Manufacturers Build Momentum

Technology And People Make it Happen For Manufacturers

For the most part, manufacturers and suppliers are predicting moderate growth stimulated by new products and technologies, and the legislation that surrounds containment issues, alternative fuel and environmental issues. They cite the need for deeper market penetration. They also point to the importance of maintaining capacity in the face of growth. Each of the manufacturers quoted on the following pages also pointed to the relationships they enjoy with the distribution channel as a key element of their success in 2007. Perhaps their greatest concern is sharing their knowledge, as the importance of training the channel with respect to new technologies and products intensifies.

Our businesses are changing. The petroleum equipment industry is not the industry that it was back in the 1900s. As we look to the future, those manufacturers who can create top-of-mind awareness within a well-informed channel will continue to bring home the bacon, and perhaps even increased profitability.

We Can't Stand Still
“Regulatory pressure impacting double wall containment, alternative fuels and underground containment will drive sales increases in 2007,” says Craig McNeill, president, OPW Fueling Components (Cincinnati, OH). The company will introduce new products in each quarter, breaking the mold with the use of new technologies that will deliver new solutions. McNeill explains, “Everyone wants cleaner water and air. It is up to us to reinvent the wheel in order to provide the solutions the marketplace demands. Business is all about satisfying the customer with new products that are delivered on time.” The company will focus more on making better use of online technologies in 2007 to create shorter lead times.

According to Albert Dorris, president and CEO, Xerxes Corporation (Minneapolis, MN) “continues to grow as a result of increasing our market share.” Describing 2007 as less than dramatic, it is that much more important to remain lean. Dorris adds, “As major oil companies continue to reduce their ownership stakes within the retail market, it is even more important for us to strengthen our training efforts. As we evolve, the distributor is becoming more significant as a part of our strategic plan.”

“Graco has never rolled backwards,” says Glenn Will, sales director, Graco, Inc. (Minneapolis, MN). Will explains, “We are bolstering our sales efforts worldwide, anywhere that is not boycotted by the U.S. government.” Referring to recently launched technology-driven products, he adds, “As products become more technologically advanced, the distribution channel must be well-versed on the product. Our sales force's number one priority is to support the distributor in this challenge.”

To increase efficiencies, Gorman-Rupp Company (Mansfield, OH) is contemplating a new machining center, located in an adjacent building. The 300,000+ sq. ft. facility will support corporate-wide manufacturing operations. Tom Seymour, vice president of sales and marketing, says, “Technology is moving at a rapid pace, further complicated by the requirements surrounding the pumping of new materials. Manufacturers must position themselves to respond to the need for increased training efforts targeting the distribution channel. The use of Internet-based technology provides us with an opportunity to convey more information to more distributors.”

“The combination of a new pulser product in the 2nd Quarter and increased distribution in the northeastern U.S. will drive an expanded customer base,” according to Rick Bickle, president, Integrated Control Systems (Grand Prairie, TX). The company is creating synergy between products, marketing itself as a single source provider of electronics for the commercial fueling facility. Bickle adds, “PEI distributors are being cut out of the loop in some cases, when larger companies attempt to go around them. We regard the distributor as a service branch, and as such, we need them.”

“The number of stations that will undergo refurbishing and the installation and upgrade of double-wall spill containers, combined with an increased focus on ORVR compatibility, is encouraging,” says Jim Lawrence, president, EMCO Wheaton Retail Corp. (Wilson, NC). The 1st Quarter introduction of the EMCO/Hirt product will further support ORVR compatibility requirements. Lawrence adds, “We are expanding our line of E85-compatible equipment, and by June our entire product line will include E85-compatible versions. It is an expensive product to inventory. In effect, we are doubling our product offering. While the preference is for some of the E85 products to be made to order rather than immediately in stock, we will have to maintain adequate inventories or we will not get the business.”

“The introduction of new propane engine system products available for fleet use and an E85 alternative fuel dispenser will drive rapid growth,” says Jim Jensen, vice president of sales and marketing, CleanFUEL USA (Georgetown, TX). Jensen adds, “We are hiring new people almost weekly in preparation for new product introductions scheduled for the second half of the year. Our headcount at year end will be up 50%.” In order to add even more firepower to its arsenal of tools, the company will also open a new 20,000 sq. ft. office in Michigan.

New product designs scheduled for a 2nd Quarter introduction will help to support Catlow, Inc.'s (Tipp City, OH) projected growth of 8-10%. An additional line of recovery products to be launched during the last quarter of 2007 or 1st Quarter of 2008 will address upcoming regulations in California. Cameron Carmack, president and COO, says, “It is up to the manufacturer to sell his product and then support it through distribution. The days of single source distributors who sell a particular product because they have had a 10- to 15-year-old relationship are over. Distributors are representing various multiple lines and, in order to command their attention, I must focus on product quality.”

“A diversified product line will help to drive an increase in sales of slightly less than 10%,” says J.T. Celani, vice president, Davis Airtech Inc. (Conyers, GA). The company is investing in personnel with an additional inside salesperson and two additional craftsmen responsible for the rebuilding of products.

With growth comes the need for increased production capabilities and infrastructure improvements. Substantial investments in manufacturing processes will support Husky Corporation's (Pacific, MO) anticipated double-digit growth. Grenville Sutcliffe, president, points to the launch of new, enhanced vapor recovery products, pending the anticipated 4th Quarter approval for the second phase of the vapor recovery system for California, as an additional driver of future growth. Sutcliffe also mentions the importance of inventory control and his company's efforts to support the distribution channel's need to reduce the product they inventory. He says, “The key is for us to provide the distribution channel with the products they need, when they need them, as fast as possible.”

“Emerging markets, including those in China and India, will help support a worldwide sales increase of 20%, while domestic sales grow at the rate of 5%,” says Don Kenney, president and COO, Franklin Fueling Systems (Madison, WI). New products are slated for introduction during the 2nd and 3rd Quarters. In order to increase manufacturing capacity, the company has completed construction of a 75,000 sq. ft. addition, doubling its facility size, and will add about 30 employees. Citing the partnering relationship as crucial to success, Kenney says, “The roles of both the distributor and manufacturer are changing. As a manufacturer, we are helping our distributor partners put together systems that further our common goals.”

With an Eye Toward the Next Big Thing
To reach 2007 objectives, Alpina Ambiental S.A. (Sao Bernardo, Brazil) will invest in research and development of new technologies and increased marketing efforts. The company will add additional branches during the first half of this year. Marco A.G. Formicola, director, says, “We will enhance our partnering relationship with distributors by increasing our training efforts as we introduce new technologies. Training is a must when we talk about technologies pertaining to environmental protection.”

Sam Goode, chairman and CEO, National-Spencer, Inc. (Wichita, KS), is hoping for sales to remain level with 2006 numbers. The company will introduce six unique products that support the dispensing of fuels in the biodiesel and E85 environments. Goode says, “The number of suppliers in our industry continues to grow, which is creating a more competitive marketplace. To remain competitive, we are focusing on our brand, emphasizing superior service and superior quality.” While the company currently delivers 95% of its products within a 24-hour lead time, the goal is to move that number closer to 100%.

Anticipating a growth in sales of less than 5%, Gilbarco Veeder-Root (Greensboro, NC) will introduce new products throughout the year. Especially noteworthy is a 2nd Quarter introduction of a fully integrated fueling system. “Investments in sales personnel who are capable of providing distributors with the right tools and skills needed to deliver product to the marketplace is critical to our future growth. The relationship with our distributors is critical. We see a lot of potential for improving how we and our distributor partners deliver our product to the marketplace. We need to simplify our product offerings in order to receive better sales and support capability from distributors,” says Martin Gafinowitz, president.

New products introduced throughout the year will help to increase MID:COM's (Hampton, IA) 2007 sales, including the April 2007 launch of a high-end Windows XP-based product that will sit in the truck's cab and interface with the home office, providing meter equipment data as well as mapping, routing and route optimization information. Additional enhancements for the company's e-count electronic register, launched late last year, will be introduced throughout the last half of the year. Rick Salvesen, vice president of engineering, says, “We are in a different world. While our factory representatives can visit with a distributor's customer and provide the required training, we need to develop the distributor's level of knowledge as products become more technically sophisticated.”

“A 1st Quarter introduction of a new line of watertight manhole covers and multi-ports are two offerings that will drive a 5% growth in sales,” says Jim Goodman, president, FibreLite Corporation (Pawcatuck, CT). While his company focused on R&D in 2006, 2007 will be a year of focused efforts on sales and marketing. Says Goodman, “We will stress customer service and initiate a push on decreased delivery times. In a perfect world, our delivery cycle should be two to three weeks. It is currently three to four weeks, which is a dramatic improvement from the six to eight weeks that was more typical prior to the opening of our U.S. facility.” An anticipated new hire of an additional employee, responsible for distributor support, will also help to enhance the company's focus on customer service.

The Nordic and Baltic markets are transitioning from the traditional service stations to unmanned outlets located near hypermarkets. Peter Hutton, president, Autotank Oy Ab (Tampere, Finland), expects a 10% increase in sales as distributors add greater value to the supply chain. Growth will continue to be driven by an increased number of customers who are upgrading payment terminals and back office systems to comply with new EMV credit card security regulations. To capitalize on increased potential growth in Russia and Poland, the company will expand its physical presence in Russia. Hutton says, “While most countries are opting for a blend of 'biofuel into gasoline,' Sweden's requirements for separate dispensing and storage facilities for E85 will drive increased sales.” New products include a range of payment terminals with EMV capability incorporating new 12-inch screens with technologies that adapt well to Nordic climates, as well as several new dispensers.

Rick Long, president, RDM Industrial Electronics, Inc. (Nebo, NC), expects sales to increase by at least 10-15%. He says, “We work hard and do what we have to do in order to serve our customers. We will increase market share, competing not on price but by remaining focused on quality.” Long will spend more time heightening his company's visibility with distributors, even if it's just a matter of picking up the telephone and talking with them. Long adds, “If I am a distributor's second choice, I have a very good chance of being his first the next time.”

As a young company, Petroleum Parts Inc. (Fort Wayne, IN) is projected to grow its sales by 20% in 2007. By mid-year, the company anticipates either an addition to its existing facility or the acquisition of a new facility in order to grow its square footage by at least 12,000 sq. ft. Rick Byanski, president, is exploring a 1st Quarter broadening of his company's product line in order to serve a wider market.

“Private label products, as well as the introduction of new technologies introduced at mid-year, will drive a 20% growth in sales,” says Morris Taylor, president, eFueling Technologies (Austin, TX). “We must all be prepared for change,” says Taylor. “We spend a lot of time on market research in order to better understand our customers' needs.”

A new marketing effort, a new marketing executive, and a new network of manufacturers' representatives are all focused on a better-functioning distribution channel that will drive Diversified Products Manufacturing's (Oroville, CA) sales increase of 25-30%. The company will introduce a new bonding agent and a low-cost snap-on fitting. John Rowe, general manager, says, “A proactive training program targeting distributors and contractors is increasing product awareness, which will also impact our ability to penetrate the market.”

Tote-A-Lube (Motley, MN) is consistently growing at the rate of about 35% a year. A projected 2007 sales growth of 30% will be supported by the 1st Quarter introduction of a wall-stacker product, as well as the 2nd Quarter introduction of an oil filtering apparatus. The company may also introduce an ultra-capacity tank later in the year. Ron Carlson, president, says, “The wall-stacker product uses the same patented technology as the Tote-A-Lube tanks, except that the wall-stacker only occupies a 19-inch-wide space, allowing the end-user to stack tanks vertically.”

Bennett Pump Company (Spring Lake, MI) is projecting a 35% growth in domestic sales and anticipates the possibility of doubling its global sales. Tom Thompson, president, says, “We are experiencing rapid growth, driven by the introduction of new products, modifications to our sales process and how we go to market.” New product introductions throughout the year will include high-speed products, products targeting the truck stop industry, and products for long-hose fueling applications utilized by marinas and other niche markets. E85 products, LPG, CNG and hydrogen dispensers are also on tap for later in the year. In anticipation of 2008 new truck emission standards, the company is exploring the introduction of a urea dispenser product. Perhaps having the greatest impact on sales is a revamped sales force. Thompson says, “We are hiring engineers and teaching them how to sell our products. We are also spending a lot of time developing programs to help distributors train their personnel, utilizing a computerized home study course. Upon satisfactory completion of the course, the technician is certified by us.”

Brad Holmes, sales manager, Clay & Bailey Mfg. Co. (Kansas City, MO), is forecasting a growth in sales revenue of 5-10%. New products to be introduced throughout the year will broaden the company's aboveground storage tank offerings. Holmes says, “A new water absorbent product will allow the end-user to economically remove water from a spill containment box or fuel tank.”

It's About Education and Training
In an environment impacted by clean air, ethanol and E85 mandates, John Gaither, vice president of engineering, Champion Laboratories (Albion, IL), notes a greater number of filter changes than in the past. He explains, “Ethanol's greater affinity for water is causing more filter-related problems. It is just one more contaminant that end-users must deal with.” In light of the need to replace filters more frequently, the company is planning to introduce a lower-cost OEM filter, reducing both costs and waste. Gaither says, “Each of us has a vested interest in the technical sessions offered by PEI. The seminars have helped the distributor stay up-to-date with respect to the impact each fuel change has on filter items.”

With fewer tank manufacturers, Tommy Wiggins, president, General Industries (Goldsboro, NC), anticipates that 2007 sales will equal 2006 sales. He says, “The customers who have delayed buying decisions during the last few years are finally making the decision to act. We will do the big three: deliver a quality product, on time, and at a competitive number.”

A product allowing the conversion of a single-walled tank to a double-walled tank while remaining underground, introduced during the 1st Quarter, will contribute to an overall growth in sales of 15-20% for Western Fiberglass Inc. (Santa Rosa, CA). Michael Lewis, CEO, explains, “In the new system, all components are located inside the sump. There is a continual need for distributor training, especially with regards to specifying the product and the in-field application of the product. The Clean Water Act only makes the need for more education more intense.”

Jay Nelson, president, Excel Tire Gauge (Warwick, RI), says, “As a small company, our sales tripled in 2006, and I expect them to double in 2007.” By year-end, Nelson expects to see an increased interest in self-contained nitrogen towers. “My goal for 2007 is to create more awareness of our products and the support we extend to the distribution channel.”

Stable Markets Set Stage for Increased Communication
Lonnie King, president and CEO, Fashion Inc. (Ottawa, KS), says that his customers are renovating, expanding and building new properties at a rapid pace. His hope is to match the volume his company enjoyed in 2006. “Distribution in this industry is continually getting squeezed, and it's probably not going to end. Distributors who continue to grow have focused their attention on their company's service capabilities. They continue to become more technically competent in the structural end of the business.”

New designs will drive an escalation in the use of DCI Marketing's (Milwaukee, WI) smoker's outposts. Harry Bloom, group vice president, also points to re-branding activity that will cause marketers to spruce up the exteriors of their stores and gas stations.

Thomas Bagby, president, Bagby Gage Stick Inc. (Pinson, AL), expects continued stability. Bagby says, “Our market and our customers are impacted most by the freight costs associated with the shipping of a relatively inexpensive product.” The company will continue to market, reaffirming its relationships with existing customers as it targets new prospects.

Superior Canopy's (Hamilton, IN) sales activity is expected to increase by 5% in 2007. A recently completed 44,000 sq. ft. expansion to an existing facility will enable the company to meet the needs of its distribution channel more efficiently. Brian Hayes, president, says, “It's the personal contact that we have with the distributors that drives our sales. It's based on teamwork. I often talk with an individual twice a week in order to maintain open lines of communication.”

Following a recent acquisition, increased market share will support B & K Tank Gauge Company's (Somerville, NJ) sales growth of 8-10%. Walt Wehof, president, says, “While we would be hard-pressed to replace the hardwood material utilized in our product with another composite material, we are talking with an individual who wants us to produce our product with a different type of material, potentially speeding up the delivery of the product, because of the time it takes for sticks to dry. If we are able to physically see the measurement on the stick without having to wait for it to dry, a driver's time making deliveries will be more efficient.” Still another potential new product on the horizon is a thermometer on a stick in an effort to facilitate temperature correction.

“Steadily improving market conditions will result in a growth in sales of 10%,” according to Jeff Androlia, president, Morgan Brothers Company (Beaver Falls, PA). The company's number one priority in 2007 is to communicate more with distributors in order to maintain the inventory levels that a growth in sales will require. In pointing out the need for better communication between distributors and manufacturers, Androlia says, “When the distributor needs a product, he needs a quick turnaround, because most of the time orders are job specific. The manufacturer is forced to maintain more inventory.”

Alternative fuel initiatives and E85-related business will drive Petroleum Solutions Inc.'s (Raleigh, NC) 10-15% growth in sales. Terry Perry, president, says, “We may look at expanding our shop during the 2nd or 3rd Quarter of this year. An additional 1,600 to 1,800 square feet would provide us with the breathing room we need in order to increase capacity.”

High-Tech Solutions
Samuel Shanes, chairman, Talk-A-Phone Co. (Chicago, IL), expects his sales to remain level, but possibly impacted by the development of the “next big thing” to hit our industry. Shanes explains, “The concept of a totally unattended self-service station has been approved by fire marshals, provided there is a system for which the end-user's customer can communicate with emergency services.” The sales of an intercom system with speakers built into the canopy or the dispenser columns, operating over telephone lines and linked to 911 services, could be dramatically impacted, depending on how quickly this new concept develops.”

Rod Smith, president, Freedom Electronics (Kennesaw, GA), describes the competition for remanufacturers as acute. Regardless, Smith expects a 10-20% growth in sales. He says, “2007 will be our 10th year in business. There is still a great deal of the U.S. that my company has not penetrated. This business is about people and relationships, and we are still focused on developing the relationships my company needs to grow our business.”

“A new marketing strategy will help to support a projected sales increase of 20%,” says John Garrity, president, Loxahatchee Electronics (Lake Worth, FL). New replacement keypads for the outdoor card readers capable of changing along with changing marketing brands will be introduced during the 1st Quarter.

A new version of Vertical Market Software's (Pensacola, FL) mobile data product for field technicians will help to maintain 2006 sales numbers. Jim Snyder, president, says, “The technician will be able to communicate the data required to generate invoices from the field.”

Expecting sales to remain level with 2006 numbers as end-users consider the investment required to take advantage of the latest technologies, Ron Walker, president, Allied Electronics (Bristol, PA), says, “The use of automation to remotely manage a site's signage and pricing at the dispenser is becoming more important in 2007.” Walker anticipates that by year-end he will have converted a fair number of his existing customers to his recently introduced NexGen product.

“A continued effort to integrate CCTV and POS systems, providing customers with the technology needed to not only identify employee theft problems, but to successfully prosecute them, will support a growth in sales of 10-15%,” according to Ted Humphrey, president, Securtex Digital (Dayton, OH). The company has written the software required to eliminate much of the cost associated with the integration of CCTV and POS systems. On tap for this year is the introduction of high-definition CCTV systems utilizing mega-pixel camera technology.

Research and development activity accompanied by new product introductions in the 1st and 2nd Quarters will drive Syn-Tech Systems Inc.'s (Tallahassee, FL) sales growth of 20%. Doug Dunlap, president, says, “Part of the new technology that we are introducing revolves around smart vehicle technology. It's really bringing more data and data capability to the actual vehicle that rolls down the road and making that information available to management.”

By building intelligence into the DVR and creating the ability to capture data regarding the number of people who enter a store and purchase product over the counter, i3DVR International Inc. (Scarborough, ON, Canada) is providing valuable database information and supporting a potential 20% increase in sales. The company expects to add 2,500 to 3,000 square feet to its Buffalo, New York, distribution center, making delivery turnaround time that much shorter. Vy Hoang, executive vice president, adds, “Security is becoming regulated. The end-user is liable if someone is hurt or killed on his premises. A lot of states are enforcing regulation on low-voltage installs.”

Greg Stadjuhar, vice president of sales & marketing, Skyline Products Price Displays Division (Colorado Springs, CO), hopes to move into a new facility, moving the company's three divisions into one facility in 2008. Stadjuhar expects his sales growth of 25% in 2007 to be driven by new product introductions and supported by additional distributor relationships. New products will strive to meet the end-users' need to control pricing from a remote location and to drive the efficiencies that enable them to collect and distribute data and pricing information instantaneously. New products for the 2nd Quarter include a PDA-type device that allows the operator to control his pricing in various stores while mobile, and for the 3rd Quarter, a system that fully integrates data from a third-party source.

After a 50% growth in 2006, Sanjay Thakker, president, Gasoline Advertising Products USA (Clifton, NJ), expects his six-year-old company to grow its sales by 20-30% in 2007. New product introductions include a pump top price sign with a simpler mounting and a slicker appearance. Thakker says, “Our growth has been largely driven by sales activity generated in the northeastern part of the U.S. We hope to penetrate markets in the Midwest and on the West Coast in 2007.” The company anticipates relocating to a 15,000-20,000 sq. ft. facility sometime in 2007, which will enable Thakker's team to reduce the volume of work that is currently outsourced to subcontractors.

The retail side of Orpak USA's (Hackensack, NJ) business will grow by 30% in 2007. The increased costs per gallon are causing companies to look at vehicle recognition products more closely. Pete Moyer, sales director, says, “A new system to be introduced by year-end will allow us to be the front-end authorizer, providing a wireless device that sits around the fuel inlet and interfaces with any kind of pump or POS. The device reads all kinds of data, including the user's odometer, engine hours, phone codes, even if the user was using his wiper blades or if he had his seat belt on.” Moyer's challenge for 2007 is simple: U.S. distribution. His goal is to add at least a dozen this year.

Automation technology will enhance the C-store's ability to operate efficiently while monitoring the business's bottom line. Contemplating a move to a new facility, Paul Metko, president, Convenience Store Automation Inc. (Appleton, WI), says that if his company were to move, it would happen in the 4th Quarter and would mean a tripling of his existing square footage. A sales growth of 30-40% will be driven, at least in part, by the 1st Quarter introduction of pre-paid cards for the individual C-store and enhancements to the company's real time inventory control product.

The increased volatility of both the wholesale and retail gasoline markets will help to contribute to a tripling of sales, says Bill E. Pickard, president, PWM Electronic Price Signs Inc. (Houston, TX). Pickard says, “The retailer is forced to respond more quickly than he has in the past.” SpiderNet, to be introduced during the 1st Quarter, will assure the end-user of the right message appearing on the right reader board from a remote location, utilizing a database of store attributes, cross referenced with a message library. Also to be launched during the 1st Quarter is an LED backlite, eliminating the need and costs for changing the fluorescent lighting. To accommodate an expanded office staff, the company plans to double its office space April 1, 2007.

Seeking Distribution to Penetrate Underserved Regions
Further development of the distribution channel and the establishment of deeper relationships in underserved regions will drive Oasis Car Wash Systems' (Galena, KS) growth. The company is currently shopping for three or four additional distributors to support its sales efforts, especially in the western portion of the U.S. Expecting a level year, Mitch Wade, vice president of sales, looks forward to the introduction of several new product enhancements by the end of the 1st Quarter.

Specialty Equipment Company (Mendota Heights, MN) will introduce a new touch-free, automatic rollover machine in March. Other new products slated for introduction include a pump assembly that will fit into the bay, a modulating single pump, self-service system and, in the 4th Quarter, a touch pad meter. Bryan Russell, president, says, “Some of my competitors are running amok and forgetting about the people who have brought them the successes that they have enjoyed. We are actively contacting distributors and telling them that no one should tell them what they have to buy and who they have to buy it from. Distributors are independent business people and should be able to represent the manufacturers that they choose to represent, in order to meet their customers' specific needs.”

Ryko Manufacturing Inc. (Grimes, IA) is targeting additional market niches in order to capture increased market share. Scott Clawson, president, says, “We have focused a lot on building a service and support infrastructure for our distributor group and other partners. This infrastructure has helped us to target the smaller and regional oil chains for car wash business.” The company will introduce a touch-free product with optimized impingement during the 1st Quarter. A new code activation coin box fully integrated with the petroleum retailer's marketing and loyalty programs will be introduced in March.

The introduction of new modified pumping stations and the marketing of a new company-wide two-year warranty program will support Powerain Systems Inc.'s (Tower, MN) increased sales activity. Jack DeMarre, director of sales and marketing, says, “For the first time, we are very strongly placed in certain markets and we're able to take business to our distributors. With our ability to add enhanced value to the partnership we enjoy with the distributor, we will add representation in underserved markets.”

“A new friction machine will generate marketplace excitement at the start of the 2nd Quarter,” says Charlie Lieb, president, PDQ Manufacturing (DePere, WI). Lieb sees more upgrades of older car wash equipment in 2007. He explains, “It won't necessarily be wreck and rebuild, but I think it will be replacement and upgrading of existing equipment. Purchases have been delayed as money was spent on the purchase and re-branding of stations.”

A growing market will support the 4-5% growth in sales expected by Dick Owens, president, ESCO Services Inc. (Tampa, FL). The company will expand its Colorado facility to larger space increasing its square footage by 40%.

“It's all about having the right product and the right channel. It's also all about going deeper into the territory and capturing market share,” says Craig Campbell, vice president of sales and marketing, Mark VII Equipment (Arvada, CO). New conveyor technology adapted from products manufactured by the company's European operations, introduced during the 1st Quarter, will help to drive a projected 20% growth in sales. A new state-of-the-art manufacturing facility, the result of a more than $2M investment, will set the stage for a 100% retooling of processes that Campbell believes will create significant efficiency improvements. He says, “My number one strategic priority is to improve our position with regards to the huge fleet of old car washes that are being modernized.”

Quality Is Job One
“An improved economy will drive double-digit sales growth,” according to Mark Cherry, president, Flexing (Sherman, TX). A redesigned fuel dispensing hose and a new flex connector will be introduced during the 1st Quarter.

Goodyear Engineered Products (Akron, OH) has positioned itself to reap the benefits of the growth of the alternative fuels market. The company will introduce new biodiesel and ethanol hose products that are also capable of handling normal gasoline requirements. Additionally, its global presence affords the company an opportunity to develop new hose products to accommodate other fuels that may be utilized in the future. In order to increase capacity, the company's Norfolk, Nebraska, facility's plant expansion will be completed during the first half of the year. Keith Collett, marketing manager, North American Industrial Tire and Hose, says, “Sales growth will be slightly ahead of the 6% growth we enjoyed in 2006. Our sales strength rests on our ability to maintain the proper inventories to support the distribution channel and our ability to introduce the products that the market needs.”

Planned growth in OPW-Fueling Containment Systems (Smithfield, NC) sales will be supported by the 2nd Quarter introduction of a Loop System product which will, according to Patrick Schultz, president, “revolutionize the underground piping and tank dispenser island fueling systems. The Loop System will be factory assembled and tested and, by design, eliminate dispenser sump modification in the field, ensuring better quality control and eliminating field installation errors.”

“A continual introduction of new products will drive sales growth of possibly double digits,” says Brad Cox, president, Coxreels Inc. (Tempe, AZ). With increased sales, the company is developing the infrastructure required for increased efficiencies and capacity. Earlier this year, the company renovated its offices and began a complete factory overhaul. Construction of additional manufacturing and warehouse space is expected to be complete by the 4th Quarter. Cox says, “Our distributors need a manufacturer who is willing to support their role as the seller of product. It does not support the distributor/supplier relationship to look for sales opportunities outside of the channel, regardless of their size.”

William Rosselle, COO, Power Integrity Corporation (Greensboro, NC), has two simple missions: to reduce the end-customer's cost of building a site, and to create more opportunities for his distributors to sell more products. Rosselle says, “We will introduce at least two, possibly three, new products that will contribute to our sales growth of 10-20%.” By increasing the attention his company places on distributor training, Rosselle says, the distributor can improve his profit margins. He explains, “We have referencable customers. By working closely with the distributor and dispenser manufacturer, we can create a win/win/win situation for everyone.”

As Glyn Owens, commercial director, PetroTechnik (Ipswich, Suffolk, United Kingdom), expands the company's customer base in new countries, his sales will continue to increase. He anticipates sales in 2007 to grow by 25%. “We are investing heavily in certain countries in order to grow our market share.” Owens indicates that sales in China, India and Japan are growing at a fair pace; sales in the U.S. will be dramatically impacted, and could double, with the recent UL971 rating for underground pipe work in all four fuel categories. Owens anticipates that quarterly new product introductions will help him to add distribution in 2007. He says, “We currently have five distributors in the U.S. I would like to add 15.”

Paola Recendez, vice president of administration, S. Bravo Systems Inc. (Commerce, CA), says that her company has never veered from the quality standards first established by her father, the company's founder. “Customers are putting us on their spec list again, after using lower cost products which have since failed.” Recendez, expecting growth of 30-40%, will introduce a new, pre-installed fiberglass fitting for single- or double-walled tanks and a new fiberglass, single mechanical seal, double-walled spill bucket in the 1st Quarter.

Making the Partnership Work
Kathy Frank, president, Krueger Sentry Gauge Company (Green Bay, WI), expects 2007 sales to be level with 2006 sales. In an effort to drive more sales, her company will focus on new regulations impacting alternative fuels, including E85. To make the best use of all that technology has to offer, the company is investing in its online support of the distribution channel. Says Frank, “We are helping our distributor partners to make better use of our online systems. Distributors can access their account online, place their orders on our systems, and monitor status.”

While Reed Leighton, president and CEO, Leighton O'Brien (Annapolis, MD), anticipates growth in Asia, Australia and Africa, U.S. sales will show the greatest growth. The company (formerly known as MassTech USA) is re-branding itself, focused on the RedOne Outsourced Tank Management Process, as the industry moves more toward outsourced tank monitoring. Depending on various certifying bodies, two new services will be introduced during the second half of the year. The first will enable companies to meet environmental compliance requirements without having to close their sites. The second will result in a 50% reduction in the testing time required for year-end compliance tests. Leighton says, “The industry is beginning to see the need for daily monitoring. The biggest leaks we see come from double-walled tanks. In an environment in which oil company customers are feeling head count pressures, the need for outsourcing becomes more important.”

Increased willingness to outsource inspections will support Chuck Pedano, vice president, CROMPCO Corp. (Plymouth Meeting, PA), in his efforts to grow his company's sales by more than 10% in 2007. He says, “While we will not duplicate certain specialty programs that were successful in 2006, I see the upcoming (August 2007) phasing-in of federal inspection guidelines as an opportunity for growth. Most states will utilize third-party inspections as opposed to an in-house inspection program.” The company has also, for the first time, put together a formal marketing plan in which both distributors and manufacturers' reps will play an important part.

As the latest round of EPA guidelines takes effect, Joie Folkers, vice president of sales and marketing, Ameron International/Fiberglass Composite Pipe Group (Houston, TX), expects sales to increase by at least double digits. New requirements for continued monitoring of equipment will ensure long-term growth. Folkers says, “Our commitment to the distribution channel remains constant in good times and in bad times. Our distributors work very hard during a down economy. For that reason alone, should large projects come in, they should automatically be referred to the distributor.”

The 1st Quarter introduction of Viking Housings, a new line of large housings for bulk filtration, will contribute to Central Illinois Manufacturing Company's (Bement, IL) sales growth of at least 10%. Jim Ayers, president, says, “In order for the channel to make money and stay in business, we must all be able to anticipate demand for product. There was incredible pressure on us in 2006 to move record-setting numbers of product out the door within a two-day turnaround cycle. We are better prepared this year for record-setting demand.”

Energy regulations mandated in August 2005, together with an increased number of replacement programs, will increase the number of environmental testing and inspections performed domestically by Tanknology (Austin, TX) and create a 12-14% growth in domestic sales. The manufacturing of environmental test equipment, licensed and leased to international companies that are developing regulations consistent with EPA standards, is expected to grow by 20-25% as the company sets its sights on the Pacific Rim, China and Eastern Europe. Allen Porter, president and CEO, says, “Our plan is to continue to expand our service as we grow our technician base by 15%. We also anticipate adding at least six new distributors to our roster of thirteen.”

Greg Young, president, Vaporless Manufacturing (Prescott Valley, AZ), says his company worked throughout 2006 to ensure that his leak detection products would be compatible with high concentration ethanol/methanol and biodiesel fuels. Now, stock equipment comes out the door ready for either type of fuel, and will help to generate a sales growth of 10-15%. Young says, “The challenge is to provide the distributor's individual salespeople with the training and education they need to sell our product effectively. We will introduce an individualized training program, provided in a CD or DVD format, to facilitate a greater understanding of our products, available during the 1st Quarter.”

“New container products designed to save the end-user time and money are slated for introduction during the 2nd Quarter and will support a sales increase of 30%,” says Steve Mozley, president, Petro Fiberglass Sumps (Charlotte, NC). Part of that growth will be sales to companies that purchased sump products, based on price considerations in the late 1990s. Unfortunately, many of those end-users are now spending more dollars to resolve leakage problems.

The work and preparation for increased sales done by Ted Warn, president, Progressive International Electronics (Raleigh, NC), during the past few years will pay off in 2007. A sales growth of 30-50%, largely offshore, will be partially driven by the 1st Quarter introduction of a card reader on a stick.

2007 is all about innovation and providing necessary solutions within a competitive environment. 2007 is also about relationships and communication. As manufacturers channel technology to deliver more and better solutions, they are also making the best use of technology to work more efficiently. With technology, they are reworking their processes in order to control costs and maintain shorter delivery cycles. Most important, they are creating systems that allow them to work more closely with their most valuable asset, their distribution channel.

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The PEI Journal • First Quarter 2007 • Volume 1, No. 1 • Contents are Copyright © Data Key Communications, Inc.
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