Playing It Safe

I was born and raised in the Midwest. It wasn’t until I moved to the Philadelphia region five years ago that I heard the phrase, “Back in the Day.” It referred not as much to a specific year as it did to a certain lifestyle and traditions, which “around these parts” (Midwest expression) means an Italian neighborhood in South Philly.

In the GAWDA neighborhood, you often hear people talk about “Back when I was on the Board,” or “We tried that and it did not work,” or more often than not, “That is how it has always been done.” Sixty-two years is plenty of time to build strong traditions and expectations of how the association should operate.

There are some things that should never be changed because they are the heart and soul of the organization and represent the reason that people are members. Within GAWDA, the culture of family and friends has been the foundation upon which its core values and traditions have been built. Many current distributor members can recall coming to meetings with Mom and Dad when they were children. Now they are bringing their own children to the meetings. Supplier members may have moved to different companies within the industry, but staffing a booth at the SMC and Annual Convention has been a constant during their careers. Friendships and family are easily intertwined with business and form the basis for many long-term partnerships within GAWDA. That should never be changed.

Numerous changes have occurred within the gases and welding industry since its beginnings after World War II. Technology and new business practices have driven many of those changes. Changes also have occurred within the member companies as Grandpa retired, Dad took over, and now the current generation is stepping into the reins. Each generation of new supplier and distributor leadership has implemented new ideas to incorporate the changes that have occurred in the industry and the economy.

GAWDA is no different. The environment in which it operates, association practices and members’ needs have changed dramatically during the past 63 years. Those changes have accelerated in the past ten years as the industry has experienced major consolidation and the association has seen the number of its member companies shrink by more than half.

Association’s Boards of Directors are notoriously conservative in their governance. There is a strong sense of duty to preserve the organization’s reserves, strengthen current finances, respect history and keep a very diverse group of members satisfied. The natural tendency is to “play it safe.”

At this time, GAWDA is still financially sound. Our reserves represent more than one year’s operating expenses. For the past two years, we have achieved a profit. Dues revenue has remained stable even in light of acquisitions and decreasing membership. However, industry forecasts point to a further shrinking of membership which will ultimately result in a steady reduction in dues and meeting revenues. Therefore, GAWDA needs to closely examine its existing programs to determine what is of greatest value to the membership. Numerous changes are on the horizon. We will either be forced by a lack of financial resources to make unsatisfactory changes, or we will be proactive and come out the other side a more effective and efficient association.

The Executive Committee recently created an Audit Task Force. The purpose of this Task Force is to thoroughly evaluate four critical issues and develop recommendations for the Board of Directors. Those issues are:

• Consultant services and contracts
• Dues structure
• Budgetary process
• Management contract.

The Audit Committee will be working on proposals to address these issues during the next six months. During the Opening General Session of the Annual Convention in the Bahamas, President Gary Stoneback and the Audit Committee will present their findings during a special “State of the Association” address.

Changes in the economy, in the industry, and in each of our businesses mean that GAWDA can no longer afford to play it safe and do things the way they were done back in the day.