When The Going Gets Tough, The Tough Get Going

Suppliers are ready for what lies ahead.

At press time, the stock market was hitting all-time lows, only to slowly inch up in gains, to hit new lows a few days later. The bailout had not created any measurable positive impact on the U.S. economic climate. The global economy was not in much better shape. Those interviewed were, to a person, cautious in making 2009 projections.

It's important to note that against the backdrop of challenging times, great companies have taken root and generated great ideas and technologies that were cutting edge. Time and time again, the entrepreneurial spirit has risen to find better ways to serve customers and, in the process, grow to become blue ribbon success stories. Do the names ExxonMobil, General Electric, AT&T, Hewlett Packard, IBM, Proctor & Gamble, Microsoft, UPS and Sysco mean anything to you? They are just some of the companies that were established and cut their teeth during challenging economic climates.

The executives interviewed on the following pages will innovate with new products and new solutions to meet their customers' needs. They will become leaner and meaner as they develop new efficiencies, and they will spend more time with the distributor channel as they listen and support the channel's needs. And most important, they and their distributors will reap the rewards of the future, as we enter the next cycle.

Protecting Our Interests
GAWDA distributor members stand to benefit as premium dollars remain soft, and insurance providers continue to add several new product offerings.

Paul Andrews, president, Amtech Insurance Brokers (Latham, NY), expects to maintain the numbers his company enjoyed in 2008 by aggressively prospecting. He says, “Premium dollars will fall a little and new business will support our ability to maintain 2008 revenue numbers. We have to be alert to new needs in the marketplace.”

Ken Tidwell, senior vice president and practice leader, WDPG Insurance/The Horton Group (Orland Park, IL), sees insurance premiums remaining soft and new business resulting from the 1^st Quarter introduction of a new welding fumes defense coverage product. Tidwell says, “Once a state provides approvals, which we expect them to do, we will add this coverage to existing policies.” Tidwell is also exploring Workers' Compensation coverage in all states except New Jersey and a “green endorsement product” which, in the case of an unfortunate incident, would allow the distributor to rebuild, incorporating green enhancements to his facility.

“The turmoil within the financial sector will result in fewer competitors by year's end,” says Bill McCloy, managing director, AmWINS Program Underwriters (Charlotte, NC). Expecting growth of 5%, McCloy says, “Our property insurance product will be enhanced, and we will in the 2nd Quarter move to a new package rating system.”

Shawn Buehnerkemper, vice president, Gregory & Appel Insurance (Indianapolis, IN), expects a 15-20% growth in the number of insureds covered by NationWeld, as premiums remain flat. Underscoring the importance of fumes coverage, Buehnerkemper says, “While the number of total fumes litigation suits have decreased, the potential threat of the smaller number of suits is greater in terms of dollars at risk.” Buehnerkemper indicates that NationWeld is seeking a more established insurance company partner. He adds, “It is also to the GAWDA member's advantage if we are no longer an add-on product.”

New Product Innovations Support Growth
While many companies introduced new product offerings during the 4^th Quarter of 2008, many have new product offerings to announce for the 1^st Quarter of 2009 and beyond. As competitive as 2009 may be, the hunt for new solutions continues.

Jack Walters, president, American Torch Tip Company (Bradenton, FL), says that he is doing all that he can to assure his company of a growth in sales. “What's driven our growth in the past and will drive it in the future are new technologies and established relationships.” Enhancements to the company's line of torches and regulators will be introduced during the 1st Quarter, as well as new products in the plasma and MIG arenas. The company is also looking at the possibility of an additional 5,000-10,000 sq. ft. building. Walters adds, “The world is a big place, and there are still lots of opportunities for growth. We need to have the vision which will support our customers' need for better, more cost-efficient improvements.”

Mike Hopsicker, president and CEO, Ray Murray (Lee, MA), believes that with the continual introduction of new products throughout the year, his company can become a more important vendor to his customers and, in turn, maintain 2008 sales numbers. Hopsicker says, “As more companies try to capture larger pieces of a smaller pie, competition will increase. We must all remain focused on the customer, focused on what is important.” Job one for Hopsicker is to recruit and train employees to continually satisfy the company's needs.

After record sales increases in 2008, Doug Kapsa, vice president/general manager, FasTest (Roseville, MN), expects still more growth in 2009. New products to be introduced in the 1st and 3rd Quarters are designed to increase his customers' productivity and profitability. Additional square footage acquired during the 4th Quarter 2008 will allow for increased production capacity and the ability to provide customers with refurbishment and maintenance services. Kapsa says, “We will expand our market opportunities in the compressed gas side, but we still have the complete propane side of the business to develop next year.”

A combination of new product introductions and an increased marketing effort in support of the distribution channel will drive a sales growth of 20%, according to Glenn Haun, vice president and general manager, Advanced Specialty Gas Equipment (Middlesex, NJ). New equipment to support high-purity gases will be launched during the 1st Quarter. Three new safety-related products will be introduced during the first half of the year. The company will also increase its Web development efforts and make better use of Internet-based technology.

Booked three to five months in advance, Rodney Ballard, president, Allcryo/Industrial Gas (Willis, TX), says that his company's track record is supporting growth of 10-15% over 2008 numbers. Ballard also expects a new line of Taylor-Wharton tanks to further support sales growth.

A backlog will keep FIBA Technologies (Millbury, MA) at capacity until September 2009, and Joe Sandello, executive vice president, fully expects a 10% growth in sales. Sandello points to the oil industry, the electronics market and a push for alternative fuels as the drivers of his growth. The company will introduce an ultrasonic examination system of cylinders, including a portable table-top model to test small medical cylinders and a new immersion system for standard industrial cylinders in the 1st Quarter. New hires for 2009 include planning, procurement, manufacturing and engineering personnel.

Pointing to what he refers to as the graying of America, Jim Herring, vice president, SafTCart (Clarksdale, MS), believes the needs for medical gases will continue to have a positive impact on his company's sales. He expects sales to increase by at least 5-8%. On tap for the 1st Quarter is the launch of a new line of econo-carts. The company will explore the addition of a line of trailers to support its agricultural product line. Herring will look to expand his team of welding and manufacturing employees by more than 15% and will look to add another 15,000-20,000 sq. ft. of manufacturing space either by re-opening an older facility or by building an addition to existing space. “The key,” says Herring, “is to stay the course, say what we do, and do what we say, not deviating from the promises that we make to our customers.”

David Ellis, vice president of sales and marketing, Cavagna North America (Somerset, NJ), says that new product introductions will help to capture both new sales and market share, resulting in a 5-6% growth in sales. A line of brass and stainless steel specialty gas and compressed gas valves to be introduced during the 1st Quarter and a new regulator line for propane to be introduced during the 2nd Quarter will help to support new sales. Ellis points to continual increased transportation costs as a challenge. He says, “We must be in constant communication with our customers to make sure that they have the right information and the right products when they need them.”

Expecting sales to remain level or to increase by 5%, Mark Bauman, president, Erie Technologies (Ottawa Lake, MI), says that both new tank sales and the rehab of used tanks will be up in 2009. Two new products supporting the cryogenic side of his business will be introduced during the 2nd Quarter. Bauman says, “We will focus more on the service side of our business, building three large high-pressure fill plants in 2009. We will also do more audits and provide more preventative maintenance programs for fill plants.”

Three new technologies will support a sales growth of 4-5% in 2009, believes Jim Lisiecki, distributor program manager for Linde (Murray Hill, NJ). While 2-3% of that growth will be organic, process improvements will drive an additional growth of 2%. Linde has leveraged its North American resources, while tapping into global partnerships to solidify a full service offering to meet bulk and package gas requirements. Three new technologies will be launched: 30 shielding gases will be sorted into a Base and Premier line, new Laserline and Lasermix products will include high-purity resonator gases, process gases for cutting and welding, supply equipment and technical support, and the CryoClean Snow for cleaning and pre-treating surfaces with CO2 and compressed air. Lisiecki's challenge is implementing these technologies in an environment of curtailed spending. He says, “We will identify those pockets of spending and aggressively pursue them through, at times, select distribution.”

Michael Tarala, sales and marketing manager, RegO Cryo-Flow Products (Burlington, NC), expects domestic sales to be up by 3-5%. To be better able to compete in a global environment, the company will introduce new stainless steel valves during the 1st Quarter. Other new products are slated for introduction in the 3rd and 4th Quarters. Tarala says, “My priority is to continue to build a quality product, on time and at a reasonable price, regardless of what is happening in the marketplace.”

David Sullivan, sales and distribution manager for welding, 3M Speedglas (St. Paul, MN), anticipates sales will be equal to or up 3-4% over 2008 sales, driven by new product introductions including a new welding helmet and new powered air respiratory systems during the 1st Quarter. Other products will be introduced during the second half of the year.

Two new helmets and three new safety glasses will be launched in the 1st Quarter, says Mark Johnson, senior vice president of sales, Jackson Safety (Fenton, MO), creating single-digit sales growth in 2009. Johnson says, “The greatest challenge is the perception customers may have of a challenging economy. We are refusing to participate in this kind of thinking. We have lots of room to grow and take share from those companies that are not as prepared for marketplace changes.”

Also planning to introduce new helmets, auto-darkening filters and newly approved respiratory protection products, Ed Martin, president, ArcOne (Taunton, MA), expects domestic sales to decrease. Martin says, “Like all companies in this environment, we need to remain focused. We will implement our game plan and evolve. Our goal for 2008 is to remain focused on sales.”

Victor Palzes, vice president of sales and marketing, Genstar Technologies Company (Chino, CA), anticipates sales that could be level or may even increase by single digits. Palzes says, “Product innovations will continue to flow forth on a regular basis.” The real challenge in '09 for Palzes will be communicating value to the market. Palzes will focus his efforts on training both distributors and representatives to better support new products and to better understand Genstar's product offering.

Tom Carey, president, Chart Distribution and Storage Group, Chart Industries (Cleveland, OH), expects domestic sales to remain level, supported in part by increased activity in the service and repair areas. Carey explains, “Customers are more diligent in managing their existing inventory of assets and are spending time either repairing idle assets or outsourcing their repair and service work.” Plans call for an increased focus on new fill plant efficiency products which reduce the losses associated with cryogenic distribution and on products related to remote monitoring. During the 1st Quarter, the company plans to introduce a new medical microbulk product that provides high flow rates while reducing fill losses.

Expecting a level year, Tommy Copeland, president, Mailam USA (Dallas, TX), will be opening a new 6,000 sq. ft. warehouse in California during the 1st Quarter. The company is considering the addition of an expanded product line incorporating additional electrode and wire products as well as hardgoods. At least two new sales and marketing people will join the company during the year. Copeland says, “My job is to know where we should be emphasizing our products and services in order to best support growth.”

Expecting to maintain 2008 numbers, Frank Salvucci Jr., CEO, Anthony Welded Products (Delano, CA), is focusing on new product development. “It is time to rejuvenate the industry with new, groundbreaking methods of cylinder handling.” Three families of products, to be introduced during the 2^nd Quarter, will either address innovations in cylinder handling or cylinder storage for the industrial and medical applications. Additional products will be introduced during the balance of the year. The company will invest in new fabrication technologies to maximize efficiency and minimize costs.

“A new product that will enable the customer to maintain and track operating assets while monitoring operational costs associated with those assets will be introduced during the 1^st Quarter,” declares Jim Estes, general manager, Cryogenic Worldwide Service Companies (Santa Ana, CA). Other new products will be introduced throughout the year. While anticipating a level year, Estes also says that his company is preparing for a slowdown. “We want to operate as efficiently as possible. Instead of operating as individual entities, we will be utilizing all of the resources within the three operating companies.”

Expecting sales to remain flat, Tim Miller, vice president of sales and marketing, Cryogenic Vessel Alternatives (Mont Belvieu, TX), is also looking forward to additional sales resulting from the newly launched cryogenic trailers for carbon dioxide. During 2009, Miller will place more emphasis on growing sales offshore.

Pointing to a strong trend line in 2008 and current market conditions, Dick Couch, president, Hypertherm (Hanover, NH), expects his company's sales numbers to equal those experienced in 2008. His team will launch new products in all four quarters beginning with a 1^st Quarter launch of a new handheld plasma cutting machine and new mechanized plasma cutting products. A 156,000 sq. ft. addition for manufacturing is scheduled to break ground in March, with completion in May 2010. When operational, the facility will add 150 new employees to the company's payroll. Perhaps most crucial in 2009 is what Couch refers to as a constancy of purpose. “Staying focused on our objectives and not being distracted by the challenges of 2009 is critical. It's a matter of adhering to our mission, vision and objectives while responding to changes in the financial and competitive environment.”

John Robinson, vice president, sales and marketing, Techalloy Welding Products (Baltimore, MD), is concerned about a potential decline of 5-10%. The 1st Quarter introduction of a metallic wire basket, which is greener than the more common plastic spool for nickel alloys, will support sales activity. Other new initiatives include a mid-year entry into submerged arc flux and welding strip products.

Believing that the first few months of 2009 will be lackluster ones, David Cowart, president, Oxylance Corp. (Birmingham, AL), says sales growth will be slow. Noting that any projection is a wild guess, Cowart says that his company could possibly see a sales decline of as much as 5-10%. He says, “We are focusing on keeping our costs down.” The company is also in the midst of a new product launch, the Kool Shirt, which helps to maintain cooler body temperatures for workers laboring in very heated work environments.

Also offering up a wild guess as a prediction of sales activity for 2009, Waldo Ortega, president, International TechniSystems (Miami, FL), says that his sales could be down by 8-12%, as the U.S. slowdown impacts sales in China and then impacts his Latin American marketplace. To offset these decreases, Ortega plans on expanding his product line. Plans call for new cryogenic tanks and PSA equipment to be added to his product roster during the 1^st Quarter. One additional inside salesperson will likely be added during the first half of 2009. Ortega adds, “As profit margins tighten, it is more vital that we control costs, while remaining focused on providing our customers with the support they need.”

Expecting a decline of 10-20% in domestic sales, Dino D'Onofrio, vice president, Generant Company (Butler, NJ), says, “We have made a number of design enhancements and will offer an expanded product line.” In addition to new product introductions throughout 2009, the company has introduced a dome-loaded version of the GDR that is optimized for the intended usage by industrial and medical gas customers.

It's Back to School Time
Attendance at the Hobart Institute of Welding Technology (Troy, OH) will be up by 10-20%. Andre Odermatt, president, says, “We are visiting the high schools and constantly recruiting.” There is a continual emphasis on learning to weld and an emphasis on learning to program a robot, which requires welding knowledge. Odermatt says, “With the increased knowledge in more theoretical areas, the employer is gaining more productivity, which will be of benefit in the future.”

According to Hector Villarreal, president, Weldcoa (Aurora, IL), the renewable energy market is huge and will contribute to a sales growth of 8-12%. Villarreal says, “I'm firmly committed to one goal and one goal only: to make the independent gas distributor truly independent. My job is to save them money, save them time, and increase safety.” Precision Specialty Gas, a two-year-old division of Weldcoa, recently flew the nest, taking 18,500 sq. ft. of space across the street from its parent company. Villarreal will launch a training school to teach distributors how to fill specialty gas, as well as understand the analytical side of the business.

Ric Boyd, president, CryoVation (Fort Myers, FL), will launch a school program from his Fort Myers location during the 1^st Quarter. Boyd says, “As we grow, the training of not only our own employees, but our customers, becomes more critical.” In an effort to meet more customer needs, the company will launch two new medical and automation products during the 2nd Quarter. The school program, new product introductions and new niche markets will contribute to a sales increase of 5-10%.

Shrinking Delivery Cycles
Operating from a global perspective is imperative as companies look to offset a slower demand for goods in North America. David Nangle, president and CEO, The Harris Products Group (Mason, OH) says, “Our investments in human and manufacturing resources around the globe have positioned our company to weather any potential economic downturn in the U.S.” The company will introduce new products and continue their emphasis on global supply chain improvements, focusing on long-term sustained growth.

New product introductions will assist Joe Thompson, president, Unisource Manufacturing (Portland, OR), when seeking to sell more product to both existing and new customers, creating a sales increase of 11%. The 1st Quarter addition of a new warehouse facility in Houston, Texas, and an additional warehouse in Indianapolis, Indiana, later in the year will make delivery cycles more efficient for the West Coast company.

Maintaining Proper Inventory Levels
Pointing to the strength of the past few years, David Day, CEO, American Standard Manufacturing (Central Bridge, NY), expects a continuation of the same in 2009. He says, “Availability becomes a key factor when the customer is looking for cages. Our ability to deliver within a few days, together with competitive pricing, will support our sales.” Day's focus in 2009 is a simple one: to make it easier for his customers to do business with him. He says, “As a part of our pursuit of lean manufacturing, there is always room for continuous improvement.”

John Postle, president, Postle Industries (Cleveland, OH), will maintain 2008 sales numbers by staying in contact with the end-user of his products. Postle says, “The biggest challenge is to maintain proper inventory levels. We'll put more emphasis on understanding the needs of the end-user to better project their actual usage in the future.”

Monitoring customer activity, Lance Looper, national accounts manager, Gas Equipment Company (Houston, TX), sees continued sales growth. He says, “We are on track to generate the same double digits we enjoyed last year, but I hesitate to project growth of more than 5%.” The main driver for growth is his company's ability to inventory product. “No one is willing to wait for product. If you have it, they will buy it.” The company will make its online purchasing system available by July.

Expecting a general softening, Paul Rensing, president, Weld Plus (Cincinnati, OH), says, “We're still working hard, we've got people in place, and we are training hard. We are fit as a fiddle and ready to provide for our customers' needs.” The company is cautiously pulling in the reins and closely monitoring inventory requirements. “The key,” says Rensing, “is to monitor costs while maintaining readiness in order to meet the customers' expectations.”

Sweet Spots Targeted for Growth
Mike Marshall, vice president of marketing, customer service and training, J. Walter (Windsor, CT), anticipates a sales pickup of 20%, driven by green technologies that will offer safer alternatives to current practices. Marshall says, “Waste is very expensive, and hazardous waste is more expensive than general waste. By focusing on how we can increase productivity and lower total cost, we are able to increase the profitability and increase performance on the shop floor.” The company will introduce Air-Force in the 2^nd Quarter, providing an alternative to aerosol cans or propellants. Additional new products include a mid-range grinding wheel to be introduced in the 1st Quarter and a chemical cleaning product later in the year. The company will add 15-20 employees who will focus on sales support for its new product initiatives. A completely upgraded computer system will provide a distribution management system and warehouse management system, utilizing RFID technology.

One obvious bright spot on the horizon, according to Don Lockhart, president, Mathey Dearman (Tulsa, OK), is the pipeline business, which will contribute to a 15-20% growth in sales. To better serve that market, the company will introduce new products during the 1^st Quarter. Like others, Lockhart points to uncertainty in the marketplace as the biggest challenge for his company. “It is difficult to gauge customer needs six months in advance in order to maintain adequate inventories. Our risk is that we will overbuy.”

With a history of annual double-digit growth since starting his company, Dale Stager, president, Select-Arc (Fort Loramie, OH), expects a sales growth of 5% to be supported by increased attention to the energy sector. Two new self-shielded products to be launched in the 2^nd Quarter will boost sales and further support the need for a possible facility expansion of 30,000 sq. ft. in the 3^rd Quarter. Stager says, “Today it is a given that our product must be a quality one. We must also be competitive in our pricing, and being competitive in pricing is becoming tougher and tougher. We are continually looking for ways to improve operational efficiencies.”

Mike Skop, president, Peter Skop Industries (Norcross, GA), is expecting sales to fall within the range of level to an increase of 3%. He says, “We're focusing our efforts on more customer service and more calls on customers. We will focus more on our propane product, which is growing in importance within compressed gas distributors' businesses.” The company will cross-train its seven full-time outside propane salespeople, enabling them to service more compressed gas distributor customers.

An increased focus on the photovoltaic industry and a 2^nd Quarter new product introduction will help Pavel Perlov, global director of business development, Electronic Fluorocarbons (Hopkinton, MA), maintain sales numbers. New operations personnel will be brought on throughout the year. Perlov says, “To sustain growth, we must continually look for new niche opportunities. Everything that we do and that our customers do is driven by new technology.”

Following a very good 2008, Frederick Luening, president, Bohler Welding Group (Stafford, TX), will focus on energy-related work in order to drive sales in 2009. Luening says, “We will also add sales personnel in order to drive growth.” Luening plans to introduce a new flux-cored product.

Technology Advances Create Benefits
With an emphasis on improved product offerings, Jim Broughton, president, DataWeld (Bossier City, LA), expects sales to remain level. He says, “We will introduce new enhancements to existing products, and we will continue to look for new applications for our products.”

Expecting domestic sales to be flat, Rob Barnacle, president, DataOnline (Berkeley Heights, NJ), says, “We are working more closely with more distributors. As they look to be more self-sufficient and manage supply themselves, they are more likely to utilize our technology.” The use of new technology will continue to drive advancements that distributors need. Barnacle adds, “As cell phone technology, communications and the Internet move forward, our products move along with them.” Depending on market conditions, the company anticipates moving into new facilities of 15,000-20,000 sq. ft. in either 2009 or 2010.

Previously scheduled and approved projects that were delayed in 2008 will drive a sales increase in 2009, says Jim Glessner, CEO, TrackAbout (Moon Township, PA). Glessner adds, “More of our customers will utilize mobile technology for real-time data collection, which will stimulate new projects. A convergence of technology will come together and create cost savings for customers in both the packaged gas and bulk delivery side of the business.”

Operating Lean and Mean
Expecting a sales increase of 5-10%, Jeff Cunningham, vice president, Catalina Cylinders (Hampton, VA), remains upbeat. He says, “Increased freight and materials costs will continue to be a problem. Having a location on both coasts is an advantage to our customers. Our goal is to employ as many lean manufacturing techniques as we can, to improve throughput while reducing our overall costs.”

Mike Veite, vice president, Veite Cryogenic Equipment and Service (North Ridgeville, OH), expects growth of 3-5% due to an increased number of new pump installations and an increased number of distributor satellite stores. This demand is creating a need for several new service techs by mid-year. Veite says, “We are quoting jobs 60-90 days out and I'd like to be able to reduce that quote time to 2-4 weeks.”

A continual emphasis on increasing production capabilities while removing costs from the manufacturing process is H&M Pipe Beveling Machine Company's (Tulsa, OK) ticket to increased profitability. Patrick Dougal, vice president of sales and marketing, indicates that his company's sales for 2009 will remain level as long as oil stays above $50 a barrel. He says, “At $30 a barrel, lots of projects scheduled for 2009 will not be viable, which could result in a double-digit decrease in sales.” On the other hand, as our country moves more toward alternative sources of power generation, excluding wind and solar, Dougal can see increased demand for his company.

After making substantial infrastructure investments during the past three years, Frank Hartzell, president and CEO, Acme Cryogenics (Allentown, PA), is paying attention to his core business, with plans to maintain 2008 numbers. Hartzell anticipates a stronger push on field service work for cryogenic installations and applications. He adds, “Long-term, we hope to diversify geographically with either a new facility or an acquisition. Our business is driven by relationships with our partners and being in a position to help them to go in the direction they are pursuing. We need to put the right oars in the water, and pull them in the right direction at the right time.”

Bob O'Brien, vice president of sales and marketing, Gas and Air Systems (Hellertown, PA), expects sales to remain level. O'Brien says that a combination of maximized employee contribution and an emphasis on cost control will enhance his bottom line performance. The company will concentrate more on its spare parts and service business in '09. O'Brien says, “There are older machines in the marketplace that may require servicing. We have the service technicians who can support the distributor in that area.”

Customized solutions, most recently a specialized mixer for hydrogen and nitrogen leak detection, will help Dennis Richardson, vice president of sales and marketing, Thermco Instrument Corporation (La Porte, IN), to maintain 2008 numbers.

Expecting domestic sales to soften by 5%, Jerry Leary, president, Koike Aronson Incorporated (Arcade, NY), will continue his company's cost reduction campaign of the past three years. He says, “We have cost reduction goals of 50-70% on two of our key product lines, and we think we can do it.” A new addition to the company's cutting machine line, designed to handle plasma and oxy fuel, will allow the company to be more competitive. Additional new product offerings include a water-cutting table and possibly an entirely new product line. If all goes according to plan, an addition of 30,000 sq. ft., with groundbreaking to take place at the beginning of the 4^th Quarter, will be dedicated to that new line.

While Jimmy Wu, national marketing manager, Revco Industries (Santa Fe Springs, CA), hopes to maintain 2008 numbers, he points to the possibility of a softening of 5-10%. Wu says, “It's just back to the basics. We must service our core distributors.” Managing costs is Wu's number one challenge as the company continually looks at suppliers' costs, rationalizing their products to eliminate slow-moving SKUs and adding new products to meet new market demands.

Start-Up Mode Is Growth Mode
While almost three-year-old Weldcote Metals (Kings Mountain, NC) continues to see an expanded customer base, Bill Roland, president, does acknowledge the fact that some customers are becoming more conservative. Roland says, “Inventory control and constant monitoring of commodity pricing are very important in order to best manage costs.”

While not exactly in start-up mode, Ashley Madray, vice president, Gas Innovations (La Porte, TX), attributes his expected sales growth of high single digits at least in part to his company not yet reaching a mature stage of the business lifecycle. The company will expand its high-pressure specialty gas line during the 1^st Quarter, adding methane, ethane, ethylene, carbon dioxide and hydrogen, and adding a 4.0 grade propylene for the electronics industry during the 2^nd Quarter. According to Madray, “The current economic climate can present both challenges and opportunities.”

Jeff Palmer, president, Dissolvo (Bowling Green, OH), also expects high single-digit growth in 2009. Palmer expects backlogged building projects to continue as scheduled. He says, “We have enough infrastructure to handle our growth for the next two to four years. We will be adding a division manager and a technical salesperson during 2009.”

Anticipating a 10% sales increase, Steve Moerke, vice president, D/F Machine Specialties (North Mankato, MN), says, “Our customers' sales are up.” The company will release a water-cooled, 1200 AMP twin wire barrel during the 1^st Quarter and a tandem wire barrel in the 3^rd Quarter.

Andrea Guevara, vice president, Smart-Hose Technologies (Philadelphia, PA), is in a start-up mode and sees sales realistically increasing by 15-25%. The company, with new management in place, saw its international sales grow and, according to Guevara, it is now time to focus on domestic sales. New hires during the 2^nd Quarter may include production personnel as well as a manager of that department and additional marketing staff. According to Guevara, job one is to grow the company's sales. She says, “As a young company, we must have a marketing campaign and the sales force on the ground to better serve the distributor partner.”

Expecting a 20% growth in sales, Grahame Savage, vice president of marketing and sales, Maxal (Traverse City, MI), says that his start-up company is nimble when accommodating changes in the marketplace. Plans call for the 1^st Quarter introduction of a new packaging concept. The company anticipates hiring 5-8 production workers to keep pace with sales growth. Savage says, “We see competition being more aggressive as everyone fights for a piece of a smaller pie, and we have to be as sharp as the next person.”

Keeping an Eye on Market Share
Ned Pontious, president, NorLab, division of Norco (Boise, ID), is tempering his projection for growth, but still sees a sales increase of 10%. “We are working on process improvements and adding new applications,” says Pontious, “and we are in a position to take market share as we also control costs.” The construction at the end of 2008 of a new fill facility and laboratory will help to better control operational costs.

Todd Facey, vice president of industrial sales, Bosch Power Tools and Accessories (Mount Prospect, IL), says that a more targeted approach to the marketplace will contribute to maintaining 2008 numbers, aligning new product introductions to customer requirements. Facey will focus on market share improvements of 3% in a tightened overall market.

Pointing to energy-related businesses as a source for increased sales activity, Alan Egami, president, Kobelco Welding of America (Stafford, TX), believes that 2009 will be level with 2008. The late 2008 product introductions of two seismic wire products will further support sales in earthquake-prone areas. An additional salesperson to support northeastern customers will join the company during the 1^st Quarter. The company is focusing on building market share for its flux cored wire for carbon steel product, hoping to add 5% in market share to its current 10%.

Also expecting a level year, Joe Mueller, vice president, product line management, Cutting Equipment, Thermadyne Industries (St. Louis, MO), is focused on profitably growing market share by zeroing in on market niches that are less affected by potential downturns. An expanded automated plasma line and synergic MIG welding line will be introduced during the 2^nd Quarter. By understanding the mix of products his customers will need, the company can develop the best cost base to meet the needs of the distributor and end-user customers. According to Mueller, “best” is defined by the speed with which his company can bring product to market. “As we place more emphasis on training and end-user coverage, we can improve the coverage we are providing distributors at the store level.”

“For North America, any potential growth will be the result of increased market share, not market growth,” says Mark Sutton, business manager, Cryostar USA (Santa Fe Springs, CA). With plans to add two or three people in sales and operations, the challenge continues to be the recruitment of qualified personnel in order to grow the company's sales. Sutton says, “We will stay in front of our customers, stay close to them and grow with them.”

Expecting domestic sales to be slightly down to level, Bill Kroll, chairman, CEO and president, Matheson Tri-Gas (Basking Ridge, NJ), is hesitant when forecasting 2009 sales activity. He does indicate that the company will announce at least four retail acquisitions in 2009. He says, “The companies who are not in a good cash situation and are sitting on a lot of inventory run the risk of being shut off by their suppliers. The anxiety in the marketplace will serve to extend the season of heightened merger and acquisition activity. Unfortunately, I'm not sure the multiples are going to be there. Also unfortunate, this is capitalism at its greatest.”

Expanded Distributor Channel Creates Growth
While the sale of new cylinders will remain steady, Jon Griffith, national sales manager, Kaplan Industries (Maple Shade, NJ), sees an exponential increase in repairing and reconditioning used cylinders which will result in a 12-15% increase in overall sales. The company will revamp and expand capacity for its hydrostatic testing facility and hire an additional five or six employees by the start of the 1st Quarter. Griffith says, “Customers are there. It's just a matter of encouraging them to spend the money now, while suppliers are offering them more for fewer dollars. My job is to leave no rock unturned, to keep every customer close. We've always based our growth on our relationships.”

Jonathan Brown, president, US Tank & Cryogenic Equipment (Lewisburg, TN), expects sales to increase by 10-15% as a result of aggressively selling and promoting his company's capabilities and building on their liquid cylinder repair capabilities. Brown will spend his efforts on developing relationships with distributors.

Seeing an uptick in rehab business and continued growth in new tank sales, Steve Prefontaine, vice president, Skaff Cryogenics (Brentwood, NH), expects sales to be up by 10%. The company may look at the construction of a new 20,000 sq. ft. building, beginning construction during the second half of 2009. Prefontaine explains, “As a small family-owned business, we try to do things differently than everyone else. If a distributor wants a quote, our policy is to respond within a half-hour. It's the small things that help us to stay ahead.”

New customer acquisition and an emphasis on creating value for more distributor partners will drive Flopower/Trafimet USA's (Hialeah, FL) 10% sales growth. Leonardo Lanaro, partner, says, “We must be in tune with what the distributor needs. Everything else will follow. Nothing works if we do not provide a service that is either needed or perceived as being needed.”

“An expanded product line and distribution channel will drive a 5% growth in sales,” says Brian DePaul, president, Welding Material Sales (Geneva, IL). DePaul says, “We need to enhance the visibility of the product that we distribute.” With two or three additional inside salespeople, the distributor channel can expect more attention and support as the year progresses. DePaul plans to add a new distribution point either in Las Vegas or Reno, Nevada, during the first half of 2010.

Expecting a sales increase of 3-5%, Rex Larkin, vice president of sales and marketing, Reelcraft (Columbia City, IN), says that the industrial marketplace is still strong, providing there are no liquidity issues. Larkin adds, “There continues to be growth in the welding market for reels as the customer understands the benefits of having them. Our growth in this market has outpaced other areas, and I expect that to continue.” New initiatives will be introduced during the first half of the year, making it even easier for distributors to do business with the company.

Ed Cooper, president, ElCo Enterprises (Jackson, MI), sees 2009 as flat across North America. Cooper says, “We will work harder than ever on domestic sales. We have to have a very close relationship with the distribution channel, providing them with more support and service and networking more frequently with them.” The company recently launched patent-pending wire pilot feed assists and a vertical dereeler. Two additional products will be introduced during the 2^nd Quarter.

Expecting sales to remain positive for the first half of the year, Dennis Nelson, president, Midalloy (Fenton, MO), is expecting sales to remain level overall for the year. He says, “We are keeping our ears to the ground, following projects and looking for niches that are a match for us.” The company's Houston, Texas, facility will either add an additional 10,000 sq. ft. or move during the 1^st Quarter. Nelson says, “We are focusing on expanding our customer base and working more closely with our sales representatives to build new relationships.”

Sam Piazza Sr., president, Universal Industrial Gases (Easton, PA), has not seen backlogged projects impacted by the tightened marketplace and expects 2009 numbers to equal 2008 numbers. Piazza will continue to focus on modularized, easy-to-install, cost-effective, smaller cryogenic, oxygen and nitrogen plants while growing his on-site gas supply business.

With expectations of a 3-4% slowdown, Lee Van Boxtel, general manager, Weldcraft (Appleton, WI), says that his company will aggressively pursue new business. “We will provide more distributors with a one-stop shop, two-tier approach: a value line and a premium line and drive more sales through distribution.” A new product complementing the line and simplifying purging, targeting pipe welders, will be introduced during the 1^st Quarter. Additional products rounding out the product line will be introduced during the 2^nd Quarter. On tap for later in the year is a possible newly expanded R&D lab with 2,500 sq. ft. of additional space.

Dave Eckert, director of sales and marketing, National Standard (Niles, MI), expects his existing customers' sales to be down by 3-4% and says that while his company is preparing for the worst, they will aggressively work to grow sales. Eckert says, “We will grow our sales by expanding our footprint in the distribution channel, to better cover underserved areas.” The company will also focus on cleaner, greener, smarter welds and on new markets for their solid wire and filler metals product.

A new Web site launched at the start of 2009 will help Tom Cregan, president, Evergreen Midwest (Mentor, OH), to maintain 2008 sales numbers or hold them to a decline of 3-5%, as his company supports an expanded geographical region. Cregan's goal for 2009 is to expand market share, selling more product through an expanded distributor channel.

Hitting the Pavement with Distributor Partners
“Together with the distributor, we will focus more on end-users and help them to understand how our product adds value and how it creates more efficiencies, is more productive and reduces overall costs,” says Tom Westerhold, president, ABICOR Binzel (Frederick, MD). Expecting level sales, new products for 2009 include a plasma cutting torch, enhanced air- and water-cooled guns and improved flux cored guns. Westerhold adds, “We are all in business to create efficiencies for the end-user. We can't just do things the way we used to do.”

“When we support our distributor partners and participate in their promotions, we are able to stay in front of the end-user,” says David Barleen, president, Motor Guard Corporation (Manteca, CA). New compressed air filtration products will be introduced during the 2^nd Quarter. Barleen says, “Running a lean and mean operation, we are made in America, serviced in America, warrantied in America. Our emphasis is to keep our products price-competitive.”

Mike Weller, president, Miller Electric Mfg., an ITW Company (Appleton, WI), expects overall activity to be level to slightly above. He says his team will focus on targeting more end-users and providing those end-users with customized solutions, enhancing their ability to be competitive, all while acting as more of a strategic partner with the distribution channel. Weller says, “As we build strategic partnerships that we can continue to build on in the future, we will create more solutions for the end-user. One such key strategic solution is the application of robotics.”

Whether by introducing new products and innovations, controlling costs, maintaining the proper levels of inventory or by working more closely with the distributor channel, suppliers will work harder and smarter to capture increased market share. In an increasingly competitive environment, the distributor and the supplier alike can both end up stronger for having worked more closely for the benefit of the end-user customer. Like the old saying, when the going gets tough, the tough get going. Our industry's suppliers have what it takes to not only survive but thrive.