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Anniversary ScrapbookLearn the keys to longevity in the gases and welding industry.2009 is a banner year in the gases and welding industry. Not only is it GAWDA's 65th Annual Convention, but several GAWDA distributor companies are celebrating milestones of their own. These companies have a long-established relationship with the association and have helped form the foundation of GAWDA's strength. How have they done it? Read on to learn some of the keys to longevity and prosperity in the gases and welding industry. Congratulations to all our milestone distributors! 75 Years: Maintaining Flexibility That culture was put in place by Dave's grandfather, R. Norman Goss, and has continued into its third generation of family ownership. Part of that culture is the drive to provide attentive customer service. “Many years ago at an NWSA convention, a speaker contended that small distributors would always be around to some extent because of their knowledge of local markets and ability to provide personalized service. In our rural market, being small has been an advantage for us and will continue to be so.”
50 Years: Shining in Middle Age
For Fox Welding Supply (Mequon, WI), survival has been driven primarily by a combination of flexibility to new approaches alongside steadfast adherence to certain founding principles. As Vice President Judy Hessler says, “It is critical that we remain nimble, constantly evaluating what works for Fox Welding Supply and its customers. But we also heed the practices of cautious investment and frugality instilled by our founders.” John and Florence Fox opened the business in their garage, using the kitchen table as an office until they were comfortable taking on overhead. “Their conservatism provided a solid foundation for the next generation to grow the business into a thriving concern,” Hessler says.
Wayne Oxygen & Welding Supply (Waynesboro, VA) is nothing if not consistent as it reaches its 50th birthday. “The company is different now in some ways, but we pretty much have the same customer philosophy we had 50 years ago,” says President Ron Brower. “Our foundations have always been the ability to solve problems and to be there when we're needed.” Much of that stability can be credited to Ron's father, company founder Francis Brower, who still came in to work from time to time at age 90. The company headquarters sit on the original location, though the business has expanded to include branches in Charlottesville and Harrisonburg, Virginia. | |||||||||||||||||||
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10 Years: Still the New Kids
Church Towne now employs six people, and Mundt plans to add two more. The coming months will bring improved sales penetration and additional bulk cylinders. “There's a lot of growth in this business if you play the game right,” he says. “Give the customer more service than the competition is willing to give them, and you can do well in this industry.”
By focusing strictly on specialty gases for nanotechnology and photovoltaics, Doug Wells, president & CEO of Cryospec (South San Francisco, CA), has carved out quite a niche. The company has experienced robust growth, including more than 20 percent in 2008. “We're very pleased with our progress in our first 10 years and are looking forward to further growth,” Wells says. In July, Cryospec opened a 30,000 sq. ft. facility in Fremont, California, that will eventually be used as a fill plant. “Our company is still growing, and we've had a successful year so far thanks to the clientele we call on,” Wells says. “It's turned out to be a wise decision for us not to go into the welding supply business.”
Behind the slogan “traditional values and traditional service,” Melo's Gas & Gear (Bakersfield, CA) has built on its foundation of expertise—four original founders still work there—to develop a fiercely loyal customer base. “We treat people fairly on all prices, and we think all our policies and procedures are fair to our customers,” says David Melo, president. As part of that fairness principle, Melo has used bar coding since day one. “We always want our rent bills to be accurate. Our customers have found that refreshing, and it's been one of the major things that sets us apart,” Melo says. The results bear it out—the company has experienced double-digit growth in every year of its ten-year existence. For a 10-year-old company, Weldco Incorporated (Cincinnati, OH), has a surprising amount of experience on its side. President Tim Trame estimates the average industry tenure of his 32 employees is around 18 years. “Our people have developed a lot of relationships over the years, and we've been able to keep those customers,” Trame says. “Customers like that decisions here are made quickly and that our employees know what they're doing.” Health care and fuel costs have been the two biggest challenges for the company, though Trame has taken steps to alleviate both issues. With no Workers' Comp claims, Weldco was able to join a larger insurance group that has kept costs flat. To manage fuel prices, Weldco has a locked-in $2.12 rate with its supplier, keeping the company insulated from fluctuations in fuel prices.
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