THANK YOU!

TEAMWORK

Outline Finance - David Walker Audit Committee - Britt Lovin Dues Task Force - Lloyd Robinson GAWDA U Online - Kent Van Amburg Young Executives - Richelle Smith-Brecht

Financial Overview Audit Results Strong Balance Sheet Reserves Revenues

Financial Overview Fiscal Year To Date Change To Calendar Year Consolidation Consultant Savings

Definition of Audit

Began as part of the Strategic Plan with Board in Phoenix, May 2007 Adopted by full Board September 2007 Last audit was done 2001 Formed Task Force (Britt, Jenny, David, Jack, Phil) Board set as formal committee in Chicago 2008 Members are President-Elect, 1 st Vice President, Treasurer, At-Large Distributor and At-Large Supplier

4 areas to evaluate Consultants not under contract &/or contract out of date 1.Consultants 2.Dues Structure 3.Budgeting Process 4.Association Management Fact driven Business approach

1. Consultant Revamping a. Evaluation 457 responses to survey Purpose of member survey was to assess use, satisfaction, and importance of consultants b. Surveyed 3 Groups 1. GAWDA membership 2. Other associations 3. Consultants Many associations eliminated their consultants Oversight of Financial and Contractual Issues

1.Utilization by Members 2/3 of members utilized consultants 88% distributors have a need for safety/dot 49% distributors indicated consultants as primary reason for membership Mike Dodd most used by members 2.Perceived Performance Mike Dodd scored highest Survey of Members - Outside Firm

1.Survey Results Breakdown Distributors 299 / 65% Suppliers 158 / 35% Categories DistributorsSuppliers 3m< 10%3m< 12% 3-25m 31%3-25m 10% >25m 23%>25m 11% Join Date 1960 & Before23% 1961 to % 1990 to % Internal - Committee Members

1.. 2.Financial Considerations 2005 cost$334, cost$450, cost$400, cost$368,569 * projected 2009 cost$267,000 * budget One year terms (1st year hybrid) (2009) Internal - Committee Members

Discussions with Consultants Told them what we were doing Q&A individually and together Defined scope of services Contracting 1. Requests for Proposals Ask each to submit proposals based on scope of services 2. Evaluation of Alternatives Committee calls Phone calls to each consultant with Q & A Offers and counter offers Clarification of offers Internal - Committee Members

Discussions with Consultants (cont.) Outcomes: 1. Rick Schweitzer – Government Affairs/HR 2. Mike Dodd – DOT/Safety 3. Tom Badstubner - FDA/Medical 4. TAP Resources - Operations 5. David Irving - Insurance 6. Mike Degan – Fumes 7. Joe Ellers - Sales Internal - Committee Members

Cost Savings 2007/08: $ 31, /09: $101,569 Self perpetuating Assigned to a committee Must report contacts under uniform reporting system One year contracts Through This We Will Be a Better Association Q & A 1:30 to 2:30 in Imperial Ballroom H & I Summary

WINSTON CHURCHILL “CHANGE IS THE PRICE OF SURVIVAL”

Equity and Fairness Significant member concern Will increase in consolidation effect benefits? Are mega distributors paying fair share? Should number of categories be changed?

Equity and Fairness 80% of members below $10M $100M members not paying fair share Handling Dual Members (Distributor/Supplier) Equity of base dues for suppliers

Maintain Revenue Insures viability of GAWDA Maintain revenue with additional consolidations Distributor Programs-Consultants, GAWDA-U Strong and successful regional meetings Supplier Programs-Contact Booths at meetings Supplier access to membership and networking

Proposed Changes Change from fiscal to calendar year 14 months for price of 12 in 2009 Across the board percentage increase

Distributor side change from levels Smaller distributors between 2-5% increase 30% increase for distributors over $100M Proposed Changes

Supplier side floor for access/participation Supplier side less than $5M --$1500/yr Supplier side change from categories Proposed Changes

AWISCO gets 28% increase to show fairness

In Conclusion Sustained Benefits Organizational Success Mutual Support

Companies that have signed training agreement: 6 total GAWDA University On-line Butler Gas General Distributing Company Toll Company Welder’s Supply Company of Louisville Scott Gross Company AWISCO

Employee Users to date: 40 Companies testing program: more than 30 Updated the GAWDA U Brochure to include the 27 current courses and 16 future course offerings. GAWDA University On-line

Contact Kate Cole at Headquarters Introductory webinar with Norco Receive temporary access to explore program Sign training agreement with GAWDA Managers receive training from Norco on accessing curricula and maintaining online accounts of employees training GAWDA will bill you quarterly based on usage

Program Goal To provide young executives: Educational programming Networking opportunities Develop skills and knowledge of the industry

Program Eligibility 45 years of age or less Employed by GAWDA member company Excited about gases and welding industry Seeking ways to develop personally & professionally

How Do I Join? Complete an application at Provide a letter of reference

What Does YE Offer? Educational sessions at each SMC and annual conventions Networking events at all conferences Scholarships to University of Industrial Distribution Scholarships to many other programs Annual YE Retreat GAWDA Edge

Educational Sessions SMC- Chicago, Il March HR Committee presentation on wage and hour compliance SMC- Asheville, NC April Young Execs social event/ Tour of Biltmore estate Workshops by Horton Group

Young Distribution Professionals Conference 2008 – Eaglewood Resort and Spa Itasca, IL Aug 3-6 Golf Outing Networking 9 speakers Attended by 75 people from 40 different distributor associations GAWDA gave scholarships to 5 member company associates

GAWDA Edge is a publication designed for young professionals to help them grow their careers in the gases and welding industry. Network online Ask questions of peers Learn about the industry Opportunities for young execs to share with articles copies sent out electronically each month

Young Executives Volleyball and Beach Party Celebrate the end of summer with your GAWDA friends. Enjoy a summertime barbeque, sun, sand and fun while challenging your colleagues to a game of volleyball. Thursday September 25 th 10:00am -1:00pm at West Beach.