Dear PEI Member:
Here's a look at how business is going as the first quarter of 2010 draws to
a close.PCI compliance has helped many distributors, service companies
and a few manufacturers. On the service side, PCI's impact largely depends
on the size of the department and the mix of retail customers. Small service
departments are having trouble keeping up with the demand, while companies
with larger departments tell us that PCI has meant good―but
not necessarily great―business. With three
months to go before the July deadline and distributors in many cases faced
with a six-week equipment wait, PCI should continue to drive sales and service for
the next three to six months.
PCI has not been a panacea for everyone. It has diverted much of the
available money away from rehabs and new builds. The sale of new service
station equipment and construction of new retail sites have suffered. Most
of the new construction work is concentrated on the governmental/military,
commercial and industrial side of the industry. Too many car wash
manufacturers chasing too little new business continues to plague the car
wash industry.
The sale and installation of diesel exhaust fluid (DEF) equipment has
begun. Initial purchasers are fleets and automobile dealerships. Sales to
truck stops are spotty. A slow but steady roll-out was expected and that's
exactly what we are seeing.
Receivables are growing and continue to require constant vigilance.
End-user customers with cash flow problems are stringing out their
contractors―who string out their distributors―who
string out their manufacturers.
We are told by suppliers that several distributors/contractors are
struggling to pay their bills. This is neither indicative nor a precursor of
weakness in the industry. The problem, in each of the cases with which we
are familiar, has not been with the marketplace, but rather with management:
undercapitalization of the company, too rapid expansion, no insurance,
neglect, complacency, lawsuits, not knowing the true cost of doing business,
etc. |
Business Conditions
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IMPORTANT APPROACHING DEADLINES
March 31 is the deadline for applications for the PEI Foundation's Charles
D. Kemp Scholarships. The scholarships recognize deserving students who
are dependents of full-time employees with member companies in PEI's
manufacturer, distributor, service & construction, or affiliate divisions.
Scholarship selections are based on academic achievement, leadership,
character, need and the applicant's intent to contribute to the petroleum
and energy handling equipment industry. Awards are granted without regard to
race, creed, religion, gender, disability or national origin. You can
download the full scholarship guidelines and an application form at
www.pei.org/foundation. PEI
members and students should direct any questions about the application
process to Rick Long at rlong@pei.org.
If you have first-hand experience with ultra low sulfur diesel (ULSD)
and have not responded to an industry-wide survey on the subject, we
encourage you to do so before the April 6 deadline at
www.ulsdsurvey.com.
BRIEFLY
NOTED
The Lyden Co., Toledo, Ohio, announced March 8 that its retail
joint venture Truenorth Energy LLC has acquired 109 Shell-branded sites in
the greater Chicago area from its partner, Shell Oil Products US. Truenorth
operates and/or supplies 212 sites in Ohio and southwestern Michigan.
Ameron International, Houston, Texas, has appointed JV & Associates
as its representative in Florida.
Zeppini Industrial & Comercial S.A. and Ecoflex formed a joint venture March
4. A new brand, Zeppini Ecoflex, was created with a new visual identity and
a single line of environmental products for the local and international
service station markets.
Tanknology Inc., Austin, Texas, has announced that Ecología y Petróleo
(EPSA) of Tampico, Tamaulipas, Mexico has become an international licensee
of the company.
The U.S. Senate passed the "American Workers, State and Business Relief
Act" on March 10. Included in the bill is a one year extension of the
one dollar per gallon biodiesel blender's tax credit. The credit will also be available
retroactively for biodiesel produced during the credit's lapse. The
biodiesel tax credit expired December 31, 2009. The bill must now be
reconciled with the House and signed by the President, which could take
another week or two.
DEATHS
A. L. Underwood, owner of Mid-South Steel Products, Inc. for 30 years,
died March 11 at the age of 85. He began as a salesman for Mid-South in
1954 and bought the Cape Girardeau, Missouri-based company in 1957, working there until his retirement in 1987. He was preceded in death by
his wife, Lila. Survivors include two sons, Ron and Sonny; a daughter, Cathy
Matthews; and six grandchildren. Sonny and Ron are president and vice
president, respectively, of Mid-South Steel Products.
Emil Pawuk, president and founder of Emil Pawuk & Associates Inc. in
1958, died March 4 after a long illness. He was 85. A veteran of the U.S.
Army and U.S. Air Force, he is survived by his wife of 65 years, Irene; a
son, Mark, who worked with his father in the business; and two
grandchildren, Kassandra and Kyle.
MEMBERSHIP APPLICATIONS
Fuel tank cleaning equipment manufacturer. Fueltec Systems LLC,
3065 Jupiter Park Circle, Suite 3, Jupiter, Florida 33458, has applied for
manufacturer division membership. Ron Lenz is manager of the firm, which was
established in 2008. Fueltec Systems manufactures fuel tank cleaning
equipment and automatic polishing systems that are sold through
distributors. Sponsored for PEI membership by Chris Piatchek, PiSquare, St.
Louis, MO. www.fueltecsystems.com
Outdoor lighting manufacturer. Leotek Electronics USA Corp., 1330
Memorex Drive, Santa Clara, California 95050, has applied for manufacturer
division membership. Meg Myers is senior internal marketing manager for the
firm, which was established in 1992. Leotek Electronics
manufactures LED cooler lights and LED outdoor lighting which are sold
through distributors. Sponsored for PEI membership by Ian Burton, NuStar,
Shakopee, MN. www.leotek.com
Microbial contamination consulting firm. BCA Inc., P. O. Box
3659, Princeton, New Jersey 08543, has applied for affiliate division
membership. Dr. Frederick J. Passman is the principal for the firm, which was
established in 1992. The company offers consulting services relating to
microbial contamination in the petroleum industry. Sponsored for PEI
membership by James L. Hansen, HansenAscs, Rotterdam Junction, NY.
www.biodeterioration-control.com
California fuel systems design firm. SunWest Engineering
Constructors, Inc., 2766 Pomona Boulevard, Pomona, California 91768,
has applied for service and construction division membership. Pamela
Lawrence is president of the firm, which was established in 1994. The firm
offers fuel system design, compliance, testing, maintenance and repair.
Sponsored for PEI membership by Blair D. Shwedo, SEPSinc, Charlotte, NC.
www.sunwestengineering.com
Indiana fuel tank cleaning company. Clean Fuels of Indiana, 4620 East
900 S., Keystone, Indiana 46759, has applied for service and construction
division membership. Michael K. Vanover is the president of the firm, which
was established in 2000. Clean Fuels of Indiana provides fuel tank cleaning,
fuel decontamination and purification. Sponsored for PEI membership by
Daniel J. Esposito, OilEqpSup, Indianapolis, IN.
www.cleanfuelsindiana.com
New York tank installation company. Gemstar Construction Corp., 83
Jewett Avenue, Staten Island, New York 10302, has applied for service and
construction division membership. John Saia is president of the firm, which
was established in 1991. Gemstar specializes in the installation and removal
of underground and aboveground storage tanks. Sponsored for PEI membership
by William R. Klein, FranklinNY, College Point, NY.
www.gemstarcorp.com
Wyoming installation and service firm. Alpha Petroleum Services Inc.,
P. O. Box 1112, Rock Springs, Wyoming 82902, has applied for service and
construction division membership. John Kolb is president of the firm, which
was established in 1997. The company installs and services petroleum
equipment. Sponsored for PEI membership by Kirby Boutelle, EatonS&S, Denver,
CO.
ADMITTED TO PEI
- Simmons, Richardson, TX (mfr)
- Aucterus, LLC, Arroyo Grande, CA (aff)
- Solvport, Portland, OR (aff)
- RMS Solutions, Las Vegas, NV (aff)
- Equiptank Engineering, Anglesola, Spain (aff)
- Industrial Gas Technology, Inc., Bowling Green, KY (S&C)
- Southern Integrated Services, Inc., Atoka, TN (S&C)
- ProtoCore Technologies, St. Johns, FL (S&C)
- Ed Burke, Dennis D. Burke Oil Inc., Chelsea, MA (O&E)
- Clyde Dean, Dean Oil Co., Springfield, TN (O&E)
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