Supplier Forecast Part 7 – Better Operations, Better Business

The job of running a business can be compared to that of an orchestra conductor. It is vital that we concentrate on new product development with the same dedication that we manage our facilities, removing costs from all processes, while maintaining an eye on future personnel requirements. Only when each section of the orchestra (or facet of our company) is performing at an optimal level can we make beautiful music.

With the exception of growth in industrial and specialty gas business, Scott Kallman, president and COO, Matheson (Basking Ridge, NJ), anticipates 2011 to be relatively similar to 2010. Still, Kallman says that the net effect will be a relatively flat performance year on year. A corporate-wide consolidation of IT platforms will, according to Kallman, significantly improve Matheson’s ability to manage the business and gain the commensurate rewards. His management team is placing a lot of emphasis on reducing costs without reducing capabilities. He says, “Our belief is that a focus on quality and cost reduction is critical. If you do those two things right, the discipline that goes into being successful in those areas results in profits.”

A renewed focus on operating costs reductions and supply reliabilities will occupy Carbide Industries’ (Louisville, KY) time in 2011. Rich Dippolito, sales manager, expects his gas-related sales numbers to equal those generated in 2010. He explains recent facility improvements: “To enhance operational efficiencies, we just completed a $2.5 million submerged arc electric furnace upgrade.” The company will continue to invest in upgrades throughout the year to help offset the impact of rising raw material and energy pricing.

Face time with customers has never been more important to Bill Mosier, president, Polymet Corporation (Cincinnati, OH). Growth will come as his salespeople spend more time with their customers and as process management teams increase efficiencies while improving yields.

New certifications, including ASME, will help to provide Donna Jung, president, International Cryogenics (Indianapolis, IN), with the credentials required for larger projects. Aiming for a sales growth of 2-5%, Jung says, “We are making better use of our membership in various buying groups.” The company also plans to introduce new products throughout the year.

“If everyone is making the same product and it’s all certified to DOT standards, how do we differentiate ourselves when it comes to cylinders?” Jeff Cunningham, vice president and general manager, Catalina Cylinders (Garden Grove, CA), says that to create true growth, his company will out-service and outperform his competitors in order to command greater market share. To achieve growth of 5-8%, he will focus on maintaining what he describes as his reputation for being “fastest on our feet.” He also says, “Our ability to perform in a day or two on any product is pretty much unheard of in the industry.” Plans call for additional sizes for the large cylinder market during the 1^st Quarter.

Bug-O Systems International (Canonsburg, PA) will launch a new digital machine with more programmable features and benefits in the 1^st Quarter. Chip Cable, president, says that the new digital machine and a new state-of-the-art system of on/off magnets will help contribute to a 10% sales increase. Also scheduled for the 1^st Quarter: The company will dedicate a nearby 5,500 sq. ft. space for hands-on training.

In addition to introducing new products in all four quarters, Ric Boyd, president, CryoVation (Fort Myers, FL), will double the square footage in his New Jersey facility by adding an additional 6,000 sq. ft. Boyd believes that as his medical gas business grows and as independent distributors look to upgrade their equipment, he will see a 10-15% increase in sales.

Frank Salvucci, vice president of Anthony Welded Products (Bakersfield, CA), says that he is following a new road map. “We must remain innovative. A part of that innovation is a complete plant modernization to be completed during the 2^nd Quarter. Another aspect of what promises to be a year marked by innovation is the introduction of a new family of products.” Salvucci’s road map will steer his company to a sales increase of 15%.

With the opening of nine distribution centers planned for 2011, Craig Loos, executive vice president sales development, ORS Nasco (Tulsa, OK), expects to get closer to his customers in order to achieve 20% sales growth. Centers already scheduled to open include one in Los Angeles during the 1^st Quarter and in Boston during the 2^nd Quarter. Loos says, “We will also grow sales as we convince distributors to diversify their businesses by tapping into our very wide selection of products.”