shipping papers/ manifests separate from the customer tickets — a great place is inside the driver’s door pocket along with the emergency response guidebook.

SPECIAL PERMITS AND RINs If you are a party to a special permit, you must keep track of the expiration date and submit the renewal more than 60 days before the expiration date. This is now done through the Pipeline and Hazardous Materials Safety Administration portal found on their website at www.phmsa.dot.gov.

This can be difficult to find, so contact me if you need help.

If you requalify cylinders, you must track your Requalification Identification Number (RIN) approval expiration date. Contact the DOT-approved Independent Inspection Agency at least six months before your RIN expires. This allows enough time to schedule an appointment, complete the review and get the application sent in and approved before the current one expires.

AVOIDING PROBLEMS AND PENALTIES Make sure that your required DOT recordkeeping and filing systems are in place and up to date. If you need to establish a DOT filing system, please contact me as I have a sample version that has worked great for our members.

The key to making this program work is having a system to remind you of the important dates.

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CONSULTANTS GOVERNMENT AFFAIRS & HUMAN RESOURCES

California Decisions Could Affect Rest of Nation by richard p. schweitzer, esq.

T

wo recent decisions regarding hazardous materials transportation in California, one from a federal agency and one from a court, could have a nationwide impact on the transportation of hazardous materials.

GAWDA’s Government Affairs and Human Resources Legal Consultant Rick Schweitzer is president of Richard P. Schweitzer, PLLC in Washington, DC. He is also GAWDA’s general counsel.

Members can reach him at 202-223-3040 and rpschweitzer@ rpslegal.com.

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HAZMAT CARRIERS GRANTED PREEMPTION OF CALIFORNIA MEAL AND REST BREAK REQUIREMENTS On Sept. 21, 2018, the Pipeline and Hazardous Materials Safety Administration of the U.S. Department of Transportation issued a decision preempting the California meal and rest break requirements as applied to drivers of vehicles transporting hazardous materials. The decision granted a petition for preemption filed by the National Tank Truck Carriers (NTTC).

NTTC argued that the California meal and rest break regulations should be preempted because they: • Create unnecessary delay for the transportation of hazardous materials; • Conflict with the attendance requirements under the Hazardous Materials Regulations (HMR); and • Create an obstacle to accomplishing the security objectives of the HMR. The California Labor Code rules require all transportation employees to receive a 30-minute meal break for every five hours worked and a 10-minute rest break for every four hours worked.

PHMSA ruled that California’s meal and rest break rules create unnecessary delays in the transportation of hazardous materials and are therefore preempted with respect to

all drivers of motor vehicles that are transporting hazardous materials. The decision applies regardless of whether the shipment requires a placard, as long as the cargo is hazmat subject to federal regulation.

Separately, the agency also found that the California meal and rest break requirements are preempted with respect to drivers of motor vehicles that are transporting Division 1.1, 1.2 or 1.3 explosive materials and are subject to the attendance requirements of 49 CFR 397.5(a), because it is not possible for a motor carrier employer’s drivers to comply with the off-duty requirement of the California rule and the federal attendance requirement.

Finally, PHMSA ruled that the California meal and rest break requirements are preempted as to motor carriers who are required to file a security plan under 49 CFR 172.800, and who have filed security plans requiring constant attendance of hazardous materials.

This decision means that drivers transporting hazardous materials shipments in California must only comply with the federal driver hours of service regulations, and do not need to comply with the 30-minute meal break or 10-minute rest break requirements under California law. This decision will likely preclude any other state from imposing similar meal and rest break rules on hazmat drivers.

However, GAWDA members with employees driving in California should wait at least 60 days, until Nov. 21, 2018, before making any changes that would not comply with California law, as the state has 60 days to petition for review in the United States Court of Appeals.

CONSULTANTS GOVERNMENT AFFAIRS & HUMAN RESOURCES

PRELIMINARY INJUNCTION GRANTED AGAINST CALIFORNIA FEE FOR HAZMAT SHIPMENTS BY RAIL The second important decision relates to transportation by rail. On Sept. 13, 2018, the U.S. Court of Appeals for the Ninth Circuit affirmed a lower court decision granting a preliminary injunction against a California fee charged for shipments of certain hazardous materials by rail. In 2014, in response to several serious oil spills in the state, the California legislature enacted a fee of $45 per loaded rail car on shipments of certain types of hazmat originating or transported within the state.

The fee would be paid by shippers to the railroads, who would remit the fees to the state. The revenue would be used to fund a hazardous materials accident preparedness and emergency response program for rail shipments. After an administrative proceeding, the state determined the fee would be applied to a list of the 25 most dangerous hazardous materials shipped by rail.

The district court issued a preliminary injunction against the fee, finding that the plaintiff railroads were likely to prevail

WE’RE ALL EARS.

on the merits, and the court of appeals affirmed that decision.

The courts held that the fee was preempted by federal law because only federal agencies may regulate a railroad’s rates, and the fee was considered part of the rates payable to the railroads by shippers.

More importantly, the courts further held that the California fee discriminated against the railroads, in violation of federal law, because the fee was not also applied to hazmat shipments by truck. That conclusion is significant because the court of appeals recognized the reverse conclusion is also true: If a state fee or tax on hazmat shipments applies to truck transportation, but not to rail, it is preempted under the federal Hazardous Materials Transportation Act. The HMTA requires such fees to be “fair.” If a fee applies to shipments by one mode of transportation but not to a competing mode, the fee fails to meet the fairness standard. This principle may prove extremely helpful in challenging hazmat fees in the future.

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Best in Show: Trade Show Tips from Both Sides of the Table THE SUPPLIER SIDE: TIME-TESTED TIPS FROM TRADE SHOW EXHIBIT EXPERTS by christy perry tuohey

Y

our company has decided to rent a booth at an upcoming trade show.

Before you make reservations and pack your bags, here are some tips from trade show experts on what you will need on the show floor and how to maximize your time in the booth, land solid sales leads and create your follow-up strategy.

BEFORE YOU GO After you’ve chosen the right show based on who is expected to be there — customers/prospects, vendors and competitors — pre-show communications, whether electronic or snail mail, will ensure others know you will be there and what you will be showcasing. You may also choose to get the word out via social media.

Tim Patterson, whose company TradeshowGuy Exhibits helps businesses create trade show marketing and exhibiting strategies, suggests that social media can be used most effectively to build buzz seven to 10 days before the show. You may use Twitter or Instagram, for example, to let potential show attendees know what products you will have on hand, if there will be demos or even to show the venue itself or interesting nearby attractions. Be sure to use the show’s official hashtag so that your posts and tweets will be picked up in show-related searches.

24 • Fall 2018

Typically, you send sales and/or marketing staff to represent your company at the show. Will they simply plant themTim Patterson selves at the booth and wait for potential leads to walk up? That’s not an effective plan, according to Ruth Stevens of eMarketing Strategy. “I urge people to book appointments in advance, because every minute you are at the show, whether it’s on the show floor or walking around or going to parties at night, that’s an opportunity to have a conversation with a customer or prospect,” she said.

Stevens, a customer acquisition and retention consultant for business-to-business clients, also advises that your sales and marketing people Ruth Stevens agree ahead of time on what constitutes a sales qualified lead (SQL). “On the account level, it might be ‘Does this guy come from an account that we’ve been trying to get a hold of or that we’d love to do business with? Are they on our target list? Are they large enough to be a prospective customer?’”

Communicating with the show organizer is also key. What is the range of booth sizes? Does the organizer provide

tables, signage, wi-fi, digital show badge technology? Is there other equipment for rent, or should you bring your own?

Who, demographically speaking, does the show usually draw? When packing for the show, remember to bring extra business cards and copies of all the show paperwork (booth number, contract, setup instructions and so on). If the show has a prize program, bring a plastic fishbowl or other container for business cards.

So, what about those business cards?

Are they too archaic and low tech for today’s trade show lead collection? Not necessarily, said Patterson. At a recent show, he collected 160 business cards.

“On probably 10 of them, I made notes that they’re potential leads for projects.

It’s a good way to keep a quick little note about whoever I met.”

“Is it low-tech? Yes. Is it still worth it? Yes,” said Windows Matter CEO Amy Meadows, a professional designer, marketing consultant and event planner.

“The branding, logo recognition and more on that small card serve to advance business connections further and faster than an isolated email or badge scan.”

“Giveaways are important, but I think that they really need to be appropriate,” Patterson said. When planning to keep your brand in your customers’ minds, determine if the item is useful.

Is it something they will see regularly to remind them of your company?

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AFTER THE SHOW

Popular giveaways include tech products, car cups, office supplies and insulated wine glasses.

For giveaways that will be shipped, consider this T-shirt that is pre-packaged for mailing.

Whether you plan on offering branded coffee mugs, flash drives or tote bags, consider ahead of time what swag your team will pack.

“Tech products are currently some of the hottest items,” said Lisette Brod, owner of Spinnaker Custom Products.

These include power banks, Bluetooth speakers and phone wallets with RFID protection. “Consider lead times when selecting giveaways,” she advised. “Waiting until the last minute will not only add to the product cost, but also the price of shipping.”

AT THE SHOW How you set up your space can make a real difference in your interactions with attendees. If you’ve rented or brought a table, think about where you will place it. “I always suggest that you put it on the side of the booth and have the booth open, so that people can walk into the space and talk to you,” Patterson advised.

Never underestimate the attraction of food, drinks and candy. For example, at the 2018 GAWDA AC, vendors brought treats ranging from donuts to 50-yearold scotch for sampling to an actual

coffee shop, including a trained barista!

Needless to say, these were very popular suppliers at the Contact Booth Program.

Once you have attracted your customers, the booth conversations, experts agreed, are the single most important reason for going to the show in the first place. “The value of a trade show is the chance to have a face-to-face conversation with actual, real people, and to kick off a business relationship and to probe about their needs and their issues,” Stevens emphasized. Making those chats easier means configuring your space to be open and inviting.

Patterson warns exhibitors against certain booth behaviors that are turn-offs.

Body language is one important factor in making a potential client feel comfortable. “You know, if you’ve got your arms closed, you’re basically saying to people ‘I’m not interested.’” He suggests that booth staffers make eye contact, smile and keep their phones out of sight.

“Being on the phone, of course, means that whoever you’re on the phone with is more important than being there.” He also discourages exhibitors from eating in the booth.

As soon as possible after the show, scoop those business cards from the bottom of your briefcase and input the data into a spreadsheet. You don’t have to use complicated database software, according to Patterson. He uses Excel spreadsheets because he says the program is straightforward and easily searchable.

With each entry, include information that will provide anyone reading it with a profile of the person you spoke with at the show that can be used to qualify what type of sales lead she/he may be, now or in the future.

Stevens advocates following up as soon as possible after the show. “I would say if you do follow up in 24 hours or within a few days, you’re going to be killing your competition,” she advised.

Meadows’ timeline for follow-up is one week after the show, after an initial post-show email. Patterson’s idea for follow-up communications is dependent on the trade show face-to-face. “I think that the follow-up needs to be based on what the conversation with the prospect is,” he said.

“I think the challenge that a lot of companies have is that they don’t have that conversation to that extent. They find an interest and they say, great, I’ll call you, and then they leave it at that. They don’t identify what the call’s about, they don’t identify when [the follow-up] is and how it’s going to take place.”

Above all, he suggests that whoever attends the trade show communicate clearly to the sales team the specifics of what was discussed and when the agreed-upon follow-up call or email or mailed materials should happen.

Christy Perry Tuohey has over 40 years of writing experience for broadcast, print and online outlets. She can be reached at christyperrytuohey@panthermt.com.

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M U LT I P L E S T R AT E G I E S F O R I M P R O V I N G Y O U R B O T T O M L I N E GAWDA’s Contact Booth Program provides distributors with an opportunity to view the latest tools and equipment from dozens of suppliers in just a few hours.

Tackling a Trade Show

THE DISTRIBUTOR EXPERIENCE

M

by veronica westfall

any people think of trade shows as mostly fun for the customers, who are likely to be wined, dined and wooed by suppliers, but when you consider the cost of attendance and the importance of careful and economical purchases, both sides have an equal stake in making the most of a trade show experience. According to the Association of Event Organizers, 87 percent of business directors agree that it is easier to communicate face-to-face rather than on the phone or via email. GAWDA’s Contact Booth Program offers members a unique opportunity to connect with both sides of the welding and gas distribution business.

“It’s a great opportunity to meet new vendors, see the new technologies and check out the competition,” said Eric Terwilliger, vice president at Airweld, Inc. “This industry is unusual in that

26 • Fall 2018

everyone works together.” Here are some tips for tackling a trade show from the distributor point of view.

REGISTER EARLY This saves money in several ways: early bird discounts on attendance tickets, cheaper airfare and getting in before the discounted hotel room block sells out are three of the biggest advantages.

In addition, you will be in the loop for the all the news ahead of the show or conference, including special events, lists of suppliers and networking opportunities. You may also have an opportunity to schedule one-on-one meetings with your must-see suppliers.

REVIEW THE EXHIBITOR LIST BEFORE YOU GO Trade shows can be enormous, and you want to make sure not to miss out on any new tools, equipment, services or

promotions. Most shows will provide an exhibitor map and/or a list of exhibitors a week or more ahead of time, so be sure to plan your route or at least make a short list of your must-see’s. You will undoubtedly run into colleagues and friends during the show, but be aware that side conversations can easily eat away precious time, so make plans to meet up afterwards and focus on the suppliers you have traveled to see.

BE OPEN TO NEW OPPORTUNITIES You may have come to the show with specific suppliers in mind, but the wonderful thing about trade shows is that they present one of the best opportunities for learning about industry-specific innovations. If something looks interesting — even if you are pressed for time — at least grab a pamphlet and hang onto it so it will trigger you to look it up later.

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Also, don’t be afraid to visit new companies when shopping around for products and services. Small companies and startups have a greater incentive to attract customers and often provide exceptional customer service and special pricing to win your business.

TAKE ADVANTAGE OF NETWORKING EVENTS Get out there and introduce yourself and your company. Make the best use of networking opportunities and events in the evenings — GAWDA members are always glad to share information, ideas and solutions to shared challenges. You never know where you might pick up an idea for a new product or service, or even meet your next customer.

STAY IN TOUCH Afterwards, stay in touch with the contacts you have made via phone, email or social media. GAWDA members have a unique understanding of your needs and challenges and can be great sources of information and ideas.

D a v i d M c M u r t r y , ow n e r o f Volunteer Welding Supply, described GAWDA’s Contact Booth Program this way: “This event puts us in touch with people we might otherwise only see once a year. With everyone in a single location, we can accomplish months’ worth of networking in just a few days.”

PUT THE INFORMATION TO USE Nearly everyone who visits a trade show is very excited and energized by

the dazzling displays of new products and information and walks away with a bag full of freebies and product data to show for it. Don’t waste it!

In that free bag of goodies, you have a compilation of all the industry’s latest offerings.

One great use of a long plane ride home is going through the stack of pamphlets you picked up at a show.

While it is still fresh in your mind, write notes on each pamphlet about what caught your eye about the product and the supplier. Then when you get home, instead of just tossing the pile aside where it is likely to be forgotten, you will be prepared to immediately make use of it to select the products and services that will best help to grow your business.

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Fall 2018 • 27

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Riches Niches W in the

ith medical marijuana now legal in 30 states, the cannabis business is booming across America, with a thriving niche market for distributors. There are several gases used in cannabis production: propane for CO2 generators, gas CO2 for emitters and a variety of gases used in extraction systems.

According to Jana Nelson, president of OXARC, Inc., the legalization of marijuana in Oregon and Washington state has opened a big market for gas distributors, and supplying CO2 to cannabis farmers is now a significant portion of OXARC’s business.

THE ROLE OF CO2 IN PLANT PROCESSES

Carbon dioxide is essential to plant processes. During daylight hours, plants store energy by converting CO2 into sugar in the process of photosynthesis. At night, plants use the energy produced for life functions (e.g., growth and flowering) and release CO2 in the process of cellular respiration.

Studies on the effects of increased CO2 on plant production have been ongoing since the early 1970s, and it is now widely accepted that the controlled introduction of supplementary CO2 in greenhouses and grow rooms can result in improved growth rates and higher yields.

28 • Fall 2018

Plants take in CO2 from the atmosphere via the plant’s stomates, which are microscopic openings or pores typically found on the underside of leaves. Plants use CO2 in combination with sunlight captured in chlorophyll and water/nutrients taken up by their roots to produce both sugar (glucose) and oxygen. The sugar is used by the plants to grow while the oxygen is released into the air.

USING SUPPLEMENTARY CO2 TO ENHANCE GROWTH AND IMPROVE YIELD Atmospheric CO2 is approximately 400 parts per million. Studies show that increasing CO2 to a certain point above this level can improve plant growth as long as adequate lighting, water, temperature, humidity and nutrients are also provided.

In cannabis farming, CO2 levels above 400 ppm will increase cannabis plant growth and yield. It is important to note that different plant varieties have different

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Distributor Opportunities in Cannabis Production by veronica westfall

levels of optimal CO2, and values also vary depending on where the plant is in the growing cycle, with CO2 requirements for cannabis typically being higher during the vegetative stage (e.g., 1,200 ppm) than they are when plants are in the flowering stage (e.g., 900 ppm).

Carbon dioxide must be measured carefully in enclosed spaces, as levels below 400 ppm or above 1,500 ppm have a negative impact on plant processes. If a grow room is sealed and fresh air is not supplied, the CO2 level during daylight hours will drop below 400 ppm, and growth will cease at levels below 200 ppm. For that reason, grow rooms must be supplied with a constant flow of fresh ventilation air or supplemental CO2.

On the other end of the spectrum, excessive levels of CO2 cause the stomata on plant leaves to close, halting photosynthesis and preventing the plants from transpiring water vapor, which can result in scorched leaves (commonly referred to as CO2 burn).

very low ppm & ppb calibration

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This 10-burner generator is designed to be suspended from the ceiling and can be fitted to burn either propane or natural gas to produce CO2.

Here are some considerations for maximizing the benefits of CO 2 in a closed greenhouse or grow room: • When introducing CO2 into a greenhouse environment, remember that CO2 should only be supplemented when the lights are on, as that is the only time in which it is used.

• High-pressure sodium or LED lights are preferred over fluorescent lamps, as they provide the higher light levels required when supplementing with CO2.

• Keep air temperatures at optimal levels. Warm air temperatures speed up photosynthesis and CO2 intake, but if temperatures get too high, leaf stomata will close to conserve water. CO2-enriched plants benefit from temperatures that are 3 to 5 degrees higher than plants in non-enriched spaces.

• Maintain the relative humidity between 40 and 60 percent. At lower humidity levels, leaf stomata close, reducing CO2 intake.

• Tightly spaced plants increase the need for carbon dioxide supplementation.

30 • Fall 2018

Emitter systems use perforated tubing to disperse CO2.

METHODS OF OPTIMIZING CO2 IN GREENHOUSES AND GROW ROOMS There are several methods of increasing the CO2 levels in an indoor farming environment, including CO2 bags, buckets, emitters and generators. A controller is often used in larger greenhouses to monitor CO2 levels, temperature and humidity.

CO2 bags and boost buckets – CO2 bags and boost buckets typically contain mycelium, a fungus found in soil that provides an excellent source of CO2.

The fungus grows on organic matter inside the bag or bucket, and a one-way breather patch is used to expel the CO2 produced into the grow room. Some CO2 boost buckets are vented with a small electric pump to enhance distribution and include tubing that can be run to the center of a group of plants or fan intake.

These devices are limited in that they can only serve small areas and have an expiration date (from three months to a year, depending on the device), after which they must be refilled or replaced.

Once the bag or bucket has expired, the contents can be reused as a topsoil fertilizer.

CO2 generators – CO2 generators burn propane or natural gas and produce carbon dioxide and water vapor as byproducts of combustion. They are simple to operate and can be set up to automatically power on or off when CO2 levels reach a specific concentration. However, burning fuel presents inherent safety hazards and increases both temperature and humidity. Temperatures above 80 degrees F can result in elongated stems and lower yields. Because of this, CO2 generators are better suited for larger grow spaces that are equipped with climate control systems. Some growers use bottled CO2 and emitters in the summer, since they do not produce heat or humidity, and CO2 generators in the winter, when the extra heat and humidity are a welcome byproduct. Note that generators must be rated for indoor, horticultural use and provide complete combustion of natural gas or propane with a pure, blue flame.

Incomplete combustion can produce waste gases that are harmful to people and can potentially damage the crop.

CO2 emitters – CO2 emitters (also known as dosers) attach to tanks or dewars to distribute compressed CO2 in controlled quantities. An emitter system

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includes a pressure gauge, solenoid valve, timer, flow meter and tubing. Because CO2 is heavier than atmospheric air, it is better to distribute it from above so that it will fall onto the plants. Emitters can be connected to an overhead CO2 “rain” system, which consists of perforated tubing that allows the CO2 to fall in an evenly dispersed pattern. Oscillating fans are used to improve gas distribution.

The benefit of this setup is that it is less hazardous than a generator and does not introduce heat.

Controllers – Generators and emitters are often equipped with controllers that monitor CO2 levels, temperature and humidity. If the temperature or humidity exceed predetermined set points, exhaust fans are turned on to purge the room. To conserve CO2, the generator/emitter is shut off during the purge cycle.

A photocell in the controller senses when the lights are off, turning off the CO2 at night when plants don’t require it. Some controllers also include CO2 monitors. If levels fall below a minimum set point, the monitor sends a signal to the controller to turn the system on. When the target is reached, the monitor sends another signal to turn the system off. This permits precise control as well as maximum efficiency.

In addition to the CO2 used to enhance yield, carbon dioxide as well as other gases are also used in marijuana production.

These gases are known as solvents and are used in the extraction process.

SELECTING AN EXTRACTION SOLVENT Cannabis plants produce two wellknown cannabinoids, THC (tetrahydrocannabinol) and CBD (cannabidiol).

Controllers are used to maintain ideal environmental conditions in a greenhouse or grow room.

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ISO 9001 CERTIFIED Fall 2018 • 31

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This duplex unit has the ability to perform both supercritical and subcritical extractions.

THC is the primary psychoactive compound in marijuana. Unlike THC, CBD does not produce psychoactive effects.

Although the U.S. Drug Enforcement Agency has not officially ruled on the topic, CBD products that do not contain THC are generally considered as falling outside the scope of the DEA Controlled Substances Act, which means CBD products are legal to sell and consume.1 CBD products, including CBD oil, are becoming increasingly popular, and in 2018, Business Insider reported that CBD products now represent roughly a billion-dollar industry.2 Applications of CBD oil are growing at a phenomenal rate, and these products are now used in topical, vapor and edible forms to reduce inflammation, provide pain relief, reduce nausea related to cancer treatment and treat symptoms

related to multiple sclerosis, anxiety and Parkinson’s disease. Cannabis treatment in people with certain forms of epilepsy has been particularly promising. In June of 2018, the FDA approved the cannabis-based drug Epidiolex, a CBD oral solution for treating two rare and severe forms of epilepsy. This is the first FDAapproved drug that contains a purified drug substance derived from marijuana.

CBD is extracted from cannabis using a solvent to separate the oil from the plant.

Extraction solvents include propane, butane, hexane, pentane, ethanol/alcohol mixtures and CO2. Butane is currently the most common extraction solvent due to its high efficiency and lower system price point, but CO2 is gaining popularity.

Carbon dioxide usually behaves as a gas at standard temperature and pressure or as a solid when frozen (dry

ice). When CO2 is held above its critical temperature (87.98 degrees F) and critical pressure (1,071 psi), it expands to fill a container like a gas but has the fluid density of a liquid. This is known as supercritical CO2. During the supercritical extraction process, plant material is placed in an extraction vessel, and then CO2 is pumped into the vessel under high pressure. This process converts the CO2 into a fluid, which then passes through the plant material, extracting the oil content. The liquid CO 2 and plant extract mixture is then pumped into a separator vessel, which converts the CO2 back into a gas, separating it from the oil. This process is repeated several times until the extraction is complete. The resulting product may then be subjected to a process known as winterization, which uses ethanol

1. For more information, please refer to the U.S. Department of Justice Drug Enforcement Administration Diversion Control Division clarification at www.deadiversion.usdoj.gov/schedules/marijuana/m_extract_7350.html.

2. For more information, access the full article at www.businessinsider.com/marijuana-cbd-boom-cbd-2018-6.

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and cold temperatures to separate fats, waxes and lipids from extracted oils. It is commonly used to manufacture the light oils used in vape pens.

Some extraction units are also capable of processing subcritical extractions.

Subcritical CO2 is liquid CO2 held below 87.98 degrees F. It is ideal for extracting and preserving light oils from plant material and has the advantage of not requiring winterization.

Carbon dioxide is chemically stable, low-cost, non-toxic, non-flammable and readily available, making it an ideal extraction fluid. CO2 extraction is also considered a “green” process due to the lack of volatile organic compounds found in most other solvents. In addition, it is a very efficient process that recycles 90 percent or more of the CO 2. With CO2 extractions, there are no residual components in the extracted material.

Other extraction solvents require additional processing to separate the solvent from the extracted oil and are considered less pure due to the presence of potential residues. Carbon dioxide is considered a Generally Recognized as Safe (GRAS) solvent that leaves no residue in the product. GRAS is the U.S. Food and Drug Administration designation that a chemical or substance is considered safe and is therefore exempt from the Federal Food, Drug and Cosmetic Act (FFDCA) food additive requirements.

A conversation between our publisher, Bill Brod, and George Ratermann of Ratermann Manufacturing led to a new feature in Welding & Gases Today. George pointed out that there are many pockets of gems to be mined in this industry and suggested that we begin highlighting these niche markets as a service to GAWDA members.

This story was the first in what we hope will be a series of Riches in the Niches. If you have any ideas for this series or other articles you would like to see, please send them to editorial@gawdamedia.com.

MARKETS FOR SUPERCRITICAL CO2

Supercritical CO2 is rapidly gaining popularity as working fluid in a wide variety of commercial and industrial applications. Here are some of the most common applications of supercritical CO2: • Extraction – Supercritical CO2 is used in the extraction of spices, flavors, natural food colorings, hops, caffeine, nicotine, oils, fragrances, herbal supplements and numerous other consumer products. Because the solubility of many extracted compounds varies with pressure, CO2 can be used for making selective extractions via a process known as fractionation.

• Purification – Supercritical CO2 is used to remove pesticides and other contaminants from agricultural crops.

• Microparticle, Nanoparticle and Aerogel Production – Supercritical CO2 is used to create microparticles and nanoparticles for food powders and pharmaceuticals. It is also used in the production of aerogels.

• Sterilization – Supercritical CO2 is used to sterilize tissue grafts. It is also used to sterilize biological materials and medical devices when combined with peracetic acid or other additives.

• Dry Cleaning – Supercritical CO2 is an environmentally friendly alternative to traditional dry-cleaning solvents.

• HVAC Systems – Supercritical CO2 is used as a natural alternative to hydrocarbon refrigerants in state-of-the-art heat pump systems.

• Power Generation – Supercritical CO2 systems are rapidly gaining market share in the power generation industry. Systems that use air Brayton and steam Rankine cycles can be upgraded to CO2 to increase efficiency and power output. According to Concepts NREC, a leading manufacturer of turbomachinery, the estimated market for power-generation supercritical CO2 systems is expected to be approximately $60 billion between now and 2030.1 • Soil Remediation – Numerous studies are underway to identify the atscale use of supercritical CO2 in soil remediation. Potential applications include soil contaminated with pesticides, petroleum or other chemicals as a result of deliberate application, spills or industrial processes.

• Polymer Production and Processing – Applications of supercritical CO2 in polymers include polymerization, polymer composite production, polymer blending, particle production and microcellular foaming.

• Electronics Manufacturing – An emerging application is the use of supercritical CO2 in electronics manufacturing. The low viscosity and surface tension of supercritical CO2 allows for the safe and efficient cleaning of microminiature circuits.

1. For more information on the applications of supercritical CO2 systems for power generation, refer to the full article at www.conceptsnrec.com/blog/ is-the-supercritical-carbon-dioxide-market-reaching-critical-mass.

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ASSET MANAGEMENT HARNESSING TECHNOLOGY TO INCREASE PROFITABILITY by veronica westfall

Y

ou placed an online order for $70 yesterday and just now, your phone pinged with the satisfying notification that your package has shipped. The bottom of the email includes a tracking link. Knowing full well that the package won’t arrive for at least 48 hours, chances are, you click on it anyway.

Why? When you have already ordered and paid for something, it’s just nice to know where it is. It gives you a measure of control, and as a consumer, you have come to expect this level of accountability in any transaction.

Now imagine that you are a distributor with 5,000 cylinders in service, with each one costing $200 or so. Let’s do the math: 5,000 cylinders x $200/cylinder = $1,000,000. That’s a million dollars moving around the world unattended. Wouldn’t you want to know where it is?

As companies grow, their asset investment can increase very rapidly. Robert Anders, CEO and president of Holston Gases, Inc., explained the enormity of cylinder economics at scale: “A new customer requiring 10 cylinders would actually require the addition of 21 cylinders into the system,” Anders explained. “You need to start the customer out with 10 full cylinders, but once empty, they will need another 10 ready and full for the exchange. Add another cylinder to account for losses or failure to meet qualification and you can see that the cylinder investment at scale is enormous. Losses are very small, but certain areas have more losses than others — home health and general contractors on large jobsites moving in and out are two prime examples. You have a lot of moving assets.”

In many cases, the cylinder contents cost a fraction of what the cylinder itself costs, and with increasing steel prices, cylinders and other gas storage systems are becoming even more expensive.

So why isn’t everyone tracking? In the early days, many distributors were hesitant to invest in the technology of cylinder 34 • Fall 2018

tracking. It seemed expensive, confusing and time consuming.

They also worried that tracking might uncover issues in their rental business.

“Some distributors wrongly assumed that meticulous tracking might reveal that they are overcharging for rentals, when in reality, the complete opposite is true,” said Tim Fusco, CEO and co-founder of asset management company TrackAbout, Inc. “If you overcharge a customer, they will let you know immediately,” Fusco explained. “If you undercharge, no one is going to rush to bring that to your attention. We have found that rental balances actually tend to increase by 10 to 20 percent once a distributor begins tracking.”

In addition to increasing rental income and improving efficiencies, cylinder tracking can also result in better customer service, and in a tight market where you are less able to compete on price, better service can have a big impact on the bottom line. In fact, some customers, such as many universities, now require cylinder tracking in order to secure new contracts.

THE BASICS OF ASSET MANAGEMENT Asset tracking involves the use of a cylinder tag, a reader and tracking software. In the past, handheld readers were expensive and also proprietary, so they weren’t compatible between systems. Today, that is less of an issue. Smartphones and tablets can now be used to read bar codes as quickly as expensive handheld trackers, and the software is user-friendly and can be used for a full range of inventory control, compliance, customer communication and accounting functions. Due to tighter controls on rentals and automation of DOT paperwork and billing, the return on investment is swift and sure.

“Tracking streamlines all of your processes and provides an across-the-board improvement to your bottom line,” said Ryan Dunn of Cee Kay Supply.

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ADVANTAGES Asset tracking systems provide the following benefits: • Quickly and easily locate assets at any time, whether on the loading dock or with a customer • Increase rental income due to better asset management • Increase loading efficiency • Reduce loss • Simplify billing and quickly resolve cylinder discrepancies • Improve customer service by ensuring that the correct customer is credited no matter who returns the cylinder • Monitor use, warranty and maintenance activities • Improve safety • Simplify data gathering • Maintain regulatory compliance “Automation is one of the simplest methods of improving your bottom line,” said Gayle Smith of Computers Unlimited. “We have just completed a case study in which a customer saved $3.5 million dollars in a single year by moving over to a mobile delivery system.”

Printing barcode labels (using the cylinder serial number) and then labeling/initializing cylinders occurs as the cylinders are returned for refilling. Professionally printed bar code labels are preferred to ensure quality and avoid printing errors.

Smartphones and tablets with asset management software can be used to immediately identify the location of cylinder assets, along with additional information such as frequency of use. This increases accountability in a way that customers appreciate — it identifies cylinders that are not with the customer who is being billed for them or are not in use and should be returned for credit. Administrative efficiencies are also gained because data can be inserted directly into accounting systems and also used to immediately produce required DOT documentation.

Smartphones and tablets can scan bar codes as easily as expensive handheld scanners.

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WHAT METHOD DO YOU USE? Distributors today have several options when it comes to tracking large quantities of cylinders, including manual counting by unit size and type, bar coding and radio frequency identification transponder tags. The following table compares the features and benefits of all three methods.

TRACKING TYPE Information Tracking Method Scanning Method

MANUAL TRACKING

RFID TRANSPONDERS

Information entered manually with each transaction

Information stored in a data base associated with the cylinder serial number

Information stored in the chip associated with the cylinder

N/A

Smart phones, tablets, handheld scanners

Typically requires proprietary scanning devices, but evolving so that more phones and tablets can also read

Does not require change

Inexpensive, can be read with any smart device, fast and easy to read when cylinders are associated with pallets, easily replaced if damaged

Damage-resistant, do not require line of sight, can be read from any angle, stores information including expiration dates, can scan multiple cylinders, can withstand bead blasting and repainting, longer life

No hard information on the location of assets, decreased efficiency, manual input errors

Must be read in a horizontal orientation, lower inherent storage capacity, dirty or torn bar codes can be difficult to read, requires a line-of-sight measurement

Higher cost, scanning errors are possible when reading multiple item (more than one tag can respond at the same time), radio signals can interfere with scanning equipment, vulnerable to damage from electrostatic discharge, proprietary systems may be incompatible with different readers

Advantages

Limitations

BAR CODING

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In a recent GAWDA Connection Survey, readers were asked what management system they use for cylinder tracking. The majority of companies reported using bar codes, an enormous increase from the previous Welding & Gases Today survey in 2009, when the majority of respondents reported that they still used manual tracking.

In a palletized production plant, the filler can scan the bar codes on the pallet and then associate them with a single pallet bar code while waiting for the cylinders to fill. That way, the driver only needs to scan once to register the whole pallet.

Hard goods can be bar coded as well, so even before the driver leaves the distribution center, he/she knows, for example, that three cases of welding wire must be loaded and whether that occurred. The scanning software automatically identifies mistakes such as missing scans or duplicate serial numbers.

Modern bar code labels are made of rugged polyester and designed to withstand extreme conditions.

NO ORDINARY STICKER Early bar code labels were easily damaged due to exposure and abrasion. Today’s cylinder bar code stickers are designed specifically for use in harsh environments. Cylinder bar codes are available printed on rugged polyester material or anodized aluminum. The adhesive is designed to permanently bond to

metals, plastics and both textured and contoured surfaces.

The labels have excellent resistance to chemicals, abrasion and solvents and are designed to withstand extreme cold, heat and UV exposure. Some bar code labels have an expected life of 20 years or more.

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© Trovan, Ltd.

One advantage of RFID tags is that they can withstand bead blasting.

IDENTIFYING RFID TAGS Radio frequency identification (RFID) tags offer an advantage in that the data associated with a cylinder (e.g., physical location, contents, customer and requalification date) literally travels with the cylinder. RFID tags can passive, active or a little of both: • Passive – A passive tag must be powered up by the transceiver before it can transmit data (it draws power from the radio waves beamed by the reader and reflects them back to the reader). Since the radio waves are reflected, the read range is typically limited to less than 20 feet. Passive tags are small, inexpensive and widely used. However, scanning in a metal environment or near liquids can be an issue.

• Active – Active RFID tags are larger because they require a power supply or battery. They are always in operation and useful in applications where distance is a factor. Active tags contain their own radio frequency emitter and act as a beacon that can send information to a reader at any time, allowing for unattended tracking of information such as the type of gas, cylinder location and requalification dates. However, the maintenance costs increase due to the power supply, and they are used less frequently than passive devices.

• Battery-Assisted Passive (BAP) – These devices extend the read range at a lower price point. When the reader sends a signal, it activates the battery in the BAP tag, sending backscatter waves that can be read at longer distances.

MOBILE SOFTWARE SOLUTIONS Tracking systems are linked to web-based and mobile software applications that perform everything from GPS monitoring to accounting functions. This software is available for both Android and iOS operating systems.

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Some tracking software allows for mobile credit card payments.

“Automation is critical,” said Andrew Kuneth, vice president of Prism Visual Software, Inc. “If you’re not automating your business, you’re missing out on new customers and wasting time in laborious processes.”

According to David Schaer, president of Computers Unlimited, “Cylinder tracking software utilizing smartphone mobile credit card payment technology can streamline and automate the entire ‘order to payment’ process as a means to shorten DSO (days sales outstanding) and labor costs.”

The use of mobile software provides a significant cost reduction both in the field and in the office. Some of the specific advantages provided by cylinder tracking software include the following: • Mobile cylinder tracking via smartphone or tablet • Real-time communication with the office for all transactions • Truck routing and re-routing capabilities • Ability to make changes to existing orders, receive additional dispatched orders or create new orders in the field • Monitor and update GPS truck locations, order statuses and customer inquiries • Invoicing on delivery and mobile credit card payment/receipt eliminates office invoicing and collection labor costs

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Telemetry Systems

Telemetry adds another dimension to a cylinder tracking system. These systems are used to collect usage data (such as pressure and liquid levels) at the customer location and transmit it electronically to a distributor to track maintenance and reorders. The system sends an alert to notify users when it is time to change or reorder tanks and also supplies predicted stock depletion dates.

In the past, distributors had to travel to multiple locations to monitor pressure and liquid levels, and unexpected usage peaks could result in outages. This was an intensely time-consuming task and resulted in manual input errors, customer discrepancies and emergency gas deliveries at night or on the weekends.

Remote telemetry systems were developed to provide continuous monitoring, but early systems required the physical insertion of pressure or liquid level sensors into the tanks, hard wiring and time-consuming pairing between the transmitter and receiver. The systems were so expensive that they were typically only applied to critical installations and bulk tanks. Today, various types of wireless telemetry systems are available, from simple screw-in devices to advanced LED user interfaces. In addition, digitization has resulted in lower prices that have opened the market to continuous monitoring of smaller tanks and even cylinders.

Here are some of the advantages of modern telemetry systems: • App alerts signal when it is time to change or reorder tanks and also provide predicted depletion dates • Easy inventory reconciliation against deliveries • Optimize utilization of trucks and drivers

• Cost savings in labor hours, operating overhead, stockouts, delays, waste reduction, human errors and excess storage • Inventory visibility and offloading of gas inventory management tasks • Competitive advantage Pulsa Sensors’ Head of Business Development Sam Fatoohi explained that telemetry systems improve efficiency and ensure that customers don’t run out of gas for critical applications.

“We’re seeing interest where supply is critical to a process, but gas levels are not often checked, such as in lab deployments, and for medical uses like in dentist and veterinarian offices,” Fatoohi said. “There’s also demand where distributors are looking to improve operations and cut check stops,

like for beverage, specialty and other industrial gases.”

Whichever method you choose, continuous monitoring is now an essential component of gas distribution for many customers. According to Vice President of Business Development Amato Spagnoletti at DataOnline, “Complete visibility of tank contents allows you to optimize both logistics efficiency and economics, and most importantly, it ensures that your customers have adequate product and proper tank operation at all times. Additionally, this operational tank data can drive real value to corporate IoT initiatives.”

Refer to the GAWDA Buyer’s Guide to learn more about these and other GAWDA members who supply tracking, telemetry and software solutions designed for the welding and gases industry.

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SALES & MARKETING

The Generational Gearbox Selling to and Serving Multiple Generations of Clients by chuck underwood

A Chuck Underwood is a pioneer of generational study who has spent the last two decades training American and Canadian business, government, education and religious leaders on generational strategies and approaches. He is the author of America’s Generations in the Workplace, Marketplace and Living Room and host of the PBA television series titled “America’s Generations With Chuck Underwood.” He can be reached at chuck@ genimperative.com and 937-247-1123.

40 • Fall 2018

t the turn of this century, the brand-new discipline of generational study — and with it, generational business strategies — took off like a rocket ship. And I began living out of airplanes, training American and Canadian business, government, education and even religious leaders on a full list of generational strategies.

And everywhere I trained, those generational strategies worked.

Today, as we all prepare to wade into 2019, generational strategies have proven their bottom-line benefit in the marketplace and workplace and have become imperative training and knowledge.

This includes generational selling and customer service strategies, for both business-to-business and business-to-consumer selling, because at the end of the selling process is the buyer, the final decision-maker on the purchase. And that buyer belongs to a generation.

THE FOUNDATION OF GENERATIONAL STUDY AND STRATEGIES Between the time we’re born and the time we leave full-time education, usually the late teens to early 20s, we all develop a long list of fundamental core values that we will keep for life. Yes, we’ll evolve and change, but those core values will remain largely intact.

They will be burned into us by the times and teachings we absorb during those formative years.

The age group, or cohort, that shares the same formative years’ times and teachings will, by and large, share the same core values. And by sharing the same core values, we become a generation.

Whenever the times or teachings, or both, change in a significant and widespread way, it

means that young kids coming of age during those different times and teachings will mold different core values and thus become our next generation.

Generational core values exert significant influence over our minute-by-minute, lifelong decisions.

So, if we understand what happened to each generation during their unique formative years, we then understand the “why” behind their core values. And when we are armed with that powerful knowledge, we can effectively connect with each generation in the marketplace, workplace, classroom, house of worship and our family rooms at home.

AMERICA’S FIVE LIVING GENERATIONS (CANADA’S GENERATIONS ARE SIMILAR) GENERATION

BORN

AGE IN 2019

G.I.

1901–1926

93 +

Silent

1927–1945

74–92

Boomer

1946–1964

55–73

Gen X

1965–1981

38–54

Millennial

1982–2000

19–37

Many sources identify the next generation, but the experts don’t. Why not? Well, they haven’t formed their core values yet. They are under study now.

GENERATIONAL SELLING AND CLIENT SERVICE STRATEGIES Each generation of sellers and client service professionals brings to the job each day a unique set of generation-specific values and attitudes, as well as selling strengths and weaknesses.

SALES & MARKETING

Each generation of buyers brings to their final purchasing decisions unique expectations, needs and preferences regarding their relationships with those sellers and service personnel: the way they are sold; the way they buy; and the service they receive before, during and after the sale.

So, sellers must develop a generational gearbox, which enables them to shift gears instantly and successfully when dealing with clients from one generation to the next. This requires in-depth training in generational strategies, at the end of which sales and customer service pros will have a permanent generational filter in their brains; a filter that enables them — and the company whose products they sell — to include all of those vital generational influences in each step of the marketplace process: • Consumer research • Development of products, services, brand and image • Marketing, advertising, promotion and events • Client communications, including call-center strategies • Prospecting, pitching and closing the sale • One-on-one interpersonal strategies • Ongoing client/customer service

SNAPSHOTS OF THE FOUR GENERATIONS OF BUYERS Silents: Formative years were the 1930s through early 1960s Yes, many Silents are retired, but a significant number are still at the top of family-owned businesses and professionalservices firms (e.g., architectural and engineering firms).

• Came of age believing strongly in hierarchy, structure and a chain of command.

• Loyal to their employers, hard-working.

• Women and minorities faced brutal race and gender discrimination throughout much of their careers.

• Sellers: Explain everything thoroughly but don’t waste their time with hyperbole; Silents have witnessed every selling trick in the book.

• Digitally competent if not lightning-fast with it.

• As buyers, they often prefer hard-copy materials over digital.

• They prefer eye-to-eye contact over phone, phone over email and email over texting.

• They like the idea of building relationships with sellers because personal and professional trust, integrity and common courtesy are especially important to them.

• Warm-up your emails to them with “please,” “thank you” and other polite forms of expression. Emails can easily seem too harsh and blunt to this generation.

Boomers: Formative years were the 1950s through early 1980s Boomers are currently taking their turn at the top and dominate the decision-making offices in business and government.

As buyers, here are just a few of their hot buttons: • Integrity, honesty and compassion for others.

• They are a career-driven, workaholic generation. They can recognize “slackers” rather quickly.

• Appreciate common courtesy.

• Thoroughness: They despise incomplete proposal documents, emails or phone conversations.

• Sellers: Pro-actively volunteer additional information when answering their questions.

• Be on time for phone calls and appointments.

• Like Silents, they prefer face-to-face in the beginning; then, email and direct mail and texting when necessary.

• Make your collaterals concise and cut the crap; want Boomers to read the fourth sentence of your proposal?

Then earn them with the importance of your first three.

• Put the important stuff up front in your collaterals; don’t hide them further down.

• Some of them might have diminished hearing and sight; this should influence your type size, font and color contrast; avoid speaker phones and cellphones, and use land lines instead.

• Long meeting? Provide comfortable chairs, screen out room noise and take frequent breaks.

Fall 2018 • 41

SALES & MARKETING • Always remember that this is the generation that marched in the streets for women’s rights, minority rights and the environment. If you sellers do not present yourselves and your products as compassionate toward others, if you’re only metrics-oriented and don’t consider The Human Factor in your dealings with Boomers, you are jeopardizing the sale.

Gen X: Formative years were the 1970s through early 2000s It was during the formative years of Generation X that American life took a big pivot in the wrong direction: high divorce rate among their parents; leaders lying and cheating and going to prison; a faltering education system — everywhere these children looked, the adult world was letting them down.

As so they grew up skeptical, distrustful, self-reliant and more self-focused than any other generation.

• Independent: All I can trust is myself.

• Survival of the fittest: I don’t ask you for help, you don’t ask me for help.

• Excellent at new ideas, products and workplace efficiencies.

• Less skilled at dealing with The Human Factor.

• Vulnerable to being too data-oriented.

• Sellers: “Brand” is important. So is your after-sale, written guarantee and warranty.

• Efficiency is more important than “please” and “thank you” niceties.

• X’ers have been the “Family First Generation,” and those who still have kids living at home might not want to schmooze with you over dinner or a weekend round of golf. However, this might be changing as the older X’ers become empty-nesters. Be sensitive to it.

• They’re pragmatic. Their decisions are more clinical than emotional. What’s the bottom line, and what’s in it for me?

• Offer them choices.

• Document your product’s quality and cost/benefit value.

They won’t trust verbal promises.

Millennials: Formative years were the 1980s to the present time Here’s the big contradiction: This generation is going to become an excellent career generation, but they’ve gotten off to the rockiest start in the history of the workplace! They had a much more positive childhood than X’ers. They trust — and often revere — their elders at home and at work and want to learn from them. One exception: They don’t trust big-company 42 • Fall 2018

The field of generational study is now in place and has fully proven its benefit. And training in generational strategies is now a permanent and imperative line-item in the selling process. executives, especially at publicly held corporations; Millennials came of age during the era of executive greed, corruption and ruthless treatment of U.S. workers.

• Optimistic, patriotic, socially active, eager to please, want to learn, want to save the world. Idealistic, hopeful, charming and likable, outgoing, empowered, engaged.

Very strong group-think, team-think, we-think. With these generational core values, Millennials are quite similar to Boomers.

• Beyond their control, Millennials entered adulthood severely damaged by two major influences during their formative years: the technology revolution and epidemic over-parenting. They are beginning to understand this, agree and are willing to seek help in overcoming the damage.

• Prefer texting over email and email over phone but are generally comfortable when going eye-to-eye with buyers.

• Like Boomers, as buyers they will include the impact on human beings — coworkers, customers and all others — when making their final purchasing decisions.

• Sellers: Include The Human Factor in your proposal, not just the bottom-line metrics.

• Here is the damage done to them by the Tech Revolution: impatience; short attention spans; superficial, rather than deep, knowledge; tech addiction; and weakness in a lengthy list of soft skills (e.g., communication, critical thinking, phone skills, creativity and others).

• Your product, your company and you must be socially and environmentally “right.”

• Because their helicopter parents over-guided them during their formative years, you sellers should also provide lots of detailed guidance through your selling process.

• Speed is important. Be concise.

Employers, if you’re providing only “generic” training in selling and client service, then you are preparing for the last war. The field of generational study is now in place and has fully proven its benefit. And training in generational strategies is now a permanent and imperative line-item in the selling process.

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Selling for Success

A Proven Sales Cycle for the Welding & Gas Industry by art waskey

I Art Waskey has served with General Air Service and Supply Company of Denver for 34 years, most recently as senior vice president of sales. Before that, he was a zone sales manager for British Oxygen Company in Houston. He has written two books about sales in the gases and welding distribution industry.

Waskey is transitioning to a new career in consulting and public speaking, and in 2019 will be teaching in a seminary. He can be reached at www. impactspeakingdynamics. com and at awaskey@ generalair.com.

44 • Fall 2018

have enjoyed a fulfilling and successful career in welding and gas sales. Airco Welding Products gave me my start in 1972 as a sales engineer.

Working from a home office in Arlington, Texas, I called on distributors in Dallas, Fort Worth, Wichita Falls, Abilene, Austin and San Antonio.

By 1974, I was promoted to regional engineer and moved to Houston, where I covered all of Texas, Oklahoma and New Mexico. When Airco merged with British Oxygen Company in 1980, I moved up to zone sales manager in charge of 12 reps who were strategically located in the southeast quadrant of the U.S. Later in that decade, I felt it was time to “get off the road,” and moved my young family to Denver, where I was fortunate to join General Air Service as head of its sales team. I recently finished my activity as sales leader there and now serve as a sales consultant to the welding and gas industry. In this article, I share my thoughts with you on what I see as the best approach to a sales cycle.

IN THE BEGINNING Airco selected me to attend IBM’s professional sales program known as POPS (Practice

of Professional Selling) in 1974, and this was my introduction to the fundamentals of a sales cycle.

Part of my management responsibilities with Airco included training its sales engineers and 50 distributor reps to plan sales calls. For this I used POPS, which included the following basic steps: 1. Introduction (small talk) 2. Product presentation 3. Handling objections 4. Closing the sale POPS training included role playing with an emphasis on the product presentation (features and benefits), handling customer objections and different types of closures. The latter, “closing the sale,” included high-pressure techniques that were common to many sales-training methods at the time, but which I found to be insincere.

Closure suggestions included: Opinions Count (“In your opinion, would this solve your problem?”); The Assumptive Close (put an X on the signature line and hand the customer the form); or, most comically, The Porcupine (“Would you like it in red or green?”). No wonder many of that era were referred as “used car salesmen,” regardless of what they were peddling.

TODAY’S VALUE PROPOSITION What has changed in the sales cycle over the last five decades? The above model, known as the “Persuasive Cycle,” was replaced by a series of other methods that focused more on integrity and trust in the selling process. First “Relational” selling was introduced, followed by “Transactional” and then “Consultive.” These led us to today’s “Value Proposition” sales cycle, which includes the steps described here.

1. Build Trust in the Relationship Since developing trust is core to the Value Proposition sales approach, let’s look at building relationships closely. Here are three key methods for doing so: • Learn personal background – Meeting a customer’s needs requires significant knowledge of his or her background.

I find that most people will share information about themselves if given the opportunity. A good way to start the conversation is with, “How long have you worked here?” Then transition from work experience to personal interest by asking, “What are your responsibilities?”

Next, move closer to home with, “How long have you lived in [city/state]?” This progression of questions generally leads a prospect to become comfortable sharing information with you because he or she senses that you genuinely care. A client who is uncomfortable with this procedure probably won’t open up or may already have a personal relationship with a competitor.

• Use proper physiology – Psychologists tell us that we are Neuro Linguistically Programmed (NLP), which means that, in addition to words, our physical movements are also involved in communication. Scientists find that the elements of communication are 55 percent physiological (body language), 38 percent tonality (volume, tempo and pitch) and only 7 percent the actual words spoken.

Therefore, as a salesperson, you need to pay attention to: `` Body language – To create a communicative environment, it is important to match and mirror the customer’s body language (e.g., handshake, posture, head tilt, positioning, movement, etc.). When people are emotionally involved, they sense this as concern rather than mimicking. `` Tonality – The sounds and patterns of your voice set the mood for how long your audience stays involved. For maximum effect, try to match the customer’s volume, tempo, rhythm and pitch.

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SALES & MARKETING

`` Communication style – People tend to verbalize their understanding of the world around them in one of three basic ways: auditory, visual or kinesthetic (feeling or touching). Once you determine your prospect’s preferred style, adopt a similar response, and you will quickly establish a more comfortable relationship.

• Practice Behavior Styles – To understand someone else, first know yourself. Are you an extrovert or an introvert?

Are you a people person or task-oriented? Then identify where your prospects fit into these four styles of behavior: `` Dominant – These extroverts tend to be task-oriented and like problems and challenges that produce immediate results. To sell to them, be prepared and direct; make them believe they are important and that by accepting your proposal, they win. `` Influencing – These outgoing enthusiasts like to socialize. To sell to an influencer, be a good listener and keep the customer on track. Allow this type of extrovert to lead him- or herself to your offering. `` Steady – These easy-going introverts like being part of a team where pace and consistency are important.

Go slow with your proposal and provide assurances of success with a focus on reliability and service. `` Compliant – These analytical introverts operate with a concern for procedure. Provide them with data in a well-organized manner, using few words and with a focus on service.

2. Discover the Need Remember, your prospects buy emotionally but make decisions intellectually. Your customer’s greatest concern is having specific needs met. A customer will openly share those requirements, without prompting, if he or she trusts you. Here are some tools for uncovering customer need: • Follow the Pathway – When a prospect reveals having an unmet need with a current supplier, ask these ordered questions, and don’t move forward until each is answered: `` Tell me more. `` How long has it been an issue? `` How have you tried to resolve the issue? `` How did that resolution work? `` What is this issue costing you? `` Is the issue important enough to make a change? `` What other issues do you have?

Often, the first need that comes up is not the most significant, so cycle through these questions until you are confident 46 • Fall 2018

that you have heard all of his or her concerns. Also, if a client mentions that they don’t see their rep often enough, take it seriously. It may signal that their primary need is for a relationship, not a product or a service.

• Practice Active Listening – Remember the adage, “People don’t care how much you know, until they know how much you care.” Your goal is to speak less than 20 percent of the time and listen the other 80 percent. Do this by: `` Using phrases like, “I understand what you are saying.” `` Parroting or repeating the prospect’s exact words `` Paraphrasing what s/he has said `` Providing feedback like, “Sounds like you became frustrated with …”

Remember, your prospects buy emotionally but make decisions intellectually. Your customer’s greatest concern is having specific needs met. A customer will openly share those requirements, without prompting, if he or she trusts you.

3. Validate the Decision Maker How many times have you been misled, or lost a sale, because your contact was replaced — or even worse, you found out you weren’t really dealing with the decision maker? As part of your information gathering, go online or call the receptionist at your prospect’s site and request an organizational chart. Learn each key player’s role in the company you are prospecting and create a “cast of characters list” that identifies operatives, such as ally/inside salesperson, gatekeeper, influencer, ratifier or final decision maker. If you are unable to get access to the ultimate decision maker, it is crucial that you identify an ally that you can instruct on how to best promote your product or service to the decision maker.

4. Confirm the Commitment An important question to ask a prospect is: “If I can solve your issue(s), will you buy from me?” If the decision maker equivocates, don’t move forward with information that could be used to buy your product or service elsewhere. Instead, go back to building a stronger relationship.

SALES & MARKETING

Ultimately, if the decision maker is noncommittal, you will need to elicit a definitive “no.” Assure the customer that it’s all right to give a yes or no answer. Or ask directly, “Please tell me what you mean by ‘maybe’ (or ‘I’m not sure’)?” or, “Are you comfortable telling me ‘no’?” Prospects who won’t commit are a waste of your time. Be prepared to move on if necessary.

5. Present a Value Proposition Your ultimate goal is a commitment to buy. A prospect who trusts you will reveal how much the current problem is costing per year. Be sure to present a thorough accounting of how your proposal will impact that cost in a positive way. I find that most clients can easily justify an 18-month return on investment (ROI). If your solution is less than 25 percent of a customer’s ROI, the need for your product or service will be rationalized.

6. Demonstrate Proof For minor sales decisions, a good value proposition will result in a sale. For customers looking at a major investment, however, you may be required to demonstrate the effectiveness of your proposed solution either through a reference already using the product/service, or with a trial run. Big proposals are important to win — be prepared with a good reference or the offer of well-designed test period.

SELL FOR SUCCESS Professional salespeople are always aware of their position in the sales cycle with each key prospect and penetrative account.

They know the next steps to move the process forward and have confirmed calendar appointments to make that happen.

The steps outlined above for a Value Proposition sales cycle is a proven system for the welding and gas industry. Use it to sell for success.

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Fall 2018 • 47

MEMBER PROFILE

RED BALL OXYGEN

Regional Powerhouse and Problem-Solving Vendor by agnes h. baker

N

early 50 years ago, Craig and Lorena Kennedy purchased Red Ball Battery and Oxygen in Shreveport, Louisiana. At the time, the company was a National Cylinder Gas distributor with a focus on automotive batteries and tires. The Kennedys adopted the distinctive Red Ball Oxygen name and its memorable lightning bolt logo, and set about building an entirely different kind of distributorship, with welding and expanded cylinder gas capabilities.

Red Ball Oxygen has evolved into a regional industrial gas and welding supply powerhouse. Craig’s sons Gary and Larry Kennedy followed him into the family business in the 1970s 48 • Fall 2018

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

Photo above: Aerial view of Red Ball Oxygen’s Shreveport, LA, headquarters.

MEMBER PROFILE Specialty gases represent one of Red Ball’s fastest-growing product areas.

with positions in sales, operations and executive management. Today, the company is led by Alex Kennedy, who succeeded his father Gary in the role of CEO in 2016, and Larry, who serves as chairman of the board. Larry’s children Quinn and Amelia Kennedy have also joined the ranks with roles in sales, purchasing and customer service.

Rounding out Alex’s executive team are Bob Ewing, president; Michelle Digilormo, CFO; and Craig Harris, vice president of operations. Together, they lead a group of dedicated employees in providing industrial gas and welding services to a diverse customer base in a four-state area.

TAKING THE BALL AND RUNNING WITH IT The Kennedys began growing the business soon after they took the helm, and did so both organically and through smart acquisitions. Since Craig Kennedy purchased Red Ball in 1969, it has grown from one location in Shreveport, Louisiana, to 23 locations throughout Arkansas, Louisiana, Oklahoma and Texas.

In 1976, Red Ball expanded into Texas, scratch starting its first branch in Carthage, and establishing a foothold in what would become one of the company’s most profitable markets.

Following that success, Red Ball added 11 additional branches in Texas, including facilities in Houston, Dallas and most recently in Austin. “Texas has been great for Red Ball,” said CEO Alex Kennedy.

“It’s a friendly business environment and provides us with a dynamic and growing customer base. It’s a really diverse and plentiful market for us to operate in.”

In 1991, Red Ball officially expanded to a third state when it opened the doors at its Texarkana, Arkansas, branch.

The company continued to steadily expand throughout Louisiana, Texas and Arkansas, with particularly aggressive growth in the 1990s and 2000s through profitable acquisitions and a maturation of its corporate identity and strategies.

Red Ball’s expansions are customer driven, and the company has seen success in opening facilities in locations in which its customers do business. Recent expansion

into Oklahoma includes a branch in Tulsa.

With many of Red Ball’s Texas-based oil and gas customers doing business in Oklahoma, that territory presents great opportunities for the company, particularly in specialty gas markets. “We have been delivering and growing our customer base in Oklahoma for years,” explained President Bob Ewing, “and plan to open additional branches in Cushing and Oklahoma City this year.”

MEETING THE NEEDS OF ITS CUSTOMERS To serve its industrial base, Red Ball has fill plants in Dallas, Houston and Shreveport. In addition, the company has two specialty gas labs, including a recently acquired hydrocarbon specialty gas company in Houston, which produces highly technical blends that are shipped throughout the country, and exported Fall 2018 • 49

MEMBER PROFILE plants require EPA protocol gases to calibrate their emissions monitoring equipment,” explained Bob. “We were outsourcing their production but decided to make these on our own about 10 years ago. Specialty gases now represent one of our fastest-growing product areas.”

Diversity in markets has helped Red Ball weather the ups and downs of the oil and gas market, which when booming, represents a great deal of business. The company’s utility/power generation and specialty gas markets are less cyclical and have provided good secular growth.

ADDING VALUE FOR CUSTOMERS

Top: Red Ball’s state-of-the-art palletized fill island in Shreveport, LA. Bottom: Red Ball’s newest location in Gonzales, LA, opened in June of 2018.

to customers in South America, Europe and the Middle East. Its original EPA Protocol lab in Shreveport was completely rebuilt in 2000 and is a state-of-the-art facility serving customers throughout the United States.

Geographically, Dallas and Houston have been big markets for Red Ball, and this is still true today. The company continues to pick up new business in these booming metropolitan areas. Austin, Baton Rouge and parts of Oklahoma also represent growth areas for Red Ball.

DIVERSE MARKETS Red Ball has a customer base as diverse as the economies of its four-state region. With a gases-to-hardgoods ratio 50 • Fall 2018

of 50/50, it has nearly equal interests in both sides of the welding and gases portfolio. That ratio can shift, explained Alex, “There are lots of hardgoods related to our large fabrication market, which was slowed in the last recession. Today we are experiencing a pickup in welding consumable and equipment sales as the economy strengthens.”

Another important market for Red Ball is power generation. Red Ball supplies all types of plants — coal, gas and nuclear — with hydrogen and cylinder gases and welding supplies for maintenance. The increasingly stringent environmental regulations placed on power facilities have proven to be good for Red Ball’s specialty gas business. “Power

With metal fabrication at the center of much of its business, Red Ball has developed a superior technical welding team that specializes in a variety of processes and skills critical to welding applications.

“We sell lots of complex products that go along with welding,” reported Alex, “as well as large equipment packages and capital equipment. Our technical welding team is positioned to train our customers on all of the above. This adds value to our offerings and bulk to our business.”

In addition to 15 certified welding inspectors, Red Ball has welding engineers on staff that can write welding procedures and perform technical analyses of applications. This is an important resource to customers, particularly at a time when technology and processes are changing rapidly.

Red Ball takes care to train its employees on the latest welding processes and technologies so that they are knowledgeable of customer needs. The company also sends its skilled employees to customer plants, where they train and certify welders to the unique specifications of each customer.

Other services Red Ball offers include welding machine repair, bulk tank installation and piping for specialty gas labs and welding shops.

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MEMBER PROFILE IN IT TOGETHER Red Ball has grown by reinvesting earnings, not by accruing debt, and maintains the financial strength to make significant investments in its customer partnerships. Alex emphasized, “The number one priority for our family is to protect and reinvest in this business.

We have never run it as a ‘life style’ company. We openly communicate with our employees on how to grow the business, and in this way, we keep thriving and reinvesting. With our profit-sharing plan, everyone at Red Ball is motivated to succeed.”

Red Ball introduced a profit-sharing program for its employees nearly three decades ago. Each month, employees receive a bonus determined by a formula based on company profitability.

This direct financial benefit gives each employee a stake in the company’s success.

Important to the Red Ball profitsharing plan is its “open books” policy.

CFO Michelle Digilormo is in charge of preparing a complete review of Red Ball’s P&L each month and presenting it at a company-wide meeting. The P&L is broken down by region, branch, customers, etc., which gives everyone a clear picture of the business. Michelle explained, “This makes us all aware of areas of success and those of concern.

Employees are able to give me feedback on how to improve profitability. They are very proactive in helping the company control operating and overhead costs.

If someone sees a line item that is high, they ask why.”

Red Ball also has a business intelligence system that makes available analytics, including the P&L, to its staff so that they can make informed, data-driven decisions. The company attributes its ability to continually improve profits to this kind of transparency. Michelle says an open books policy is rare in a 52 • Fall 2018

Red Ball provides industrial gas and welding services to a diverse customer base in a four-state area.

company like theirs. She believes it works well for Red Ball, acting as a resource to help the team solve problems and serve its customers better.

STANDARDS AT WORK Red Ball prides itself on two ISO accreditations, which promote the highest level of safety and quality throughout the company.

Its ISO 17025 accreditation was received in 2008, and this credential has been important to the company’s expanding specialty gas business. Craig explained that ISO 17025 is for testing and calibration, and applies to Red Ball’s specialty gas labs and its welding machine calibration business. Having ISO 17025 has enabled the company to become a larger provider of a greater range of specialty gases.

Red Ball’s ISO 9001 accreditation was awarded to the company in 2014.

This certification represents a total quality system and is geared toward the industrial side of the business. “We began ISO 9001 with our Shreveport headquarters,” said Craig, “and since then, we have standardized all our branches.”

At Red Ball, safety and quality are tightly wound together. ISO 9001 has enabled the company to standardize procedures for both and tie these two activities together in a more effective way.

With this process, Red Ball has moved quality and safety responsibilities out of the purview of just a few and into the hands of many. “The more people with eyes on quality and safety, the better the company,” Craig said.

THE PERFECT ORDER

The goal of Red Ball’s Perfect Order initiative is to get things right the first time, every time. The Perfect Order is a key performance metric that strives to determine what customers are experiencing every time they entrust Red Ball with an order. With its many automated business and technology systems in place — like barcoding/cylinder tracking, route planning and GPS — there is plenty to measure, and Red Ball has developed systems that create reports on activity in the company, right down to the branch level.

Having been introduced eight years ago, the Perfect Order is now part of the

fabric of daily business life at Red Ball. Craig explained, “We believe that which you measure, you improve. Data brings awareness to any shortcomings. Today, all our employees understand they have a role in delivering the Perfect Order.”

Automation has also been a critical factor in perfecting that order and Red Ball recently implemented an e-commerce system. Red Ball customers can now place orders, access invoices and make payments online. On the delivery end, Michelle noted that they are moving toward a paperless delivery system this year.

Implementing EDI (electronic data interchange), a host-tohost computer application, has made Red Ball a more efficient company. With it, vendors can link directly to Red Ball’s ERP and vice versa. Since its implementation, Red Ball has converted over 60 percent of vendor payments to EDI. “With our largest suppliers, our whole order-to-pay cycle is now automated,” said Michelle. “The transactions are not only more efficient, but they are also error-free.”

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BUSINESS TODAY It is no easy task to take a company from a single-shop operation to one of the nation’s leading independent welding and gases distributors. Since the Kennedys purchased Red Ball in 1969, the company has grown from four employees to about 215, each of them now a stakeholder in this familyrun business.

In addition to all that is mentioned above, Red Ball has found its many years of membership in GAWDA to be a great source of support. Bob, who also serves as the first vice president of GAWDA, reported, “The opportunities to network with others in the business through GAWDA events has kept us from feeling like the lone ranger. This association is full of good, experienced people that have helped us get past many roadblocks. In addition, the GAWDA consultants are really good at what they do. We call them all the time with questions about safety, regulations or other operational issues.”

With a young leadership team in place and a couple decades of aggressive expansions to build on, Red Ball is well positioned to continue on its successful path. Alex concluded, “Our overarching philosophy is to run this company with transparency. We will continue to make the appropriate technological investments, always go to market in the spirit of a customer-driven company, and above all, continue to reinvest and protect the family business.”

Agnes H. Baker is a freelance writer with more than 15 years of experience covering the industrial, medical and specialty gas industry.

Based in Massachusetts, she is at: agnes.h.baker@gmail.com.

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HQ & PROGRAM NEWS

ANNUAL CONVENTION

2 0 1 8 RE CA P GAWDA in the Great Northwest

GAWDA’s Annual Convention in Seattle, Washington, was a tremendous success! GAWDA members enjoyed attending great events, hearing engaging speakers and appreciating gorgeous views of the Emerald City. Read on to see all the highlights of GAWDA in the Great Northwest!

NED LANE PRESENTED A YEAR IN REVIEW GAWDA 2017–2018 President Ned Lane welcomed delegates and said he had been honored to lead the organization over the past year. He thanked the officers and provided a recap of his term. His focus had been on people, process and plan. In keeping with his goals, Lane noted the addition of a new member services director at GAWDA headquarters, a review process to maximize the benefits to GAWDA members and the addition of another vice president in order to provide more time to plan and schedule the annual convention and SMC. He was pleased to announce that GAWDA had gained 23 new distributor members during the year (11 net) and noted that they sought to include local Seattle distributors in the convention by offering them a reduced rate to attend the Contact Booth Program.

“I think we pushed the ball down the field a bit,” Lane said. “The key is giving them the tools to carry on.”

54 • Fall 2018

HQ & PROGRAM NEWS

“At Mary’s Place, we believe that no child should sleep outside, so thank you, GAWDA, for working so hard to help us make that possible.

You are the ones who are welding our community together.”

– MARY HARTMAN, MARY’S PLACE GAWDA GIVES BACK 2018 RECIPIENT

GAWDA GIVES BACK With last-minute donations, the final GAWDA Gives Back total came to just over $154,000, with $77,000 going to each charity. Lane described the reasons that he and his wife Jo Ann had for selecting each of the two charities. They chose Ronald McDonald House because it had a personal connection to them as a family, and they selected Mary’s Place in response to a need they saw when visiting Seattle and a way of giving back to the AC host city.

“If you’ve walked the streets of Seattle, you know that they are dealing with an enormous homeless population,” Lane said. “Mary’s Place turns unused buildings into shelters, and their philosophy is that no child should have to sleep outside.

In Seattle, you cannot take a baby out of the hospital without providing an address with running water, and Mary’s Place is the running water for many people.”

Mary’s Place will be using the funds to expand their shelter, while Ronald McDonald House will be investing in commercial kitchen appliances to serve their 80 families in residence.

Fall 2018 • 55

HQ & PROGRAM NEWS SPEAKERS GAWDA members enjoyed keynote addresses on a variety of topics at the AC. Read on for the highlights of these five engaging speakers.

John Rossman John Rossman, former Amazon executive and managing partner at Rossman Partners, spoke on the topic of “Digital Disruption.”

He emphasized that companies need to embrace change in order to succeed. Here are some of the highlights of his speech: • Did you know that if you type in www.relentless.com, it takes you to the Amazon website? That’s because Amazon founder Jeff Bezos initially thought of naming the company Relentless, as it reflects the unwavering passion behind the business model of this internet giant. According to Rossman, relentless is more than just a catchword at Amazon. It represents an obsession with the customer and the pursuit of perfection in all processes.

• “Start with the customer and work backwards,” Rossman advised. Identify and solve the root causes of any customer issues, and empower all employees to solve problems, with no need to escalate to the management level in order to seek permission.

56 • Fall 2018

John Rossman

• “Real-time data is required to make real-time changes,” Rossman said. Amazon has real-time metrics for all system processes, from customer service to delivery, and it measures each of them on a continual basis.

• “Think big, but don’t confuse thinking big with betting big.

Think big but bet small,” Rossman advised. Create a big vision but dial it back into small bets to try different approaches.

“We need to use some portion of our budget to allocate money and resources to take chances and possibly fail in order to reinvent ourselves.”

• It is essential to embrace trends.

Rossman predicts that artificial intelligence and the digital economy (i.e., the Internet of Things) will be the next big wave.

“Embrace the big changes and be willing to rethink your position,” he cautioned. “Avoid the trap of past positions that might limit you going forward.”

• Successful companies are often the most resistant to change, Rossman warned, because they assume that what works now will also work in the foreseeable future. “The biggest risk we take is not continuing to reinvent ourselves.”

Alex Chausovsky

Alex Chausovsky Alex Chausovsky of ITR Economics spoke about the “Winds of Change.” Here are some of the highlights: • 2018 will be a good year economically — not just in the U.S. but worldwide. A slowdown is expected in 2019, with a more positive outlook for 2020 and 2021.

• “If there’s anything that can have a negative impact on the economy, it is trade and tariffs,” Chausovsky said. “We import way more than we export.” The exports from the U.S. to China represent 0.7 percent of our GDP, while the exports from China to the U.S. represent 3.8 percent of our GDP, a significant difference. China is responding to U.S. trade tariffs by retaliating with their own tariffs targeting specific manufacturing sectors.

• Asia is now the world leader in manufacturing, up from 24 percent in 1990 to 45 percent in 2015. Chausovsky pointed out that China has an advantage due to low labor costs and a disregard of environmental impacts.

• Drawbacks of tariff protections include inflation, negative impacts on downstream production, reduced profitability, labor shortages in some areas and job losses in others, reduced exports and supply chain issues. Chausovsky noted that when former-President George W. Bush enacted tariff protections in 2004, the number of jobs lost exceeded those gained. He believes that in the long term, a free market avoids the most detrimental consequences.

• Chausovsky warned members to proceed cautiously, assessing profitability on a weekly or even more frequent basis, and raising the prices wherever possible. The focus must be on preserving profitability.

• “In times of change, be willing to pivot and take advantage of growth opportunities,” Chausovsky advised.

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HQ & PROGRAM NEWS Drew Carter Drew Carter of Maritz Motivation Solutions explained that we have experienced 120 years of exponential growth, and the possibilities are limitless as to what the future may hold as far as technology. The important thing is to be adaptable.

He stressed the following points: • “The competitive environment is changing,” Carter advised.

Companies must expect to compete on new platforms, including artificial intelligence, ro b o t i c s a n d a d v a n c e s i n automation. “Companies need to investigate not IF but HOW to use these new tools,” he said.

• Carter pointed out examples of formerly enormous companies like Blockbuster and Kodak, who saw changes coming, but still failed to adapt their business models to compete in a digital world.

• “People tend to predict in a linear path, but life does not work that way,” Carter said. “The rate of change is increasing.”

• Power generation and storage are experiencing tremendous growth and improvements. Carter predicts that solar will be the primary power source by 2030.

Contributing factors include the fact that energy storage batteries have improved substantially since solar PV was introduced and the price of batteries has decreased by 70 percent since 2014.

• Enormous changes are on the horizon, including the rapid transition to solar PV, electric vehicles and artificial intelligence.

China has mandated the use of electric vehicles by 2013. “China will lead the way because they will own manufacturing,” Carter said.

58 • Fall 2018

Bob VanKirk Drew Carter

Bob VanKirk Linde’s Bob VanKirk discussed current economic and supply chain issues of interest. He kicked off with a discussion on the progress of the Linde/Praxair merger (it received final approval on Oct. 22).

The merger will create the largest entity in the industrial gas supply business. Other highlights included the following: • The helium supply chain is tightening again. “In the helium world, we are faced with a huge period of inflation, and it’s really important to understand that,” VanKirk said. The helium produced in Texas, Oklahoma and Kansas currently represents the biggest source in the world, but it is declining.

• New helium plants are now under construction in Qatar, Algeria and Russia. “All of the major helium

companies in the world have now contracted with Russia,” VanKirk noted, and concerns include future tariffs and trade issues.

• The diplomatic crisis continues in Qatar, which affects the supply chain because the product must move between several countries before export. According to VanKirk, this crisis has nearly doubled the length of the supply chain and resulted in price increases of 47 percent.

• The private sector currently uses the Bureau of Land Management crude price as a benchmark for establishing helium prices, but that will be changing soon. “By the end of 2021, we will no longer be able to access the BLM for the use of helium,” VanKirk said. “If you take anything away from this, know that the helium business is going to change.”

HQ & PROGRAM NEWS • CO2 is also challenging the supply chain with growing demand and increased regulation. Ethanol has replaced other sources as the primary source of CO2. “Protect yourself by making sure that your supplier has multiple sources,” VanKirk said.

• Know who your customer’s customer is and use that data to diversify, VanKirk advised. He recommended pursuing niche markets such as cryogenics, health care, controlled atmospheres and beverage gases. “The more you diversify your business in terms of consumer products — particularly the food and beverage industry — the more you protect yourself against downturns,” VanKirk said.

“The speakers are great — any time I can gain some insight into the concerns of my distributors, it helps me to serve them better.”

– JON TILLEY, BTIC AMERICA CORPORATION

Fall 2018 • 59

HQ & PROGRAM NEWS 2017–2018 GAWDA President, Ned Lane, with Dr. Rick Rigsby

Dr. Rick Rigsby

Dr. Rick Rigsby Dr. Rick Rigsby brought the audience to its feet with the inspirational life lessons he learned from his father, a third-grade dropout. His speech focused on how to get the most out of both yourself and your employees, and to live life in such a way that you serve as an example for others. Here are some quotes from his speech: • “Every morning you need to ask yourself: ‘How great do I want to be today?’”

• “There are three basic rules: Tell the truth, think the best of people and do what you say you’re going to do.”

• “Don’t judge. Evaluate? Absolutely. But don’t judge.

When you judge someone, you’ve just eliminated the possibility of making any impact.”

• “As a leader, if you inconvenience yourself, your impact will grow. Be the hardest working person in the group.”

• “Employees always have problems but no solutions.

Let them know the door is always open, but for every problem you bring in, you must also bring in three possible solutions.”

• “Champions are champions not because they do extraordinary things, but because they do ordinary things better than anyone else. Executing the basics better than anybody else is the way you grow your capacity for greatness.”

• “The goal is to keep learning. Learn today as though you were going to live forever.”

60 • Fall 2018

2018 Annual Convention by the Numbers

200 Distributors from 79 Member Companies

394 Suppliers from 175 Member Companies

143 Exhibiting Companies (a NEW record!)

881 Total Attendees (includes spouses, booth-only and sister associations)

HQ & PROGRAM NEWS

PETERSON TAKES THE HELM Incoming GAWDA President Brad Peterson sure knows how to make an entrance! Wearing dark sunglasses and striding along to music from The Blues Brothers, Brad and GAWDA’s past presidents made for a memorable approach to the stage at the GAWDA AC. When the audience finished cheering and chuckling, Brad’s wife Gabrielle showed a video prepared by his family and gave him a very heartfelt introduction.

“Brad’s a people person,” Gaby said. “He’s outgoing and gracious and just loves people. He shows up and asks questions and has a talent for building consensus.”

When it was Brad’s turn to take the microphone, he thanked his parents and in particular his father, who

bought Mississippi Welders Supply back in 1973 and taught him “selfreliance, the importance of elbow grease, the value of a dollar and the absolute fact that no job is beneath anybody in the company.”

He also thanked his wife Gaby, whom he called the “consummate relationship builder,” as well as his employees, Ned Lane and GAWDA itself: “Every time I come to a meeting, I take away information and insight and ways to grow our business,” Brad said.

He pointed out that he is not looking to make sweeping changes, just minor course corrections when necessary. “Steady as she goes,” Brad said.

Brad would like to examine the value of (and possibly reduce the

number of) regional meetings in order to make sure that members are receiving measurable returns for the time and money invested in attendance. He is also interested in spearheading an industry approach to establishing standards for product information.

“In my estimation, this is like the barcode project on super steroids,” Brad said.

Before joining Mississippi Welders Supply in 1991, Brad served for eight years in the U.S. Navy, and it is clear that his commitment to service remains strong. In fact, the guiding principle of his presidency will be service.

“I think about service to customers, service to community and service to country,” Brad said.

Fall 2018 • 61

HQ & PROGRAM NEWS “As far as customers go, if you provide good service, you’ll never go out of business,” Brad advised.

“That great service in a business setting means fair pricing, ontime delivery, adequate stocking, product knowledge and expertise, a cheerful attitude, treating your coworkers with respect and caring, correct and prompt billing, followup on questions and anything else the customer values.”

Brad also emphasized the importance of community service, whether serving as a volunteer firefighter, adopting a roadway, chairing a committee or encouraging employees to participate in charity events. “Any way you cut it, we need to be involved in our communities,” Brad said. “It will come back to pay dividends. Our communities will be stronger, more vibrant and more connected — which is where we want our businesses to be.”

In closing, Brad encouraged members to serve our country.

“Whatever its form — military service, Peace Corps work, AmeriCorps participation, involvement in a political or business framework to shape our laws and regulations, or supporting those who do any of this work — we all owe it to each other to be involved — and we owe it to the next generation to encourage them to understand and incorporate these values.” Brad pointed out that this is how our country was built as well as how we maintain its greatness. He wrapped up with a quote from the late Senator John McCain: “There’s no greater honor than service,” and thanked GAWDA members for the trust they have placed in him to steer GAWDA over the next year.

62 • Fall 2018

HQ & PROGRAM NEWS

Award for Service as President

Award for Service to the Board of Directors

Award for Service to the Executive Committee

WEMCO Excellence in Welding Award

AND THE WINNER IS . . .

WEMCO Excellence in Welding Award: OXARC, Inc.

Volunteer Awards Jim O’Connor, Norton Abrasives: For Service to the Board of Directors Bill Visintainer, Atlas Welding Supply Company: For Service to the Executive Committee Ned Lane, Cee Kay Supply: For Service as President

CGA Annual Safety Awards Under 100,000 Exposure Hours: Island Supply Welding Company Over 100,000 Exposure Hours: Welders Supply Company of Louisville

“The relationships you form at these events will have a great and positive impact on your business going forward.”

– BOB EWING, RED BALL OXYGEN COMPANY

Fall 2018 • 63

HQ & PROGRAM NEWS AND THE NEW MR. X IS …

Gary Halter of Indiana Oxygen Company! He is now the Second Vice President and will become GAWDA President after Brad Peterson, Abydee Butler Moore and Bob Ewing.

64 • Fall 2018

View more photos from all of the Annual Convention events at GAWDAMEDIA.COM

HQ & PROGRAM NEWS

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HQ & PROGRAM NEWS

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“This event provides us with a unique opportunity to interact with potential customers from around the country.”

– KEITH PARTCH, NORLAB CALIBRATION GASES & EQUIPMENT 68 • Fall 2018

HQ & PROGRAM NEWS

“If you ever find your wagon in a ditch, the GAWDA consultants will be there to help get you out of it.”

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HQ & PROGRAM NEWS

Save the Dates!

I

t’s never too early to begin planning your travel schedule for next year. Here are some of the events scheduled for 2019. Check the EVENTS tab on the GAWDA website at www.gawda.org for more information.

FEBRUARY 2019

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

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

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

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

WEMCO Annual Meeting Doral, FL FEBRUARY 27, 2019 – MARCH 1, 2019

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

APRIL 2019

JUNE 2019

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

AIWD Convention Austin, TX APRIL 14, 2019 – APRIL 17, 2019

GAWDA Regional Meeting Seven Springs, PA JUNE 17, 2019 – JUNE 19, 2019

FABTECH – Chicago, IL NOVEMBER 11, 2019 – NOVEMBER 14, 2019

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2019

SPRING MANAGEMENT CONFERENCE PREVIEW SAVE THE DATES

Saturday, May 4 – Monday, May 6, 2019 HELD AT THE

Hyatt Regency Minneapolis 1300 NICOLLET MALL MINNEAPOLIS, MN 55403

It's all about service!

NEW EXTENDED CONTACT BOOTH PROGRAM HOURS

TIME

MEETING

LOCATION

Friday, May 3, 2019 12:00pm – 6:00pm

Early Badge Pick Up

Hyatt Regency

Saturday, May 4, 2019 7:00am – 6:00pm

Conference Registration

Hyatt Regency

8:00am – 9:00am

Executive Committee Meeting

Hyatt Regency

9:00am – 12:00pm

Board of Directors Meeting

Hyatt Regency

1:00pm – 2:00pm

Regional Chairs Meeting

Hyatt Regency

2:00pm – 3:30pm

Committee Meetings

Hyatt Regency

3:00pm – 4:00pm

Young Prof. Steering Committee

Hyatt Regency

4:30pm – 5:30pm

First Timers Reception

(Offsite – Nicollet Island)

5:30pm – 9:30pm

President’s Welcome Reception & Dinner

(Offsite – Nicollet Island)

Sunday, May 5, 2019 7:00am – 5:00pm

Conference Registration

Hyatt Regency

7:00am – 8:00am

Networking Breakfast

Hyatt Regency

8:00am – 11:30am

General Business Session

Hyatt Regency

11:30am – 12:30pm

Group Lunch

Hyatt Regency

12:30pm – 4:30pm

Contact Booth Program

Hyatt Regency

4:30pm

Industry Hospitalities

Monday, May 6, 2019 7:00am – 12:00pm

Conference Registration

Hyatt Regency

7:00am – 8:00am

Networking Breakfast

Hyatt Regency

8:00am – 12:00pm

General Business Session

Hyatt Regency Fall 2018 • 71

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

ITR Fourth-Quarter Outlook:

Expect Accelerating Growth in Industrial Sector into 1Q19, but Watch for a Reversing Trend Later that Year by alan beaulieu

EXECUTIVE SUMMARY PROFITABILITY IS THE NO. 1 RESPONSIBILITY IN 2019 – 2020 The latest economic data mostly shows an economy performing at a high level. This is evident via the Industrial Production data going through August, Retail Sales staying strong, the S&P 500 hitting record highs and Nondefense Capital Goods New Orders (excluding aircraft) running at a high level.

These are all factors that support ongoing economic rise. However, there are signs that the trend will be reversing direction in the not-too-distant future; these signs range from cracks forming in the Housing Starts trend, to ongoing weakness in Automobile Retail Sales, to decline in traditional leading indicators such as the Purchasing Managers Index (U.S. and global) and the OECD’s U.S. Leading Indicator. There is enough positivity to push out the timing of the business cycle high to early 2019; however, there is also enough negativity that the shape of the business cycle remains unchanged.

Reserve Board’s Industrial Production data with the Census Bureau’s Nondefense Capital Goods results for July and August shows that the current rising trend in the economy will likely extend longer than previously forecasted. The Total Industrial Production chart compares the prior forecast (in orange) to the revised outlook (in blue).

This content is exclusive to GAWDA Members.

US Industrial Production Forecast Comparison Through 2021

15

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Rates-of-Change For more information on GAWDA 10 and association membership, contact: Stephen Hill, GAWDA Membership Services Manager 5 954-367-7728 x 220 / shill@gawda.org

U.S. TOTAL INDUSTRIAL PRODUCTION FORECAST The U.S. Total Industrial Production 1/12 and 12/12 rates-of-change are rising, illustrating that the economy is still in the accelerating ascent phase of the business cycle. Combining the strength of the Federal 72 • Fall 2018

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The chart shows that although the timing of the high and subsequent low has shifted slightly, the magnitude of the cycle is not much different. 2018 will come in about a percentage point higher than called for by the prior outlook. At -1.2 percent, the depth of the projected decline in the 12/12 rate-of-change has been the same since the February 2017 outlook. This remains a mild cyclical event. The shift in timing and the better result for 2018 mean that Production for 2019 will average 0.5 percent higher than for 2018.

The low point of -1.2 percent for the 12/12 rate-of-change is forecast for the second quarter of 2020.

ITR FOR GAWDA The added upside element to the forecast means that those businesses positively correlated to the economy in general, and Industrial Production in particular, will have another one to two quarters to prosper before the backside of the business cycle takes hold. Keep pressing for growth and using this time to determine your strategies for contending with higher prices, tight labor, higher interest rates and, in some areas, relatively scarce material resources. Because the look of the cycle has not changed, even though the timing has slipped further into the future, the Management Objectives™ previously espoused remain pertinent. Use the 2019–2020 backside of the business cycle as a period to consolidate gains, align resources for current and future needs, and map out a strategy for higher volumes, higher input prices and the need to grow your bottom line following the projected first-half-of-2020 low.

The reality of potential decline in the U.S. Total Industrial Production data trend for this business cycle has not changed, as illustrated by the chart to the right.

Notice the mildness of the projected 12MMA descent, which occurs in the second half of 2019 and the first quarter of 2020. It is the type of cyclical event that most businesses

US Industrial Production Revised Forecast Through 2021

3MMA 120

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will successfully navigate, leaving themselves positioned for the subsequent rising trend, provided they focus on maintaining profit margins. There will be some that fail to rigorously manage input costs and pricing pressures and consequently lose cash through the period. The revised forecast calls for the 2018 annual average index to come in 1.0 percent higher than the prior outlook. 2019 is projected to have an annual average index 2.6 percent higher, and 2020 comes in 1.0 percent higher.

The Nondefense Capital Goods New Orders (excluding aircraft) numbers for July and August support the extension of the U.S. Industrial Production rising trend; however, the bulk of the leading indicators continue to affirm the outlook of cyclical decline. The chart below shows that the Purchasing Managers Index (generated by the ISM) 1/12 rate-of-change (generated by ITR Economics) is in decline, and it slipped below zero in the latest data.

This content is exclusive to GAWDA Members.

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

The revised timing for the Industrial Production cyclical high is a little “late” relative to this leading indicator and other indicators. That highlights a risk to the forecast: Many indicators suggest that ascent beyond 3Q18 is not supported by broad-based activity. In association with this extant timing issue is the fact that the revised forecast calls for the Industrial Production 12/12 rising trend to last longer than any prior 12/12 ascent in the last 100 years. Do not take the call for such extreme behavior lightly.

It will be up to individual businesses to drive growth for themselves through their own decisions if they want to maintain 2018’s performance levels. That will

US Industrial Production Index to US Purchasing Managers Index

Production 15

PMI 75

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Fall 2018 • 73

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

require a shift in thinking. The U.S. may be the largest and most productive economy, but neither it nor its businesses operate in a vacuum. Our economy experiences its strongest growth when the world is performing at its best. The chart to the right compares the World Industrial Production 12/12 rate-of-change to the G7 Leading Indicator (generated by the OECD) 1/12 rateof-change (generated by ITR Economics).

The probability of a business cycle reversal for World Industrial Production means that it is highly likely that the U.S. economy will also be bending downward in 2019. This is, of course, supported by the domestic leading indicators referenced in the ITR Trends Report. Close to home, the Canada Leading Indicator is pointing toward cyclical decline. The 12/12 rate-of-change for Canada Industrial Production (measured in Canadian dollars) has already crested and is in decline. Canada, in conjunction with World Industrial Production, is a harbinger of where the U.S. is heading for 2019. If you don’t already know, it would behoove you to learn what these leading and global indicators have to say about your specific

Global Economic Business Cycle is Turning Downward Production 15

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business, so you can effectively plan for the future.

The business cycle provided a great tailwind to ITR’s endeavors in 2018, making most decisions seem correct and efficacious. That is changing for 2019 and into 2020. The economy will be slipping

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onto the side of the business cycle where individual business decisions will make or break your bottom line over the next two years. Review the Phase C and Phase D Management Objectives to determine the actions, plans and decisions needed to continue to foster growth in your bottom line.

This content is exclusive to GAWDA Members.

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

12MMT/A CURRENT 2018 2019 2020

HIGHLIGHTS

U.S. TOTAL INDUSTRIAL PRODUCTION

3.4

3.9

0.5

0.7

We revised our forecast for Production upward.

Growth will persist into mid-2019.

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS

8.3

7.4

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6.5

Business-to-business activity will rise through the first half of next year before declining in the latter half.

U.S. PRIVATE SECTOR EMPLOYMENT

1.8

2.0

1.6

1.3

Employment will rise through at least 2020, but the pace of rise will slow during the second half of 2019 and much of 2020.

U.S. TOTAL RETAIL SALES

5.5

5.6

3.9

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We revised our forecast for Retail Sales upward.

Activity will rise through at least 2020.

U.S. WHOLESALE TRADE OF DURABLE GOODS

9.3

8.3

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6.2

Activity will rise through 2020, but the pace of growth will slow late this year and through 2019.

U.S. WHOLESALE TRADE OF NONDURABLE GOODS

7.4

8.4

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Wholesale Trade will rise through the length of this forecast, but the rate of growth will diminish by the end of this year and through next year.

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

74 • Fall 2018

ITR FOR GAWDA Every measure of the core economy included in this report is in Phase B, Accelerating Growth. Increasing activity in the Manufacturing (up 2.3 percent on a year-over-year basis), Mining (up 11.0 percent), and Utilities (up 3.8 percent) segments is contributing to the accelerating growth trend in U.S. Total Industrial Production (up 3.4 percent). Take note of

the upward-revised outlooks for U.S. Total Industrial Production, U.S. Nondefense Capital Goods New Orders, and U.S. Total Retail Sales. Accelerating growth in both the consumer and industrial sectors will persist into early next year. U.S. Nondefense Capital Goods New Orders as well as U.S. Wholesale Trade of both Durable Goods and Nondurable Goods will transition to

LEADING INDICATORS SLOWING GROWTH IN CONSUMER ACTIVITY IS LIKELY IN 2019 The ITR U.S. Consumer Activity Leading Indicator ticked up in August. This suggests U.S. Retail Sales may accelerate, albeit at a mild pace, into 2019. Despite the uptick in the Indicator, the general outlook for a slowing pace of rise in consumer activity for the majority of 2019 remains.

Phase C, Slowing Growth, trends by the end of this year. A business-cycle decline is expected throughout the core economy in 2019. Take caution not to assume that 2018’s growth rates will persist through 2019 and consequently overinvest. Revisit your capital expenditure plans. Accelerating growth will resume for each of the core economy indicators in 2020.

ITR Consumer Activity Leading Indicator Rates-of-Change

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This content is exclusive to GAWDA Members.

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Fall 2018 • 75

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. CONFERENCE BOARD LEADING INDICATOR

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

Production

INDICATOR SUGGESTS ACCELERATING GROWTH COULD PERSIST INTO 2019

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This content is exclusive to Purchasing GAWDAManagers’ Members.

U.S. ISM’s Index

U.S. ISM’S PURCHASING MANAGERS’ INDEX

Productioninformation onRates-of-Change For more GAWDA 15.0 and association membership, contact: 10.0 The general downward movement in the Stephen Hill, GAWDA Membership Services Manager U.S. Purchasing Managers’ Index (PMI) 1/12 persisted in September. Descent954-367-7728 in the PMI x 220 / shill@gawda.org 3.4 5.0

Index

PMI 1/12 MOVED DOWNWARD IN SEPTEMBER

1/12 since an August 2017 peak suggests a near-term transition to a slowing growth trend for U.S. Industrial Production and that slowing growth will persist through at least the first half of 2019.

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ITR Economics for GAWDA | Q2 Report 2018 | Welding & Gases Today ITR ECONOMICS | P: 603-796-2500 | www.itreconomics.com

76 • Fall 2018

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ITR FOR GAWDA GAWDA EXECUTIVE SUMMARY/DASHBOARD GAWDA-SPECIFIC INDICATORS INDICATORS

CURRENT GROWTH PHASE RATE (12/12)

HIGHLIGHTS

U.S. INDUSTRIAL PRODUCTION INDEX

Annual average Production will expand into mid-2019. Expect subsequent decline to extend through early 2020, but Production will remain above the current level; plan accordingly.

3.4%

B

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

Nascent decline in monthly and quarterly rates-of-change signals that a transition to Phase C, Slowing Growth, is probable this quarter. Protect your margins by raising prices.

5.5%

B

U.S. CRUDE OIL FUTURES PRICES

The World Oil Supply/Demand Gap is in a tentative Phase C trend. This suggests firms should not straight-line project the recent uptick in Prices forward.

30.8%

B

U.S. NONDEFENSE CAPITAL GOODS NEW ORDERS WITHOUT AIRCRAFT

Annual total New Orders reached a record high in August. Avoid linear thinking as New Orders are nearing a transition to Phase C.

8.3%

B

U.S. ELECTRICAL EQUIPMENT NEW ORDERS

New Orders have transitioned to Phase B, Accelerating Growth, since the previous report. However, plan for the accelerating trend to be shortlived.

2.3%

B

This content is exclusive to GAWDA Members.

Ensure you have the capacity to meet record-high demand, but do not

Foroverexpand moreas New information ontransitioned GAWDA Orders have tentatively to Phase C since 11.4% the previous report. and association membership, contact: Foreign demand for Durable Goods could lessen as a result of trade U.S. DURABLE GOODS NEW ORDERS and an appreciating dollar. Focus your marketing efforts on Stephen Hill,disputes GAWDA Membership Services Manager8.2% WITHOUT AIRCRAFT domestic customers.

954-367-7728 x 220 / shill@gawda.org U.S. FABRICATED METAL PRODUCTS NEW ORDERS

ITR LEADING INDICATOR (MONTHLY)

The Indicator’s general declining trend signals that the U.S. Industrial Production 12/12 could reach a peak around late 2018.

Nearly all of the GAWDA indicators are in Phase B, Accelerating Growth. U.S. Fabricated Metal Products New Orders have recently transitioned to a slowing growth trend but are still rising at a doubledigit pace. All of this is good news. However, declining trends in leading indicators and Phase C trends in commodity prices such as copper and steel signal that the industrial sector is nearing a

A

RECOVERY

B

ACCELERATING GROWTH

C B C

2.4 (Monthly)

business cycle peak. Rising interest rates discourage investments made with borrowed money, muting the pace of expansion. This is the time to make final adjustments to your 2019 budget. If your business follows the trends in U.S. Industrial Production, avoid straight-line projections and overexpanding to remain profitable as Production is expected to be in Phase C for the majority of 2019.

C

SLOWER GROWTH

D

RECESSION

Fall 2018 • 77

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. INDUSTRIAL PRODUCTION

B - ACCELERATING GROWTH 2018 3.9% 107.7* 2019 0.5% 108.2* 2020 0.7% 109.0* * Index based to 2012 = 100.

HIGHLIGHTS: ◼◼ Industrial activity was at a record high in August.

U.S. Industrial Production Index Data Trend Index

Index

120

120

12MMA Forecast 12MMA 3MMA 106.3

110

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◼◼ Manufacturing was up 3.5 percent from

one year ago. ◼◼ The

Industrial Production forecast was revised upward.

Industrial Production set a record high in August. The Index rose 2.4 percent from July, bringing August 2018 up 4.9 percent from August 2017. Manufacturing improved to 3.5 percent higher than the year before but did not set a record high. Utilities were up 4.7 percent year over year. Mining posted a robust 13.8 percent increase. These are encouraging numbers. The net result of this data and other analysis was an upgrade to the forecast.

The new forecast calls for 2018 Industrial Production to increase 3.9 percent compared to 2017. The resulting 12MMA is 1.0 percent higher than called for by the prior forecast (prepared in 1Q18). The timing of the 12/12 high shifted to February 2019.

ITR is still calling for a cyclical decline for 2019. The business cycle decline is still expected to result in a slight year-over-year contraction in Industrial Production. The low value for this business cycle is unchanged at -1.2 percent.

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Management Note: The economy will enjoy one to two quarters of additional upside business cycle activity. However, the perils of the downside of the cycle have not gone away.

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THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

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

B - ACCELERATING GROWTH 2018 7.4% $830.5 billion 2019 -0.6% $826.0 billion 2020 6.5% $879.7 billion

HIGHLIGHTS: ◼◼ The revised forecast for New Orders is upward.

Orders are up 8.3 percent from one year ago.

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

Bils of $

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◼◼ New

◼◼ Activity

will rise through the first half of 2019.

The forecast for U.S. Nondefense Capital Goods New Orders was revised following an atypically strong July, the strongest on a month-to-month basis since 1988.

Changes to tax laws are also likely contributing to faster-than-anticipated rise in New Orders. However, tariffs pose a threat to the business-to-business sector and are a downside risk to the new outlook.

Projections for New Orders 12MMT were raised by about 2.2 percent for 2018, 5.0 percent for 2019 and 5.5 percent for 2020.

U.S. Nondefense Capital Goods New Orders during the 12 months through August totaled $810.5 billion, up 8.3 percent on a year-over-year basis. Business-to-business activity will rise through the first half of next year. New Orders will then decline through the rest of 2019 before subsequently rising through 2020.

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For more New information on GAWDA Orders (excluding aircraft) Rate-of-Change and association membership, contact: 20 20 Stephen Hill, GAWDA Membership Services Manager 8.3 10 10 954-367-7728 x 220 / shill@gawda.org

Management Note: Know which of your markets are heading for a recession during this business cycle.

Evaluate your capital equipment needs accordingly.

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U.S. Oil Futures Commodity Prices Data Trend

OIL PRICES: U.S. OIL FUTURES COMMODITY PRICES

B - ACCELERATING GROWTH Dec 2018 $65.26 per barrel Mar 2019 $61.81 per barrel Jun 2019 $61.77 per barrel Sep 2019 $61.44 per barrel

$/bbl

$/bbl 120

120 3MMA Forecast 3MMA Actual

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HIGHLIGHTS: ◼◼ The Prices 3MMA was up 42.1 percent from the year-ago level.

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◼◼ Consumption is rising at a slowing pace,

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which will place downward pressure on Prices. ◼◼ Plan

for some price decline by the end of this year.

U.S. Crude Oil Futures Prices during the three months through September averaged $70.60 per barrel, 42.1 percent above the year-ago level. Prices are trending near the upper end of the forecast range.

However, the Oil Prices 3MMA edged lower in September and is forecast to decline more noticeably by the end of this year and in the beginning of next year. The forecast is therefore unchanged and has been extended to include the third quarter of 2019.

The U.S. Consumption of Crude Oil and Petroleum Products 3/12, which typically leads Prices by about a year, is declining.

Slowing growth in Consumption suggests that demand factors will place downward pressure on Prices in the near term, which is consistent with the forecast.

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For more information on GAWDA Rate-of-Change and association membership, contact: 80 Stephen Hill, GAWDA Membership Services Manager 12/12 Forecast Range 954-367-7728 x 22012/12 / shill@gawda.org

Management Note: Consider delaying purchases if possible, as Prices are projected to fall in the next few quarters.

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THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

U.S. Steel Scrap Futures Commodity Prices Data Trend

STEEL PRICES: U.S. STEEL SCRAP PRODUCER PRICE INDEX C - SLOWER GROWTH Sep 2018 526.96* Dec 2018 537.04* Mar 2019 571.92* Jun 2019 545.21* * Index based to 1982 = 100.

HIGHLIGHTS: ◼◼ The Prices 3MMA was up 21.3 percent from a year ago. ◼◼ Prices

Index

Index

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3MMA Forecast 3MMA Actual

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300

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will decline next year.

◼◼ The

new USMCA does not lift tariffs on steel.

The forecast for U.S. Steel Scrap Producer Prices has also been revised.

Supply and demand of this metal have been more balanced than anticipated in the aftermath of tariffs, which has lowered the projection for the Prices 3MMA peak. The Prices 3MMA for August was up 21.3 percent from the year-ago level, and prices will generally rise into at least early next year.

The United States, Mexico and Canada reached a new trade deal to replace NAFTA. The United States-Mexico-Canada Agreement (USMCA) may help ease inflation concerns through much of the economy, but steel tariffs, which will keep Prices elevated, remain. Expect slowing growth in the global economy to push down Prices next year.

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For more information on GAWDA U.S. Steel Scrap Futures Commodity Prices Rate-of-Change and association membership, contact: Stephen Hill, GAWDA Membership Services Manager 100 12/12 Forecast Range 954-367-7728 x 220 / shill@gawda.org

Management Note: As tariffs present an unknown with regard to future supply, ensure that you have multiple supply sources to mitigate risk.

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U.S. Fabricated Metal Products New Orders Data Trend

U.S. FABRICATED METAL PRODUCTS NEW ORDERS C - SLOWER GROWTH 2018 10.0% $402.9 billion 2019 -0.3% $401.7 billion 2020 4.4% $419.4 billion

Bils of $ 150

Bils of $ 600

12MMT Forecast 12MMT 3MMT

HIGHLIGHTS: ◼◼ New Orders were up 11.4 percent year over year.

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for commodity prices and B2B activity signal that the New Orders 12/12 will decline during 2019.

500 392.3

◼◼ Expectations

U.S. Fabricated Metal Products New Orders during the 12 months through August totaled $392.3 billion, 11.4 percent above the year-ago level. The results were consistent with the forecast, and leading indicator evidence corroborates the longterm trajectory of the forecast, which is unchanged. The New Orders 12MMT will rise into early 2019. However, the pace of rise will diminish during that time. The 12MMT will then decline through the end of 2019. Growth will resume in 2020.

Our updated outlook for U.S. Nondefense Capital Goods New Orders (excluding aircraft), a measure of business-to-business activity, suggests that business cycle decline in U.S. Fabricated Metal Products New Orders will be mild during late 2018.

This corroborates the ITR forecast for the Fabricated Metal Products New Orders 12MMT to end this year 10.0 percent above the 2017 level. The rates-of-change for many commodity prices, including steel and oil, are expected to see declining trends during at least the first three quarters of 2019, which supports the outlook for a decline in the New Orders 12/12 throughout 2019 given typical lead times.

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Management Note: Maximize your profit margins through differentiation to help your products stand apart from those of your competitors.

Fall 2018 • 83

THE GAWDA INDUSTRY ANALYSIS REPORT Provided by ITR Economics™

AUTO: AUTOMOTIVE PRODUCTION A - RECOVERY

North America Light Vehicle Production Data Trend Mils Units

HIGHLIGHTS:

6

Mils Units 24

12MMT

◼◼ Production

was down 3.2 percent from the year-ago level.

3MMT 5

◼◼ Activity

will recover and rise mildly through the remainder of this year.

20 16.8

◼◼ The

USMCA may shift some Production into North America but will likely raise costs.

North America Light Vehicle Production during the 12 months ending in August totaled 16.8 million units, down 3.2 percent on a year-over-year basis. Production will recover and grow mildly through the rest of this year. Activity will then decline into early 2020 before rising through the rest of that year.

The three NAFTA member nations reached a deal to replace their existing free trade arrangement with the new United States-Mexico-Canada Agreement (USMCA).

This deal raises the threshold for exemption from tariffs. For a vehicle to avoid the tax, 75 percent of its value would have to originate from within these three countries. The deal also requires that nearly half of production be completed by employees earning at least $16 an hour. The deal may shift some Production into the trade zone, but it will also raise costs for vehicles.

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America Light Vehicle Production Rate-of-Change 40 For more information on GAWDA 12/12 and association membership, contact: 30 3/12 Stephen Hill, GAWDA Membership Services Manager 20 954-367-7728 x 220 / shill@gawda.org

Management Note: Keep costs low. Significant growth in Production is not expected during this cycle.

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ITR Economics Alan Beaulieu, principal 77 Sundial Ave #510 West, Manchester, NH 03103 GAWDA chief economist | 603-796-2500

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Before You Go “All In”

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Thinking of selling your business? Contact Acquisition Ace Myles Dempsey for a confidential, no-obligation evaluation at (203) 731-8981 or myles@techair.com

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T

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

DISTRIBUTOR MEMBERS SOUTHERN OXYGEN & WELDING SUPPLY EL-GA-GS-MG-PG 129 Carmalita St. Punta Gorda, FL 33950 941-639-5245 FAX 941-575-1761 www.southernoxygen.com Robert Wrenn, president bobby@southernoxygen.com Eugene Laforet, co-manager eugene@southernoxygen.com

LANIER WELDING PRODUCTS Ryan Morazes, co-manager ryan@southernoxygen.com

Southern Oxygen & Welding Supply offers a complete selection of industrial, medical, food and beverage and specialty gases.

They also sell welding supplies and safety equipment.

EL-GA-GS-GT-PG 1116 Airport St. SW Gainesville, GA 30501 770-536-0336 FAX 770-536-0338 Mike Rowe, owner lwproducts@yahoo.com Brandon Smith, VP operations b.smith@lanierwp.com

Lanier Welding Products offers a complete line of welding equipment, accessories, safety supplies and tools.

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86 • Fall 2018

GT-LX 11800 SW 144th Court, Bay 2 Miami, FL 33186 305-215-2833 www.vscarbonics.com Dios Vazquez, president dios@vs-usa.com

VS Carbonics is an independent CO2 and liquid nitrogen distributor. They also supply dry ice and specialty gas blends for a variety of applications.

SERVICE WELDING SUPPLIES

L-GA-GS-GT-LX-MG-PG-RWE GP 699 Harcourt Road Mount Vernon, OH 43050-3921 740-392-8951 Kenneth Daughriety, owner kwdaughriety@yahoo.com

Service Welding Supplies offers a complete line of gas and welding supplies and equipment.

DISTRIBUTOR MEMBERS (CONTINUED)

SUPPLIER MEMBERS (CONTINUED)

AIRGENICS, INC.

DYNAMIC CONTROLS & SENSORS, INC.

GT 39 McClellan St. Newark, NJ 07114-2111 203-885-5268 Christine Balbi, president christine@airgenics.net Jonathan Balbi, operations manager jonathan@airgenics.net

Airgenics, Inc., supplies helium and provides requalification, rehabilitation and maintenance of cylinders for the packaged gas industry.

SUPPLIER MEMBERS CIMC ENRIC

1515 Lakeville Drive, Suite C Kingwood, TX 77339-2396 281-812-9844 FAX 281-812-9845 www.precisionvalves.net Mary Gilmore, CEO mary@precisionvalves.net David Hilton, business development manager david@precisionvalves.net Michael Hilton, sales director mike@precisionvalves.net Amy Yee, sales representative amy@precisionvalves.net

Dynamic Controls & Sensors supplies precision

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 twicemonthly 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.

instruments, valves and manifolds.

4502 Riverstone Blvd, Ste 201 Missouri City, TX 77459-5213 346-304-2135 www.enricgroup.com/en/ David Barr, vice president david.barr@cimc.com C indy Feng, director of business development fengxin@enricgroup.com

CIMC ENRIC manufacturers a complete line of cryogenic and high-pressure gas products for the industrial gas and energy marketplace.

JASIC TECHNOLOGIES AMERICA, INC. 25503 74th Ave. S Kent, WA 98032 253-859-6277 FAX 253-859-6286 www.razorweld.com Chris Dickinson, president chris@razorweld.com Sean Bagley, operations sales@razorweld.com Debbie Brothers, admin manager admin@razorweld.com

JASIC Technologies America, home of Razorweld, specializes in high-quality welding and cutting equipment.

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800-844-4212 | watson@watsoncoatings.com | 325 Paul Avenue | St. Louis, MO 63135 Fall 2018 • 87

INDUSTRY NEWS Chemweld USA Announces New Vice President of Sales and Marketing Chemweld USA announces Richard W. Connelly as Vice President of Sales and Marketing.

Connelly will be responsible for Richard W. Connelly leadership of the Chemweld’s sales team as well as coordinating the efforts of their national network of manufacturer’s representatives.

Connelly is a well-known figure in the gases and welding industry with over 40 years of experience. He has served in executive officer positions both domestic and internationally and is a lifetime member of AWS with published contributions for the advancement of welding and safety in the workplace.

In addition, Connelly has a proven record of facilitating long-term business relationships with both customers and industry representatives. President Linda Smith states, “Rich’s strong winning attitude and dynamic personality are assets that will complement and enhance Chemweld’s ability to meet the needs of our customers as we continue to provide alternative fuel gas solutions to the metalworking industry.”

Computers Unlimited Celebrates 40th Anniversary Computers Unlimited, developers of TIMS Software, is celebrating its 40th Anniversary this year. Co-founded by Dr. Mike Schaer in 1978, today, David Schaer is the President of Computers Unlimited overseeing three different software application divisions for three distinct industries, staffed by over 180 employees.

88 • Fall 2018

are long-term, which is something you don’t see too often in today’s business climate. We all share the same vision, to meet the ever-changing needs of our users.”

Computers Unlimited Employees with 30 Years and Up

Computers Unlimited began by servicing a local industrial gas and welding company that needed an integrated software Computers Unlimited solution to help Co-founders (l-r) David their business run and Mike Schaer smoother. Under Mike Schaer’s guidance, software developers were tasked with creating a product to answer a growing need for this industry. In the early ‘80s, the company expanded into the home medical equipment (HME) industry when a customer needed new functionality to process medical claims and track medical oxygen. Then in 2010, the company acquired a local software company servicing the needs of the audiology and speech, language and pathology industries.

Computers Unlimited prides itself on listening to the needs of its customers. “The new frontier is about connected and open systems,” David said. “We are achieving this by making TIMS mobile and the TIMS platform open. The world has gone mobile and so has TIMS.” David added, “The development of three new smartphone apps called TIMS Assistant, TIMS Delivery and TIMS Plant are a reflection of our DNA — our people make it happen. I’m very proud of the fact that our staff members

Wright Brothers, Inc., Announces New General Manager Wright Brothers, Inc., announces Josh Jacob in the new role of General Manager. He is part of the team supporting both Wright Brothers, Inc., and Wright Brothers Global Gas, LLC. Josh previously worked Josh Jacob in Boston with Restaurant Technologies and has recently returned home to Cincinnati. He is a graduate of the University of Cincinnati and worked at CIMCOOL and Milacron before moving to Boston.

AWISCO Hires New Chief Financial Officer AWISCO has hired Ibrahim Abdelsayed as its Chief Financial Officer. Ibrahim is Certified in Management Ibrahim Abdelsayed Accounting (CMA) and Certified in Financial Management (CFM) from Villanova University. He comes to AWISCO with over 20 years of financial executive experience, with a strong focus on operations and growth. AWISCO President Lloyd Robinson said, “I am very excited to have Ibrahim join the AWISCO team. I am confident his experience and expertise will play an integral part as AWISCO continues to grow and expand.”

INDUSTRY NEWS Gas Innovations Announces Mike Alexander as Director-Executive Sales

Gas Innovations, Inc., has announced the appointment of Mike Alexander as director-executive sales. Alexander will work directly with the organization’s largest distributors, gas majors and key accounts to develop strategic opportunities Mike Alexander to grow their business while also assisting in the cylinder refrigerant business market.

“The energy industry very much relies on relationships and reputation, and Mike comes to us excelling in both,” said Ashley Madray, CEO. “We’re so pleased to have Mike join our growing

ranks as Gas Innovations continues to expand our offerings, services and valued customers.”

Alexander most recently worked at a global diversified metals manufacturing company excelling in numerous commercial roles. Serving in roles of increasing responsibility for 41 years, he left the organization as a strategic account manager overseeing longstanding, legacy accounts.

Atlas Welding Reports Two New Hires Atlas Welding Supply Company recently added two new employees to its sales team.

Ryas Esdale has joined the sales team as an inside sales representative and marketing associate. Ryas will increase communication and sales with clients

Ryas Esdale

Patrick Visintainer

as well posting relevant information via social media and Atlas’ website. Ryas is originally from Birmingham, Alabama, and graduated from the University of Alabama with a BS in marketing.

Patrick Visintainer has also joined the Atlas sales team. Patrick will strategically manage and grow all medical and scientific gas accounts. Patrick is originally from Birmingham, Alabama and graduated from Auburn University with a BS in logistics, materials and supply chain management.

Introducing the new Welding & Gases Today website.

MOBILE FRIENDLY | UP-TO-DATE | EASY TO NAVIGATE

gawdamedia.com Fall 2018 • 89

INDUSTRY NEWS

Abicor Binzel Laser Repair Lab

Abicor Binzel Now Offering Scansonic Laser Optic Repair Services Abicor Binzel has completed a state-of-the-art laser repair lab at their Frederick, Maryland, facility. The lab, audited and certified by Scansonic, offers a clean room environment with a certified lab result. Equipment includes a Trumpf 2KW TruDisk Laser for power testing, a Primes power meter/focal monitor, as well as equipment for performing beam alignment measurements, optics cleaning and multi-protocol fieldbus testing.

Component replacement, complete laser head rebuilds and basic maintenance are a few of the services offered

90 • Fall 2018

by the repair lab. The lab will provide service for the ALO1, ALO3, Master Feed System and TH6x Optical Seam Tracker and their components.

With nearly seven decades of experience, AWG has the knowledge and resources necessary to guide, support and adapt as a customer’s business grows.

AWG Named to 2018 Grant Thornton North Carolina 100

Sutton-Garten Holds 100th Anniversary Celebration

Each year, Grant Thornton ranks North Carolina’s 100 largest privately owned companies. Companies that find a spot on the Grant Thornton North Carolina 100 list have a tremendous impact on the local economy and employ over 100,000 people in a diverse group of industries. American Welding & Gas, Inc., (AWG) is ranked at 56.

Headquartered in Raleigh, North Carolina, AWG attributes its continued growth and success to its dedicated team members. Acquisitions and green starts have expanded the company’s infrastructure, allowing a constant influx of new markets for their products and services. According to the company, what sets AWG apart is its ability to be a solutions provider for their customers.

Sutten-Garten Company marked its 100th anniversary this October with a celebration at a location they once occupied during the Roaring ’20s. Pat Garten welcomed Turner Woodard, current owner of the Stutz Motor Car factory building, who brought out his luxurious 1932 Stutz motorcar for the occasion.

(l-r) Pat Garten and Turner Woodard celebrating a century of success for Sutton-Garten.

INDUSTRY NEWS Sutton-Garten Company was located for a year in the Stutz factory building at 217 W 10th Street in Indianapolis in 1928 while they constructed a new facility after a fire damaged their original headquarters building.

AWISCO Opens New Location in Brooklyn AWISCO has announced the grand opening of their eighth store. AWISCO currently serves customers in New York, New Jersey and Connecticut. Their newest location is at 9601 Ditmas Ave. in Brooklyn, New York. A grand opening celebration was held on Oct. 30, and offered food, drinks, equipment demonstrations and specials.

Toll Company Announces New President After a thorough and thoughtful succession planning process, the Toll Company Board of Directors have voted to appoint Chuck Allard as President

of Toll Company.

Chuck will succeed Jim Quicksell effective November 1, 2018. Jim will remain a part of Chuck Allard the Toll Company management team until his retirement in November of 2019.

After completing his bachelor’s degree at St. Cloud University, Chuck joined Toll Company in 1994 and was placed in charge of information technology for the business. Chuck was involved in many company initiatives until his promotion to vice president of operations in 2005.

Since then, Chuck has been integral in growing and enhancing Toll Company’s industrial, medical, bulk and specialty gas capabilities.

Chuck states, “It has been a pleasure working with Jim for many years and being part of the strategic direction and success of the company. Being chosen to lead Toll Company is truly an honor and I look forward to building upon

our success with the talented group of employee-owners we have at Toll.”

Butler Gas Products Names Two Regional Sales Managers Ben Black and Randall Workman have been promoted to regional sales managers at Butler Gas Products.

Prior to his sales career with Butler Gas Products, Black spent four years in account management for the concrete forming and engineered-wood products industry.

Ben Black Workman, a retired member of the United States Marine Corps, has spent three years in account management for the gases and welding Randall Workman industry.

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INDUSTRY NEWS Computers Unlimited programmer Tara Schultz (left) is donating her time to mentor women who are interested in software development.

Both Black and Workman are responsible for fostering customer satisfaction and growing market share in their respective territories.

Computers Unlimited Programmer Makes a Difference

Tara Schultz, TIMS Software programmer, recently spent some time in the spotlight for her service by helping to start up a local chapter of Girl Develop It, a nonprofit organization that aims to provide affordable and judgment-free opportunities for women who want to learn coding and related software skills.

“I’ve always felt passionate about trying to help get more women in web and software development,” Schultz said.

“In college, I was often one of the only women in the computer science classes.

I’m one of just a few women developers at Computers Unlimited and you can see the under-representation of women in tech jobs all over the country.”

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“Programming can be a great field to work in and I want to help more women see that,” Schultz continued. “When I learned about Girl Develop It and their mission, I wanted to be a part of it, which meant starting a chapter in Bismarck.”

INDUSTRY NEWS Computers Unlimited is proud to be a sponsor of the Bismarck, North Dakota, Chapter of Girl Develop It.

Controlled Efficiencies Receives FDA Validation Controlled Efficiencies, LLC, provider of the CERES (CErtifi™ Electronic Records Electronic Signature) program, received an FDA validation for production of medical gases for oxygen, nitrogen and nitrous oxide.

On Aug. 29–30, 2018, the U.S. Food & Drug Administration inspected the medical gas manufacturing facility of Holston Gases, including the production of USP oxygen, NF nitrogen and nitrous oxide, as well as policies, procedures, records and training. They

also reviewed the validation study for the CERES program in place and found it to be complete and in compliance. It was a flawless FDA inspection.

Weldship Corporation Appoints Two New Directors

Mike Arcieri

Scott Greisen

106-8212 1/4 pg. 4C _3.375 x 4.375_Welding & Gases Today_Jan. 2017 Weldship Corporation announced that Mike Arcieri has been promoted to Scott Greisen to the position of director the position of director of sales. Arcieri’s of operations. Greisen’s new mission is new mission is to manage the overall to manage the overall operational responsales and marketing responsibility for sibility for Texas Trailer Corporation. both Weldship Corporation as well as Greisen, who had previously served as Texas Trailer Corporation. Prior to this the company’s regional sales manager, appointment, Arcieri served as regional will continue to be a member of the sales manager at Weldship Corporation Weldship/Texas Trailer customer/sales for over eight years. support team.

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INDUSTRY NEWS

M&A SCORECARD DataOnline Completes Acquisition of Independent Technologies DataOnline, a leading global provider of Industrial Internet of Things (IIoT) solutions, announced that it has completed the acquisition of Independent Technologies. Along with DataOnline’s recent acquisition of Germany-based Wikon GmbH, the combined business will serve more than 1,000 customers in more than 75 countries across Europe, Asia and the Americas. Independent Technologies, founded in 1985, is a diversified provider of hardware, software and services to the telecommunications, oil and gas and power industries. Its brands include Enertrac, Wintel and Sheyenne Dakota.

The largest division, Wesroc, is the leading provider of IIoT solutions to the North American propane market, offering cellular, satellite and LoRa technology.

“We are excited to have Independent Technologies/Wesroc as part of DataOnline,” said Rob Barnacle, president of DataOnline. “This combination is a perfect fit for us and solidifies our already strong presence within the North American IIoT market. We look forward to the partnership and are excited to leverage the capabilities at each organization to develop better solutions for our customers.”

“We’re leveraging our scale and expertise in multiple monitoring segments — industrial gas, LPG, LNG, CO2, oil and gas and water — to provide unparalleled service and customer outcomes,” said DataOnline Chief Operating Officer Chet Reshamwala.

“We are focused on partnering with our 98 • Fall 2018

customers to enable improvements in safety, efficiency and service to their own customers.”

The companies’ combined engineering resources will drive innovation in areas like low-power wide-area network (LPWAN) technologies, hardware reliability, battery life, mobile access, route planning/scheduling and predictive analytics.

AWISCO Acquires New York Welding Supply AWISCO, a leading supplier of compressed gases and welding equipment in the New York tristate area, has announced the acquisition of New York Welding Supply. The Brooklyn, New York, company is a distributor of welding equipment and supplies as well as industrial gases.

“I am very excited about t h e N ew Yo r k Welding Supply acquisition,” said Lloyd Robinson, AWISCO president. “Brooklyn Lloyd Robinson has been an underserved market for AWISCO, and I am very happy that AWISCO will now have a Brooklyn location to better serve our Brooklyn-based customers.”

Tech Air Announces Acquisitions of Speed Industrial Supply, Leeper Brothers and Colorado Distributing Tech Air, a distributor of industrial, medical and specialty gases and related equipment and supplies, announced

that it has acquired Speed Industrial Supply of Kemah, Texas. Speed is a distributor of industrial and welding supplies serving the Galveston Bay area near Houston. The add-on acquisition of Speed is Tech Air’s 26th add-on acquisition under CI Capital’s ownership.

Myles Dempsey, Jr., chief executive officer of Tech Air, said, “Speed has a well-established reputation and strategic value in the attractive Galveston-Houston area, and we look forward to building on this acquisition in the region. Colorado Distributing builds upon our growth strategy in that state and strengthens our service offerings. The acquisition of Leeper Brothers greatly enhances our position in Southern California, and we are excited to have added medical gas business to our business mix. We welcome these teams to Tech Air, and we look forward to supporting their continued success.”

Phoenix Teams Up with JMC to Expand Presence The Phoenix Company, parent company of Phoenix International, has announced a new partnership with JMC Capital Partners of Boston. George Wordingham, president and George Wordingham fourth-generation owner of Phoenix, has announced his retirement and confirmed the sale of his share of the company to JMC. “I’m happy to be putting Phoenix in a position for long-term growth while

INDUSTRY NEWS

M&A SCORECARD also preserving the importance of its history in the industries we’ve served for decades,” Wordingham said. “The trust our customers have in us is something money can’t buy, so it’s important to everyone to keep this story going.”

Phoenix has been a part of the welding industry since the 1950s when it introduced the first DryRod electrode oven to the market. JMC will be investing in various growth opportunities for Phoenix and also looking to grow its presence.

“JMC presents great opportunities for our future in this industry,” stated Scott Fredrick, CEO of Phoenix. “As Scott Fredrick a 126-year-old manufacturer, we know the value of adaptability and perseverance. JMC’s strategy is a perfect fit for Phoenix and its plan for long-term growth.” Phoenix International will continue to operate out of its Milwaukee location.

Chart Industries Announces Acquisition and Signs Agreement to Divest OxygenRelated Products Chart Industries, Inc., has announced that it has signed a definitive agreement to divest its oxygen-related products business within the biomedical segment to NGK Spark Plug Co., Ltd. The sale is expected to close within the fourth quarter of 2018, following the satisfaction of customary closing conditions, including regulatory requirements.

The strategic decision to divest the oxygen-related products business reflects Chart’s strategy and capital allocation approach to focus on its core capabilities and offerings. The sale of the oxygen-related products is a reallocation of capital from that business to a strategic addition to Chart, VRV s.p.a., for which a definitive acquisition agreement was announced at the end of September.

VRV is a diversified multinational corporation with highly automated, purpose-built facilities for the design and manufacture of pressure equipment serving the cryogenic, energy and petrochemical end markets.

Chart’s President and Chief Executive Officer Jill Evanko commented, “This is a logical next step for our business and a strategic decision that will further enable us to concentrate on our core businesses that share common customers, technologies and end markets. We are excited to have a strategic buyer in NGK Spark Plug, in particular given their commitment to support and expand their oxygenrelated products business.”

Linde Purchase of Praxair Inc. Finalized Linde has announced that it has received approval from the U.S. Federal Trade Commission to acquire Praxair, Inc., clearing the last hurdle in the estimated $90 billion-dollar merger.

With over 80,000 employees in more than 100 countries, this makes Linde the largest company in the global industrial gas business.

In order to receive approval, Linde agreed to sell its U.S. bulk business

as well as certain carbon monoxide, hydrogen and steam methane reforming businesses. The divestitures must occur by January 29, 2019, and until then, Linde and Praxair will continue to operate their businesses as separate and independent companies.

“It is a privilege for me to lead the talented people of two world-class organizations as we come together to form the undisputed leader in our industry,” said Praxair Chairman and CEO Steve Angel, who will take the reins as CEO of the new holding company. “I am confident this team will create long-term value for all Linde plc stakeholders.”

AWG Acquires Compressed Gas Solutions American Welding & Gas, Inc., announced that it has joined forces with Compressed Gas Solutions, Inc., creating one of the largest independently owned industrial, medical and specialty gas operations in Central Florida.

AWG, headquartered in Raleigh, North Carolina, operates 77 retail locations and 17 fill plants, stretching from Montana to Florida. Founded in 1949, AWG produces and distributes industrial, medical and specialty gases.

Compressed Gas Solutions was founded in 2002 and grew to become the largest independently owned provider of compressed and cryogenic gases in the Orlando area. According to the company, the combination of AWG and Compressed Gas Solutions creates a stronger, more integrated provider of superior products and services.

Fall 2018 • 99

In Memoriam

BRIAN A. MALONEY Brian A. Maloney, husband, father and dear friend to all, passed away on Sept.

15, 2018. Brian passed away peacefully at Massachusetts General Hospital in Boston with his loving wife, Lisa, by his side holding his hand. He was 82 years old.

Brian grew up in New Jersey where he attended and graduated from St. Benedict’s Preparatory School in Newark and graduated with a Bachelor of Science degree from Lafayette College in Easton, Pennsylvania. Upon graduation, Brian proudly served six years in the United States Navy. He served aboard the aircraft carrier USS Intrepid and retired from the Navy as a lieutenant. Over the past several years, he visited the USS Intrepid in New York City with his family and recounted many stories of his life on this famous aircraft carrier. He especially enjoyed sharing these memories with his grandchildren. Brian discovered his love of travel while serving in the Navy.

Brian was founder, president and CFO of Compressed Gas Industries (CGI) in Pine Brook, New Jersey. Upon retiring, Brian resided in Hilton Head Island, South Carolina, during the winter months and Marblehead, Massachusetts, in the summer months.

Brian had a zest for life and had many hobbies that he fully enjoyed. He was an avid equestrian and competed for many years in Three Day Events, winning countless awards. He was chairman at 100 • Fall 2018

the Essex Horse Trails in Gladstone, New Jersey, for three years. During his life, he enjoyed playing golf, hiking, skiing and was a longtime sailor. He was a member of Corinthian Yacht Club in Marblehead, Massachusetts, for 25 years. He loved to cruise on his sailboat, Catherine Grace, with his wife Lisa, and they participated in many Corinthian Yacht Club cruises to Maine and Cape Cod. He also loved to fly fish and was a competitive sporting clay shooter. Brian belonged to the Metropolitan Club in New York City; the Long Cove Club in Hilton Head; the Forest City Gun Club in Savannah, Georgia; and the Minute Man Sportsman’s Club in Billerica, Massachusetts. In addition, he loved to travel with Lisa and spent his retirement years traveling the world. One of their greatest accomplishments was successfully climbing Mount Kilimanjaro, the highest mountain in Africa and the fourth-highest in the world.

Brian is survived by his loving wife of 31 years, Lisa Anne Maloney, and his five children by his first wife, Caroline Maloney (deceased): Catherine Maloney Harding and her husband, Daniel Harding, of Amesbury, Massachusetts; Maureen Maloney Toye of Hackettstown, New Jersey; Maggie Maloney of Newburyport, Massachusetts; Brian Maloney, Jr. of Concord, Massachusetts; Caroline Maloney of Newburyport, Massachusetts; and daughter-in-law, Maia Heymann.

Brian was blessed with many grandchildren: Kiersten Toye; Noel Toye and husband, Jay Diaz; Jack Maloney; James Maloney; Grace Krupkowski; Courtney Krupkowski; Madison DesimioMaloney; and Matthew DesimioMaloney; and one great grandchild, Diana Berenice Diaz.

Brian was preceded in death by his parents, Andrew P. Maloney and Catherine Grayce Maloney, his sister Catherine Hearn and brother Andrew Maloney.

In lieu of flowers, donations can be sent to Massachusetts General Hospital (Massachusetts General Hospital, Development Office, 125 Nashua Street, Suite 540, Boston, MA 02114) or St. Jude Children’s Research Hospital at www. stjude.org. To share a memory of Brian or to offer a condolence to his family please visit www.dignitymemorial.com.

TODD ANDREW PARKE Todd Andrew Parke, age 59, passed away on Saturday, Sept. 15, 2018, in Waxahachie, Texas. He was tragically struck and killed by a motorist while walking his beloved dog, Rosco, near his home.

Todd was born on May 26, 1959, to Norman and Judy Parke in Toledo, Ohio. He graduated from Start High School in 1977, Hocking College and the University of Pittsburgh. Todd married his high school sweetheart and lifelong companion, Julie. Together they had two daughters, Jenifer and Megan. Family was very important to him. Todd recently became the proud grandfather to a baby girl, Sophia, in November 2017.

Todd was employed in the Industrial Gas Industry. He began working for Valley National Gases in West Virginia during the early 1980s and ended his career at TechAir of Texas. He and Julie had moved to Texas from Valparaiso, Indiana, last year.

Warm and sociable, Todd made many friends along the way. He was passionate about living and kept busy with his

In Memoriam many interests. He enjoyed antiques and collectibles, and he and Julie were longtime collectors of Hall China. They frequented annual conventions together, where he enjoyed seeing friends from around the country. He also enjoyed gardening, landscaping and making improvements to the homes he lived in throughout his life. Todd enjoyed sports, and he remained active to the end. Todd was a dedicated fan of the Green Bay Packers since childhood, and he played in a fantasy football league for over a decade. He also loved to play golf and had many golf buddies over the years.

He was part of a league while living in Venetia, Pennsylvania, and he continued to make new friends to play golf with in Waxahachie. He was very proud to run alongside his youngest daughter in her races and was training for an upcoming run in November.

Todd was a proud American who embraced the founding principles on which this country was formed and enjoyed touring historical sites wherever he went.

He was tremendously knowledgeable about the roots of western civilization and American history and read prolifically, often reading two or more books at once. This knowledge strengthened his respect for those who sacrificed to preserve American laws and identity.

Todd will be dearly missed by the many people who knew him. He touched the lives of many with his bright smile and easygoing nature. He was a friend to many people, and he loved animals as well, having always had companion cats and dogs in his life. Todd will be lovingly remembered by his wife, Julie Parke, daughters Jenifer Rune (Christopher Rune) and Megan Parke (Kyle Carson), granddaughter Sophia Anastasia Rune, half-brother Shawn Parke (Teresa Parke), several cousins and many friends who were like family.

He was preceded in death by his parents Norman and Judith Parke.

In lieu of flowers, the family ask that donations be made to the Ellis County SPCA, 2570 FM 878 Waxahachie, TX 75165. To share a memory of Todd or to offer a condolence to his family please visit www.waynebozefuneralhome.com.

GARY E. “WACKO” MACK

ROGER C. YACKEY

On Monday, Sept. 17, 2018, Gary E. “Wacko” Mack of McKees Rocks, Pennsylvania, passed away at the age of 65 after a long battle. Beloved husband of Diana; loving father of Cathy (John) Jones and Sarah Mack (Andrew Zirpoli); Pappy of Marisa Jones and Sal Zirpoli; son of the late Edward and Ann; brother of the late Judy Mack; also survived by aunt Babe, cousins, nieces, nephews and many friends.

In their tribute, Butler Gas Products announced, “It is with heavy hearts that we say goodbye to a longtime former employee and friend, Gary Mack. Many of our customers, suppliers, neighbors, tenured associates and retirees remember the bellowing laugh and candid street-smarts of the charismatic Gary ‘Wacko’ Mack.”

In lieu of flowers, contributions can be made to the Leukemia Lymphoma Society.

To share a memory of Gary or to offer a condolence to his family, please visit www.szalfuneralhome.com.

Roger C. Yackey of Hoffman Estates, Illinois, passed away on October 17, 2018. He was preceded in death by his beloved wife Ann M. Yackey, nine years ago. He is survived by his brothers, Brian and Donald Yackey, his son Mark (Renee), his daughter Debbie Paulsen (Brian) and grandchildren, Rachel Paulsen, Katie Yackey, Justin Yackey, Nathan Paulsen and Megan Paulsen.

Roger was vice president of sales for Welding Industrial Supply Company for over 50 years. Roger believed in working hard and playing harder. He loved to travel and frequent establishments offering fine food. His beer mug, wine or brandy glass continually faced problems with “evaporation.” Roger always had multiple jokes and stories at the ready, along with hundreds of photos from his most recent trip. His welcoming smile and hardy laugh will be sorely missed by all that knew him.

In lieu of flowers, donations can be made to the American Diabetes Association.

Fall 2018 • 101

NEW OFFERINGS

PRODUCTS | SERVICES | TECHNOLOGIES 1

1. CryoVation Offering Three New Products

CryoVation is expanding its product line with three new offerings: a moisture detection system, a cryogenic pump and an argon purifier system.

CryoVation’s MasterSense System is designed to detect residual moisture in carbon dioxide cylinders. This unit was developed primarily for the beverage industry but is applicable to all CO2 cylinder refilling. It features a 15-second detection process, with a single or dual cylinder option.

The CryoVation CV40 Cryogenic Pump is designed to increase speed and reduce both maintenance and downtime.

It delivers up to 4.0 GPM (15 LPM) and up to 4,000 PSI (275 BAR) or 6,000 PSI (400 BAR) MAWP. Applications include heavy-duty cylinder filling, boosting of storage cylinders in unattended automated systems, large fill plants and inert or oxygen service.

The CryoVation Argon Purifier System Ar6 incorporates heated getter-based technology and allows inline installation to an existing high-purity manifold with an integral purifier bypass for easy user interface when Grade 6 is not required.

2. Black Stallion Introduces New Welding Cap and NFPA

2112/NFPA 70E Certified Welding Jacket

Black Stallion introduces the AH1630-GS welding cap.

Constructed of single-layer flame-resistant cotton, the cap provides lightweight protection with less heat trapping. The 102 • Fall 2018

2

bill on the cap is wider and longer than other welding caps, offering excellent neck protection against sparks and sunburn.

Hidden within the bill is a flap of durable 7-ounce FR cotton.

When extended over a welding jacket collar, the flap provides additional neck protection.

Black Stallion is also now offering a new NFPA 2112 & NFPA 70E Certified FR Cotton Welding Jacket (JF2220-GY).

Certified to both NFPA 2112 and NFPA 70E standards, the JF2220-GY is designed for welders who may be exposed to short-duration thermal exposures from fire and arc flash hazards typically associated with oil and gas, utility and industrial applications. With an Arc Thermal Performance Value (ATPV) of 10 calories/cm2, the jacket can be part of a Category 2 PPE program for potential exposure to energized electrical equipment.

3. Eleet Cryogenics Now Offering Taylor-Wharton

Micro-Bulk Tanks

Eleet Cryogenics is now offering 2,000L – 5,000L VHP Taylor-Wharton Micro-Bulk tanks. These tanks feature the largest tank-mounted vaporizers available at 3,500 SCFH, with top and bottom fill lines and dual fill adapters for bulk or micro-bulk trucks. In addition, they have a backpressure economizer regulator to vent to atmosphere prior to lifting the tank safeties or for use in low-pressure applications.

Standard equipment also includes a dedicated liquid line with

NEW OFFERINGS

3 5

7 4 6

valve, vacuum probes with pump-down access, extended stem Rego valves and a stainless-steel skid. The units are stocked at multiple locations around the U.S. for quick delivery and lower freight cost.

of Weldcote Metals. “This solution is in response to the increasingly demanding environmental safety regulations that our customers are faced with, while providing the required mechanical properties needed to achieve a superior weld.”

4. Fluoramics Introduces New Multi-Purpose PTFE Tape

6. Phoenix International Offers New Flux Oven

Fluoramics, Inc., is offering a new premium, full-density PTFE tape that comes in ½” and ¾” sizes and requires just two wraps to tightly seal most joints. If the application specs call for PTFE tape and thread sealant, simply apply LOX-8 Paste over Fluoramics PTFE tape for an unbeatable combination that can handle even the toughest thread-sealing challenges.

This product is approved for use in oxygen service.

5. Weldcote Metals Introduces Low-Manganese Stick

Electrodes

Weldcote Metals, Inc., has introduced WCM low-manganese emission shielded metal arc welding electrodes. The new patented Weldcote line has a unique flux composition that supplies weld metal with a significantly lower manganese content, decreasing manganese vapor emissions by as much as 60 percent in comparison to standard electrodes. The WCM low-manganese product line is available in three AWS classifications: E-6011, E-6013 and E-7018.

“Our low-manganese product lines are the answer that the industry has been looking for,” said Joe O’Mera, CEO

Phoenix International is now offering the latest in flux oven technology — the 250FX. Phoenix flux ovens are designed for long-term storage of bulk flux to provide a consistent flux temperature throughout the oven chamber.

This new product offers a modern design that ensures easy dispensing.

Dick Wilkinson, managing director, described the 250FX as “a new option for submerged arc welding.” The 250FX has a 250-pound flux capacity and a temperature range up to 750 degrees F. It offers a digital thermometer and adjustable digital thermostat. The 250FX is 3,000W, 110/220V and has a 26-gallon chamber.

7. American Torch Tip Now Offering Tregaskiss Tough

Lock Contact Tips and Diffusers

American Torch Tip is now offering Tregaskiss Tough Lock-style contact tips and diffusers. These American-made tips and diffusers are designed for lasting quality and available in standard copper and chrome zirconium in a wide variety of sizes for both robotic and manual use.

Fall 2018 • 103

ADVERTISERS INDEX 3M Company.................................................3

NorLab Calibration Gases.............................39

Acme Cryogenics.........................................35

Norton Abrasives..........................................57

American Torch Tip.......................................47

ORS Nasco..................................................86

AmWINS Program Underwriters.....................94 Anthony Welded Products, Inc.......................70 Arcos Industries..........................................IBC ASM/American Standard Manufacturing........23 Black Stallion—Revco Industries...................17

Pearl Abrasive Co.........................................13 Phoenix Products Company, Inc.....................68 Reelcraft......................................................96 RegO Cryo-Flow Products.............................67

California Cylinder Corporation......................95

Rotarex.......................................................10

Carborundum Abrasives...............................45

SafTCart......................................................11

Catalina Cylinders........................................18

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

Cavagna North America, Inc..........................27

Sherwood Valve...........................................51

CGW-Camel Grinding Wheels USA.................79

Superior Products........................................67

Chart, Inc.....................................................43 CTR..............................................................5 Cyl-Tec........................................................15 FIBA Technologies, Inc..................................36 Flexovit USA, Inc..........................................97

Tech Air.......................................................85 Thermacut...................................................91 Thermco Instrument Corporation...................59 Tier 5 Labs..................................................29

Gas Innovations...........................................94

TOMCO2 Systems Company.........................21

Generant Company, Inc................................89

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

Gullco International......................................90

Voestalpine Bohler.......................................93

H & H Sales Company, Inc............................93

Watson Coatings, Inc....................................87

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

Weldcoa......................................................19

Hobart Institute of Welding Technology...........92 Industrial Pro, Division of Forney Industries....69 Kaplan Industries.........................................53 Lincoln Electric..............................................9

Weldship Corporation...................................31 Western Enterprises.....................................65 Winton Products Co.....................................92

McDantim....................................................37

Wire Wizard—ElCo Enterprises.....................95

Mercer Industries...........................................7

Worthington Industries....................................2

104 • Fall 2018

Supplying the World with Stainless for over 90 Years…

Arcos Stainless Steel Electrodes

Arcos produces a comprehensive line of premium bare wire, covered and tubular stainless steel alloy welding electrodes. Whatever your demanding application – from nuclear or military construction to power generation or petrochemical plants, pipelines to car exhaust systems, shipbuilding to paper production, and so many others – Arcos has the right stainless steel electrode to meet your exacting requirements.

These outstanding, made-in-America Arcos electrodes are available in a broad range of compositions consisting of austenitic, duplex and superduplex, martensitic and ferritic grades and are manufactured to your specific needs. They include: • •

Covered electrodes in -15, -16 and -17 coating options.

Solid wires for use in GTAW, GMAW and submerged arc processes.

•

•

Flux cored wires for flat and horizontal or out-of-position work, with or without shielding gas.

Metal cored wires for use in GTAW, GMAW and submerged arc processes.

And, of course, all Arcos electrodes are backed by our experienced team of technical specialists and customer service professionals.

For more information on the entire spectrum of Arcos stainless steel electrode products, contact us at 1-800-233-8460 or visit our website at www.arcos.us.

NEXT GENERATION STAINLESS MADE IN AMERICA BY A COMPANY YOU CAN TRUST AVA I L A B L E N O W

The Next Generation of SelectAlloy Select-Arc’s next generation of SelectAlloy flux cored stainless electrodes are now available – setting a new standard for weldability and bead appearance in the global marketplace.

The next generation of SelectAlloy Stainless Series is proudly made in America at Select-Arc’s state-of-the-art, climate controlled, stainless facility in Troy, OH.

800-341-5215

www.select-arc.com