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Projecting a 20-25% increase in domestic sales, Don Lockhart, president, Mathey Dearman (Tulsa, OK), will make an effort to provide more support to its distributor partners and will do more open houses and mini-trade shows at distributor locations. He will also utilize a recently constructed 5,000 sq. ft. addition for training and product demonstrations, as well as providing increased warehouse and assembly space.
To grow sales by 25%, Ed Cooper, president and CEO, ELCo Enterprises (Jackson, MI), says, “We will spend more time training more distributors. We’ve found that once we go to work with a sales department, our sales go up in that area and they stay up. It’s a win-win for both of us.” A recently hired director of sales for North America and an additional three to four salespeople will support this effort. Part of the 2008 agenda calls for a possible addition of 20,000 sq. ft. to its facility in the 2nd Quarter and a new product to be introduced in the 4th Quarter.
Building On a Brick-and-Mortar Foundation
Hector Villarreal, partner and vice president sales and marketing, Cryogenic Vessel Alternatives (Mont Belvieu, TX), anticipates 2008 sales to be level with ’07. The company will begin construction on a new 30,000-40,000 sq. ft manufacturing facility during the 1st Quarter. Also scheduled: two new product lines to be introduced during the 2nd Quarter.
Tom Ward, vice president, North American merchant gases, Air Products (Allentown, PA), anticipates that the momentum of 2007 will continue in 2008. He says, “We are prepared for a softening but expect the softening to take place at a slower rate than many expect. While product will continue to be tight, we are not anticipating a big downturn of any kind.” Facility expansions are planned in Pryor, Oklahoma; Ashland, Kentucky; and Reedsville, North Carolina.
A plant expansion of 2,000 sq. ft. will be completed during the 1st Quarter and will result in increased production space for Bob O’Brien, vice president, Gas and Air Systems (Hellertown, PA). He expects that with more machines in the market, there will be more machines which will be added to a list of machines to be maintained. While O’Brien expects equipment sales to remain level, he anticipates growing his service and parts business by 8%.
“A new storage location in the Midwest during the 1st Quarter will support a slight growth of 4-5%,” believes Michael Hopsicker, CEO, Ray Murray (Lee, MA). New products introduced throughout the year also will provide small- to middle-sized distributors with additional technical resources.
Jonathon Brown, president, U.S. Tank & Cryogenic Equipment (Bradenton, FL), expects his relocation from Florida to Lewisburg, Tennessee, at the start of the new year to support a sales increase of 5-7%. Brown says, “With plans to grow from a current 20 to 40 employees by year-end, our 60,000 sq. ft. new facility, located on 12 acres, is in a more central location to better support distributor partners.” The company also will begin refurbishing beverage tanks and carrying a full line of associated beverage tank parts.
Expecting growth approaching double digits, Ashley Madray, vice president, Gas Innovations (La Porte, TX), says, “Growth will be supported by a new quality assurance lab, completed during the 4th Quarter 2007, as well as a new depot located in the Northeast, scheduled to open during the 1st Quarter.” Madray also says that new products will supplement its recently introduced hydrocarbon specialty gas line.
Kent Buzard, vice president of business development, CTR of the Carolinas (Rock Hill, SC), says that a 2nd Quarter renovation to an existing facility will make for a more economical and more environmentally sound blast bay and create a 20-25% increased capacity in his company’s bulk tank rehab shop. “That build-out is needed, given an expectation of continued increased sales and installations of cylinder filling plants and the continued innovations in fill plant technology and automation spurring a 10% growth in sales,” says Buzard.
Gerald Leary, president and CEO, Koike Aronson (Arcade, NY), is budgeting for a 12-16% growth in sales, supported by the late-2007 introduction of a laser cutting machine and a line of cutting tables. A 20,000 sq. ft. addition in order to manufacture products in the U.S., shortening the lead time and creating price structure improvements for large lasers is also planned.
New Kids on the Block
Dennis Daugherty, president, Precise Equipment (Denton, TX), says that his seven-year-old company will grow based on his ability to take market share. “Even if the industrial market slumps a little, the medical side of our business will continue to grow.” Daugherty plans to introduce new products targeting the laser market during the 1st Quarter.
“Becoming better known within the welding and gas distribution channel will drive a growth in sales of 5-10%,” believes Gary Sandercock, president and CEO, Cryotech International (Campbell, CA). The company will focus more effort on group training in 2008. A recently reorganized service department now reports to Engineering as opposed to Sales and Marketing in order to provide greater support to the distributor channel.
Jim Schnorr, general manager, Wendt USA (Orchard Park, NY), expects sales to be up by a minimum of 25%. The six-year-old company is still relatively new and, Schnorr says, “It’s David chipping away at Goliath. New product development, including a late-2007 introduction of a cost-competitive finishing product and a 1st Quarter introduction of a new line of unitized finishing discs will result in new solutions that will differentiate us from our competitors and capture the distributors’ attention.”
As a new company on the block, Michael Laing, president/CEO, InterMed Gas Products (Boca Raton, FL), anticipates a sales increase of 30%. Adding a new acetylene valve and a global valve during the 1st Quarter will round out the company’s line of high-pressure valves. To keep up with projected growth, Laing is considering a warehouse facility in the Midwest.
Leonardo Lanaro, partner, Flopower/Trafimet USA (Hialeah, FL), sees growth of up to 50% as his company gears up for a first-time, strong push in the American market. Distributors will be better served as Lanaro adds 15-20 manufacturers’ representatives and sales agents by year end. Plans call for an additional 4,000 to 5,000 sq. ft. facility providing increased warehouse space in 2009.
Shortage of Welders Under the Spotlight
Mark Elender, senior vice president of sales and marketing, ESAB Welding & Cutting Products (Florence, SC), expects a year in which sales could be level to increased by 3-4%. ESAB is concentrating on new automation products and new sales and marketing programs to enhance the distributors’ sales efforts. ESAB is also looking at developing additional resources for friction-stir welding and hybrid laser welding. There is also more demand for standard automation products that are used by general fabricators. New introductions in the plasma cutting and flux-cored arc materials arenas are projected for 2008. A new MIG wire sold in a bare format and two new medium-range plasma units will likely be introduced during the 2nd and 3rd Quarters of 2008.
Mike Weiler, president, Miller Electric (Appleton, WI), expects single-digit growth, supported in part by an emphasis on an increased need for automation. He says, “We are still focused on increasing efficiencies and the ability to provide solutions through the distribution channel.” Innovation is tied to end-user needs in various markets throughout the year, as Miller focuses on a better understanding of the needs of both end-users and distribution partners.”
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As Dick Seif, vice president of sales and marketing, The Lincoln Electric Company (Cleveland, OH), moves into a new automation facility during the 2nd Quarter, he expects sales to be by low single digits. He says, “We will develop enhancements to high-tech Power Wave machines and add to our consumables, MIG, cored wire and submerged arc products.” The goals for 2008 include helping the distributor to sell products that reduce their customers’ costs via automation, and helping that distributor to partner with their customers as they strive to become green.
As the shortage of qualified welders becomes more problematic, Andre Odermatt, president and chairman of the board, Hobart Institute of Welding Technology (Troy, OH), expects his enrollment of skilled students to drive a growth of 5-10%. A combination of marketing to high schools, joint vocational schools and trade schools is garnering more students.
Attesting to the need to rely more on automation to support growth of 10-20%, Paul Rensing, president, Weld Plus (Cincinnati, OH), says, “We are doing more automation for welding in order to serve various growth markets. As an example, anything in the power industry is a hot ticket.” The key for Rensing is his company’s continual focus on walking the high road and partnering with the distributor.
It Takes Two
The solid growth of the past four years may be interrupted as we experience a slowdown, according to Waldo Ortega, president, International TechniSystems (Miami, FL). In order to offset a potential market softening, Ortega will hire an additional salesperson during the 1st Quarter, to better facilitate the partnership between his company and others who wish to expand their footprint globally and want sales support in South America.
George Bonadio, president, CPV Manufacturing (Philadelphia, PA), says, “Our primary objective as we move ahead is to remove the costs from the transaction. We will continue to team up with the distributor to find ways to reduce pricing. In 2008, CPV will control costs by quoting net to the distributor and by relying more on their Web site and electronic communications in order to become more paperless.
David Barleen, president, Motor Guard (Manteca, CA), expects to maintain 2007’s sales numbers by focusing on the 1st Quarter addition of new products to a recently introduced family of products. But even more important, Barleen says, “We need to actively participate in all aspects of the distributor’s marketing. When salespeople sell from catalogs or brochures, my product needs to be represented, in order to create top-of-mind awareness. There is just nothing more important than the partnership with the distributor.”
Cautiously optimistic, Pat Murphy, president, Linde North America (Murray Hill, NJ), expects a sales increase of 2½%. Murphy says, “Linde/BOC has a very rich history and legacy of business with distributors which will evolve, incorporating a higher value-added program and creating a competitive advantage.” The possibility of continued consolidation activity is impacting Linde’s selection of partners as it moves forward. Murphy asks, “Why develop value-added relationships only to find that the distributor is acquired? The concern is forcing us to be more selective with our partners and once identified, to get creative.”
Cathy Harter, president, Kemper Corporation (West Haven, CT), expects a slight increase of 4% driven by a mix of new business and increased activity from established relationships. During the 1st Quarter, the company hopes to introduce a new product for outdoor use in inclement weather. Doubling its square footage, the company will move into a newly purchased 20,000 sq. ft. building during the 1st Quarter.
In light of projections from customers with long-term agreements, Mike Simons, site manager, Elkem Metals (Pittsburgh, PA), anticipates a 5% increase in sales. To further support his distribution partners, he says, “We are minimizing freight costs where possible, using rail and then shipping by truck. We will use whatever combination of transportation that is available to us, to benefit the customer.”
Anticipating growth of 5-8%, Jim Herring, vice president of marketing, SafTCart (Clarksdale, MS), says, “Larger companies continue to acquire smaller companies. As those smaller companies are acquired, we are capturing more retro-fit business.” The company will recruit 15-20 new welders needed to maintain its growth. He says, “Our goal is to make delivery times shorter. We do not have the luxury of being three weeks out. When the phone rings, we don’t work for SafTCart, we work for the customer.”
“We have no end-user agenda. The better the distributors do, the more they buy from me. If our paths are always aligned, we are automatically a part of their business, their fleet, their processes and their safety programs,” says Hector Villarreal, vice president, Weldcoa (Aurora, IL). Expecting sales to be up by 10%, the company will introduce a new helium purifier in the 1st Quarter and a new high-purity specialty gas fuel system in the 2nd Quarter, to be followed up by additional specialty gas and helium-related products during the last half of the year. The operations of a supplier of automated related technology purchased in late 2007 will be consolidated during the second half of the year.
Ray Borzio, president, Special Gas Services (Mount Laurel, NJ), is partnering with more distributors as they opt to be more self-sufficient and build specialty gas plants. Borzio expects sales to rise by 12-15%. He says, “In the past, the partnership between distributor and supplier was based on more frequent sharing of high-end technological expertise. Today the distributor is growing more independent, and the manufacturer is relying on the garnering of high-end technological expertise to remain competitive.” He will introduce a proprietary cylinder treatment that allows the gas mixture to remain stable during the 1st Quarter and during the 4th Quarter, two new purification systems for the ultra-high purity of industrial grade oxygen and industrial or beverage grade ultra-high purity CO2.
Joe Dearborn, general manager, Washington Alloy Company (Rancho Cucamonga, CA), says, “Our relationship with the distributor is the ultimate partnership as we focus on key distributors in select locations.” The company plans to work harder to provide more support with additional customer service, telemarketing and sales support personnel in an effort to drive increased sales with existing distributors. A recently expanded sales force, together with two potential new customer service people, will support a growth of 15% in sales.
A revenue growth of 20% will in part be driven by key distributors, as Mark Ashworth, president, Oxford Alloys (Baton Rouge, LA), does more private labeling for distributors, tailoring his approach to meet distributor private branding needs. A new 16,000 sq, ft. distribution center in Indianapolis, Indiana, will further the company’s increased market penetration in the Northeast and Midwest.
Going For a Bigger Slice of the Pie
Joe Sandello, executive vice president, FIBA Technologies (Millbury, MA), says that his primary objective for 2008 is to be the low-cost producer in order to increase market share. With a strong backlog in place for 2008, he is upbeat when predicting a level year. The company will introduce a new ultrasonic testing product in the 1st Quarter and is exploring new products which will target the alternative fuels market.
“Slow, but continued, domestic growth will be driven by technology and market share gains,” says Evan Smith, vice president and general manager, Hypertherm (Hanover, NH). New product introductions will include an expansion to its line of mechanized and HyPerformance products throughout the year, ending 2008 with the addition of a major new product. A five-year, 250,000 sq. ft. facility expansion, beginning with the 4th Quarter groundbreaking for a new 60,000 sq. ft facility, will expand the company’s logistics and order-fulfillment capabilities and will free up currently occupied manufacturing and office space. Smith says, “We are placing heavy emphasis on e-business development in order to enhance partnering efforts with the distribution channel to reduce transaction costs and to better support distributors who are less familiar with new technologies.”
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Cheri Martin, vice president, Phoenix International (Milwaukee, WI), expecting sales to be flat to slightly down, says, “We try to compete for market dominance in a non-growth industry and will continue to work with distributor channels. It’s our only access to that market dominance.” As inventories stay low, Martin adds, “The shining light is the energy industry and it continues to be strong.”
Tom Westerhold, president, Abicor Binzel (Frederick, MD), expects market share gains to contribute to a growth of 5-6%. He says, “We’re going to aggressively target the semi-automatic handheld gun business.” Abicor Binzel will focus on a pull-through strategy, marketing to the end-user and pulling that business through to the distributor.
Mike Brown, director of sales and marketing, Acme Cryogenics (Allentown, PA), expects an expanded customer service department to be fully staffed by early 2008, together with minor facility changes as it prepares for growth of 5-7%, partially driven by a possible acquisition during the 1st Quarter. He says, “Our biggest challenge is going to be executing the growth plan that we’ve set out for ourselves and staying focused on that growth.”
Increased market share will drive an 8-10% growth in sales, says Bruce Belk, president, Universal Wire Works (Houston, TX). He adds, “We are creating more awareness, promoting the fact that we handle materials that the distributor doesn’t necessarily want to stock.” The company will expand its finishing operations to allow for in-house processing and invest in capital equipment which will help them to do smaller runs, converting expensive coil drums and spools into TIG.
Mark Sutton, business manager, Cryostar USA (Santa Fe Springs, CA), expects market share gains and new applications of existing products to support a 10% growth in sales. He says, “There’s a lot of activity right now in clean energy and clean fuels. A number of companies are finding new applications for air gases as well.” In order to capture a larger share of the pie, the company is developing training programs and internal resources. “We are not here just to sell a piece of equipment and leave it be. We’re here to support that equipment through maintenance contracts, providing whatever is needed and tailoring those services to the needs of the customer.”
New Product Introductions Bring New Revenue
Al Stark, vice president of sales, Norris Cylinder (Longview, TX), anticipates a slight softening in domestic sales. New products will be introduced throughout 2008, rounding out a family of products which were introduced in 2007. The biggest challenge, says Stark, is to improve control over lead times. He says, “Shorter lead times are an issue. We need to tie in the gas companies’ forecasts with our inventory.”
Jim Estes, vice president, Cryogenic Industries Service Corp. (Imperial, PA), says that the introduction of a new state-of-the-art product that will more efficiently track and monitor pump performance and maintenance costs in the 2nd Quarter will help to offset a potential leveling of sales on the industrial gas side of his business. A newly reorganized sales department will deliver the message that the company is a “Johnny-on-the-Spot company.”
Jimmy Wu, marketing director, Revco Industries (Santa Fe Springs, CA), anticipates sales will remain level for most of the year. To complement the late-2007 introduction of a more colorful, tailored-fit line of clothing, the company will introduce a line of women’s clothing during the 1st Quarter. He notes, “We will work more closely with key distributors to provide more value as we add product that will more effectively target younger welders.”
Energy-related applications and a broader use of industrial gases will stimulate a sales growth of middle single digits for Sam Thomas, chairman and CEO, Chart Industries (Garfield Heights, OH). The 4th Quarter 2007 introduction of microbulk delivery products and new applications for laser cutting will also support growth. To enhance its ability to bring new products to market, the company will add project engineering and manufacturing personnel. Thomas says, “Working closely with distributors to understand their business, helping them to be more profitable and to better serve their customers, is our best approach to growth.”
Tom Burns, president and CEO, Jackson Safety (Fenton, MO), expects his sales to the gas distribution marketplace to increase by mid-single digits, driven by a combination of new product development and organic growth. An expanded welding helmet assortment and accessory items, entering a mid-range price point in the nitrogen arena introduced during the 4th Quarter of 2007 will help to drive sales. The company plans to introduce additional products during the 2nd Quarter as it “fills in the gaps” within competitive categories of product.
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Carter Waters, executive vice president, Bessey Tools North America (Cambridge, ON, Canada), expects sales to be up by 5% in the welding supply channel, driven by Bessey’s new product introductions and general account development. The company will introduce additional sliding arm clamps during the second half of 2008. Waters adds, “Our greatest challenge is to keep our product line at the forefront of the distribution channel. We must communicate how our products save the welder time and money. Communicating which clamp to use where is a challenge.”
Martin Quinn, executive vice president, Thermadyne (St. Louis, MO), cites a still-buoyant economy as a precursor to a 5% growth in sales. A new product line-up includes the 1st Quarter introduction of a line of medical plasma cutters and a line of state-of-the-art synergic pulse machines. A new Thermal Dynamics brand will include an automated plasma and welding line supported by an expanded, dedicated sales department. Quinn says, “Our branding strategy is illustrated by the introduction of products at price points currently unavailable.”
Spencer Haywood, director, FSH Welding (Lachine, QC, Canada), believes that his sales growth could be 5-10% or as much as 20%, depending on how quickly he can take product to market. He says, “We are instituting a private branding program, to come online during the 1st Quarter, helping distributors to differentiate themselves from their competitors.” A new salesperson may be added to help support this program during the 2nd Quarter.
A new product line will help to drive a sales increase of 6%, says Mike Skop, president, Peter Skop Industries (Norcross, GA). He also notes, “Our willingness and ability to provide JIT inventory will enable distributors in 2008 to service potential customers with an immediate need and will drive further growth.
The continual introduction of new products will drive a sales growth of 6-1/2% - 7-1/2%, according to Wade Chase, president, Thermacut (Claremont, NH). The company will introduce new plasma cutting aftermarket products in the 2nd and 3rd Quarters. A 4th Quarter move to a new 30,000 sq. ft. facility will provide for increased warehouse efficiencies and provide more space for sales support.
Dave Sullivan, sales manager/channel manager, 3M Speedglas (St. Paul, MN), says that his division is projecting a growth of 7-8% next year, driven by new product introductions which include the mid-year introduction of a series of helmets. Sullivan says, “We will be focused more on the U.S. market. From a safety perspective, we will continue to see more and more regulations requiring more welders to wear respirators and utilize respiratory systems.”
As more and more independent and smaller distributors provide specialty gases and as his company introduces new products based on improved technology for gas filling and purification, Ric Boyd, president, Cryovation (Fort Myers, FL), expects a 10% growth. New facility improvements and a move of one or both of his facilities are being planned for 2009.
Proactive customer service and the introduction of innovative and easier-to-use new products will drive growth, believes Jeff Palmer, president, Dissolvo (Bowling Green, OH). An aggressive top-down and bottom-up sales approach will generate an 8-12% growth. Palmer says, “Our inside sales personnel will make more outbound calls, supporting and selling the line through our distribution channel.”
An expanded line of nickel alloys and flux cored wires to be introduced during the 1st Quarter will drive a 10-12% increase in sales for Dennis Nelson, president, Midalloy (St. Louis, MO). Nelson explains, “The goal is to help the distributor reduce his customers’ operational costs.”
Frank Salvucci Jr., vice president, Anthony Welded Products (Delano, CA), says, “Our growth rate has always been consistently high, driven by new products.” Anticipating a 20% increase, the company’s research and development efforts are supported by its in-house, 5,000 sq. ft. testing lab. A new 20,000 sq. ft. addition completed during the 4th Quarter 2007 will support planned growth.
Fred Zeyfang, vice president of product and business development, Caplugs (Buffalo, NY), cannot remember a year in which sales softened during the last decade and he sees no reason to believe 2008 will deviate from his company’s established track record. He says, “We should see growth of 20-25% driven by innovation in types of thread protection and use-evident products.” An expanding product development department will introduce new products quarterly.
“The 2008 introduction of a water jet cutting product will support a potential 20-25% growth in sales,” says Victor Palzes, vice president of sales and marketing, Genstar Technologies (Chino, CA). Other new product related to pipeline equipment and the health care sector will be introduced throughout the year. Palzes says, “An enhanced rewards program will incorporate master distributor programs and rebate programs as well as, to a limited degree, access to specific product groups. Our focus is on rewarding our partners. If we partner with good distributors, we need fewer of them.”
Increased Efficiencies Point to Increased Profits
Each item on Western International Gas & Cylinders’ (Bellville, TX) to-do list points the company in a direction of increased efficiencies. Dan Hord III, president and CEO, expects sales to be up as a result of a more efficient expansion into new markets. The company’s construction plans call for the 2nd Quarter building of a new 80,000 sq. ft. plant in Berwick, Pennsylvania, which will encompass acetylene, bulk propane and cylinder testing, as well as a regional distribution center and a 100,000 sq, ft. expansion of the company’s headquarters location, providing additional warehouse, manufacturing and office space. Hord says, “To expand efficiencies, we will utilize more automation and reduce exposure miles in our transportation fleet, delivering more per delivery.”
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David Frea, president, Infonetics (Grove City, OH), says that sales will be up, fueled by his company’s mobile computing product. Frea adds, “There is a rapid increase in the number of mobile computers located on delivery trucks.” The next generation of the company’s Red Hat Enterprise Linux server will be introduced to support a standard feature Redundant Array of Independent Drives (RAID) during the 1st Quarter.
Like others aiming to increase efficiencies, Frederick Luening, president, Bohler Thyssen Welding USA (Stafford, TX), will expand the utilization of bar-coding within his warehouse. To support a modest 5% growth in sales, engineering staff will join more distributors on sales calls and discuss end-user needs well in advance of when their need becomes critical. He adds, “We will be proactively working with those distribution partners who share our cooperative spirit, building on that spirit and driving it forward.”
“The increased acceptance of the latest TIMS for Windows product will support growth of 5-7%,” says David Schaer, director of product management and marketing, Computers Unlimited (Billings, MT). New software introductions will include a credit and collections module designed to better manage past-due accounts, and Mobile Connect, which will provide a real-time connection between service personnel and the distributor’s main TIMS system, allowing for real-time dispatching and pricing in the field, both to be introduced during the 1st Quarter. The TIMS product will be released for Windows 2008 and SQL Server 2008 in the 3rd Quarter. Schaer says, “To keep the distributor front and center and to identify problems which require solutions, we will increase our on-site visits by 50%.”
Jim Broughton, president, DataWeld (Bossier City, LA), also expects sales to be up around 5%, driven by the mid-year introduction of products that will rely on handheld technology for increased automation, providing synchronization with the distributor’s server from the field. Broughton says, “Our job is to help distributors to grow as they add more locations and process more invoices while not adding more people to do it.”
Patrick Dougal, vice president of sales and marketing, H&M Pipe Beveling Machine Company (Tulsa, OK), is investing in capital equipment in order to increase production capabilities. Forecasting a modest growth of 5-10%, he says, “The shortage of petroleum and its pricing is creating an increase in drilling activity. The energy sector will remain viable for at least the next 5-10 years.”
To create better efficiencies, Ned Pontious, president, NorLab, div. of Norco (Boise, ID), is investing in new gas sampling and analysis equipment. Forecasting a growth of 10%, a new 50,000 sq. ft. facility will be completed by mid-year. A renewed emphasis on customer service will accelerate responsiveness to distributor calls. New training tools to better anticipate customer needs will be key to company success in 2008.
Gary Shaffran, senior vice president, Syntax.net (Richmond Hill, ON, Canada), expects a growth of 15-20%. A 1st Quarter release of software architected for the welding and medical gas distributor will provide for greater efficiency and new business processing capabilities. Shaffran is in the midst of a ramp-up period and will be adding consulting, programming and sales positions.
James Glessner, CEO, Trackabout (Moon Township, PA), says that pent-up demand will drive a 100% increase in sales. He explains, “We will introduce a combined solution for cylinder management incorporating rental and enterprise software during the 1st Quarter. Mainstream users will come on board after seeing results enjoyed by early adapters.” Glessner points to a constant stream of new products which will include the 1st Quarter introduction of products targeting medical equipment.
Business 101…
Brad Krewson, president, Superior Pneumatic (Westlake, OH), expects sales to be level to slightly down. He says, “It’s so hard to predict. Our customers have been up and down.” While Krewson would be more than satisfied if sales would remain at current levels, he points to a new trend of aging receivables as more customers take 60-90 days to pay invoices.
Gary Watson, president, Watson Coatings (St. Louis, MO), also expects 2008 sales to equal 2007’s. He says, “Our focus is to maintain our inventory and continue running.” Always looking for product improvements, Watson’s team continually seeks out water-based products which dry faster.
Andrew Abrams, CEO, Smart-Hose Technologies (Philadelphia, PA), is counting on his company’s growth to come from offshore activity. To support that global business, he expects to hire three to four factory and six salespeople. He says, “The U.S., with B-level safety standards, is the slowest to adapt to new technology. Globally, most countries with C-level safety standards are moving toward A-level safety standards. The U.S., exceeding the world’s standards for more than 30-years, is remaining in place while the rest of the world catches up and even surpasses us.”
Also looking to the global marketplace for growth, Vic Pratt, vice president of marketing, Weldship Corporation (Bethlehem, PA), will focus most on managing the costs of raw materials. He says, “We have to stay on top of the marketplace. There are a limited number of suppliers of the raw materials we need. We have to be in constant communication with all of them “
Dennis Richardson, marketing manager, Thermco Instrument Corporation (La Porte, IN), expects a flat year domestically. The company will focus on shortening its delivery cycle from eight to four weeks. Richardson says, “Our job is to take care of all of our customers. We don’t play favorites.”
Jim Arnott, president, Ameritanx (Greenfield, OH), expects 2007 to be level. “We will preach customer service and look for inventory. Our number one challenge, of course, is to find the used cylinder inventory.”
An additional salesperson responsible for sales in Texas, southern Louisiana, Arkansas and Oklahoma will help maintain 2007 numbers for Tommy Copeland, president, Mailam USA (Dallas,TX), says, “We will continue to do what we have always done: We will emphasize customer contact and concentrate on providing better service.”
Dino D’Onofrio, vice president sales and marketing, Generant Company (Butler, NJ), expects gas industry revenue to remain level. An expanded engineering staff will provide more technical support to sales personnel. D’Onofrio sees potential growth in the medical fields.
Pointing to new plant installations, new satellite stores and a growing number of pump repairs, Mike Veite, vice president, Veite Cryogenic Equipment and Service (North Ridgeville, OH), is expecting growth of 5-15%. He says, “I see more need for automated systems which will help the distributor to capture additional business. The laser industry continues to be strong.”
Believing the market will remain strong at least through the 1st Quarter, Rusty Franklin, vice president of sales and marketing, Sellstrom Manufacturing Company (Palatine, IL), expects sales to increase by 5%. New products introduced in the 4th Quarter 2007 include a more affordable auto-darkening filter and a new welding ultra-lightweight helmet. Franklin predicts, “During the next five years, the supplier/distributor relationship will grow stronger as the marketplace demands a greater use of technology. A cooperative spirit is required to introduce state-of-the-art products at affordable costs. In order to succeed, we must get out of the transaction-only mindset. The distributor must balance the need to reduce costs of the product sold with the need to meet his customers’ needs, as those needs change.”
Lance Looper, national account manager, Gas Equipment Co., Inc. (Houston, TX), expects another year of 5-6% growth, driven by the industrial, medical and cryogenic sides of the business. Looper believes that customers will be more price-focused in 2008. He says, “We’re going to go back to blanket orders. If we can get blanket orders from a customer during a slow period, it’s better for us to justify that price break to the customer.” A recently hired inside salesperson supported by the 1st Quarter hire of a new outside salesperson will increase the attention paid to distributors. The company hopes to offer an online purchasing system in 1st Quarter.
Rex Larkin, vice president of sales and marketing, Reelcraft Industries (Columbia City, IN), is expecting double-digit growth. The company will continue its efforts to co-brand product with distributors while communicating the importance of brand in the marketplace. Larkin says, “There are a lot of pressures coming from offshore. We need to see beyond the nuts and bolts of products and note product availability and product quality as we emphasize the design of specialty products that are specific to customers’ needs.”
Forecasting is pocket-sensitive for Don Mottinger, president, Superior Products (Cleveland, OH). Gas management products and medical company customers will come on strong for at least the first half of the year. He says, “While we anticipate a 10% growth in sales, there is a need to react more quickly as people start to carry less inventory. The volatility of metals makes it more critical that we react quickly in order to price correctly and manage inventory smarter. Inventory management is more a matter of counting dollars than counting parts.”
Jason Franklin, vice president and general manager, Hy-Mark Cylinders (Hampton, VA), expects new shipping-related programs to contribute to a 10-13% growth in sales. Franklin says, “We will sell the customer what he actually needs and bundle different sized cylinders together to offer a reduced package rate.” The company is also modifying its Cylinder Exchange Program in order to swap out various sized cylinders. During the 1st Quarter, Hy-Mark will introduce a ten-ounce bottle utilized for EPA protocol gases in environmental testing and a one-pound CO2 bottle. Plans also call for the building of a 3,000-ton press and the 1st Quarter groundbreaking for a 9,000 sq. ft. addition, enabling the company to manufacture 150-265 cu. ft. tanks by mid-year.
Alan Egami, president, Kobelco Welding of America (Stafford, TX), expects a growth of 10-15%. The company will continue to improve on existing products. Egami says, “Our policy is based on QTQ, which means quality product, technical support, and quick delivery. We will place more emphasis on shorter delivery cycles in the face of previous shortages of product.”
A new program to install tanks and provide the piping work needed by distributors and majors will help to drive a 15% growth in sales for Erie Technologies/Gallatin Tank Works (Ottawa Lake, MI). Mark Bauman, president, says, “We may add a crane building for tank business during the 4th Quarter.”
A need for standard lower volume nitrogen generators will drive a growth of 15-20%, says Sam Piazza, president, Universal Industrial Gases (Easton, PA). The company will introduce a new line of standard nitrogen generators and a cryogenic generator with a capacity of 20,000 st. cubic ft. per hour to 100,000 st. cubic ft. per hour.
New regulations governing valve guarding and valve protection will push sales upward by 15-20%, says Philip Moroco II, president, American Cap Co. (Wheatland, PA). An aggressive growth strategy dictates that Moroco remains focused on his objectives. His challenge is to focus on his core competencies and to get to know his customers better. Moroco explains, “We need to provide better tools for them to understand our capabilities and how we can help them.”
Diane Knudtson, owner, B & D Marking Soapstone and Washers (Cheshire, OR) expects her sales to increase by 20%, largely driven by her Web site. The company will do more direct mail and promotion to support its sales efforts.
“The importing of cylinders from India which are then painted and rehabbed in the U.S. will support a projected growth in sales of 25-30%,” says Steve Prefontaine, vice president, Skaff Cryogenics (Brentwood, NH). During the 1st Quarter, the company will break ground on a new 15,000 sq. ft. building for the rehab of cryogenic trailers and carbon dioxide cylinders. A late 2007 purchase of an additional 15 acres of land adjacent to the company facilities will be used for tank storage. Prefontaine says, “We can’t talk enough about customer service and the importance of being able to adapt to constant change.”
Insurance Premiums Soften as Insurers Provide More Products
Bill McCloy, managing director, Americana Program Underwriters (Charlotte, NC), expects 2008 sales to be even with 2007 numbers. The company is exploring additional property enhancements and additional coverage limits for supplementary coverages, to be introduced during the 1st Quarter. McCloy says, “The biggest challenge we face in the future are the issues created by the carriers who have jumped in and out of this industry. They don’t really understand the industry. We have to be consistent and we have to make sure that we have a long-term product for distributors. The best product isn’t always the lowest-priced product.”
Softened premium dollars are well-deserved, says Kenneth Tidwell, senior vice president, WDPG Insurance/The Horton Group (Nashville, TN). Still, Tidwell will support additional growth with the introduction of a new health insurance product and the 1st Quarter hiring of two additional underwriters. He says, “The key to growth is to focus on the next generation of GAWDA executives and to offer them a more complete array of products and services.”
In the face of rate softening, Paul Andrews, president, Amtech Insurance Brokers (Latham, NY), is expecting growth of 5%. He says, “An aggressive new business plan will be executed with the help of a more recently hired additional salesperson.” Part of the company’s overall growth will be the result of targeting specific, underserved classes of business.
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The writing of more policies will support revenue growth of 50%, believes Mari Vega, president, Paladin Brokerage Solutions (Phoenix, AZ). While premium dollars will remain low, the company is increasing its marketing and will add two or three associates/brokers accompanied by required support staff. Vega says, “My personality dictates that we charge out of the gate. As a wholesaler, we do whatever it takes to provide the distributor with whatever he or she needs.”
Looking ahead at 2008, all suppliers are capitalizing on the positive strengths of the past few years. Heightened profitability had left our industry in good stead as it moves forward investing in offshore growth, in increased efficiencies, in more travel time to meet face-to-face with their distributor partners and in product development. Suppliers are undertaking facility improvements and will continue to invest in capital equipment and the training of qualified personnel to carry their companies forward. The companies interviewed remain upbeat when addressing potential challenges and, more important, to overcoming potential challenges in order to continue their battle for increased market share.
Welding & Gases Today • Winter 2008 • Volume 7, No. 1 • Entire contents are Copyright © Data Key Communications, Inc. • All rights reserved. • Nothing may be reproduced in whole or part without written permission of the publisher.
Buzzwords For 2008: Increased Efficiencies And Communication 
