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Headlines
Gulf Oil Spill Hits Distributors - 6/23/2010
Sixty-five days into the BP oil spill, GAWDA distributors continue to feel the effects of the disaster. In the short-term, several distributors along the Gulf Coast have seen a boost in sales. Nordan Smith’s branch in Pascagoula, MS, is located three miles from the beachfront where there are two response team encampments. “We’ve seen a 10-15% increase in the sale of safety equipment, including protective suits, hardhats and safety glasses,” says Di’Ane Walters, branch manager at Nordan Smith’s Pascagoula store. Gas and Supply’s store in Theodore, AL, has also experienced a boost in the sale of safety equipment, but Branch Manager Kevin Kennedy says it will not last. “Right now, availability is a big concern,” says Kennedy. “Every supplier in the area bought these products to resell.” Distributors fear that this momentary swell in demand could be the calm before the storm, as a moratorium has brought off-shore drilling to a halt. With a large customer base in oil drilling, Gas and Supply’s Theodore branch is bracing for the worst. “We expect to see a 30% to 40% reduction in gross sales within a couple of months,” says Kennedy. Nordan Smith’s Pascagoula branch generates much of its business from the nearby shipyard rather than oil rigs, but Walters says the store will still be hit by the cease in drilling. “There will be a trickle-down effect. If they’re not drilling, the supply boats won’t be purchasing supplies,” says Walters. For now, stores are stocking up on the supplies they can get a hold of as they wait for the real impact. “They’ve been shut down for a month, so it’s coming,” says Walters. WESCO Gas & Welding Supply, headquartered in Prichard, AL, directly on the coast, has several locations along the Gulf. So far, the oil spill has had minimal impact, but Paul Dutruch, executive vice president at WESCO, anticipates an increase in the sale of fabrication equipment. “Customers are using our products to manufacture booms and other devices used in the cleanup.” WESCO has no intentions of being a bystander to the cleanup; the company is exploring ways to use its products to pitch in, such as using carbon dioxide to solidify the oil and make it easier to pick up. Says Dutruch, “Our goal is to make the cleanup easier. The easier it is, the faster things will return to normal.” Until that point, distributors will continue to draw on the spirit of ingenuity and tenacity that made them what they are today.
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