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Dear PEI Member: The
State of the Industry address during the 2018 PEI Convention revealed
that PEI manufacturers' satisfaction with the state of their businesses is at record high levels — an
overall score of 7.49 on a scale of 1 to 10. That compares with 6.87 in 2017
and 6.05 in 2015.
Data
presented at last week’s Council of Manufacturing Associations’ winter
meeting revealed manufacturers in other industries are equally confident.
Chad Moutrey, chief economist of the National Association of Manufacturers
(NAM), said that 88.7 percent of U.S. manufacturers have a positive or
somewhat positive outlook on their businesses. According to Moutrey, this trend began in early 2017 and accelerated after the December
2017 passage of the federal tax reform package.
All this
news is encouraging, exciting even. But the part of Moutrey’s presentation I
found most interesting was the issues manufacturers are concerned about.
Here are the top 10 business challenges manufacturers reported in the NAM
survey:
|
Attracting and retaining a quality workforce |
68.2% |
|
Increased raw materials cost |
65.1% |
|
Trade uncertainties |
60.4% |
|
Rising health care/insurance costs |
56.9% |
|
Transportation and logistics costs |
37.9% |
|
Weaker domestic economy and sales |
22.0% |
|
Strengthened U.S. dollar relative to other currencies |
21.4% |
|
Unfavorable business climate (i.e., taxes, regulations) |
18.5% |
|
Weaker global growth and export sales |
16.5% |
|
Access to capital |
4.4% |
Whether
you are a manufacturer, distributor, service contractor, affiliate or fuel
marketer, take time to develop your own list of concerns, along with plans
for how to tackle the biggest threats.
Good times
are worth celebrating. But they don’t last forever. That’s why anticipating
and planning for potential challenges is the mark of a truly well-run
business. |
Planning For Trouble
E15 Updates and Questions
Charles D. Kemp Scholarship Applications Open
Cadillac and Volkswagen Announce EV Plans
Respond to this Newsletter
by
e-mail to the editor, Rick Long at rlong@pei.org
or
join the discussion in the
Petroleum Equipment Forum
 |
|
E15
UPDATES AND QUESTIONS
The past two weeks have brought a flurry of
developments on the E15 front. Here are the three biggest.
- The Waiver. For several months, the U.S. Environmental
Protection Agency (EPA) has insisted it will complete a rulemaking to
waive summertime Reid Vapor Pressure restrictions on the fuel by June.
Such a waiver will make possible the year-round sale of E15 throughout the
U.S. However, because the rulemaking process is on pause thanks to the
partial government shutdown, E15 advocates are questioning whether that
timetable remains realistic. In his Jan. 16 confirmation hearing, Acting
EPA Administrator Andrew Wheeler did little to clarify the matter, saying
only that the agency will finalize the waiver in time for the summer
driving season “provided we are back in a reasonable amount of time.”
- Consumer Education Part 1. In a letter to the EPA,
Reps. Austin Scott, R-Ga, and Lois Frankel, D-Fla., urged the agency to
reduce the risk of E15 misfueling through enhanced consumer education and
dispenser labeling requirements. “The proposed rule will significantly
increase the risk of misfueling as more E15 fuel floods the market at a
time of year when small engine use is at a peak, ultimately harming the
millions of consumers who depend on a stable, safe fuel supply. It is
imperative that EPA … fix its currently inadequate E15 labeling by
including enhanced education measures and new labeling standards in any
effort to expand the sale of E15.”
- Consumer Education Part 2. The Renewable Fuels
Association (RFA) launched an entirely different kind of consumer
education campaign — touting not the dangers but the benefits of E15.
Using the tagline “E15. Clean. Affordable. Domestic. Fuel,” the campaign
began with digital ads in The Washington Post’s online edition and the
launch of a new consumer website.
CHARLES
D. KEMP SCHOLARSHIP APPLICATIONS AVAILABLE
The PEI Foundation is accepting
Charles D. Kemp Scholarship applications for the 2019-2020 academic
year.
Each year,
the PEI Foundation awards the $1,000 scholarships to deserving dependents of
PEI member company employees. To be eligible, an applicant must be a
dependent of a full-time employee of a member company in PEI’s manufacturer,
distributor, service and construction, or affiliate divisions. The applicant
also must plan to enroll as a full-time freshman for the 2019-2020 academic
year at an accredited four-year college or university. Recipients are
selected based on academic achievement, leadership, character, need and the
applicant’s intent to contribute to the future of the fuel and fluid
handling equipment industry.
For more
information and to download the scholarship guidelines and application form,
visit
www.pei.org/foundation. The application deadline is March 31, 2019.
ELECTRIC VEHICLE NEWS
General Motors, which will cease production of
the plug-in electric Chevrolet Volt this year, isn’t giving up on electric
vehicles (EVs). At the North American International Auto Show in Detroit,
the company unveiled concepts for a new Cadillac EV. CEO Mary Barra said the
as-yet-unnamed model will be a true luxury vehicle designed to compete with
Tesla and other high-end EVs.
Volkswagen
will begin manufacturing electric cars at its Chattanooga, Tennessee plant,
the company’s only U.S. production facility. Volkswagen is committing $800
million to the effort, which it expects will create 1,000 new jobs. The
first U.S.-produced Volkswagen EV will be a compact sport utility vehicle
called the I.D. Crozz. Production is expected to begin in 2022. The
Chattanooga effort is part of a broader Volkswagen initiative to manufacture
EVs at eight sites on three continents.
TRANSITIONS
Bill R White of D&H/United Fueling Solutions
will retire Jan. 31 after more than 60 years in the petroleum equipment
industry. White was the 1997 PEI president and has been a longtime member of
the PEI committees responsible for PEI/RP100: Recommended Practices for
Installation of Underground Liquid Storage Systems and PEI/RP200:
Recommended Practices for the Installation of Aboveground Storage Systems
for Motor Vehicle Fueling. PEI is deeply grateful for the service this
true gentleman has given the association and wishes him all the best.
PEI
MEMBER NEWS
Dover Corp. entered into an agreement to acquire
Belanger Inc. The transaction is expected to close in early 2019.
Belanger will become part of the OPW business unit.
Equipetrol S.A. is celebrating its 40th anniversary of providing
petroleum equipment solutions to fuel marketers and other customers in
Colombia.
Oscar W. Larson signed an agreement to offer its customers Canary
Compliance’s data-driven remote tank monitoring system for underground
storage tanks.
Highland Tank & Mfg. Co. purchased certain assets of Clawson Tank
Co., effective Jan. 2. Highland will continue to operate the
former Clawson manufacturing facility in Clarkston, Michigan.
Petroleum Marketing Equipment (PME) will open a new facility
in Las Vegas on March 1. This is PME’s third new location in three years and
sixth overall.
Petro Service Ltd. announced its intent to purchase Edmonton Pump
Service Ltd.
The transaction is expected to close by Feb. 15.
Petroleum Solutions Inc. (PSI) entered an agreement with Radi8 Solar
under which PSI will offer solar panel systems as an alternative energy
source to new and existing customers.
Riverside Steel Inc. appointed P & G Marketing and Associates
its representative for Illinois, Wisconsin, Minnesota, Iowa, Kansas,
Missouri, South Dakota, North Dakota, Nebraska and northern Michigan.
BRIEFLY
NOTED
“Mexican President Andres Manuel Lopez Obrador is urging the country to
remain patient as gasoline shortages stretch into their second week
while he battles to stem fuel theft at pipelines. Lines
of cars at service stations across Mexico stretch for blocks, with some
drivers turning up well before trucks arrive with fuel. In the State of
Mexico on Saturday, residents rushed toward a punctured pipeline to fill
plastic containers with fuel.” — The New York Times, Jan. 13, 2019
“A Washington state bill that would establish a Clean Fuels Program
beginning in 2021 was introduced this week as the state seeks to
establish a program similar to California and Oregon. The measure (H.B.
1110) was introduced by Rep. Joe Fitzgibbon, a Democrat. It is modeled
after a bill Fitzgibbon introduced last year, which was approved by a House
committee but never made it to a House vote. The program would aim to reduce
greenhouse gas (GHG) emissions from transportation fuels to 10% below 2017
levels by 2028 and 20% below 2017 levels by 2035.” — Oil Express Alert,
Jan. 11, 2019
MEMBERSHIP APPLICATIONS
Colorado service company. Petroleum Equipment
Maintenance LLC, 3829 W. 118th Mews, Westminster, CO 80031, applied for
service and construction division membership. Douglas Francis Morrissette is
owner of the firm, which was established in 2017. Petroleum Equipment
Maintenance LLC specializes in troubleshooting and repair of petroleum
equipment and associated software. Sponsored for PEI membership by Eric
Hick, CGRS Inc., Fort Collins, Colorado.
Canadian construction company. Protec Petroleum,
10-1395 Stevens Road, West Kelowna, BC V1Z2S9, Canada, applied for service
and construction division membership. Brian Pittenger is president of the
firm, which was established in 2001 and has multiple offices. Sponsored for
PEI membership by Tiina McCombie, National Energy Equipment Inc.,
Mississauga, Ontario, Canada.
Malaysian service provider. Profuel Engineering
Services, No. 19 Jalan Kemuning Damai 32/147A, Shah Alam, Selangor Darul
Ehsan 40460, Malaysia, applied for service and construction division
membership. Kularaman Mutu Raman Chettiar is business development specialist
for the company, which was established in 2012. Profuel Engineering Services
is a service provider for pump dispensers and tire inflators. Sponsored for
PEI membership by Ben Stallings, Fatboy Electric Inc., Kansas City,
Missouri.
Puerto
Rico environmental firm. Altol Environmental
Services, P.O. Box 359 Mercedita, Ponce, PR, 00715, applied for affiliate
division membership. Jose Perez is supervisor for the company, which was
established in 1992. Altol Environmental Services provides comprehensive
environmental engineering services, including environmental consulting, air
monitoring, monitoring of fugitive dust and environmental hygiene. Sponsored
for PEI membership by Danny Brevard, Accent Environmental Services Inc.,
Lufkin, Texas. |
