GAWDA’s Strategic Plan

1. Tight product supply.
2. In a cycle where consolidation of both distributors and suppliers is accelerating.
3. Ever-changing regulatory and compliance issues.
4. Challenge to attract next generation of distributors and suppliers.
5. Product liability issues increasing.
6. Insurance: higher cost, diluted coverage.

1. 436 distributors, 273 manufacturers (total = 709).
2. Significant number of second- and third-generation owners.
3. Core of active participants.
4. Strong networking/good communications.

1. Economic conditions and location impact meeting attendance.
2. Meeting attendance holding its own in recent years.
3. Webinars/online education increasing.

1. Membership trend follows industry consolidation.
2. 48% of active distributor members have annual revenue of $3 million or less.

Member breakdown by volume...
Less than $1 million: 81 members
$1 – 3 million: 124 members
$3 – 10 million: 146 members
$10 – 25 million: 51 members
$25 – 50 million: 21 members
$50 – 100 million: 6 members
$100 - 250 million: 4 members
$250 - 500 million: 2 members
$500 – 1 billion: 0 members
+ $1 billion: 2 members

1. Stable dues revenue at $900,000 in recent years.
2. Total income: $2.2 million, net assets $1.5 million
3. Sound financial position.

1. Authority concentrated in the Executive Committee.
2. 17-member board/7 committees.

1. Performance rating: 4.0 (“B”).
2. Issues: consolidation, regulation, board functioning and member participation.

1. Consolidation has evolved and now involves acquisition of larger companies.
2. GAWDA’s dues base has been reduced and meeting participation is affected.
3. At the $10 million to $20 million level, companies begin to add internal resources—primarily safety and compliance.

1. Small members do not attend meetings—how do we educate?
2. Current offerings: Annual Convention, SMC, 20 regional meetings, seminar and webinars.
3. “Online GAWDA University” is in development.
4. Eight webinars per year with an average of 80 to 100 participants.
5. In general, the target market is the under-$10 million members.
6. Branding and “certificate” approaches have been considered.
7. 75% to 80% of education is compliance-related.

1. There have been recent efforts to strengthen and engage the board.
2. Board meets twice per year.
3. Executive Committee meets via conference call monthly.
4. Board orientation initiated.
5. Future leadership an issue given the consolidation trend.

1. $475,000 allocated to consultant fees.
2. Consultant use: consultation, program presenters, publication articles, committee staffing.
3. Need to track member use of consultants.

1. Networking.
2. Education.
3. Safety and compliance services.
4. Member ownership of GAWDA—sense of belonging.
5. Welding & Gases Today print and online magazine.
6. Financial position.
7. Board/staff leadership.

1. Shrinking membership.
2. Maintenance of services as revenues decline.
3. Delivering value to membership—tracking and reporting value to members.
4. Competition.
5. Future leadership.
6. Lack of organizational alliances.

1. Online education.
2. GAWDA Edge, online magazine.
3. Regional meetings.
4. GAWDA branding.
5. Partnering/alliances.
6. Industry leadership.
7. Leverage consultants.

1. Shrinking customer base.
2. Increased demand.
3. Tight gas supply.
4. Tight metal markets.
5. Pressure on margins.
6. Increased regulation, in particular, homeland security and FDA.
7. Increased use of technology.
8. Economic downturn likely in the next five years.
9. Traditional distribution will continue to be viable, but alternative channels will grow.
10. Welding fume liability exposure will continue.
11. The number of member and non-member distributors will decline from 700 in 2007 to 500-550 in 2012.
12. The trend to globalization will continue: global competition, sourcing and ownership

1. Will continue to need compliance information and assistance.
2. More gas-oriented.
3. Transition to third- and fourth-generation ownership.
4. Distributor size will continue to vary significantly
5. Use of technology for ordering, tracking, accounting and to respond to customer requirements.

1. Reliance on associate member financial support.
2. Will continue as a strong association and be financially sound.
3. More delivery of benefits and value online.
4. Distributor membership of 300 to 350 in 2012 from 436 in 2007.
5. Growth of international manufacturer member.

1. Strengthen GAWDA’s influence and proactivity in government regulation while maintaining its position as a source of compliance information and assistance.
2. Develop a five-year GAWDA financial strategy.
3. Improve GAWDA governance and development of future leadership.
4. Expand the scope of GAWDA educational programming.

1. Increased influence within lead organizations in the regulatory development process.
2. Contingency response plans for likely adverse events to mitigate regulatory overreaction.
3. Increase member company participation in compliance seminars or compliance programs from 50 in 2006 to 270 in 2010.

1. Project: Strengthen and formalize GAWDA liaison with CGA, AWS, NAW and NFPA.
        Responsibility: Bob Ames
        Schedule: October 2007
   
2. Project: Develop contingency response plans for adverse events that have regulatory overreaction exposure
        Responsibility: Bonnie Stanage
        Schedule: March 2008/Workshop
   
3. Project: Develop a comprehensive delivery system to significantly improve access to and participation in GAWDA compliance seminars or training programs.
        Responsibility: Kent Van Amburg
        Schedule: March 2008

1. Project: Project dues income for five years, factoring in anticipated consolidation based on the current dues structure; evaluate benefits included with dues; recommend new dues categories, benefits and annual rate increase.
        Responsibility: David Walker, GAWDA Treasurer
        Schedule: February 2008 draft; March 2008 for Board action
   
2. Project: Evaluate non-dues revenue; develop forecasts and assumptions; make recommendations for the next five years.
        Responsibility: David Walker, GAWDA Treasurer
        Schedule: February 2008 draft; March 2008 for Board action
   
3. Project: Estimate annual project fees that will be incurred in addition to the base management fee; evaluate consultant fees and arrangements; develop five-year expense projections.
        Responsibility: David Walker, GAWDA Treasurer
        Schedule: February 2008 draft; March 2008 for Board action
   
4. Project: Compile five-year financial projections and strategy.
        Responsibility: Kent Van Amburg and David Walker, GAWDA Treasurer
        Schedule: June 2008 for the 2009 budgeting process
   
5. Project: Implement revised dues schedule for 2009.
        Responsibility: Kent Van Amburg
        Schedule: September 2008

1. Continuous improvement in annual Board self-evaluation surveys.
2. Annual Board development exercise conducted.

1. Project: Conduct and review an annual Board self-assessment
        Responsibility: Gary Stoneback, GAWDA President
        Schedule: SMC
   
2. Project: Conduct one Board development program annually
        Responsibility: Gary Stoneback, GAWDA President
        Schedule: Annual Convention
   

1. Project: Determine how to operationalize GAWDA Online University: content ownership and development; infrastructure and capacity; financial arrangements; exit and contingency strategy.
        Responsibility: Bryan Gentry
        Schedule: Plan with options and recommendations September 2007
   
2. Project: Develop a Compliance Seminar plan to significantly increase member company participation.
        Responsibility: Board Member to be determined
        Schedule: 2008 Plan by November 2007
   
3. Project: Develop a comprehensive delivery system to significantly improve access to and participation in GAWDA compliance seminars or training programs
        Responsibility: Kent Van Amburg
        Schedule: March 2008