Like the GAWDA distributors, GAWDA’s supplier respondents are also going into 2024 with expectations of growth, though tempered with warnings about outside influences like continued supply chain issues, labor challenges, and the looming threat of geopolitical forces that could dampen what should be a robust year of growth. The following are responses from GAWDA suppliers across North America about their expectations for 2024. We thank all of the suppliers who participated in this year’s forecast. Be sure to check out the GAWDA Online Buyer’s Guide (buyersguide.gawdamedia.com or download the GAWDA Buyer’s Guide App from the App or Google Play Store) to learn more about each of these suppliers.
Hector Villarreal, President
Weldcoa
“The mega trend of companies reshoring back on U.S. soil is a major gain for our industry,” says Weldcoa President Hector Villarreal. “The government’s efforts to reshore chip manufacturing will be a boon for our industry. It’s also been great to see distributors become suppliers of cobots to the manufacturing sector.” Those trends will be primary contributors to an expected 5-10% growth in 2024 for Weldcoa. “We expect sales to continue to rise, but not as aggressively as they did in 2023,” Villarreal says. “The biggest hamper to our growth is finding the talent that we need,” he says, echoing a common issue from around the industry. He concludes, “The domestic oil industry continues to increase its output. The U.S.’s rise as a global energy supplier in petroleum and natural gas is a big plus for our industry.”
“The domestic oil industry continues to increase its output. The U.S.’s rise as a global energy supplier in petroleum and natural gas is a big plus for our industry.”
Joe Krall, VP of Sales
Select-Arc, Inc.
“We see continued growth for our flux cored, metal cored and solid wire products with our distributors,” says Select-Arc, Inc. Vice President of Sales Joe Krall, who expects to see sales growth of 7-10% in 2024. “We continue to develop new products to expand our brand portfolio with our customers.” He continues, “Distributors with experienced technical salespeople will have the biggest opportunities for growth in 2024. Inventory management is important to make sure of timely and reliable availability of products is important. Bringing in younger people and giving them the opportunity to work with and alongside an experienced individual is important.” As will become a theme throughout this forecast, Krall points to the difficulty in finding production workers, especially second and third shift workers, as a disruptor for the industry. Still, he sees a successful year for Select-Arc and its customers. “We will continue to add automated equipment to offset the challenges of hiring and retaining production workers on our second and third shifts. We continue to grow our stainless solid wire, flux cored and metal cored product portfolio for our customers. We are one of the few manufacturers who produce stainless flux cored and metal cored wire in the USA. Our technical support for our products and the fact that our owner has been manufacturing cored wires since the early 1970s and is still committed to making sure we manufacture to his high-quality standards make us bullish on the future.”
Jimmy Walker, President
Saf-T-Cart
Growth in market share and expected large construction projects will be the biggest drivers of an expected 8% growth for Saf-T-Cart in 2024, according to President Jimmy Walker. Walker expects GAWDA distributors to see possible growth in the new year as well, saying, “Onshoring, construction projects, and fueling will help to increase sales.” He expands that large construction projects and fueling of vehicles will be growth drivers for the industry, “Hydrogen and natural gas will continue to play an important part in this country’s energy supply. Being gas suppliers, our industry should be the leaders in this field.” The company is in an expansion position, having acquired an additional 40,000 sq. ft. warehouse and has plans to add 15,000 sq. ft. of production in the first quarter of the year.
Paul Kinsella, President
Exocor
“Next year should give every business the ability to operate in a more stable marketplace after the disruptions that we have witnessed the last 3-4 years with supply, costs and COVID,” says Exocor President Paul Kinsella, who projects a growth of 5-10% for the company in 2024. “Besides being 100% committed to your external customers, there is a great opportunity to do a deeper dive into their organization, examine the culture, and be clear to all what your vision is. At Exocor, ours is clear and simple, ‘to be the best employer to work for, and the best supplier to work with.'” The company continues to expand its geographical footprint across the USA while maintaining coast to coast coverage in Canada. “With more stocking locations in the southern part of the USA and additional sales/technical people in the field helping our distributors, we see this level of service helping our growth,” says Kinsella. “We are adding additional products to our Executive Filler Metal line, giving our distributor partners the ability to easily source their needs from Exocor.” He concludes that, “Our approach is not that we only grow when our customers grow, but that we need to help our customers grow. Overcoming a market slowdown and growing can only happen if we focus on providing the best customer experience and helping our distributor partners differentiate themselves in the eyes of their customers. If we provide excellent products and an easy way for our distributors to conduct business, they will grow and so will we.”
Ed Sarky, VP of Sales
Anthony Carts
Anthony Carts expects to maintain its steady growth in 2024. “Last year, we made upgrades to our product offering that will continue to pay dividends this year” says Ed Sarky, VP of Sales. “Products like Construction Grade Design (CGD) MCR racks, new truck pallets, cradle/manifolds, liquid dewar carts, and our newly designed firewall option for cylinder cages. Robotics and AI driven machines have been installed to make our shipping times even quicker than before, once again, aiming to lessen the burden on our distributor partners.”
Jeff Holyoak, Vice President – Sales & Strategy
TOMCO2 Systems
Even amidst an expected down year for the CO2 industry at large, TOMCO2 Systems expects to see growth of 5-10% in 2024, according to Vice President of Sales & Strategy Jeff Holyoak. The biggest opportunities that TOMCO expects to capitalize on are their regional focus and service over supply philosophies. “GAWDA members are in prime position to take market share from those who don’t focus on customer centric initiatives. In dry ice, focus should be on CO2 Efficiency and Recovery.” A key focus for TOMCO2 in 2024 will be in new product development in dry ice production and CO2 Recovery, which Holyoak expects will be the primary driver of sales growth. He concludes, “In down economies there will always be winners and losers. The winners, and thus the growth members, will focus on providing the best product and best service and not just surviving the downturn.”
Rafael Arvelo, President & CEO
EQUIGAS, Inc.
2024 will be a year of opportunities for EQUIGAS, as it will be offering new products, new brands, new lines of business all from its new, larger warehouse, which allows the company to have more products in stock. All of those contributors add up to an expected 20% growth, according to President & CEO Rafael Arvelo. “EQUIGAS’ expectation is to keep growing at the same pace we have been growing since we’ve been open,” Arvelo says. “EQUIGAS is all about taking care of our customers, showing them that we care and that they matter to us, plus we answer the phone, and we ship the same day!” He concludes, “We just expanded in December by moving to a new building that is 3.5x larger than the previous one. However, we are going for more, and more good news will be shared soon!”
Mark Jenny, Compressed Gas Equipment Product Manager
Ray Murray, Inc.
The addition of new product lines and new products in existing lines will help drive 5-8% growth for Ray Murray, Inc. in 2024, says Compressed Gas Equipment Product Manager Mark Jenny. The company sees the energy sector as an area of opportunity for the new year, but as others have noted, inflation, shipping costs and lagging consumer confidence could depress what would otherwise be a strong year. Jenny also points to the ongoing de-carbonization efforts throughout the country as an outside factor that could negatively impact the industry. However, in what is projected to be a level year for the industry, Jenny is confident that Ray Murray’s new products will still lead to a positive year in 2024.
Lexi McDermott, Welding Channel Specialist
Dynabrade
Dynabrade Welding Channel Specialist Lexi McDermott anticipates a 10% growth across the industries that Dynabrade services in 2024. “Dynabrade has recently acquired Manth Manufacturing and Global Abrasives. Each company allows Dynabrade to improve the quality of our offering while keeping the pricing reasonable for our customers,” says McDermott. “With the resources we have announced for our welding distribution in 2024 we anticipate a continued increase in sales.” In addition to its new products, Dynabrade will unveil a new Vocational program that it is excited about. “In 2024, Dynabrade is launching a new Vocational Education Program for high schools, colleges and union programs designed to benefit the next generation of the trades. The educational pricing will be available through authorized Dynabrade Distribution.” She concludes, “Dynabrade is constantly working on and releasing new tools. This year we have multiple new kits and tools being released. With numerous in the pipeline to begin development on this year. Everyone is aware of the concern of the decline of the economy this upcoming year. While this may affect certain aspects of Dynabrade’s business, we believe that we implement enough positive opportunity for our distribution to continue our growth.”
Philip Moroco, President
American Cap Company, LLC
American Cap Company expects to see a sales increase of 10% in 2024, with most of that growth concentrated in the second half of the year after a relatively flat first half, according to President Philip Moroco. The biggest factors impacting that growth projection are materials and logistics costs, capital expenditures and shifts in worldwide manufacturing. However, Moroco points to macro-economic trends like geopolitics and continued industry consolidation as things that could hamper that growth. He notes, “American Cap Company is a member of the PTR Group of companies. Our GAWDA customers have full access to the product lines and core manufacturing competencies of these operations. PTR Group has a global presence and will continue to expand its footprint to service the needs of its customers worldwide to help them reach their business objectives. You can learn more about the PTR Group at www.ptrgroup-mfg.com or contact your American Cap Company account manager.”
Brittany Fichter, Sales Representative
SuperFlash Compressed Gas Equipment
SuperFlash Compressed Gas Equipment recently added a spec gas line to its product offering, as well as a new line of Gas Control Units. Those two additions will help strongly contribute to an expected 10-20% growth in 2024, according to Brittany Fichter. “Our spec gas line and line of gas control units offer customers a more complete offering while still giving the quality and technical expertise that SuperFlash is known for,” she says. Fichter also points to the potential for more government projects as another growth driver for 2024. Overall, though she expects the industry to be level, Fichter expects growth not only for SuperFlash but also its distributors and customers.
Mike Arcieri, Vice President of Sales
Weldship
Weldship expects to see an overall sales increase of 8-10% in 2024, according to Vice President of Sales Mike Arcieri. One of the biggest contributors to that growth will be the company’s ability to plan ahead and order anticipated materials to enable a smooth manufacturing operation that will make Weldship’s products available as demand increases. Says Arcieri, “This will allow us to be better positioned to supply our customers with tube trailers, ASME ground storage, and ISO Containers in a timely fashion rather than to wait to order materials once we receive orders. Weldship has an existing fleet of 1000+ tube trailers, ISO containers and ground storage equipment, etc. that can be made available quickly for purchase or short or long term leases opportunities.” He continues, “We are always looking at ways to expand our business in many areas, including manufacturing and retesting/servicing our own equipment fleet as well as our customers. We understand that the number of newly manufactured tube trailers increases the overall population, and those trailers need to be tested every 5-10 years. We look to better position ourselves to be able to better service our own lease fleet as well as our customers who depend on us to optimize the value of their gas storage equipment.”
John Lutz, Vice President of Sales
Kerridge Commercial Systems
John Lutz, Vice President of Sales for Kerridge Commercial Systems, expects sales to increase by 30% in 2024, and for good reason. “The biggest factor [in our growth] is going to be companies in the gases and welding industry having a chance to see how our software performs in the industry.” Lutz explains that Kerridge is new to the industry and is looking to add GAWDA customers. “The most opportunity I see is moving many of the folks in this industry into up-to-date back-end technology,” says Lutz. “Many of the software companies in this space use out of date technology which will prevent future growth down the line. Our electric proof of delivery will allow gas and welding companies complete control over their delivery process. K8 offers full control over your rebate strategy. The powerful rebate capabilities will give you complete flexibility when managing and customizing different agreements through your ERP solution. Keep on top of financial performance with comprehensive control and analysis purchase rebates and Special Price Agreements (SPAs) Powerful customer rebates tracking, which also impacts margin, ensures that you retain tight control over profit margins at all times.”
John Kaylor, President
Abicor BINZEL USA, Inc.
“While we see 2024 will be a challenging year, a combination of new products and market share growth in multiple product categories will be the biggest contributors to an expected 5% growth in 2024,” says Abicor Binzel USA, Inc. President John Kaylor. He continues, “Barring a global event, we feel the U.S. economy will be stronger towards the latter half of the year. The welder shortage will continue to plague our industry,” Kaylor says. “New automation solutions with a low-cost entrance point and ease of use can be quickly implemented.” Abicor sees automation and weld fume mitigation as major opportunities this year and will be releasing new products to better serve those markets.
Steve Scecchitano, President
Aesir Logistics
2024 projects to be a substantial growth year for Aesir Logistics, according to President Steve Scecchitano, who projects a 25% growth for the company. “We expect our sales to be up in the industry, as our organization is relatively new and we are still in our initial growth phase,” he says. “We still believe there is a COVID effect in place, where many manufacturers and suppliers have too much inventory on hand and overall supply chains are still normalizing.” The company is exploring expansion in the Midwest region and will also add $2.5 million in trucks & trailer assets, which will aid in growth for the logistics supplier.
Matt Cable, President
BUG-O Systems
Increased levels of training with BUG-O’s distributor network and demand in the market for methods to increase productivity will help contribute to an anticipated 5% growth in 2024, says BUG-O Systems President Matt Cable. “I expect sales to be up in 2024, based on the needs in the market for increased productivity with an ever-increasing shortage in welders,” Cable says. Overall, 2024 should be a year of growth across the industry, Cable expects. One of the biggest opportunities for distributors in the new year is how the rapid growth of AI technology can have a positive impact in processes and can be best utilized to streamline your business.
Tom Kairys, VP Sales and Marketing
CP Industries
CP Industries expects industry-wide growth in 2024, including an anticipated 15-20% growth for the company, according to VP Sales and Marketing Tom Kairys. Those growth projections come with the caveat that disruptors like supply chain issues, capacity management and employee retention and difficulty recruiting talent could impede that growth. However, the company expects to see hydrogen, CNG and helium storage and distribution demand as key drivers for commercial growth at CPI in the new year. “The biggest opportunity I see is continued M&A and consolidation in the gas marketplace could provide new business opportunities with dissatisfied end user customers,” says Kairys.
Sal Calandra, President
B&R Compliance Associates
“The additional associates that joined B&R the past two years are demonstrating their expertise when interacting with customers and that leads to opportunities for growth,” says B&R Compliance Associates President Sal Calandra, who forecasts 20-25% growth in 2024. “We have also added systems and processes that help distributors be more efficient, while improving compliance. The activities that distributors undertake continue to evolve and become more complex. That complexity often requires additional support from regulatory, operational, or compliance experts.” Calandra expects that the CO2 supply chain will continue to be challenging in 2024 and that the industry will start seeing non-traditional sources of CO2 enter the marketplace. He concludes, “B&R Compliance Associates can provide the knowledge and in-depth experience you need, whether you need to develop a safety or GMP compliance program, review or assess your current capabilities, or seek a professional resource partner to support your existing programs. We provide access to a wealth of knowledge and expertise you need at a fraction of the cost. We’re ready to work with your business, tackle your challenges, and make an immediate impact.”
David W. Bell, President
WITT Gas Controls LP
WITT Gas Controls expects to see a level year in 2024, according to President David W. Bell. But with growth of 55% in 2023, repeating those sales will be an impressive feat. The company is especially focused on distributor growth for 2024 and sees new opportunities in the energy/hydrogen sectors. Bell notes that supply chain issues persist for certain products and that things outside the industry, like politics, inflation and the cost of goods will depress some growth potential this year. Still, good things are ahead for WITT. “We plan to add more staff in 2024, maybe up to 20% of current levels,” says Bell. “A new product launched in the end of 2023 will carry over into 2024, gas mixer assemblies for laser assist gas cutting. The newest models will have on-board computers for data logging, remote monitoring and controls plus interface with the newest high powered fiber laser for materials processing.”
Art Anderson, Managing Principal
AH Anderson Consulting LLC
In a projected down year for the industry as a whole, AH Anderson Consulting LLC Managing Principal Art Anderson expects to see level to slightly above level sales in 2024. The biggest factors that Anderson sees impacting the industry this year are:
- Product availability of gases like CO2, Helium, Argon, Rare gases, & select spec gases, as well as regional constraints on LIN/LOX/LAR.
- Eng Market Growth – performance of industrials (manufacturing, oil & gas, metal fab, etc.) and Consumer markets (electronics, Food & Bev, Healthcare, etc.)
- Macroeconomic factors – inflation, interest rates which impact cost and availability of capital
- Overseas markets – performance of China and EU
- U.S. Government – policies, reshoring investments, funding for energy transition.
“During the Fall Conference circuit with business leaders and owners, there was a sense of caution about 2024,” Anderson says. “This was partly due to the macro trends/forecasts, but also based on customer feedback/activity levels.”
Chris Granger, Chief Operating Officer
Bayotech
“We expect sales to be up, as the demand for hydrogen and hydrogen transportation and storage increases,” says Chris Granger, Chief Operating Officer for Bayotech. The company expects aggressive growth, as it projects an 80-90% increase in 2024. “BayoTech will have two new locations coming online in 2024 as well as new product offerings,” Granger says. “These additions will put BayoTech in a unique position to offer customers a reliable, and affordable hydrogen supply as well as transportation and storage equipment that improves their overall efficiency.” He concludes by saying, “One of the largest disruptors to the hydrogen economy would be the introduction of the three pillars to the 45V hydrogen tax incentive.”
