GAWDA Connection

A Semi-Monthly Newsletter for Gases and Welding Distributors Association Members

December 8, 2009

	Breaking News • Safety & Compliance • New Members
	Industry Beat • GAWDA News • Education & Training

What Is Your Strategy for Growth?

Looking at the past, one fact is undeniable—successful companies recognize market trends. These forward-thinking companies react quickly, while keeping an eye on
long-term objectives. How do successful companies do it? How do they grow profitably and retain and attract talent while reacting to market threats and opportunities?

The answer is simple: They have a well-communicated strategy based on accurate and timely information. They do not lose sight of their primary goal as a commercial enterprise—to generate earnings in order to fund future growth. Simple... or is it?

A business strategy is a plan of action designed to achieve a particular goal. The strategy aspect deals with the how part rather than the what. An important piece of the how part is to work with an enterprise software partner that has a solid strategy for offering the very best products and services. Successful software providers will and have prospered by anticipating and responding to changes in the supply chain, while allowing their customers to reap the benefits of this forward thinking through their evolving products. They have already responded to the "new normal" in supply chain.

Successful business performance in distribution will be heavily influenced by understanding the new normal. The new normal means that customers are well informed and are demanding more for less. It means that customers want access to products and services anywhere, anytime. It means developing buy-side advantages with vendors that allow your company to delight customers with great products at the best possible price delivered on time.

Distributors operate within a supply chain, not in isolation. Yet many companies operate with enterprise software that isolates them from their own supply chain. An important success factor within the how strategy of a distribution business is to extend its enterprise system to its trading partners via an extranet. Furthermore, companies should leverage the services and information that are available through Internet technologies. Another success factor is to communicate internally and externally in real time. Yet many companies are running enterprise software that limits access to information—information that is missing or is locked behind old-fashioned screens and reports.

Many companies have seen revenues take a dive these past two years. This industry has been transformed through consolidation and thus stronger competition. What is your company’s strategy to compete against the big boys? How will your company respond to the demands of your trading partners?

As Ernie Villareal of AOC Inc. will tell you, “If you are able to capture what falls through the cracks, that’s when you figure it out: ‘Whoa, there’s a lot of money here!’ And these are some of the things we can do with TECSYS that we couldn’t do with other software in the industry.”

Our customers have never had to look elsewhere. And those who have, like J. Walter Inc., ended up choosing TECSYS as a partner all over again.

We understand the modern supply chain and what it takes to be a valued partner.

1-800-922-8649
info@tecsys.com
www.tecsys.com

To ensure you receive this newsletter in your inbox, please add this e-mail address to
your trusted or safe sender list. If this newsletter is not displaying properly in your e-mail,
view it online.

Breaking News

Coalition Challenges Healthcare Bill

In a letter to members of the National Association of Wholesaler-Distributors (GAWDA is a member), Jade C. West, NAW's senior vice president-government relations, detailed efforts being taken to oppose the proposed healthcare bill.

The U.S. Senate voted Saturday, November 21, to "invoke cloture"—or cut off debate—on the motion to proceed to the Patient Protection and Affordable Care Act. It was a straight party-line vote, 60-39, with all Democrats voting in favor and all Republicans opposed (one Republican senator did not vote). While this was a significant vote, Majority Leader Harry Reid did not have any votes to spare, and a number of moderate Democrat senators made statements on the Senate floor making it very clear that they will not vote for this bill in its current form. Some of the moderates oppose the public plan; some are concerned with the overall cost; some with the tax increases, etc. So while this was a significant vote, it is just the beginning of the process in the Senate, not the conclusion.

The Start Over! Coalition joined with Employers for a Healthy Economy (EHE) to sponsor television ads urging senators to vote against the current legislation. The ad provides a link to the EHE Web site: www.employersforahealthyeconomy.org. There is a video clip of the ad on the Web site, as well as a list of the Start Over! Coalition members.

For the full letter, visit this link.

GAWDA Health Insurance Survey

Healthcare is an issue that affects all GAWDA members. How does your company compare with other GAWDA members in the healthcare benefits you provide? Answer our brief survey and we'll report the results in the next issue of Welding & Gases Today.

Wiki terms added this week
	1. 2. 3. 4. 5.	Carbon dioxide Hydrogen Argon Oxygen Inert Gas
To add your own term, go to www.GAWDAwiki.org.

Safety & Compliance News

House Committee Approves Hazmat Bill • The U.S. House of Representatives Transportation and Infrastructure Committee approved a bill to reauthorize the hazardous materials transportation regulatory program on November 19, 2009. The bill contains a provision that would prohibit the transportation of flammable liquids in the wetlines of a cargo tank truck manufactured more than two years after the date of enactment. For existing cargo tank trucks, DOT would have to issue a final rule within 3 years of enactment that would prohibit transportation of flammables in wetlines for all commercial motor vehicles.

The bill also directs DOT to report to the Committee within 6 months on all cargo tank rollover accidents that have occurred within the past 5 years, and to require that DOT handle all requests for approvals (for alternative methods of compliance with the Hazardous Materials Regulations) within 6 months or issue a decision as to why the agency must take longer to process the application.

The bill further authorizes DOT to impose sanctions on persons who impede inspections of hazmat facilities or vehicles and to prevent persons who fail to pay DOT fines under the HMR from conducting any hazmat activity regulated by DOT.

Chairman Jim Oberstar (D-MN) has indicated he wants to have this bill to the House floor before the December recess. Congress is currently expected to recess on December 23, 2009. There is no companion bill in the Senate at this time, however.

FMCSA Preempts Boston Hazmat Routing Requirements • The Federal Motor Carrier Safety Administration has issued a decision, 74 Federal Register 59021 (November 16, 2009), that federal hazardous material transportation law preempts the following highway routing designations of the City of Boston Regulations Controlling the Transportation of Hazardous Materials:

1. The Traffic Rules and Regulations of the City of Boston, Article VII, section 8B, Hazardous Materials Route; and

2. The de facto ban on hazardous materials transportation through the City of Boston due to the change in administration of the city’s hazardous materials permitting system.

The decision resulted from petitions filed by the American Trucking Associations and the Massachusetts Department of Highways for clarification on the effect of federal hazmat law on the Boston routing restrictions. The petitions questioned the city’s process for changing hazmat routes as a result of construction on the Central Artery Project in Boston, as well as changing the administration and enforcement of the city’s permit system for “through” transportation by motor carriers transporting non-radioactive hazardous materials, i.e., vehicles that do not have a point of origin or destination within the city. The routing effectively banned through transportation of hazmat within the City of Boston.

The FMCSA ruled that the city failed to comply with federal law requiring local hazmat routing decisions to consider certain standards and for local governments to consult with surrounding jurisdictions in making such determinations. The FMCSA’s preemption decision will take effect May 17, 2010.

IP Group to Meet with PHMSA Administrator over Hazmat Concerns • The Interested Parties Group for Hazardous Materials Transportation, a coalition of over 40 trade associations (including GAWDA) representing shippers and carriers of hazmat in all modes of transportation, will meet on January 8, 2010, with Cynthia Quarterman, the newly-confirmed administrator of the Pipelines and Hazardous Materials Safety Administration. The meeting will be at Department of Transportation headquarters in Washington, D.C. The IP Group members will discuss their concerns with regulatory issues such as expediting the process for granting special permits and approvals, the need for continued federal preemption of state and local hazmat routing restrictions and streamlining the hazmat employee CDL driver background check process.

December Safety & Technology Organizer Online • The December Safety & Technology Organizer is now available at www.gawda.org. Some topics include Emergency Action Plan, Driver Qualification File and Breathing Air.

Industry Beat
(what people are talking about)

Central Welding Acquisition (Marysville, WA) • Central Welding Supply acquired Pacific Welding Supplies of Tacoma, WA, on November 30. Pacific Welding Supplies has 70 employees and annual revenue of $20M. The company, which sells high pressure and bulk gases and a broad range of welding hardgoods, will operate as a separate division of Central Welding Supply.

Pooch Welding Gives Back (Benton Harbor, MI) • Pooch Welding Supply created the Frank C. Pooch Jr. Honorary Scholarship. The $500 scholarship supports Welding Academy students at Lake Michigan College. "This is a struggling community and money is tight for everybody, so we try to help some people along," said Pooch Welding Supply President John Small.


Eric Wood	Andy Mulroy

Advancing Careers (Sandusky, OH) • The O.E. Meyer Company promoted Eric Wood to manager of its Fremont, OH, location. Wood has 10 years’ experience in the gases and welding industry as an outside sales representative for O.E. Meyer and as manager of the company’s Lorain, OH, location. The company also hired Andy Mulroy to replace Wood as manager of the Lorain location. Mulroy has 5 years’ experience in the industry.

Vancouver Puts ‘2’ In H2 (Vancouver, BC, Canada) • Air Liquide selected Vancouver International Airport as the 2nd of 2 Canadian airports in its $14M hydrogen and fuel cell demonstration project, joining Pierre-Elliott-Trudeau International Airport in Montréal, QC. Vancouver International Airport will deploy several hydrogen transportation technologies in shuttle buses and passenger and utility vehicles provided by the Vancouver Airport Authority and Air Canada.

TWI Expands Management Team (Mechanicsburg, PA) • Taylor-Wharton International announced additions to its management team. The board of directors appointed Len York as chief financial officer, Terry Ross as new division president for American welding and tank, Joe Sorce as vice president of strategic development and Suzanne Rosenthal as vice president of human resources.

GAWDA News

Thank You • On behalf of GAWDA's Board of Directors, thank you for your strong support during 2009. We understand the many challenges our members faced as a result of the downturn in the economy. Your continued membership and participation in GAWDA's Spring Management Conference, Regional Meetings, the Annual Convention and other programs and services were greatly appreciated.
— Kent Van Amburg

(l-r) John Powers of 3M Speedglas, David Cullers of JR Myers/Bessey, Mark McDowell of Lincoln Electric and David Mello of Mello Gas & Gear.

Regional Meeting Recap • Regional Chair Rob Kinney of Praxair hosted a Western Zone Regional Meeting at the Lockeford Springs Country Club in Lodi, CA, on November 13. There were a total of 64 attendees and 19 vendors. Speakers included Jim Appledorn of Lincoln Electric, who opened the meeting with a presentation on the U.S. economy and the short-term economic forecast from a Lincoln Electric perspective. He also spoke about the steel market worldwide. Ken Nacey of The Nacey Group discussed adding to the distributors' bottom line and promoting his company as a GAWDA member. Kirk Merica of Matheson Tri-Gas closed with a GAWDA update. Following the business portion of the day, attendees participated in a putting contest and a golf scramble. A raffle and golf-prize presentation capped off the event.

View more photos of the Western Zone Regional meeting here.

Get In The Game • GAWDA's committees are being restructured and strengthened. Watch your e-mail for a memo from President Jenny McCall outlining the Committee's draft mission statements and objectives for 2010. All supplier and distributor members will have the opportunity to designate the committee for which they would like to be considered for membership.

HR Report Available • The December 2009 HR Manager's Legal Reporter is now available for download at www.gawda.org. The GAWDA Clearinghouse has been updated for the month.

Workshops, Web Conferences & Seminars

University of Industrial Distribution - Sponsored by GAWDA
March 8-11, 2010
University Place Conference Center and Hotel Indianapolis, IN. Enrollment is limited. Details can be found here.

GAWDA Professional Compliance Seminar
March 22-25, 2010
At Chart Industries, Ball Park, GA (near Atlanta)

Upcoming Events

For more information about these events, please click
on underlined titles or call GAWDA at 215-564-3484.

March 2

• Southeastern Zone Regional Meeting (Bonita Springs, FL)

Submit A News Item

Newsletter Comments

Add A Subscription

Update E-Mail Address

The GAWDA Connection is distributed on the 8th and 23rd of each month to all GAWDA members as a membership service of GAWDA, the Gases and Welding Distributors Association, 100 N. 20th Street, 4th Floor, Philadelphia, PA, 19103-1443. Neither GAWDA nor Data Key Communications, LLC, their officers, directors, members and staff are responsible for contents or opinions other than those concerning Association activities.

If you no longer wish to receive the GAWDA Connection, please respond here.
Privacy Statement

GAWDA HEADQUARTERS
100 North 20th Street, 4th Floor
Philadelphia, PA 19103-1443
phone 215.564.3484 - fax 213.963.9784
gawda@fernley.com