Fall 2015 - Supply House Times

PLUS
STATE OF
THE PVF
INDUSTRY
Page 16
Today’s Data Center Industry:
A Growing Market
A Growing Market
Inside:
9 WASHINGTON UPDATE
12 ECONOMIC OUTLOOK
19 COMMODITY REPORTS
FALL 2015
Today’s data centers are becoming denser each year.
CONTENTS
FALL 2015
6
FEATURES
COLUMNS
6 IN THE SPOTLIGHT
4 CHAIRMAN’S LETTER
Today’s Data Center Industry:
A Growing Market
Today’s data centers are becoming denser each year.
16 PERSPECTIVES
State of the PVF Industry
Distributors discuss the strategies they use to prosper
in a dynamic environment.
How the growth of data centers can
present opportunities for the PVF industry.
9WASHINGTON UPDATE
Congress will have a busy fall season
focusing on upcoming legislation.
12 ECONOMIC OUTLOOK
U.S. expands global natural gas
supremacy.
19 COMMODITY REPORTS
Highlights from quarterly IPD
commodity reports.
COVER PHOTO BY: Getty Images/iStock
FALL 2015
PVF OUTLOOK
3
CHAIRMAN’S LETTER
E
very day, we hear about “the cloud”
and society’s increasing use and
popularity of “cloud computing.”
Who among us doesn’t use a computer, a wireless device, and the Internet to
satisfy personal and business needs? So it
should come as no surprise that the market
for data center facilities is growing dramatically around the world. And with all those
images, files, and videos, content storage is a
primary growth driver for the cloud market.
This fourteenth installment of the publication features Manny Linhares, the Director
of Strategy for the Legrand Data Communications (LDC) division focused on the Data
Center and Building Network market. Manny
helps us understand why “storage is king” and
how this has implications for construction of
new facilities in different geographies. Data
centers require quite a bit of pipe, valve and
fitting for the necessary cooling systems, and
all of us can better understand the economic
impacts and related opportunities for this
growing market.
Four leading industrial PVF distributors from across the country and members
of the American Supply Association’s Industrial Piping Division lend their insights
in this issue into the rough patch that is
today’s volatile PVF market. They share
some of the strategies their companies
employ to help their businesses and customers prosper in a constantly changing
environment.
This fall, as Congress inches toward passing
12 appropriations bills before the end of the
fiscal year, signs point to another looming
government shutdown—potentially the second in as many years. But Dan Hilton, ASA’s
director of government affairs, also shares
some good news for the industrial PVF industry from our nation’s capital. Prior to the
August break, the Senate Energy and Natural Resources Committee passed legislation
that increases offshore drilling, lifts our ban
on exporting, and expands revenue sharing.
Also, a federal judge has put a hold on the
controversial Waters of the United States rule,
which expands federal jurisdiction over small
waterways like streams and wetlands. The rule
as currently written would give federal agencies direct authority over land-use decisions
that Congress has intentionally reserved to
the states.
Finally, while the world surplus of oil will
continue to suffer from a growing demand/
supply inversion, PVF industry advocate and
economic analyst Morris Beschloss suggests
that global shipments of domestic natural gas
will hit their stride in grand volumes over
the next five years and bring back much of a
swiftly expanding basic chemical industry in
the United States.
Thank you for continuing to read PVF Outlook.
Sincerely,
PVF OUTLOOK
FALL 2015
AMERICAN SUPPLY ASSOCIATION:
President
Rick Fantham, Hajoca Corp.
Executive Vice President & Publisher
Michael Adelizzi, American Supply Association
ipd@asa.net
EDITORIAL ADVISORY BOARD:
Jeffrey Camuso, Charles D. Sheehy, Inc.
Todd Ford, Central States Industrial Supply, Inc.
Sheryl Michalak, Welding Outlets, Inc.
Ben Potgeter, Etna Supply Co.
Jerry Priest, B.K. Thorpe (MAS Group)
Julie White, Victaulic Company of America
Bill Zielinski, Chicago Tube & Iron Co.
BNP:
Group Publisher
Robert Miodonski
miodonskir@bnpmedia.com
Custom Publishing Business Development
Chris Wilson
wilsonc@bnpmedia.com
248-244-8264
Art Director
Stephanie Bleggi
bleggis@bnpmedia.com
Managing Editor/Project Manager
Melanie Kuchma
kuchmam@bnpmedia.com
Jay Bazemore
Chairman, Industrial
Piping Division
American Supply Association
Vice President
JABO Supply Corporation
Huntington, West Virginia
The sponsorships from these industrial PVF manufacturers fund, in part, a variety of
programs and services that ASA member wholesaler-distributors consider valuable to help
maintain and strengthen relationships with their end-users and contractor customers.
4
The American Supply Association is the nation’s
premier trade organization that benchmarks,
forecasts, educates and advocates for distributors and manufacturers in the PHCP and industrial/mechanical PVF industry. ASA monitors the
pulse of the forces affecting their businesses
and yours, which helps our members to constantly look ahead and ensure their customers
have essential resources you need to succeed.
Advertising Sales
Bill Boyadjis
boyadjisb@bnpmedia.com
248-786-1709
Jean Eslick
eslickj@bnpmedia.com
773-710-9971
Ellyn Fishman
fishmane@bnpmedia.com
949-766-6780
Single Copy Sales
Ann Kalb
kalbr@bnpmedia.com
 To subscribe go to www.bnpmedia.com/
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PVF Outlook is published by BNP Media four times annually (winter, spring, summer and fall) for the American Supply Association, 1200 N. Arlington Heights Rd.,
Ste. 150, Itasca, IL 60143. Printed in the U.S.A. All
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AD INDEX
AMERICAN VALVE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
THE BESCHLOSS PERSPECTIVE BLOG. . . . . . . . . . . . . 22
800.645.0101 | www.americanvalve.com
www.beschlossperspective.com
APOLLO VALVES. . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC
MERIT BRASS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
704.841.6000 | www.apollovalves.com
800.726.9800 | www.meritbrass.com
ASA’S INDUSTRIAL PIPING DIVISION MEMBERS. . . 14-15
PENNSYLVANIA MACHINE WORKS. . . . . . . . . . . . . . . BC
630.467.0000 | www.asa.net
800.PENN.USA | www.pennusa.com
A PUBLICATION OF ASA’s
INDUSTRIAL PIPING DIVISION
PLUS
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WHY 1974
OIL EMBARGO
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Contact:
Importers Urge
Congress to Act
End users paying higher prices
until GSP is reauthorized
Inside:
9 WASHINGTON UPDATE
SPRING 2015
Contact:
12 ECONOMIC OUTLOOK
Bill Boyadjis PH: 248-786-1709 E: boyadjisb@bnpmedia.com
Jean Eslick PH: 773-710-9971 E: eslickj@bnpmedia.com
Ellyn Fishman PH: 949-766-6780 E: fishmane@bnpmedia.com
20 COMMODITY REPORTS
Ad close deadlines:
WINTER ‘16
SPRING ‘16
SUMMER ‘16
FALL ‘16
January 15
March 28
June 27
September 26
FALL 2015
PVF OUTLOOK
23