Breaking News
  Final Overtime Rules
  National Job Growth
  Business Conditions
    Reported Robust
  However...

Quality Nickel and Stainless Welding Wires and Electrodes

BREAKING NEWS

Economic Extracts

Final Overtime Revisions Released • The Department of Labor released the long-awaited revisions to the rules governing overtime eligibility for white-collar workers under the Fair Labor Standards Act. Highlights include new definitions for exemptions and a much higher salary level below which employees automatically will be considered non-exempt. To comply, virtually all employers must reevaluate the exempt and non-exempt classifications of their workers by August 23. To read a full summary, click here.

National Job Growth Reported • The nation's employers added hundreds of thousands of jobs for the second month in a row. The eruption in new jobs—288,000 in April after the addition of 337,000 in March—brought total employment above where it was when the economic recovery officially began nearly two-and-a-half years ago. Hiring showed up in nearly every sector, including manufacturing.

Robust Business Conditions • Tax Relief Coalition (TRC) member associations are reporting that their member companies are experiencing robust business conditions. These include the Business Roundtable, the National Association of Manufacturers, the National Federation of Independent Business, the National Restaurant Association and the wholesaler-distributors who belong to TRC. The overall strength of the economy is detailed in an economic analysis by Marty Regalia, chief economist for the U.S. Chamber of Commerce. A PowerPoint view of the analysis can be read by clicking here.

As can be seen at the bottom of the first column, the typical transaction produces a meager profit of only $7.20, which represents the profit margin for the typical GAWDA member of 4.0% of sales.

The second column of numbers looks at what happens when the rep does not generate as many items on each order as possible. Specifically, it involves just one less line item per invoice. The impact on profitability of this action is often grossly underestimated. In fact, one less item produces a loss of $15.36 on the entire order.

The final column examines what happens when a 3.0% price reduction is granted to secure the order. This reflects the fact that price is continually under attack. However, once again the impact on profit is smaller, with a profit of only $2.55.

Most firms experience ongoing reductions in profitability without even being aware of it. Such slippages are not limited to the sales area. They occur throughout the business. Al Bates provides two suggestions for the typical GAWDA member to achieve truly high-profit performance, one involving education, the other monitoring. You can read them in Welding & Gases Today, online and mailed to members on June 15.

MAKING THE SALE

Oxygen Service Gets to the Yoke of the Matter

Oxygen Service Company of Macon, GA, does the bulk of its business in the industrial gases market. However, it was a smaller group of customers that had President Duell Stone concerned. A number of home health service providers were coming to Oxygen Service Company for their E and D oxygen cylinder refills, and the customers wanted quicker turnaround. The labor intensive process of cylinder filling—turning hand wheels to first tighten the yoke to the cylinder post valves, and then opening the cylinder valve—meant that customers were waiting two days to receive their refilled cylinders. It also meant that Oxygen Service Company was absorbing high labor costs for low product output.

While attending a trade show, Stone came across Superior Products' booth, which had a prototype demonstration of its Fill-Tech Yoke Clamping System. After observing a single demonstration, Stone knew he had found his solution. Fill-Tech's 120 psi shop air-fed booster pump powers an oxygen safe hydraulic system whose automatic rack seals the yolks to the cylinder post valves. With the cylinders locked in place, Oxygen Service would then utilize a nitrogen-fed tube system to open and close the valves to complete the cylinder filling.

Stone worked with Superior Products' team of experts, headed by Manager of Technology Tom Ketchesin, who customized Director of Engineering Ron Johnston's original design. Robert Ranc, director of sales, and Tim Madden, regional sales manager, provided support throughout the development process.

After an automatic rack seals the yolks to the cylinder post valves, a nitrogen-fed tube system opens and closes the valves.

Since installation of the Fill-Tech system, things are looking bright for Oxygen Service Company, amongst its workers as well as its customers. "The guys love it back there," reports Stone. "It cut our filling time down by more than half." The new system handles 48 cylinders at a time, meaning that one flip of the Fill-Tech system's lever bypasses hand tightening and loosening of four dozen cylinders' worth of valves. Rather than waiting two days to receive their refilled cylinders, home health and hospital customers are now offered same-day turnaround.

Not surprisingly, business is up in Oxygen Service Company's medical oxygen division. As Stone points out, "Letting customers know you can turn the cylinders around faster is an advantage when you're out selling."

It's also an advantage when you're inside refilling, and the company has reaped a welcome extra benefit from the new Fill-Tech system. Stone reports that workers no longer complain of wrist discomfort from all the hand wheel turning, and concern over the development of carpal tunnel syndrome has been eliminated.

WELCOME NEW MEMBERS

GAWDA welcomes new Distributor Member Advanced Specialty Gases of Sparks, NV, and new Associate Members Broco Inc. of Rancho Cucamonga, CA, Erie Technologies of Ottawa Lake, MI, and Weldwire Co. Inc. of King of Prussia, PA.

INDUSTRY BEAT
(what people are talking about)

Air Liquide Acquires Messer Griesheim (Houston, TX) • The Air Liquide Group completed its acquisition of Messer Griesheim's industrial gas activities and personnel in Germany, the United Kingdom and the United States after approval from antitrust authorities in Europe and the United States, and finalization of financing by the Messer family for the retained businesses. The acquisition, first announced on January 20, will be entirely debt financed and funded from the financial markets and bank loans.

Praxair Establishes Distributor Council (Danbury, CT) • Praxair, Inc. formed the Praxair Distributor Council to advise the development of business strategies that will allow long-term sustainable gas products growth for both Praxair and its distributors. The council consists of representatives from Praxair's senior management and six independent distributors, and will focus on the development and implementation of mutually profitable programs. "Through this initiative, we hope to provide an open forum for productive discussions and innovative ideas to grow," says Brian Eastep, Praxair's vice president of independent distributors, North American Industrial Gases.

Pritchard Wins Industry Safety Award (Chantilly, VA) • Thirteen associations, including GAWDA, presented the 2004 Industry Safety Achievement Award to Edward W. Pritchard, director, Office of Safety Assurance and Compliance, Federal Railroad Administration, U.S. Department of Transportation. The award is periodically presented to a public sector individual or organization for recognized leadership and cooperation with industry in developing, promoting and enhancing safety in the public interest. With over 30 years of experience, Pritchard was recognized for his dedication and pragmatic approach to identifying safety problems. GAWDA congratulates Pritchard on his achievement.

FDA to Modernize Practices • The FDA has plans to modernize the good manufacturing practices (GMP) used for foods. Last revised in 1986, there have been significant changes in food production technology, as well as a better understanding of food-borne illnesses. The FDA established an internal food GMP Modernization Working Group in July 2002 that initiated further research in two areas: the impact of food GMPs on food safety; and the impact of revised regulations on food safety and the likely economic consequences of such revisions. The FDA will evaluate data and information collected from the Working Group to determine how to revise the regulations.

Tregaskiss Appoints New Employees (Windsor, ON, Canada) • With over 25 years of sales experience in the welding industry, Brian Krieger joins the Tregaskiss sales team as regional business manager and is responsible for the northeast region of Ontario. Dongmei Sun joins the engineering department as a design engineer. She brings five years of experience working as a research/welding engineer. Both Stanley Cox and Richard Hinds join Tregaskiss as customer service representatives. Cox has worked as an engineer for several years. Hinds brings five years of international sales experience and over 15 years of customer service experience.

GAWDA NEWS

Profit Survey Deadline Approaching • You only have until Monday, May 31, to submit data for GAWDA's 2004 Profit Report! Remember, it is free, and only participants receive a custom report benchmarking your company against GAWDA's High Profit and Norm Distributor. Participants will also receive a specific game plan for improving their company's financial performances and expected profit targets, including a Microsoft Excel-based software program to help prepare financial plans. By participating, you are also serving your fellow GAWDA members by assuring the report reflects a representative cross-section of the membership. Participate today before time runs out by completing the survey and faxing it directly to Profit Planning Group. Please DO NOT send the survey to GAWDA. Click here for the Profit Survey.

HR Manager's Legal Reporter Online • Click here to read the June issue of this excellent resource for human resources guidance, legal updates and court decisions. It's free to GAWDA members.

GAWDA Gives Back Recipient Chosen • GAWDA President Wally Brant announced at the Spring Management Conferences the charity he and his wife, Kathy, have chosen for this year's GAWDA Gives Back Campaign. Golden Rainbow is an organization in Las Vegas, the city of our 2004 Annual Convention, that cares for men, women and children suffering from HIV and AIDS. Oftentimes, an ability to maintain employment, coupled with the high cost of medical care and life-prolonging medicine, leaves many victims and their families in deep financial crisis. Donations to Golden Rainbow will be used to provide respite housing and emergency assistance, as well as support educational programs. Golden Rainbow's vision is a uniquely caring and responsive organization which exists to insure that the fundamental needs of those affected are met. For more information about GAWDA Gives Back, please call Headquarters at 215-564-3484.

Plan Now for Convention • Plan now to attend GAWDA's 60th Annual Convention in Las Vegas at the Caesars Palace Hotel and Casino October 3-7, 2004. It's a sure bet for a great time! Please click here for more information about Caesars Palace. For a schedule of events, click here.

    WORKSHOPS AND SEMINARS

Safety & Human Resources Compliance
Rick Schweitzer, GAWDA Government Affairs and HR Consultant
June 24, 11 a.m.–12 p.m. ET
This teleconference will update you on new federal overtime law requirements effective August 23. Discussion topics include changes in standards for exempt and non-exempt employees, modifications to duties test, modifications to salary test, and the effect on administrative employees, professional employees and outside sales personnel. A question and answer session will follow.

Bulk Medical Gas Systems
Ron Ball and Bob Yeoman, GAWDA Medical Gases Consultants
July 21–22
Indianapolis, Indiana
This GAWDA seminar will focus on the current requirements for designing, qualifying, installing and maintaining medical gas systems at health care facilities. Topics include an evolution of industry and FDA views of bulk systems, applicable requirements, compliance implications and best practices. For more information, contact GAWDA at 215-564-3484.

cGMPs for a New Era
FDA and Others
July 12, Parsippany, New Jersey
August 9, Chicago, Illinois
The FDA is co-sponsoring, together with Pharma and three other pharmaceutical industry associations, two workshops addressing today's relevant issues for drug manufacturers. Discussions include the risk-based approach to compliance the FDA introduced in 2002 and the integrated, or systems, approach to compliance management. Speakers from the FDA include: David Horowitz, director of the office of compliance and Joseph Famulare, director, division of manufacturing and product quality. To view the brochure and register to attend, click here.