EXECUTIVE COMMITTEE MINUTES

Transcription

1 EXECUTIVE COMMITTEE MINUTES LOCATION TIME Longboat Key Club and Resort Thursday Longboat Key, Florida January 24, 2008 John Ringling East 8:30 A.M. 11:30 A.M. CHAIRS Robert (Bob) Roth, Chair Cheri Martin, Vice Chair Dennis Brown, 2 nd Vice Chair Frederick Luening, Past Chair Mark Blakely Jeff Deckrow Jim Horvath Don Lockhart Don Mottinger STAFF Ray Shook Frank Tarafa Sam Gentry Jeff Weber Natalie Tapley Gene Lawson Ron Pierce Earl Lipphardt Latham Pali Dave Nangle John Postle Steve Smith Dean Wilson Call to Order WEMCO Chair Bob Roth opened the executive meeting by asking the attendees to introduce themselves. Anti-Trust Document Review Chair Bob Roth discussed the antitrust document, and the importance of following the guidelines. Officer s Selection Process Frederick Luening informed the committee that Cheri Martin has embarked on a new business venture, and is leaving the welding industry. Because of this, she will be WEMCO_Executive_Minutes_ Page 1 of 17

2 unable to fulfill her role as 2008 WEMCO Chair. The order of succession on the executive committee will also change, and new members will be nominated to sit on the executive committee. The voting process will take place during the WEMCO General Session. Frederick Luening nominated Jeff Deckrow of Hypertherm for the position of 2 nd Vice Chair and Program Chair. Jeff Deckrow accepted. Frederick Luening also proposed that Dennis Brown of Weiler Corporation be nominated for the position of 2008 Chair succeeding Chair Bob Roth. Dennis Brown discussed the traditional WEMCO succession, which consist of a Chair, a 1 st Vice Chair, and a 2 nd Vice Chair. The 1 st Vice Chair shall preside in cases where the Chair cannot attend, and shall serve as an observer. In this capacity, the 1 st Vice Chair has the opportunity to gain a greater understanding of WEMCO, and the role and duties of the Chair. The 2 nd Vice Chair s primary responsibility is to assume the role of Program Chair for the annual WEMCO meeting. Dennis Brown suggested a change to having the 1 st Vice Chair assume the responsibility of Program Chair. He felt that this would be an advantage because the 1 st Vice Chair has had a year of leadership experience having already served as 2 nd Vice Chair. allow the individual to have a greater understanding of WEMCO as they move forward into the 1 st Vice Chair position. Cheri Martin supported Dennis Brown s suggestion, and also felt it would be an advantage. Jeff Weber informed the committee that the changes proposed by Dennis Brown are within the AWS guidelines. Dean Wilson explained that the original focus of the WEMCO Chair positions were to be as follows: The 1 st Vice Chair was to play an active role on the Image of Welding and Membership Committee, as well as play a proactive role on the sub-committees that were being spotlighted during that particular year. The meeting program would be the 2 nd Vice Chair s main concentration. This would allow the following to take place: WEMCO Chair to focus on the committee as a whole, the 1 st Vice Chair emphasis would be on one particular committee, and the 2 nd Vice Chair would assume the role of Program Chair. Dean Wilson stated that Dennis Brown s proposal is acceptable if the original focus was not going to be implemented. The actual time commitment for WEMCO Chair positions is 4 years: WEMCO 2 nd Vice Chair 1 year WEMCO 1 st Vice Chair 1 year WEMCO Chair 1 year WEMCO Past Chair 1 year The committee discussed the potential pros and cons of extending the WEMCO Chair position to a 2-year term. Subsequently, all chair positions would also move to a 2-year term; therefore, the time commitment would increase from 4 to 8 years. The WEMCO_Executive_Minutes_ Page 2 of 17

3 committee felt that the increase of required time and dedication would be excessive and a disadvantage to WEMCO. It was unanimously decided that the WEMCO Chair position will remain a 1-year term. Dennis Brown felt that the 1-year term for the WEMCO Chair with the Past Chair actively participating works very well. He commended Frederick Luening for being actively engaged with the 2008 Meeting program, and felt that his involvement helped maintain the integrity of the committee. He also agreed that it was important for the 2 nd Vice Chair to have an assigned responsibility, and further suggested that upon moving into the 2 nd Vice Chair position, the individual would select a subcommittee of interest, and agree to support the committee throughout their term. Frederick Luening also supported this idea and felt that it would help maintain the continuity of WEMCO. Chair Bob Roth proposed a motion that the WEMCO Executive Committee continues with the same format consisting of Chair, 1 st Vice Chair, 2 nd Vice Chair, and Past Chair. In addition, this motion will identify the 2 nd Vice Chair focus as committee driven, and the 1 st Vice Chair as Program Committee Chair. Should this be acceptable to the committee, it would then be adjusted and implemented in the committees Rules of Operation document. The committee unanimously approved this motion. Chair Bob Roth proposed a motion recommending the following 2008 slate of nominees: WEMCO Chair - Dennis Brown 1 st Vice Chair - Jeff Deckrow 2 nd Vice Chair - Jim Horvath Past Chair - Robert Roth The committee unanimously approved the motion. Chair Bob Roth explained that the above recommendations will be presented to the WEMCO members during the general member assembly, and the AWS Board of Directors for their approval. 3-Year Executive Committee rotation cycle and open committee positions: John Postle stated that the WEMCO executive committee is a 3-year term; however, the number of individuals on the executive committee can vary. The executive rotation for 2008 is as follows: Frederick Luening has completed his 3-year executive committee rotation. The committee has recommended Latham Pali of J. P. Nissen Company to fulfill this vacant position. Latham Pali has accepted the nomination, which will be voted on during the general member assembly. Jim Horvath has accepted the nomination of 2 nd Vice Chair, which will be voted on during the general member assembly. WEMCO_Executive_Minutes_ Page 3 of 17

4 Jeff Deckrow has accepted the nomination of 1 st Vice Chair, which will be voted on during the general member assembly. International Standards Chair Nigel Scotchmer of Huys Industries has stepped down as committee chair, and has recommended Richard Doornink of Cantesco Corporation as a suitable replacement. This nomination will also be voted on during the general member assembly. Steve Smith suggested that the committee consider contacting Damien Kotecki, AWS Past President, regarding the opportunity to become more involved with the International Standards Committee. Chair Bob Roth said that technically, Damien Kotecki could not be a WEMCO member, as he is not a welding equipment manufacturer; however, there are other ways Mr. Kotecki could be involved. Chair Bob Roth added that he would be happy to contact Mr. Kotecki regarding this potential opportunity. The committee also suggested the possibility of Mr. Kotecki contributing to the WEMCO Newsletter at least once or twice during the year. Steve Smith inquired as to the potential barriers that may exist concerning AWS Past Presidents participating on various sub-committees, such as RWMA or WEMCO. Ray Shook explained that the only potential barrier that presently exists involves Damien Kotecki and his role as AWS Past President on the AWS Board of Directors creating a potential conflict of interest. However, Mr. Kotecki will complete his board duties this year. He further explained that the level of Mr. Kotecki s involvement with WEMCO is entirely between the WEMCO Executive Committee and Mr. Kotecki. Steve Smith inquired as to whether or not consultants are eligible to become WEMCO members. Chair Bob Roth affirmed that the WEMCO Bylaws specifically states manufacturers as the criterion for membership. Suspension of Dues to the International Standards Activity Fund (ISAC) and WEMCO Membership Dues Increase During the June 2007 Summer Executive Session, two actions were taken: The first was the suspension of the subsidy from WEMCO dues to the International Standards Committee, and second, the increase of WEMCO Annual Membership Dues. ISAC Dues A motion was made to suspend the portion of dues that were allocated to the ISAC Fund for one year. The dues were re-allocated to the Image of Welding Committee. Andrew Davis, AWS Managing Director of Technical Services, contacted Chair Bob Roth via to explain the activities of ISAC, and the management of the committee s funds. Chair Bob Roth shared this with the executive committee. Chair Bob Roth indicated that the committee s decision was not made based on a belief that the ISAC Fund is unimportant or ineffective, nor was the decision He WEMCO_Executive_Minutes_ Page 4 of 17

5 suggested that more efforts should be made to better communicate ISAC activities to the WEMCO executive committee. Mr. Roth recommended that the committee take into account the information presented by Andrew Davis, as well as consider re-allocating the funds back into the ISAC Fund. Frank Tarafa pointed out that the ISAC Fund is currently at $28,000. In addition, the average expenditure for ISAC trips is about $6,000 with approximately 6 trips per year. The current reimbursement amount is at $1,000. A motion to increase the reimbursement amount was brought forth to the AWS Board during the November Board of Directors meeting for consideration. The AWS Board requested that the committee re-evaluate the amount to be reimbursed, and present it again for further consideration. Dean Wilson recommends that the WEMCO Executive Committee wait until the AWS Board s decision. This will allow the committee to be better equipped discuss the allocation of dues to the ISAC Fund. Don Mottinger pointed out that WEMCO does not finance its own sub-committees, or sub-committee projects; moreover, many people absorb the costs that are associated with the sub-committees. However, if WEMCO is going to set a new precedent and begin financing its own sub-committees, then it would be appropriate for WEMCO to budget ISAC. But, if WEMCO is not going to be involved in ISAC activities, then WEMCO should not be involved with the budgeting process. The committee agreed that Don Mottinger had a valid point of view. Annual Membership Dues Chair Bob Roth said he received feedback from WEMCO members concerning the decision to increase the annual membership dues from $400 to $500. Their comments expressed disappointment that this motion was not brought before the general membership for voting; however, it is stated in the Operating Guidelines that the dues of members shall be reviewed periodically and fixed by the Executive Committee. Chair Bob Roth did agree to have this issue as an agenda item to be discussed during the Annual WEMCO Executive Meeting on 1/24/08. John Postle agreed that the dues should be determined by the Executive Committee just as the annual meeting s program, cost, and structure are decided by the executive committee. Jim Horvath supported John Postle s statement and added that the Executive Committee should continue adhering to the bylaws. Chair Bob Roth said that he also felt that the Executive Committee acted within the guidelines. He also stated that the WEMCO annual dues are minimal in comparison to other associations. Dean Wilson felt that the individuals that are involved with the annual meeting program and the budget process have a major effect on the annual member dues. Furthermore, he said that the decision to bring this issue before the general members would result in budgetary issues, and would set the committee back one year with regard to the planning stages. WEMCO_Executive_Minutes_ Page 5 of 17

6 Frederick Luening supported Dean Wilson s observation, and also felt that there would be a disconnection regarding the funding for the meetings, and other member activities. He thought that the decision to increase the dues was an effective decision. Dean Wilson mentioned that it is imperative for the WEMCO members to understand that the WEMCO officers are voted on, and approved by the general membership. These duly elected officers are then responsible for the financial decisions, and programming decisions of WEMCO. Committee Update Program Committee Program Chair Dennis Brown thanked the members for being involved and supportive during the planning stages of the 2008 Annual Meeting. He provided the group with an overview of the 2008 meeting program (see exhibit 5.1). Dennis Brown felt that the 2008 meeting program is relevant, and will focus on the issues that are important to the members of this group, and the welding industry. Global Trade Show Committee Global Trade Show Chair Don Lockhart stated that there was not much activity with regard to Global Trade Shows; however the Beijing Essen Welding & Cutting Fair will take place on May 14-17, He urged interested parties to make their travel and hotel arrangements early. Regarding the Essen Welding Fair in 2009, Jeff Weber informed the group that there will be an AWS pavilion located in Hall 7, which is a very good location. AWS will also have internet access that will be available to the exhibitors. He also stated that anyone interested in exhibiting at the AWS Pavilion should contact Karen Vogelsang. Jeff Weber informed the committee that there are shipping discounts available to exhibitors. Chair Don Lockhart also urged the group to utilize the Department of Commerce when traveling. In his experience, they have proven to be a helpful tool that can assist travelers in various areas. Finally, Mr. Lockhart informed the committee that the state of Texas has imposed a new Gross Margin Tax, effective January 1, This tax is based on your company sales in Texas, which amounts to at least a half percent of the gross margin of shipments to Texas. He stated that this new tax is a similar to a sales tax, and that Texas is aggressive with regard to collecting the tax (See attached article.) Image of Welding Committee Image of Welding Chair Jim Horvath stated that the committee is now targeting a younger audience starting as early as years of age (see exhibit 5.2). The committee decided to review the present opportunities that are available to this younger audience. WEMCO_Executive_Minutes_ Page 6 of 17

7 Mr. Horvath expressed that he was particularly interested in the efforts by distributors. As an example, Maine Oxy travels to various sites in semi-truck, and offers welding demonstrations to interested individuals. In addition, CK Supply in St. Louis offers day programs in various welding processes. The cost for these types of programs is minimal, and allows young adults to learn about welding and welding careers without spending and exorbitant amount of money. The committee is working on assembling a list of the programs and other resources that are available. The goal is to consolidate and centralize this information through vehicles such as the AWS and GAWDA web sites. Jeff Weber added that AWS is working closely with the Image of Welding Committee. He added that AWS met with a representative from Marvel Comics to discuss the upcoming major motion picture related to the character, Iron Man. This movie will be released this coming May A targeted comic book will be created by the actual Marvel artists showing a very positive image of welding. Mr. Weber also said that welding is a key factor in this movie, and he believes that it will be a very effective tool in promoting welding as a worthwhile career option. Mr. Weber also stated that other associations have done quite well using this approach and it has proven to be effective. Dean Wilson encouraged the committee to attend the Image of Welding Awards Ceremony that takes place at the FABTECH International & AWS Welding Show. He felt that it would be enlightening for the committee to see all the individuals, companies, and sponsors that are involved. He also complimented Chair Jim Horvath on a tremendous ceremony. Chair Jim Horvath also took the opportunity to explain to the committee the process that is involved when nominating and selecting the individuals and companies for the Image of Welding Awards. He said he would supply information regarding this process to the committee. Information Technology Information Technology Chair Don Mottinger said the committee had two meetings in The first meeting was held at ORS Nasco headquarters. The committee had the opportunity to tour the company s MIS group. The second meeting was held in Atlanta, Georgia. Participating in these meetings are the heads of technology departments for Hypertherm, ESAB, Thermadyne, Airgas and Linweld. Airgas has also agreed to join the committee. The committee s objective is to add value in a cost-effective manner. Currently, the committee is working on three issues: Effective communication with fellow industry associates about pricing structures. Effective communication with fellow industry associates about standard file transmitters, and standard bar codes for all products. WEMCO_Executive_Minutes_ Page 7 of 17

8 Developing standards for the industry in these particular areas. Chair Mottinger felt that the reason for the committee s success is based on the utilization of the members talents and efforts. He also felt that there were many individuals within WEMCO that possess many talents that can be utilized as well. The next scheduled meeting will be in Boston, Massachusetts, June 10-11, 2008, and will be sponsored by Hypertherm and Thermacut. Membership Committee Membership Chair Dave Nangle stated that Natalie Tapley provided him with a list of member prospects, which he and an intern collectively worked on to produce personalized recruitment letters. He felt that the initial contact is the key component when recruiting members. He also indicated that in order for it to be successful, there must be substantial follow-through, which is the reason Phillip Wattle of the Marketing division of Lincoln Electric has been recruited to assist with this process. Hopefully, there will be an increase in committee activity to report during the mid-year meeting in June Chair Dave Nangle also stated that recruiting new members is somewhat difficult due to their many company and committee involvements. He also said that the committee needs to create significance to WEMCO. He said that this could be established by increasing the annual membership dues, and by making the process to join WEMCO more involved than it has been in the past. Mr. Nangle believes that this will aid in WEMCO becoming a more valuable and notable committee that will be sought-after by individuals. Currently, WEMCO has 84 company members with two of the members joining the committee in late Mr. Nangle stressed that progress will be made a little at a time. Don Mottinger offered his assistance with regard to contacting or following up with member prospects. Dave Nangle further suggested dividing up the task of following up with member prospects amongst the group. It was also stated that the lack of WEMCO membership is not due to an ineffective Annual Meeting Program or venue. Chair Dave Nangle felt that the meeting program and content is very effective, and caters to a diversified group of meeting attendees. Some concern was expressed regarding corporate consolidations, and the effect they would have on recruitment. Chair Nangle felt that the focus should be on knowing who the key players are in the different corporations, and finding out what is of interest to them and their organizations. Dave Nangle will send a copy of the prospect list and the personalized recruitment letter to the committee for their review. If the committee recognizes any companies or names, they should feel free to contact the individual(s). Cheri Martin felt that the most effective way to handle recruitment may be through the wholesalers especially because they are familiar with the suppliers in the industry; WEMCO_Executive_Minutes_ Page 8 of 17

9 conversely, Dave Nangle pointed out that the issue the committee constantly wrestles with is the definition of a manufacturer. He further said that many of the wholesalers vendors do not manufacture products, but buy and sell welding products. Again, the issue of what defines a manufacturer will arise, and further discussion will be required in order to resolve this question. Steve Smith expressed his concern about the need to grow WEMCO membership. He has always regarded the committee as an exclusive fraternity. He further pointed out the challenges many members would face when attempting to acquaint themselves with one another. He recommended that the membership should be offered to a small group of no more than ten companies with major concentration on at least five of the companies. Committee members familiar with the company, or its representatives should make the initial phone calls. Based on his own history with WEMCO, Steve Smith recalls that new members were usually recruited based on the committee s affiliation with AWS, or by invitation. He felt that it would be effective and beneficial to spend the funds on personalized stationary when inviting member prospects to the meeting. Steve Smith also said that he felt the WEMCO booth at the FABTECH International & AWS Welding Show was ineffective, and did not promote membership. He felt that it would be more effective to capitalize on the camaraderie that has been developed over time between the committee and individuals in the industry. Natalie Tapley pointed out the efforts that were made during the show to visit member prospect booths at their booths. These visits were made based on a show prospect list that she created prior to attending the Show. She agreed that there is a greater impact when WEMCO members make the initial contacts to member prospects. She could then follow-up with the contacts as necessary. John Postle suggested having a lunch at the FABTECH International & AWS Welding Show. Dean Wilson suggested blending this luncheon with the Image of Welding Awards Ceremony that takes place at the Show. This would provide an opportunity to discuss the industry, and the benefits of WEMCO with the attendees. Jim Horvath supported this suggestion, and added the possibility of sending personalized embossed invitations to join us for lunch. Dennis Brown felt that, in addition to the Annual Meeting, this would provide an excellent opportunity to help encourage and engage individuals. He further pointed out that these individuals are already at the show and will be attending the Image of Welding Awards Ceremony; furthermore, it gives the committee the opportunity to continue the momentum that will already have been generated. GAWDA Liaison Committee GAWDA Liaison Chair Mark Blakely informed the committee that the 2008 GAWDA president is Gary Stoneback. Subsequently, Britt Loving and Jenny McCall will assume the role of GAWDA president in 2009 and 2010 respectively. Based on Bob Ames (GAWDA Past President) 2007 strategic initiatives, GAWDA has decided to WEMCO_Executive_Minutes_ Page 9 of 17

10 focus on a younger generation of leaders in the welding and gases industry in years to come. Both Loving and McCall represent this younger generation. Chair Mark Blakely stated that the two issues that GAWDA is managing are defining the committee s value proposition, and if it is effective in a rapidly consolidating industry. Mr. Blakely reported that GAWDA has developed two new tools: 1) Young Executive's Education Partnership Program The goal of this program is to provide educational programming and networking opportunities which will help young executives develop the skills and knowledge needed to reach personal and professional objectives that will enhance their companies, GAWDA and themselves. Mark Blakely encouraged the committee to think about potential leaders within their own organization, and the opportunity for these leaders to learn and grow within the industry. Mark Blakely said that the program will be most effective once additional resources and programming are implemented. 2) GAWDA has created an electronic newsletter called "GAWDA EDGE." This electronic publication is the official newsletter for the Young Executives, and will provide continuing educational opportunities. GAWDA plans to develop special seminars and other online tools that will provide continuing educational opportunities. GAWDA will hold its Spring Management Conferences on March 9-11 in Chicago, Illinois, and on April in Miami, Florida, which will also include golf. Both conferences will consist of contact booths, speaker programs, and young executive activity. The Annual Convention will be held on September in Atlantis, Paradise Island, in the Bahamas. Currently GAWDA plans to continue holding two spring management conferences, and not co-locate with the FABTECH International & AWS Welding Show. The decision not to co-locate was based on time constraint issues, as well as the list of other activities that take place during the show. They felt that these issues may cause GAWDA to compromise their traditional conference. Mark Blakely is currently the Industry Partner Committee Chair. He stated that this committee consists of a solid mix of distributors and manufacturers. Shannon Fanning from Mathey Dearman is set to join the committee. The committee mainly works electronically via and teleconferences. Their focus is to review various GAWDA projects and problems, and provide feedback and direction to the GAWDA Leadership. Jeff Deckrow pointed out that WEMCO still maintains a connection with GAWDA, and personally invited the GAWDA chair to attend the WEMCO Annual Meeting, though the 2008 GAWDA Chair declined the invitation. M. Blakeley reasoned that since Gary Stoneback has little experience with WEMCO, he was unaware of historical involvement with WEMCO. GAWDA scheduled its annual convention planning meeting during the same time as the WEMCO Annual Meeting. Mark Blakely believes that GAWDA is interested in WEMCO and its activities; however, GAWDA is facing the challenge of defining its role and value proposition in the industry. WEMCO_Executive_Minutes_ Page 10 of 17

11 FABTECH Int l & AWS Welding Show Update Jeff Weber shared some facts and figures concerning the 2007 FABTECH International & AWS Welding Show that was held in November 2007, in Chicago, Illinois. The welding portion of the 2007 show consisted of 163,000 square feet. This is a boost of 35,000 square feet from 2006, and 70,000 square feet from Already, 162,000 square feet have been sold for the 2008 Show in Las Vegas, Nevada. The total number of overall exhibitors was 1,007 with more than half (532 welding exhibitors) representing the welding industry. The goal initially set was for 1,000 exhibitors, which was surpassed by 7. This clearly indicates the significance of AWS partnership with FABTECH and SME. Overall, there was a total of 462,000 combined square feet between AWS and FABTECH during the 2007 Show in Chicago, Illinois. This was an increase of 120,000 square feet from the 2006 Show in Atlanta, GA (total square footage was 305,000). The show attendance in Chicago, Illinois was an all-time record of 31,354 visitors. This is an increase of 12,000 from the 2006 Show in Atlanta, GA, and 7,000 from the 2005 Show in Chicago, Illinois. The high attendance during the 2007 show in Chicago, Illinois, may have been partly attributable to the industry partnership that AWS and FABTECH recently entered with the National Association of Manufacturers (NAM). As a result, NAM invested a great amount of time promoting the 2007 Show electronically and through their publications. This is a major new alliance that SME, FMA, AWS and NAM are enthusiastic about. Upcoming FABTECH International & AWS Welding Shows: October 6-8, 2008 Las Vegas, Nevada To avoid possible conflicts with a religious holiday during the same period, the show will be held Mon. Wed., instead of the traditional Tues. Thurs. November 15-18, 2009 Chicago, Illinois November 2-4, 2010 Atlanta, Georgia Year 2011 (Dates to be determined) Chicago, Illinois AWS has acquired the WELDMEX Show, scheduled January 29-31, 2008, in Mexico City, Mexico. It is now known as the AWS WELDMEX Show. The next show will be held June 2-4, 2009, in Monterrey, Mexico. AWS in Latin America Mr. Weber reported that AWS realized the importance and significance of having Spanish written material published and available in Latin America. As a result, AWS has taken a new initiative to print a Spanish edition of the Welding Journal. The first issue consisted of 10,000 copies, and was introduced at the AWS WELDMEX Show. WEMCO_Executive_Minutes_ Page 11 of 17

12 This magazine will first be published twice a year, with the opportunity to publish it more frequently based on its success. In the future, this magazine may be available in other regions outside of Latin America where Spanish is widely spoken. Upcoming shows where AWS will exhibit: AWS will exhibit in at least 14 shows in 2008, with many of them being held outside of U.S. This is part of an initiative to market our products and services internationally. Some of the countries will include India, China Japan, Mexico and Canada. American Welding Society Welder Workforce Development Program Sam Gentry updated the committee on the Capital Campaign started in Welding manufacturers, distributors, end users, and individuals are the main focal points of the campaign, with end users presenting the biggest challenge. Sam Gentry said that the initial campaign goal was $5 million with a $10 million stretch goal. In 2007, Bohler Welding Group donated $30,000, and OKI Bering donated $100,000, with a special interest in internet support and interactive websites for teenagers and young adults. Overall, a total of $2.6 million was raised in The campaign s direction has shifted from scholarships to Welder Workforce Development Initiatives; however, scholarships will continue to play an important part in attracting young people to the industry. This shift is primarily due to the current crisis of a welder shortage facing the industry today. Major efforts for additional resources are being made to help combat this immediate and urgent issue. Mike Molinini of Airgas and the AWS Finance Committee brought to AWS attention the need to be proactive with regard to the imminent welder shortage. After consulting with Mike Molinini, AWS felt that the most effective way to target this issue was to contact Al Crichton who recently retired from Airgas. Mr. Crichton accepted the opportunity to work with AWS on a give-back-to-the-industry basis. He has met with representatives from the welding industry, such as John Stropki of Lincoln Electric, Mike Weller of Miller Electric, and Mike Molinini of Airgas, and has developed a plan that was presented to the AWS Finance Committee. This plan was approved by the AWS Board of Directors in November Al Crichton s report stated that the biggest challenges facing North America are: Widespread skilled work force shortage Aging experienced employees Significant GDP Exposure In addition, Mr. Crichton stated that there are currently 500,000 welders in the country, and the average age of a welder is 54. He also reported that by 2010, there will be a shortage of 200,000 welders nationwide. Supplementing Mr. Crichton s report, AWS also made initial efforts to collect data concerning the needs and focus of end-users, distributors, welding manufacturers, WEMCO_Executive_Minutes_ Page 12 of 17

13 and welding training/education institutions. Data was also collected on welders by geography, existing training capabilities by geography, and salary information/comparisons. To collect this information, Mr. Crichton developed a comprehensive end-user questionnaire. The campaign s motto for this project is recruitment to retirement. The belief is that if the younger audience is not targeted early, the welding industry will lose another generation of welders. Additional recommendations for AWS concerning the Welder Workforce Development Program include: Expand focus beyond the technical. Be proactive, not reactive. Become the welding industry s focal point, and a catalyst in areas such as recruitment and training. Hire SOS (Solution Opportunity Squad) Resources. Start slow, achieve success and create industry pull. SOS are full-time human resources employees that will: Finalize and communicate action plans. Energize and unify industry efforts and AWS Sections. Develop first-class plans and productions to improve image, as well as positively promote the welding industry. Be a respected spokesperson and create national visibility. Enhance public & private funding & support. Promote reformed immigration policies. Develop foreign resources strategies. Promote student/trainee assistance programs. The message that AWS wants to convey is that AWS is where one goes for help. AWS has hired its first Solutions Opportunity Squad (SOS) person, Monica Pharr, who is scheduled to begin employment on February 18, WEMCO Financials Frank Tarafa reviewed the WEMCO financials for fiscal year January 1, 2007 through December 31, 2007 (see exhibit 8). During his review, he highlighted the following areas: Membership dues revenue totaled $33,600. Currently, there are 84 WEMCO members. General expenditures totaled $137,100 WEMCO_Executive_Minutes_ Page 13 of 17

14 WEMCO 2007 Annual meeting revenue totaled $70,100; however the total annual meeting expenditures totaled $76,300. This was an overage of $6,200. Frank Tarafa also informed the committee that the 2008 meeting expenditures appeared to be in accordance with the 2008 meeting revenue. Mark Blakely said that it appeared that WEMCO was a possible drain on AWS based on the revenue-expenditure ratios. He suggested that the committee work collectively to devise a method that will better ensure an increase in revenue or allow the committee to break-even. Frank Tarafa mentioned that AWS and WEMCO receives a monetary break of at least $3,000 in sales tax whenever the meeting are held in Florida, as well as a few other states that accepts our tax exempt status. To further support this point, Chair Bob Roth stated that as a generality, the cost to have annual meetings in Florida is substantially less than the cost to have our meetings on the West Coast. Frank Tarafa reiterated that the goal is to break-even and not to make money from the WEMCO Annual Meetings. Dean Wilson said that he believes that there will be higher expenses for the 2009 Annual Meeting in Rancho Bernardo in San Diego, Calif. He suggested that the group consider a possible meeting fee increase in order to compensate for the higher expenses the committee will incur on the West Coast. John Postle and Frederick Luening supported this suggestion. Don Mottinger said that, in his opinion, the reason individuals do not attend the Annual Meeting is not due to the cost of the meeting, but because of possible time constraints, prior commitments, demands, travel cost, etc. He felt the cost to attend the WEMCO Annual Meeting is relatively low when compared to other committee meetings. Dave Nangle added that the January timeframe may also pose a critical issue. Aside from the cost to attend the meeting, Dave Nangle mentioned that WEMCO usually concentrates its efforts on a single principal person from a company to attend the Annual Meetings; however, he believes that the committee overlooks the opportunity to target and encourage other key players within the company to attend the annual meetings (marketing, finance, sales, managers, IT, etc.). He said that the success of GAWDA s Spring Management Conference is based on the fact that their conference is not designed for the owner of the company, but for other management. Typically, GAWDA s Spring Management Conference format is educational, and the goal is to educate the future leaders in the industry. He suggested that the committee modify its thought process with regard to targeting potential guests and attendee. Chair Bob Roth stated that the objective is to prompt the main WEMCO representatives to look within their own organizations and promote the WEMCO Annual Meeting to all management. He said that annual meeting material should be provided to the WEMCO representatives with a reminder to encourage other team players within their companies to attend. WEMCO_Executive_Minutes_ Page 14 of 17

15 Benefits of Advertising in the WEMCO Directory The WEMCO Membership Directory is scheduled to be released in early The intent of this publication is to be used as a tool while visiting customers in the industry. This is a way to promote fellow WEMCO companies. Also, for the first time, WEMCO members were provided with the opportunity to advertise their products in the directory. The committee is still examining the significance of the WEMCO Directory, as well as whether or not it is cost effective. This topic will be added as an agenda item and further discussed during the Summer Executive Meeting that is scheduled to take place in June WEMCO Quarterly Reports and Sub-committee Teleconferences Jeff Weber brought it to the committee s attention that there are only a few committee reports that are submitted quarterly for the WEMCO Newsletter. He offered AWS support to the committee in preparing such reports, and urged members to contact him or Natalie Tapley for assistance. RWMA and WEMCO Annual Meeting Opportunities Susan Hopkins informed the committee that RWMA recently held its annual meeting in San Antonio, Texas, and expressed its interest to have more synergy with WEMCO. She suggested that a good opportunity to discuss this possibility would be via teleconference with the executive chairs of both WEMCO and RWMA. Chair Bob Roth felt that this is an important opportunity and that the committee should consider working with RWMA on a resolution that would allow both committees to have there annual meetings concurrently. Chair Bob Roth pointed out that the RWMA Annual Meeting is typically one day longer than the WEMCO Annual Meeting, but he felt that there is flexibility, and that an agreement can be reached between the two committees. Don Mottinger mentioned that the main reason for WEMCO s Annual Meeting date change from January to February in 2009 was in an effort to accommodate RWMA. He suggested that if the committees are not going to combine their annual meetings, then WEMCO should return to its original January timeframe. The committee agreed with this suggestion. The committee will work on arranging a teleconference with the executive chairs of WEMCO and RWMA in the near future. New WEMCO Members and Guest Natalie Tapley reviewed the new WEMCO members and guests that are present at the 2008 Annual Meeting (see exhibit 12). June Executive Summer Session WEMCO_Executive_Minutes_ Page 15 of 17

16 The committee unanimously decided that the next Summer Executive Meeting will be on Thursday, June 12, 2008, at the Hilton O Hare Airport Hotel located in Chicago, Illinois. Possible Locations for 2010 Annual Meeting Natalie Tapley informed the committee that she has begun the process of researching possible locations for the 2010 meeting that is scheduled to take place in Florida. The committee rejected St. Augustine, Florida, as a possible location. This is mainly due to the cold weather conditions that may be experienced during the winter months. Jeff Deckrow felt that the South Seas Plantation Resort on Captiva Island, Florida, would not be conducive to WEMCO s networking needs due to the property s configuration and very spatial layout. Natalie Tapley also suggested the La Playa Golf and Beach Resort in Naples, Florida, because of their small intimate setting, and their private beach and golf course. The resort has less than 200 rooms and would provide the opportunity for networking capabilities. Dave Nangle mentioned that if the meeting is held north of Tampa, Florida, there is a risk of cold weather. He felt that places like Marco Island, Naples, West Palm Beach and Longboat Key are very conducive to our meetings, and will help lure individuals to attend. Dean Wilson pointed out that many of the WEMCO members and their spouses are quite fond of the Longboat Key Club and Resort, and would like the opportunity to return again in the future. Dave Nangle also said that there was a similar fondness for the Sonesta Beach Resort in Miami. Florida. The committee felt that this was mainly due to the familiarity of the resorts, which promotes a certain level of comfort with the attendees. Don Mottinger also suggested Saddlebrook Resort in Tampa, Florida, as a possible location. Steve Smith felt that smaller locations provide better opportunities to interact with fellow WEMCO members, and guests. The larger the property, the harder it is to network and communicate with one another. Such was the case in Palm Springs, CA, at the La Quinta Club and Resort. 13 th Annual WEMCO Meeting February 26-28, 2009 Rancho Bernardo Inn Golf Resort & Spa San Diego, Calif. WEMCO_Executive_Minutes_ Page 16 of 17

17 Closing Remarks: Cheri Martin expressed her thanks for providing her with the opportunity to be a part of WEMCO. Although she is excited about her new business venture, she said that she regrets not being able to fulfill her Chair position for She felt it would have been a great opportunity both personally and professionally. Cheri Martin also said that she belongs to various professional organizations; however, WEMCO is the best organization with which she has ever been involved. She commented on WEMCO s professionalism and was thankful for all the knowledge she has acquired through the speakers, the networking, the programs, and the members. Cheri Martin said that the relationships she was able to forge during her WEMCO tenure have been invaluable. The meeting adjourned at 12:05 p.m. WEMCO_Executive_Minutes_ Page 17 of 17

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19 MINUTES PROGRAM COMMITTEE TELECONFERENCE LOCATION TIME AWS Headquarters Monday, December 10, 2007 Miami, FL 2:00 p.m. EST Teleconference MEMBERS D. Brown (Chair) D. Wilson D. Peters R. Roth F. Luening N. James-Tapley GUESTS D. Taylor B. Ames J. Deckrow D. Nangle 1. WELCOME 1.1. D. Brown thanked the panelists for participating in the teleconference and the 2008 WEMCO Annual Meeting. 2. PURPOSE OF THE TELECONFERENCE 2.1. D. Brown explained that the purpose of the teleconference is to discuss the panel format. The time slot for the panel is approximately one hour and thirty minutes. D. Brown further explained that he will give a quick introduction of each panelist, followed by each panelist taking 2-3 minutes to discuss their background and company. 3. PANEL DISCUSSION OBJECTIVE 3.1. D. Brown stated that the objective of the panel discussion is to focus on issues that are relevant to our industry from both a manufacturer s and distributor s perspective. Examples of these issues include sales and marketing, operations, and other factors that can influence our businesses and the industry as a whole. 4. TYPE OF AUDIENCE 4.1. D. Brown said that the audience will consist of welding manufacturers that represent executive management from both sales and marketing, and the H:\SUB-COMMITTEES\PROGRAM\ \Program_Committee_ doc Page 1 of 3

20 operations sectors of the industry. Based on the audience, the panelists, and the panel format, there should be a lively exchange of questions and ideas. The audience, as well as the panelists should leave the panel discussion with further insight on how other companies within the industry view the issues that are important to us and the welding field today. 5. QUESTIONS FORMAT 5.1. D. Brown encouraged the panelists to be prepared to provide input any of the questions listed on the topic outline, except where it specifically requires a response from the manufacturer or distributor D. Brown said that Section V of the topic outline will be handled in a quick-fire format Each panelist will be asked for short answers to the series of questions listed in section V. D. Brown mentioned that the panelist should feel free to add questions of interest to any of the sections. Questions can be sent via to D. Brown (dbrown@weilercorp.com), or Natalie James-Tapley (tapley@aws.org) D. Brown also pointed out that an audience Q&A Session will be encouraged. These questions will be formatted on index cards and will be addressed at the end of the panel discussion. Additional (spontaneous) questions from the audience will also be taken at the end of the panel discussion. 6. FEEDBACK AND COMMENTS FROM THE PANELISTS 6.1. B. Ames pointed out that Section V directly relates to manufacturers, and felt that he would not be able to appropriately respond to the questions in this particular section. D. Brown felt that distributors may have input based on their customers perspective It was suggested that B. Ames provide input on the thriving mining industry, and the agriculture industry, which is experiencing revitalization. It was also mentioned that these two types of industries are more prominent in the midwest than on the east coast B. Ames pointed out that he can also discuss the military sector, which is prominent in his area as well. In addition, he offered to network with his peers that own automotive and aircraft businesses; this will allow him to answer questions in Section V on their behalf J. Deckrow suggested that B. Ames discuss the trend with Harley Davidson, and the ancillary businesses that support the automotive industry. This may lead to trends in this particular sector. Moreover, it was also mentioned that there is an opportunity to discuss the trends in the trailer and mobile homes industry D. Brown asked both D. Taylor and B. Ames if there were any particular questions they would like to add to Section V. He also asked the panelists if they were comfortable with the layout and format of the panel discussion D. Brown confirmed that the layout for the panelists will consist of a table and four chairs facing the audience. H:\SUB-COMMITTEES\PROGRAM\ \Program_Committee_ doc Page 2 of 3

21 6.7. B. Ames suggested that since M. Blakely is the Chair of the Industry Partnering Committee, he should also be included on the panel Dave Nangle agreed that the questions and format looks very good. D. Brown re-iterated that he will give a brief bio of each panelist, followed by each panelist taking 2-3 minutes to discuss their background and business. 7. POWERPOINT PRESENTATIONS 7.1. D. Brown confirmed that it was not necessary for the panelists to prepare a PowerPoint presentation; however, PowerPoint presentations will be welcomed if any panelist would like to prepare one. He is also stated that he will act as the moderator on the panel Both J. Deckrow and D. Peters both pointed out that a PowerPoint presentation would be a great asset to the panel. Each presentation would be from a different perspective, which should spark interest from the audience. D. Brown asked the panelists if they were comfortable creating a short presentation, and they agreed that it would be fine N. James-Tapley asked that the panelists provide their presentations as soon as possible so that she can have them ready for the meeting, as well as provide the panelists with any assistance if needed D. Brown stated that the presentations should not consist of more than 5 slides so that the time constraints of 2-3 minutes can be met. 8. D. TAYLOR S ITINERARY 8.1. D. Taylor will send his itinerary to N. James-Tapley so that transportation arrangements can be made. 9. ADJOURNMENT 9.1. D. Brown thanked everyone for their time and cooperation with the teleconference 9.2. Meeting adjourned at 2:25 p.m. EST Respectfully Submitted, Natalie T. Tapley, Recording Secretary H:\SUB-COMMITTEES\PROGRAM\ \Program_Committee_ doc Page 3 of 3

22 2008 Conference Panel Discussion Topic Outline December 10, 2007 (as per Program Committee Teleconference) I. Globalization: For All: 1. How is globalization impacting your company? 2. What is the single most important issue for your company regarding Globalization? 3. For Manufacturers: A. What additional costs do you consider when importing products? 4. For Distributors: A. How much less expensive does a product need to be before it makes sense to offer import alternatives? II. Industry Consolidation: 1. For Distributors: How is manufacturer consolidation changing your business 2. For Manufacturers: How is distributor consolidation impacting your business III. Information Technology: 1. EDI A. For All: Does your company use EDI for order fulfillment and billing transactions? B. For Manufacturers: a. How many distributors are using it C. For distributors: a. Do you use it when manufacturers offer it? For All: 2. Are you using or considering the use of a third party interface for electronic ordering and billing transactions? 3. Is your company considering ERS? IV. Products: 1. How do you view Brand value and brand equity in today s environment? 2. Is the use of Import knockoffs diluting brand value? 3. How is the increasing trend toward Private Label products impacting your business?

23 Products: (continued) 4. Product Innovation: A. For Distributors: a. What do you typically consider in determining whether a new product launch is successful? B. For Manufacturers: a. What role does new product development play in your annual business plan process? V. Business Trends: (This section of questions could be done as a rapid fire drill, with short one line answers from all panelists or from an alternating list of 1-3 panelists.) How does your company view Future Business Trends? 1. Sales: A B. Beyond? 2. Welding Market (Areas of Interest) A. Metal Fabricating Markets: a. Energy b. Chemical Processing c. Pharmaceutical d. Military Sector e. Aircraft Industry f. Automotive Primary/Ancillary g. Other B. Expanding use of composite materials in leading industries: a. Automotive b. Aircraft c. Others C. Competing Technologies D. The Industries need for Qualified People: a. Technical Fields b. Certified Welders c. Others 3. Financial Market A. Devaluing Dollar B. Credit Market Upheaval C. Commodity Prices VI. Questions from the Audience