Q2 2009 / GAWDA is in Trouble!

GAWDA is in Trouble? Well, those are the rumors, but the facts present a somewhat different picture. President Britt Lovin confronted those rumors head on, launching the Chicago Spring Management Conference (SMC) with just those four words: “GAWDA is in Trouble!” He then presented facts and figures that supported an entirely different conclusion – GAWDA is not in trouble. Here are some edited excerpts from his presentation.

GAWDA has over $2 million in total assets. True, its long-term investments (which represent the reserves its Board elected to invest) did take a hit this year. However, that fact alone does not justify the conclusion that GAWDA is in trouble. GAWDA’s reserves still total over $1.1 million.

True, mergers and acquisitions, resulting in decreased membership, has in turn decreased dues. Is that what has its members buzzing? Certainly the new dues schedule has caused much consternation among some members, particularly in the $5 million or less category.

However, the fact remains that dues revenues actually increased 20% in the period 11/1/08 – 12/31/09, in spite of a 25% reduction in membership. 

The table below shows some key statistics revealing the extent of the reduction in membership. It is difficult to determine how many members left because of increased dues, or the economic recession. GAWDA’s research shows similar reductions in other supplier/distributor trade associations, even when dues were not increased.

This loss, including Airgas, is a concern to the Board of Directors. They are taking a number of steps such as adding value to current programs, identifying new members, encouraging resigned members to rejoin, and promoting regional meetings.

A lot of belt tightening is going on, everywhere, including at GAWDA.

It is GAWDA’s hope that many members will choose to return as economic problems subside. Based on what I heard at Chicago, I’d have to agree with Lovin that: “The GAWDA Board of Directors is not burying their heads in the sand and ignoring the harsh economic realities impacting our nation’s economy, the gases and welding industry, your individual companies, and our association.” If they were, they would not have addressed each issue with facts and figures. It seems to me they do have a plan to keep GAWDA strong.

Here is one last fact; and a personal observation – the management fee charged to GAWDA was reduced 40%, so it appears to me that GAWDA is not in Trouble.

As for this year’s SMC itself, both attendance at the meeting and exhibitor booth participation was understandably down. However, it was an enthusiastic group that did attend the event, and the traffic at the contact booths was formidable. In addition, the speaker program was full and enlightening.

In conclusion, Britt and GAWDA send a “thank you” to everyone that is worried about them, and invite them to experience the many benefits this organization has to offer.

If you would like a copy of Britt’s entire speech, drop me a line at

pcarlucci@specgasreport.com.