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Corporate Tax Relief The American Jobs Creation Act of 2004, a corporate tax bill that replaces the Foreign Sales Corporation/Extraterritorial Income (FSC/ETI) tax provisions, which the World Trade Organization ruled were unfair subsidies that violated our trade agreements, was signed into law. The centerpiece of the legislation is a tax reduction on all domestic manufacturing activity. Another significant provision affecting GAWDA members is an extension of Section 179 expensing for small businesses through 2007. Originally scheduled to expire at the end of this year, this allows for immediate expensing of up to $100,000 per year in new capital goods by small businesses. Other provisions allow taxpayers to deduct state and local sales tax instead of state income taxes for 2004 and 2005. For more details on this new tax bill, please view this document.
The FBI's Maryland/Delaware Joint Terrorism Task Force has declassified a document dated August 4 related to a terrorism threat this past summer. In the document sent to GAWDA, the FBI outlines specific suggestions for owners and operators of facilities that manufacture, distribute or transport hazardous or potentially dangerous chemicals or fuels. Based on the nature of the reconnaissance information, the most likely means of attack would be a Vehicle Borne Improvised Explosive Device, including limousines, large vans, trucks and oil tanks that could be placed in underground parking areas or near highly populated areas.
Ivey Delivers First Time, Every Time Nothing beats partnering on a pivotal deal, and nowhere is partnering more important than when a distributor seeks to enter new territory, deliver new products, or offer new services. Ivey Industries (Springfield, MA) knew this well, so when a longtime customer wanted a more efficient gas delivery system, President Bob Iverson knew whom to call. The customer, a manufacturer of flexible gas piping and tubing, was seeing an increased demand for its products. The company's gas delivery system—individual high-pressure cylinders delivered daily and moved throughout the plant, an argon/hydrogen mixture for welding, and helium for leak checking—had gotten it so far, but with increased production, flaws in the system were becoming apparent.
Ivey Sales Representative Gary LaPlante collected input from workers at the plant. "We listened, and we looked," he says. The problem became clear: inadequate supply on site for changes in production, a labor-intensive process to move cylinders, and various leaks causing quality problems. Cylinder manifolds and cylinder cradles would lessen the problem, but not solve it. Ground storage tubes were the answer: no cylinder handling, ample storage, and minimized leaks. The current liquid argon station, gas mixer and helium system could remain. For Ivey Industries, though, this would be its first installation of ground storage tubes. Iverson says, "The anxiety of doing a project for the first time is the most difficult part. Will the equipment work? Will it be delivered on time? Will I look bad in front of my customer?" Iverson turned to FIBA Technologies and Executive Vice President Joe Sandello. Sandello knew what was needed and presented Iverson with a number of options for the customer—ASME tubes, DOT tubes, new, used, rent, lease or own. Iverson purchased a reconditioned unit from FIBA, which he now rents to the customer, maximizing his company's long-term profit. FIBA delivered the 7-tube, 2,400 psig ASME ground storage receiver right on time. All features were as promised—with stacks and valves oriented correctly and at the right height—both for the application and to meet CGA S-1.3 code. After eliminating the labor-intensive cylinder delivery system, Ivey now has hydrogen delivery to the customer performed via third-party arrangement with supplier BOC. The customer's cost on product decreased, and the hours of labor previously directed at changing cylinders is now being applied to manufacture more tubing products. GAWDA welcomes new Associate Member Advanced Instruments Inc. of Pomona, CA. INDUSTRY
BEAT
New
Program a Success at TWSCO
(Houston,
TX) •
Texas Welders
Supply Co. Inc. (TWSCO) initiated a program whereby employees tour
customers' facilities to better understand customers' needs. About
8-10 employees from each department participate in the monthly tours
to learn about their customers' company history, product lines and
manufacturing processes, followed by a facility tour. "Educating
our employees gets them excited and motivated, which equates to
higher productivity and service commitment. Our employees also observe,
learn and come away with new ideas on how to improve our own internal
systems and process," says Wes Morris, vice president
of human resources. "This program offers a win-win outcome
and has been very successful." Quimby Opens Store (Portland, OR) • Quimby Corporation opened a second store at 10540 Southwest Tualatin-Sherwood Road, Tualatin, OR 97062. The phone number is 503-221-1100. "Because we're in an urban setting in Portland, we needed additional space," says President Wayne Quimby. There are plans to open a third store in northern Oregon within the next year.
Kirk
Opens Tech Center
(Kansas City, MO) •
Kirk Welding Supply re-furbished a 90-year-old building and opened
a 5,000 sq. ft. technology center. The center houses a 30-seat classroom
with AV equipment and a welding lab with six booths. Kirk Welding
Supply hosts monthly seminars at the center for customers. To pay
tribute to the company's founder, the center was named the Jim Kirk
Technology Center. "Mr. Kirk always promoted development, learning
and efficiencies for our customers," says Marketing Manager
David Hanchette. Airgas Acquires A&R (Radnor, PA) • Airgas, Inc. acquired A&R Welding Supply Inc., a 20-year-old company with two locations in San Luis Obispo and Paso Robles, CA, which now operate as part of Airgas West. A&R founders and brothers Dave, Tom and Tim Erbstoesser and 15 other A&R employees join Airgas West. Matheson Tri-Gas Launches Distributor Program (Parsippany, NJ) • Matheson Tri-Gas, Inc. launched its new ENABLE Distributor Development Program at GAWDA's Annual Convention in Las Vegas. Bill Kroll, Matheson Tri-Gas chairman, president and CEO, spoke to the more than 65 distributors in attendance on the recent growth that the company has experienced through strategic mergers and acquisitions on a national and global basis. Kroll also spoke about the culture of Matheson Tri-Gas and its goals and vision for the program. Serving as master of ceremonies, Rick Kowey, senior VP, sales & marketing, and GM of the Equipment, Electronic & Specialty Gas Group, addressed the October 1, 2004, merger of Matheson's parent company, Nippon Sanso Corporation, with Taiyo Toyo Sanso, forming Taiyo Nippon Sanso Corporation. Matheson's acquisition of six divested MG Atmospheric Gas Facilities and Businesses as a result of the Air Liquide acquisition of MG Industries was also discussed. Charlie Lemmons, VP of business development, introduced the audience to the ENABLE Distributor Development Program and explained the alliance between Matheson Tri-Gas, the Specialty Gas Group and the independent distributor. "The ultimate goal of the program is to enable the distributor to grow at a rate that is consistent with its company's strategic goals," remarked Lemmons. The practical or economic point at which a distributor makes the jump from distributing specialty gases to producing specialty gases was also discussed. Airgas Supplies Discovery Channel (Radnor, PA) • Airgas, Inc. is the exclusive supplier of cutting and welding gases, welding consumables, safety products and other tools to Discovery Channel's newest series, Monster Nation. The series, an offshoot of the network's Monster Garage and Monster House, features profiles of people who have "monster-ized" projects, including a jet-powered biplane, automated houses, and one-of-a-kind cars, trucks, boats and golf carts. The series includes in-studio constructions of whimsical, impractical contraptions. Airgas provides the show with cylinders of pure argon, argon/CO2, and Arigas' Gold Gas SteelMIX shielding gases for TIG and MIG welding. Airgas Rutland Tool & Supply (Whittier, CA) outfits the show with a full-service machine shop and provides welding supplies and accessories, safety equipment and product specialist consulting expertise. Monster Nation is scheduled to appear Monday through Friday at 7 p.m. ET/PT on the Discovery Channel. Check your local television schedule.
Howell Named to Board (Troy, OH) • Robb F. Howell, president of MCD Plastics & Manufacturing, was named to the Hobart Institute of Welding Technology's Board of Trustees. Howell brings over 20 years of welding industry experience to his board position. GT&S Management Purchases Unit (Paris, France) • An internal GT&S management team purchased the 90% interest in GT&S, LP, owned by Air Liquide, which acquired the unit as part of its acquisition of Messer Griesheim Industries Inc. earlier this year. This took the management team's share of the company from 10% to 100%. The sale was effective October 27 for a purchase price approximating 2003 annual sales of $80M. Cyl-Tec Acquires Company (Aurora, IL) • Cyl-Tech Inc. acquired Ace-Tech Inc., a company specializing in acetylene cylinder re-qualification and hydrostatic cylinder testing. This acquisition gives Cyl-Tec the ability to provide acetylene re-qualification for its cylinder maintenance customers. Cyl-Tec hired Paul O'Neil as cylinder products manager and Alan Bustamante as northeastern regional sales manager.
GAWDA Sponsors New Program • Co-sponsored by 17 industrial trade associations, including GAWDA, the Power Transmission Distributors Association (PTDA) developed a new industrial distribution curriculum for community colleges in the U.S. and Canada. The initiative's objectives are to recruit entry-level employees to the industrial distribution channel, develop programs to teach business, technical and distribution basics, and create affordable resources for current employee development. The PTDA Foundation will have invested almost $300,000 by the end of this year. With projected spending of over $1.1M through 2008, additional resources are needed to grow and sustain this program. The GAWDA Board of Directors urges its corporate and individual members to support this initiative to transform how distributors recruit, educate and advance entry-level employees. If you or your company would like to make a donation of time or money, please contact the PTDA Foundation at 312-876-9461. Read more about the program here. NAW Book Provides Strategies • The National Association of Wholesaler-Distributors (NAW) released a book on pricing and margin management for wholesaler-distributors. Price for Success: A Practical Guide for Improving Margins in Wholesale Distribution, by Anthony Pericle, founder and principal of Advanous and a former distributor executive, is a resource guide on pricing for distributors interested in driving higher margins. The book draws from survey responses from 200 wholesale distribution executives, in-depth interviews with 50 senior distribution executives, and experiences of Advanous's team members. Price for Success is available at GAWDA's Online Store or by calling NAW at 202-872-0885. Convention Presentations Online • Now posted on GAWDA's Members Only site at www.gawda.org are the following PowerPoint presentations from the Annual Convention in Las Vegas: "Projecting When Economic Cycles Change," by Alan Beaulieu, The Institute for Trend Research; "Where's Our U.S. Gas Business Headed?" by J.R. (Buzz) Campbell; and "Welding Rod Liabilities," by Dickstein Shapiro Morin & Oshinsky LLP. The files are large and may take a few minutes to load.
Rumburg Joins B&R • Jerry Rumburg joined B&R Compliance Associates as a senior associate for medical gas compliance. He is an additional B&R consulting and training resource supporting the GAWDA Medical Gas Program. Rumburg's addition ensures B&R has the resources necessary to maintain the high standards for customer service established by GAWDA as the SOP Program continues to grow. An additional focus for Rumburg is the development of new training programs specifically designed for the technical and compliance needs of independent gases and welding distributors. A 23-year veteran of BOC Gases, Rumburg has held numerous positions, including regional quality manager and manager of the BOC National Training Center. Jerry Rumburg can be reached by calling B&R Compliance Associates at 610-868-7183. New Number for Eynon • GAWDA OSHA and EPA Consultant Tom Eynon has a new telephone number. Members can contact him at 252-745-7391. Profit
and Compensation Reports Available •
The 2004 Profit Report and 2004 Compensation Survey are now available
to help with 2005 budgeting. Copies of previous
reports are posted on the GAWDA Web site under Resources/Statistics.
GAWDA Medical Gas Program and SOP Manual • In anticipation of the publication of FDA's new cGMP guidelines, GAWDA has lowered the cost of its highly acclaimed Medical Gas Program and SOP Manual to allow more members to purchase this essential compliance solution at this critical time. The new cost of renewing a subscription to the SOP Manual, and its support consulting and automatic update services, has dropped from $2,995 to $1,200. The GAWDA SOP Manual for Medical Oxygen, supplemented with modules for other medical gases and equipment, creates for GAWDA members and the industry a common compliance platform recognized by the FDA and recommended by major gas companies. Recently, GAWDA launched the Partners in Compliance Program that authorizes its Medical Gas Program subscribers to offer the same program to their home healthcare, EMT and DME customers, who also need compliance guidance. The cost, including the SOP Manual and support services by B&R Compliance Associates, is $1,600 per company. For more information and to subscribe, contact GAWDA Medical Gases Consultant Bob Yeoman at 610-837-6782. Advanced Sales Training • GAWDA's three-module Advanced Sales Training CD is now available at a cost of $149. The CD is reusable for multiple employees. This course provides your employees with tools to increase your company's selling effectiveness, while becoming a more assertive part of the distributor's selling system. Advanced Inside Sales explains to your sales force how to look for and take advantage of opportunities to grow accounts, diagnose changes as problems or opportunities, and continuously improve the company's relationship with the customer. Visit this page for details and to order.
Cast Iron
Welding
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