Breaking News
  Chicago 2004 SMC
     Sets Record

Quality Nickel and Stainless Welding Wires and Electrodes

BREAKING NEWS

GAWDA Kicks Off 2004 Spring Management Season With a Bang

History was made in Chicago this past week as a record number of GAWDA members came to the first Spring Management Conference of 2004. A total of 627 Distributors and Associate Members, the highest number in GAWDA history, participated in 13 GAWDA University sessions, the Contact Booth Program and a variety of networking events.

President Wally Brant delivers his State of the Association address.

In his State of the Association address, GAWDA President Wally Brant acknowledged the record-breaking attendance and told delegates, "Over the past ten years, our industry and our association have faced many challenges and have had to adapt to a lot of change. We are strong today, evidenced here by the number of members who have come to Chicago to learn more and network with each other."

Thirteen educational sessions, many of them standing room only, proved that the trip to Chicago was well worth the time and effort. Attendees learned about growing margins, effective marketing, mobile technology, supply chain optimization, dealing with global manufacturing, insurance options and how to better manage their businesses. GAWDA Consultants provided an update on DOT, Homeland Security, Safety and the FDA. An informative session on Welding Fume Litigation described the issues and offered suggestions for distributors on how to protect their companies. Read what the attendees had to say about these sessions by clicking here.

Executive Director Rick Doyle opens the record-breaking Chicago SMC.

GAWDA's Contact Booth Program was another success, as distributors, manufacturers and suppliers spent several hours in conversation about the industry. Please click here to see photos. You can still come to Chicago by clicking here to access the Online Contact Booth Program.

This marks the first time that GAWDA and AWS teamed up for both the Spring Management Conference and the Welding Show. Held the same week, the format was unanimously approved by GAWDA's membership, who took advantage of both shows. Says President Brant, "It makes sense to have both events concurrent, not only from a company's time- and cost-savings point of view, but for the complete focus between distributors, manufacturers and end-users in one spot for several days."

Brant was not alone when he acknowledged a tangible "energy" among attendees.

GAWDA Members Lee Roenhamer and Mike DePaul of Butler Gas Products

GAWDA members were bused to the GAWDA Pavilion and AWS Show on Tuesday, April 6, at McCormick Place. Exhibitors gleefully pointed to an increased number of distributor attendees, the likes of which had not been seen in several years. Distributors visited exhibitors in the GAWDA Pavilion on the Show Floor, as well as other exhibitors throughout the show.

AWS members noted increased traffic on opening day, pointing to the benefits of the joint venue. To see photos from the GAWDA Pavilion at McCormick Place and the AWS Show Floor, please click here.

Over 20% of the total GAWDA membership was in Chicago this week. Ask any one of them, and they will tell the other 80% to make plans today to be in Washington for GAWDA's second Spring Management Conference, May 5-6. You don't want to miss it. To register, click here.

SAFETY & COMPLIANCE NEWS

LPG Powered Industrial Lift Truck Clarification • During the February 12 GAWDA Safety Teleconference, a question arose as to whether a liquefied petroleum gas (LPG) powered industrial lift truck could be used in a compressed gas fill plant where oxygen cylinders are filled along with inert gases like nitrogen and argon. GAWDA OSHA & EPA Consultant Tom Eynon has not found any regulation or consensus standard prohibiting such use. However, keep in mind that OSHA standards are minimum standards and the authority having jurisdiction over the plant or building where this type of filling takes place may require a different classification of truck. For more information, click here.

MAKING THE SALE

Northeast Gas Streamlines Logistical Challenge
for the Military

The next time you're waiting in line for clearance at a military base, you might want to take a cue from Northeast Gas Technologies' President Rusty Baker. In the running for a large contract involving gas storage and distribution at a secure New York facility, Baker knew he had a dependable ally in supplier Weldship Corporation. He just needed to demonstrate to the government that his Albany, NY-based company could provide unparalleled service.

The focus of the deal was the facility's desire to replace its supply methods for three gases, which had been stored and distributed on base strictly through a system of tube trailers. The main issue was security: The military wanted to reduce the number of outside companies coming onto the base. Baker felt confident in promising a how-you-want-it, when-you-want-it, where-you-want-it package, because he knew he could count on Weldship and its 10-year history of partnering with Northeast Gas.

Weldship's 55,000 cubic-foot tube trailers helped eliminate some security risks for military.

Given the government facility's challenging schedule requirements, and the added hurdle of regulated access to the job site, Baker forged an approach of "extreme flexibility" on the part of Northeast Gas; this included dedicating Operations Manager Mike Felt solely to the account. With Northeast Gas keeping in close contact with the facility and demonstrating a readiness to arrive on site according to the military's often-shifting schedule, "the customer was very appreciative of the cooperation they were getting from us," explains Baker.

Baker called in Vic Pratt, Weldship's vice president of marketing, who visited the base and helped the Northeast Gas team devise a supply solution. Instead of relying solely on a tube trailer system, with filling performed off-site and the gases transported to the base for distribution, Pratt proposed a combination of three 65,000 cubic-foot ground storage units and five 55,000 cubic foot tube trailers.

"Since we have not had requirements for tube trailers in the past, we did not have any available in our fleet," explains Baker. He looked to Weldship, which came through with flying colors. In addition to installing the three ground storage units, Weldship stayed on schedule to assemble the tube trailers, which Northeast Gas now uses to perform the transfilling. Last but definitely not least, Northeast Gas picked up the sizable cylinder business at the facility.

While the entire contract is worth in the high $100,000 per year, just as important to Northeast Gas is the reinforced knowledge that it has a trusted partner in Weldship, a company willing to complement the Northeast Gas commitment to customer satisfaction.

WELCOME NEW MEMBERS

GAWDA welcomes new Associate Members 1-800-Welding LLC of Oak Park, MI, Polar Refrigerant Technology of South Hampton, NH, and Taylor Data Systems of Florence, SC.

INDUSTRY BEAT
(what people are talking about)

Airgas to Purchase BOC U.S. Packaged Gas Business (Radnor, PA) • Last Friday, April 2, Airgas Inc. signed a definitive asset purchase agreement to acquire most of the U.S. packaged gas business of The BOC Group in a transaction valued at up to $200M. The acquisition will include about 120 locations in 21 states, including retail stores, warehouses, fill plants and other operations involved in distributing packaged industrial, specialty and medical gases, as well as welding equipment and supplies sold through BOC's stores and distributors. The transaction will exclude packaged electronic gases, helium and hydrogen delivered in tube trailer or in liquid form, and bulk gases, including bulk medical and bulk gases supplied to BOC's distributors. The transaction also will not affect BOC's merchant liquid and tonnage/on-site business in North America or its packaged gases businesses in other parts of the world. Most of the acquired operations and related personnel will be integrated within Airgas's regional company structure. Operations in North Carolina and southern Virginia will be sold to National Welders Supply Company (Charlotte, NC). The acquisition is expected to close on or about July 31.

Norco Acquires Willet Bros. (Boise, ID) • Norco purchased the welding assets and facilities of Willett Brothers (Lewiston, ID), comprising the Lewiston, Moscow and Grangeville welding stores. Norco will combine its existing Lewiston medical store with the Willet Brothers welding business to create a combination welding/medical store in downtown Lewiston. Medical products and sales will be introduced into the Moscow and Grangeville stores to create combination welding/medical stores in those locations as well.

Study Says Manufacturers and Distributors "Not on Same Page" • New research from The Industrial Performance Group (IPG) reveals that differences in how manufacturers and distributors think and make decisions have a significant impact on sales performance and profitability. According to Robert Nadeau, managing principal of IPG, "Manufacturers and distributors are not on the same page" regarding these issues. Last year, 115 manufacturers and 132 distributors from various industry segments completed an in-depth survey designed to identify the extent to which they share a similar set of assumptions and beliefs regarding current and future conditions in their industry, who their customers are, the basis of competition, and the purpose and role of the manufacturer/distributor working relationship.

Results of the survey found that manufacturers and distributors are more likely to disagree than agree on these topics, and both overwhelmingly agree that their working relationships lack common goals and clearly defined plans, causing working relationships to develop problems and inefficiencies due to lack of direction and coordination. The most common problems reported were fixing mistakes and expediting orders, which can have a significant negative impact on profitability.

All of the challenges identified in the study are a direct result of thinking and decision-making influenced by misconceptions of manufacturers and distributors. Nadeau suggests that if both groups constantly challenge their assumptions and beliefs, they can begin to make decisions and take action based on what is actually happening in their industry rather than what they think or hope is happening, thereby going a long way toward improving the sales performance and profitability of both parties.

Companies Announce Surcharges and Price Increases • Chart Industries (Cleveland, OH) and Norris Cylinder (Longview, TX) announced product surcharges and price increases. Surcharges on Chart Industries' distribution and storage equipment took effect on April 1, and the complete listing of surcharge amounts can be found on the company's Web site. Also taking effect April 1 is an average price increase of 3% for the same equipment, as contracts permit.

Continued steep increases in both pricing and surcharges from suppliers on items including raw steel, valves, caps, neckrings and freight, as well as the stretched lead times on these materials, have made it necessary for Norris Cylinder to increase both the base price and the surcharge for its own customers. New price sheets will be issued as well as a schedule detailing the current surcharge by model. Surcharges will be posted to the company's Web site.

CGA Elects Chairman • Glenn M. Fischer, president and COO of Airgas Inc., was unanimously elected the 2004 Chariman of the CGA Board of Directors and CGA Executive Committee. Fischer has been a member of the Board of Directors representing Airgas since 2001 and recently served as chairman of the CGA/FDA Executive Council.

Robert Caldwell

Caldwell Elected to FHLBank Board (Topeka, KS) • Robert E. Caldwell II was appointed to a three-year term on the board of directors of the Federal Home Loan Bank of Topeka. Caldwell is general counsel for Linweld Inc. (Lincoln, NE) and serves as chair of the GAWDA Government Affairs Committee.

Praxair Opens Dry Ice Plant (LaMarque, TX) • Praxair opened a production and distribution facility for its UltraIce dry ice in LaMarque, TX. Featuring state-of-the-art, automated equipment to produce, cut and wrap blocks, nuggets, rice and slices of dry ice, the plant supplies a global airline caterer in Dallas, TX, and the growing needs of the local marketplace.

Marc Tremblay Tregaskiss Adds Tremblay (Windsor, ON, Canada) • BOC Tregaskiss appointed Marc Tremblay to its sales team as the regional business manager for Quebec and the Maritime Provinces. Tremblay brings over 17 years of experience in the welding industry.

GAWDA NEWS

Another Chance to Attend This Year's SMC • Mark your calendar for the Crystal City SMC, May 5-6 at the Hyatt Regency Crystal City at Reagan National Airport. Take advantage of all GAWDA University has to offer, including informative business sessions and valuable networking opportunities at the Contact Booth Program. Send 3 or more full delegates and receive a credit of $125 for each of those registrants. For more information or to register, visit www.gawda.org.

Profit Report Deadline Fast Approaching – Now Free to Participants • Due to a change in pricing, GAWDA is able to remove the charge to participate in this exceptional financial benchmarking report and planning tool. There is nothing like it for distributors in our industry. The deadline is April 30. Surveys were sent, but if you need another copy, contact Headquarters at 215-564-3484 or Profit Planning Group at 303-444-6212. Don't miss this opportunity to receive your 2004 Profit Report and Profit Toolkit for free!

Industry Heating Up • The March issue of Welding & Gases Today, now online, has exciting features sure to interest any GAWDA member. Read where the industry is headed straight from the distributors themselves in the 2004 Industry Forecast. See what Duane Sylvia, consumer safety officer at the FDA Center for Drug Evaluation and Research, predicts for the medical gas market. Get tips about what to look for from the federal government in 2004. Find out how distributors promote ethical behavior when they talk about Business Ethics in the Gases and Welding Industry. W&GT has all this, plus features on management succession, health insurance, efficient pumping and the usual consultants' insights. Don't miss it!

OSHA & EPA Safety News on gawda.org • A new section on OSHA & EPA Consultant Tom Eynon's Web page at www.gawda.org presents "Safety News for the Month." Each month, several brief safety and environmental articles will provide you with safety tips and news. Some of the material will be OSHA- or EPA-related, while some will be related to employee or home safety. Visit the site at least once a month to keep your organization up to date with the latest news. To read more, click here.

GAWDA University on the Road • DOT & Security Consultant Mike Dodd is taking his auditing and training on the road to the Northeast. Leaving right after the May 5-6 Crystal City SMC, he will travel through the upper East Coast, New England and Ohio Valley areas during May and June, bringing interested members a choice of programs: DOT compliance audit, Hazmat general awareness, safety and security awareness training, several different cylinder filling programs, or cylinder requalification training on high pressure, acetylene or LPG cylinders. If you are interested in taking advantage of having the audit or training experience at your location, contact Mike Dodd at 573-785-5111 or MLDSafety@hotmail.com for more details.

New NAW Publications • Facing the Forces of Change: The Road to Opportunity provides strategic insights into key issues impacting the wholesale distribution supply chain through 2008. It covers key industry demographics, four major trends impacting wholesaler-distributors, competitive threats to distributors, the latest developments in supply chain technology, conflicting sales force concepts, evolving manufacturer relations and much more. Discounts are available to GAWDA members and for ordering online.

Are your members spending a lot of time, effort and money on customers who, bluntly, don't deserve it? How will they know, and what should they be doing about it? To find out, they should read the highly accessible but crucially important More to the Bottom Line: Customer Profitability Analysis Tools for Distributors. By focusing attention on operating profit rather than gross margin, distributors can lay the foundation for a powerful new sales strategy. It's a whole new way of looking at and serving customers.

For more information and to order these publications, visit www.gawda.org and click Business Services/NAW Publications, found under the Resources Tab.