Heat Treat Today publishes twelve print magazines annually and included in each is a letter from the publisher, Doug Glenn. This letter from the July 2026 Annual Super Brands Issue print edition considers whether the heat treat industry’s roughly 10-year downturn cycle will repeat in 2028-2030, weighing low energy prices against the risk of a financial-instability-driven correction.
Since the early 1990s, the thermal processing and heat treating industry has experienced a significant recession or slowing about every 10 years. The last great downturn happened 2008–2010. When 2018–2020 rolled around, everyone was optimistic that we had skirted the 10-year cycle. Then COVID hit, and there was a drastic and immediate downturn. It was dramatic; however, it was not typical nor caused by the usual mysterious economic causes. In fact, had COVID not hit, it seems likely we would have missed the 10-year cyclical slowdown.
Now we’re approaching 2028–2030 — hard to believe! The question is whether we will skirt the next 10-year bust.
Why We Might Miss It: Energy Prices
Economies are largely unpredictable. That’s primarily because economies are largely incomprehensible. They’re simply too big and too complex to be understood, much less predicted. Those believing that economies need to be managed and planned will find renewed vigor for their command and control theories with the advent of artificial intelligence (AI). They’ll claim that AI can make sense of the millions upon millions of individual decisions that are made each second, and because AI can understand and make sense of it, mankind will once again be able to control and plan even the most complex economies. They will try — I predict failure.
That being said, it is possible that we will miss the next 10-year cycle because there have been some major shifts in the economy over the past several years. The primary shift has to do with energy prices. Manufacturing follows low energy prices. That’s the simple principle. Unless our policymakers mess it up, it is very likely that energy prices will continue to be relatively low compared to other industrialized economies. For that reason alone, I fully anticipate that these United States will see continued economic growth for the next 10–20 years.
Why We Might NOT Miss It: Financial Instability
On the other hand (because economists always have two, if not three, hands!), there is a very foundational reason why we may not escape a 2028–2030 downturn and that is financial instability.
For those familiar with the simplicity and beauty of the Austrian Business Cycle Theory (ABCT), easy money (i.e., an increase in the supply of money) leads to recession. What artificially goes up must come crashing down. Without going into the depths of the theory, suffice it to say that when the economy is artificially stimulated by inflation (i.e., an increase in the money supply, also known as “easy money” or “quantitative easing” or “lower interest rates”), the economy will experience an artificial high. Then, once some time passes, the readjustment (“correction,” “recession,” “downturn,” etc.) will inevitably take place.
ABCT has pretty much always been proven right. Some will dispute that, but by and large, it is dead on.
In our current situation, it is almost certain that all the quantitative easing that took place during the COVID years due to fear of a major, worldwide economic crash will one day come back to bite us. We’ve not yet seen a major correction or readjustment since the COVID years of inflation, and I don’t see any chance that we won’t “pay the price” for our profligate monetary policy and experience a pretty significant downturn in the next 5–8 years.
Then again (or “on the third hand”), no one ever knows for sure until it happens. Economies are too big, too complicated, and too mysterious to predict. Whatever happens, let’s remain calm and continue to diligently apply ourselves to making others’ lives better.
Doug Glenn Publisher Heat TreatToday For more information: Contact Doug at doug@heattreattoday.com
This Technical Tuesday installment summarizes the highlights from a site visit by Heat Treat Today’sDoug Glenn, publisher and founder, and Karen Gantzer, manager of events. Learn how OMG Building Products, LLC took control of efficiency, product quality, and R&D in the middle of New England.
This informative piece was first released inHeat Treat Today’sJuly 2026 Annual Super Brands Issue print edition.
In 2003, OMG‘s decision to vertically integrate manufacturing operations meant that heat treating needed to be brought in-house, making R&D a prized cornerstone of operations that guarantee high quality products. The Northeast operation in Agawam, Massachusetts, now moves 20 million pounds of steel per year (two to three tractor trailer trucks of steel wire per day) and features electrically powered IQ batch furnaces and continuous mesh belt furnaces.
Founding and Evolution
Five guys in Agawam, Massachusetts, gathered around a backyard BBQ in 1981 talking about the challenge of finding decent roofing screws. Pooling their talents across fabrication, finance, and more, they formed the company that has expanded to be OMG Building Products LLC. Their singular focus: making better roofing fasteners. To this day, roofing fasteners still make up 60% of OMG’s business.
In 2003, following years of sustained growth and product expansion, they took steps to bring increased oversight to their product. The main objective was to further ensure quality, gain greater material velocity, and increase customer service. The first step was to invest in an ECoat painting line for the fasteners, the process closest to OMG’s clients. Kevin Walters, now OMG’s senior process engineering manager, was hired as quality manager to oversee these transitions.
Making room for roofing heat treating operations soon followed, as well as several building expansions in the industrial park, including a residential construction fastener business and increased warehouse space. These capacity developments brought OMG’s low-carbon steel and yet highly efficient roofing product to a global market.
The Next Step: In-House Heat Treat
Bringing heat treating in-house would be a major move to further secure the manufacturing line. Product was being shipped to as many as ten different locations, including facilities in the Midwest and Canada. In fact, the biggest percentage was at risk since that Waterbury, Connecticut, heat treat supplier was looking at closing its doors with just a 90-days’ notice.
It was 2012 when OMG decided to investigate installing systems at the industrial park in Agawam. After three to four years’ worth of technical and business research, the parent company approved the funds to embark on the installation that is there today.
Research and Design
Jeff Hotham, Heat Treat Manager, and Kevin Walters, R&D Lead, collaborate to make OMG’s heat treat operations more efficient and effective. | Image Credit: Heat Treat Today
When it comes to the success of their heat treat operations, Jeffrey (Jeff) Hotham, OMG heat treat manager, put it bluntly: “Kevin is our secret weapon.” Since joining the team in 2003 at the apex of change, the senior process engineering manager brought heat treating operations in-house, facing every obstacle that comes with it.
The first challenge was logistics. OMG is situated in a light industrial park that cannot provide enough energy to power gas or electric furnace operations. After much analysis, it was determined that the most cost-efficient solution was to build an electric line connecting to an Eversource utility grid. This has had welcome maintenance implications as the electrically powered furnaces do not require an on-site burner tech and the accompanying nickel element ceramic tubes are also low maintenance.
Next was determining the thermal processing equipment. For an entire year, Kevin researched heat treating methods to optimize the company’s fasteners. His boots-on-the-ground research included visiting commercial heat treat facilities, attending trade shows, and speaking directly with industry professionals.
Because OMG produces a variety of lengthy fasteners, distortion control drove the decision of an integral quench furnace design, while productivity needs were met through a continuous mesh belt furnace design. Additionally, size of the furnace systems was all important in balancing flexibility and time-to-market realities. This resulted in a competitive heat treat system design that would leverage a significant amount of automation and a loading system that minimized manual intervention. This original furnace line included two endo generators, smart oil filtration, cooling equipment, and material handling.
The Right Fit: Finding a Furnace OEM
The competitive system design, however, would hinge on the ability to find a vendor who could deliver dependable, customizable equipment. Kevin and a cross-functional team of OMG business, operations, finance, purchasing, and safety representatives were tasked with selecting the equipment supplier.
When reviewing their options, OMG’s choice of furnace supplier came down to three key factors: design flexibility, locality, and customer service. It was essential that the system integrate design decisions to accommodate Kevin’s researched solutions.
Some furnace OEMs had reservations about adapting their systems to accommodate these special requests. Other suppliers had systems completed at various locations, with features sometimes being subcontracted off-site. Ultimately, the team found their perfect fit with Williams Industrial Service, located in Bowling Green, Ohio, who were eager to accommodate design changes, maintained full control of furnace build under one roof, and demonstrated a service-minded team.
Once ordered, the next step was to monitor job progress. OMG was proactive, providing timeline-focused goals. The furnace build progressed on schedule with Kevin making quarterly visits to complete milestone reports.
Within three years, OMG’s full heat treating line was installed.
Optimizing Productivity in Current Operations
Operations have increasingly shifted to focus on cost savings and control over inefficiencies. From a 30,000-foot view, wire arrives, is skim drawn, goes through cold forming, then heat treating, and finally painting and packing.
Facility design is critical in operational performance. According to Kevin, the working environment surpasses that of many heat treat operations he has visited, a credit to how well Jeff manages the plant floor. A key example of this is safety. OMG’s safety culture can be seen throughout their operations, extending to the racking department where a climate-controlled room away from loud manufacturing supports racking staff. Kevin also remarked that the air ventilation system is a point of pride: “We literally have guys wear hoodies in the heat treat department in the wintertime… because we have so much fresh air intake and exhaust in the room; the climate here is pretty good.”
Mesh belt line | Image Credit: Heat Treat Today
When roofing fasteners are heat treated, they either go through one of the three medium- to large-scale continuous mesh belt furnace lines or through the automated integral quench (IQ) furnace line. The mesh belt line receives shorter, 1.5- to 6-inch parts that are poured from a tub onto the belt with ease as well as longer 7- to 8-inch product. On the other hand, the IQ furnace line includes two furnaces which receive longer parts up to 24 inches long from a fully automated delivery system; fasteners are hung from their heads on the rack to prevent distortion. In the future, the team looks forward to automating this part of the process.
Kevin Walters, Doug Glenn, Karen Gantzer, and Jeff Hotham stand in OMG’s testing lab. | Image Credit: Heat Treat TodayLong roofing screws are hand-racked to best control distortion. | Image Credit: Heat Treat Today
The IQ line is a point of pride. Kevin commented that he has reason to believe that his IQ line may be the most automated in the country. “My operators do not have to get on a charge cart at all,” he explains, “[because] it’s fully automated; it knows when loads are done in the furnaces, takes them, puts them in, takes them out, puts them in the washer, and takes them out. Everything is automatically programmed.” These loads are monitored based on weights for baskets and piece count for racks.
Jeff and Kevin have collaborated to increase equipment efficiency and throughput while maintaining quality.
Operations feature an in-house laboratory to test product, particularly for distortion, the leading quality concern for roofing product. As mentioned earlier, furnace line automation is a goal, yet longer parts — like thin-shanked 8-inch parts — may still need to be hand-racked on the mesh belt to attain the quality results.
The Power of Planned Maintenance
Regular planned maintenance schedules work to keep this operation up and running. Jeff coordinates any maintenance requiring extended furnace downtime to occur at the same time.
On an annual basis, temperature uniformity is prioritized through extensive furnace care, including replacing the thermocouples and carbon probes. As Jeff asserts, “We try to stay ahead of the game.” This planned maintenance takes two weeks of the furnace being out of commission to ensure the furnace is thoroughly cleaned and any equipment replacements completed.
Biannually (twice every year), furnace ductwork is cleaned — a critical measure to stop risk of fire since, according to Jeff, most industry fires start in the ducts. OMG outsources experts to complete this maintenance over the course of a full week.
Finally, on a quarterly basis, all equipment undergoes vibration and infrared analysis. Following this proactive maintenance schedule has brought the operation from producing 9 million pounds in his first year to 19.2 million pounds just six years later in 2025 — same equipment, simply leveraged by Jeff’s proactive planning and coordinating Kevin’s R&D efficiency endeavors.
Future
Kevin Walters, the R&D manager at OMG, explains how OMG forms spools into screw and nail roofing product to Doug Glenn, publisher of Heat Treat Today. | Image Credit: Heat Treat Today
As the business grows, OMG is exploring other ways to accomplish tasks better and more efficiently: induction, vacuum furnace, continuous or pass-through IQ, and rack furnaces are all being considered.
Kevin addressed their laser-focused approach in heat treating operations, saying, “As time goes on though, we are perfecting productivity with Kaizen events and controlling our own destiny and lowering overall costs. Last year, process optimization on the mesh belt lines boosted our productivity by more than 30% and our automated IQ line is up 20% this year.”
OMG’s operation demonstrates what curious innovation and on-the-ground industry research can unlock for in-house heat treating. If the past is any indication of the future, we’ll see OMG leading the way in thoughtful, quality-focused integration of advanced technology in the industry.
This article was written by Heat Treat Today’s editorial team. For more information, contact editor@heattreattoday.com.
Steelhead Technologies, a software provider serving the heat treating and metal finishing industries, has acquired Visual Shop and Bluestreak, bringing together three providers of manufacturing execution, quality management, and job shop management software for North American heat treaters and metal finishers. The acquisition expands its software offering while retaining the industry expertise developed by each organization.
Visual Shop, developed by Cornerstone Systems, and Bluestreak have both provided software for heat treating and metal finishing job shops for decades. Steelhead said clients of all three companies will have access to a unified platform combining manufacturing execution, quality management, enterprise resource planning, and shop floor management capabilities.
Steelhead plans to continue investing in software capabilities for heat treating operations, including support for furnace calibrations, operator certifications, sample testing, sensor integration, and cybersecurity initiatives related to CMMC compliance. The company said the combined organization will continue drawing on the technical expertise of Visual Shop and Bluestreak teams.
Jeff Halonen CEO and Co-Founder Steelhead Technologies
“Heat treating job shops have been under decades of competitive pressure from offshoring, workforce challenges, and volatility in costs,” said Jeff Halonen, CEO and co-founder of Steelhead Technologies. “With demographic changes and AI completely changing the operational landscape, the challenges remain as steep as ever. At the same time, top government officials and contractors are urgently bringing back work by reshoring and scaling production. Job shops must leverage technology to rapidly increase capacity and capability without adding head count to solve every challenge.”
“To stay competitive in the long term, we would need to build a new product on a modern platform. Steelhead has a great product and shares our philosophy of providing outstanding customer service,” said Kevin Pluedeman, president of Cornerstone Systems (Visual Shop). Todd Wenzel, president and founder of Bluestreak adds, “By joining forces with Steelhead, we are bringing the institutional knowledge and specialized features of Bluestreak together with Steelhead’s modern infrastructure.”
The announcement also included comments from Exactatherm, a commercial heat treater in Mississauga, Ontario, which has implemented Steelhead’s software. Vraj Shah, quality manager at Exactatherm, said the company has used the platform to simplify employee training, improve access to Nadcap audit records, reduce lead times to approximately 10 days, and shorten inventory hold times.
ThermTech partners with Steelhead to implement their AI-powered platform. | Image Credit: Steelhead Technologies
As part of the announcement, commercial heat treater ThermTech said it is partnering with Steelhead as it implements the company’s software platform. The system combines manufacturing execution, quality management, ERP, financial, and customer service functions into a single platform. The company also said its engineering team will work with Steelhead to further develop heat treating-specific capabilities.
Press release is available in its original form here. Stay tuned for more: Heat Treat Today’sDoug Glenn recently sat down with Steelhead Technologies CEO Jeff Halonen for a deeper dive into the acquisition and its implications for the heat treating industry. The full interview will be published soon.
Solar Atmospheres, a U.S. commercial heat treater, is preparing to commission a titanium solution heat treating system that will expand processing capacity for large titanium bars, forgings, and other components used in aerospace, defense, and industrial applications. The system combines a drop bottom furnace with an 11,000-gallon recirculating water quench tank designed to rapidly cool large workloads and achieve consistent metallurgical properties.
The company recently installed the stainless steel water quench tank at its Hermitage, Pennsylvania, facility as preparations continue for commissioning the titanium drop bottom furnace. The furnace remains on schedule to be fully commissioned and operational by September 2026.
Designed primarily for solution treating titanium bars, titanium forgings, and other large titanium components, the furnace features a 14-foot-long x 54-inch-wide x 48-inch-high workload envelope. During processing, parts will be transferred into the 11,000-gallon recirculating, agitated water quench tank within five to seven seconds, providing the rapid, uniform cooling required to achieve consistent metallurgical properties.
The investment expands its capability to process large titanium components for demanding aerospace, defense, and industrial applications.
Press release is available in its original form here. Images show the installation of the drop bottom furnace at the Hermitage facility. Image credit: Solar Atmospheres
Demand for high-temperature vacuum thermal processing equipment continues across strategic manufacturing sectors, with recent orders supporting nuclear fuel production, advanced ceramics, tungsten processing, additive manufacturing, and carbon materials. The activity reflects continued investment in specialized thermal processing technologies serving these applications.
Centorr Vacuum Industries, a New Hampshire-based industry supplier of vacuum and controlled-atmosphere furnaces, reports that its first-half 2026 activity included multiple vacuum induction melting furnaces, large-format vacuum hot presses, Sintervac® furnaces, Workhorse furnaces, Testorr™ systems, and LF furnaces for a variety of industrial thermal processing applications.
The equipment will support applications including nuclear fuel testing, advanced ceramics hot pressing, tungsten heavy alloy sintering, tungsten carbide debinding and sintering, graphitization of carbon powders for battery, hypersonic, and nuclear applications, physical testing of carbon fiber composites and carbon-silicon carbide materials, and the heat treatment and sintering of additively manufactured titanium components.
Centorr also reported first-half 2026 revenue of $18 million and said bookings remained strong through the first two quarters of the year, contributing to one of the largest backlogs in the company’s 72-year history.
Looking ahead, the company said it expects to begin startup of large graphitization and chemical vapor infiltration systems during the second half of 2026, further expanding the range of high-temperature thermal processing technologies it supports.
Press release is available in its original form here. Additional information provided by Centorr Vacuum Industries.
TTT Group, a commercial heat treater serving the automotive and aerospace industries, is expanding its thermal processing capabilities with the addition of hot isostatic pressing (HIP) technology. The investment establishes a new business unit that will provide HIP processing for aerospace, oil and gas, and other industrial applications.
Andrés Hernando, CEO of Hiperbaric, and Xabier Berasategui, CEO of TTT Group
The new system, to be installed at TTT Group’s facility in Spain, will be supplied by Hiperbaric, a Spain-based manufacturer of hot isostatic pressing (HIP) equipment with U.S. operations in Miami. The Hiperbaric HIP 107 industrial model is capable of operating at pressures up to 2,000 bar (200 MPa) and temperatures up to 1400°C (2550°F), with an option to reach 2000°C (3630°F). The system’s fast cooling technology enables heat treatment and material consolidation to be integrated into a single process step, reducing cycle times and energy consumption.
The investment represents the largest in the company’s 65-year history and supports a strategy to diversify its thermal processing services with a focus on aerospace while also expanding into oil and gas and additive manufacturing applications. The new capability will allow it to offer both conventional heat treatments and HIP densification services under one roof, including support for future powder metallurgy-HIP (PM-HIP) applications.
Hot isostatic pressing subjects components to high temperature and high isostatic gas pressure to eliminate internal porosity and improve material properties such as fatigue resistance, ductility, and toughness. The process is commonly used for cast and additively manufactured metal components intended for demanding applications in the aerospace, defense, and energy sectors.
Press release is available in its original form here. Main image shows members of Hiperbaric and TTT standing in front of a HIP 107 unit under construction. | Image Credit: Hiperbaric
The Path to Real-Time Compliance in Heat Treatment
Thursday, September 10, 2026
2:00 p.m. EST
Heat treaters face increasing pressure to meet AMS2750 and Nadcap requirements while improving efficiency and reducing audit risk. Join Heat Treat Today and Watlow for an exclusive preview of Peter Sherwin's Furnaces North America technical presentation exploring the transition from post-process validation to real-time compliance. Learn how trusted process data, advanced measurement technologies, AI-assisted insights, and modern control solutions can improve process assurance and confidence in heat treatment operations. A live Q&A will follow the presentation. Attendees will also learn how these concepts can be put into practice using Eurotherm by Watlow control solutions, including the EPM Edge Process Management platform and Level 3 controller, and are invited to continue the conversation with live demonstrations at Furnaces North America.
Speaker:
Peter Sherwin, Director of Strategic Marketing, Watlow
Peter Sherwin is Director of Strategic Marketing at Watlow and a recognized thought leader in industrial process control, digitalization, and heat treatment. He partners with manufacturers to address the challenges of compliance, data integrity, and process optimization through advanced control technologies. Peter is a featured presenter at Furnaces North America 2026, where he will present on the path to real-time compliance in heat treatment through data, measurement, and AI.
In this installment of Answers in the Atmosphere, David (Dave) Wolff, an independent expert focusing on industrial atmospheres for heat treat applications, dives into the hairy issues of gas contracts with guest co-author David Loomis, an industrial gas consultant.
This informative piecewas first released in Heat Treat Today’sJune 2026 Sixth Annual Buyers Guide print edition.
David Loomis Industrial Gas Consultant
The following column identifies the key facts about gas contracts to dispel the mystery behind these agreements. David Loomis, an industrial gas consultant, joins me in this effort. Having retired in 2020 after 35 years of bulk gas sales and contract management experience with Praxair (now Linde plc) and Airgas, David now assists clients to negotiate and manage their industrial gas contracts, saving money and enhancing supply reliability. This knowledge of contracts will help you create supply arrangements that are mutually beneficial to all parties.
Supplying Industrial Gas
Supply of industrial gases typically requires a long-term relationship with an industrial gas provider. Supplying industrial gases is a capital- and people-intensive business. Success in industrial has supply requires a disciplined approach to deploying resources.
Industrial gas contracts enable suppliers to commit resources to customers. If a thermal processor purchases gases in larger volumes than can be effectively delivered in cylinders, the supplier will need to supply gases and dedicate capital investment into the production, delivery, and gas storage equipment in order to provide the gases needed.
Industrial gas suppliers are invested in their clients’ success. Therefore, industrial gas supply contracts are for the benefit of both suppliers to protect their capital investments as well as the client, on whom continued success hinges. | Image Credit: Minerva Studio/AdobeStock
In this sense, industrial gas suppliers are invested in their clients’ success. Therefore, industrial gas supply contracts are for the benefit of both suppliers to protect their capital investments as well as the client, on whom continued success hinges.
Understanding Gas Supply Contracts
If a business requires industrial gases, it probably will have a supply contract. Insightful negotiation and active management of the industrial gas contract is key to reliable, cost-effective industrial gas supply. Industrial gas contracts generally consist of two related documents:
Terms & Conditions: This document describes the relationship between the client and the industrial gas supplier (generally one per client).
Product Rider(s): Often more than one, these individual sections describe the specific contract considerations and economics for each product purchased.
The terms and conditions and the product riders will each have a start date and a term (determined by the specified end date).
Industrial gas contracts are generally continuous: they will automatically renew unless cancelled in writing by one of the parties at least one year prior to the renewal date. Note that the effective date and contract term of the boilerplate terms and conditions contract may differ from the product riders — one document may expire before the other. For example, the term (and therefore the required cancellation date) for a nitrogen supply agreement is determined based on the expiration date for the nitrogen gas rider.
Many industrial gas clients note the difficulty in cancelling their industrial gas contract, which is why proactive management is critical. If industrial gases are used to manufacture a product, then the operations depend on access to those gases.
Product management avoids:
Inadvertently canceling gas supply, forcing operations to stall.
Not securing access to enough gas to meet operational needs, resulting in lost profits.
Knowledge gaps from unavoidable personnel changes in operations that risk missing multi-year contract terms and conditions, which can lead to missed gas supply cancellations.
To avoid these headaches, some thermal processing operations send a cancellation letter as soon as they sign a gas supply contract to ensure it ends when expected. However, David advises caution, as cancellations cannot be easily withdrawn. Since market conditions are difficult to predict over 4+ years, he suggests companies decide to secure a new contract and cancel the previous agreement close to the cancellation deadline to ensure that supplier options, gas requirements, and specific market information are up to date.
If neither the client nor supplier cancels the contract in accordance with the cancellation requirements, then the contract enters the “evergreen” stage at the end of the contract term. Evergreen is a rolling one-year extension of the contract that repeats until the contract is canceled in accordance with its cancellation requirements. Having a comprehensive understanding of the terms and conditions of the contract is necessary to avoid unintentionally missing the cancellation date and falling into the evergreen stage.
Gas Supply Method
Recovery of costs and generation of profit are the goals of the industrial gas contract. As most thermal processors use bulk gases, stored as a liquid or as a compressed gas, these are delivered in bulk form. A trailer is sent from the supplier and the liquified gas in the trailer is pumped to fill an on-site tank, or the full compressed gas trailer will be exchanged in place of an empty trailer. In either case, there are equipment and delivery costs incurred.
Liquid hydrogen trailers can carry up to 13,000 gallons of cryogenic liquid | Image Credit: Dave WolffBoth compressed and liquefied gases may be delivered and stored at customer sites | Image Credit: Dave Wolff
Requirements
Paragraph one of the terms and conditions section of most industrial gas contracts is titled “Requirements.” It is important to read this paragraph carefully and ensure full understanding. Unless it is modified, Requirements typically obligates the client (“Buyer”) to buy all of their present and future needs (“requirements”) of all industrial, specialty, and medical gases to all of the client’s present and future locations from that specific industrial gas supplier. It also restricts the client in their ability to eliminate gas deliveries by switching to on-site generation unless they work with the contracted supplier.
Left as is, it is a very sweeping obligation for clients. Consider modifying the Requirements by limiting the obligation to:
Only those gases defined on accompanying gas riders
Specific locations
Clients may also consider revising the Requirements to allow for unfettered ability to convert to on-site generation for applicable gases, such as nitrogen, oxygen, or hydrogen.
Costs
Each product rider will define the unit cost of the specific gas and the monthly cost of storage equipment rental for that product. It is not unusual for clients to receive two separate periodic bills from their industrial gas supplier — one following each product delivery and another monthly bill for tank rental. The product delivery bill will include the cost for the product delivered, as well as any applicable fees and surcharges.
Some clients consider buying their own storage tank to eliminate storage rental fees. My own experience has shown that that is rarely an appropriate decision. Suppliers amortize their storage equipment over decades, so their monthly costs are relatively low, enabling them to keep their rental rates reasonable. Additionally, tanks are pressure vessels and thus must be recertified periodically. They also require annual maintenance to maintain the vacuum and ensure that pressure regulators and safeties are working as required. Buying a tank introduces the need to figure out what to do with the storage tank if your gas needs increase, decrease, or go away entirely. Consequently, buying your own storage tank may only be advisable for the largest users.
The primary cost elements of industrial gas supply and delivery are the generation of the gases themselves and the fuel costs and labor to deliver the gases to you. The energy to generate the air gases is primarily in the form of electricity, while for hydrogen the cost is a blend of electricity and natural gas costs. The cost of delivery is primarily driven by diesel fuel pricing. Clients should expect to see escalation approaches for the cost elements that may vary over time, such as electricity, natural gas, and diesel fuel. It is advisable to negotiate the contract to define formulas for each of these variables. If buyers do not negotiate, then the supplier uses their own internal criteria, which may not be advantageous for buyers.
Typical contract terms vary, depending on the form of supply. Small quantities of liquefied gases are typically supplied in micro bulk form using a straight truck for delivery and a highly portable pallet-mounted storage tank. These contracts tend to be 3 to 5 years in duration. Standard liquid and gases bulk supply is typically 5 to 10 years in duration. If the supplier builds an on-site gas generation plant for you, expect a contract with a minimum duration of 10 years. If you choose a shorter term, the supplier may charge higher unit prices due to the reduced value of your contract and the risk to the supplier of having unproductive assets or excess, unsold product.
Determining Your Gas Usage
A site survey is the first step in a contract negotiation. It’s important for the buyer to understand that making the tank available for deliveries is the buyer’s responsibility. The best (and least expensive) delivery infrastructure allows the gas delivery driver to pull through the site, entering, unloading, and exiting the site without needing to back up. Flammable gases require certain minimum clearances; the greater the quantity stored, the farther the distance required between the tank and areas of occupation and site borders. Oxygen cannot be stored close to flammable gas. In the case of snow, the delivery driver is not equipped or permitted to dig out your tank.
A delivery consideration that influences fees is the hours and days of access to the storage equipment. The supplier is going to expect 24/7 access to the tank so they can make deliveries based on their schedule not the buyer’s. If 24/7 access cannot be made available, clients should ensure that access restrictions are defined in the contract. Site restrictions can increase the supplier’s cost to serve, which will cost more for the client.
Another characteristic of many industrial gas contracts is the “estimated use quantity,” typically denominated in standard cubic feet per month. The purpose of this is to allow the supplier to understand how much product they need to reserve for your use. Suppliers cannot sell more than they make, but they are highly incentivized to sell out everything they do make since industrial gases are difficult to store. Buyers may be asked to estimate their monthly use quantity; the resulting estimate may become a contract variable. In essence, the supplier is acting to reserve the quantity of gas the buyer has nominated (and the assets to deliver it), and the buyer is indicating a willingness to pay for it.
If the buyer uses substantially less than estimated, the supplier may increase the price per unit. Alternatively, if the buyer uses substantially more than estimated, the supplier may not be able to provide the necessary amount or may charge a premium to do so. Estimated quantities are a particular concern for supply-constrained gases like argon and helium.
Clients of industrial gases must communicate to their potential supplier the pressure and flow rates (min, average, max) of the gas supply they need to ensure that the tank and ancillary equipment (vaporizers, regulators, etc.) are specified correctly. Maximum gas supply rate is largely determined by vaporizer sizing and technology. Note that the supplier will supply the rental tank, but clients are financially responsible for the installation, including permitting, clearances, foundation, utilities, fencing, and piping. Companies expecting an increase in production should anticipate an increase in tank size in the future and consider the distance requirements for a larger tank, potentially including an oversized foundation to accommodate installing a larger tank in the future.
Most industrial gas suppliers will offer a telemetry device, which enables them to monitor the buyer’s tank inventory and schedule automated deliveries. Although the clients will pay a monthly fee for the telemetry, most thermal processors find the service helpful. If a client declines the telemetry or the supplier does not offer one, the client will be responsible for checking gas inventory every day and reporting that inventory to the supplier for them to manage deliveries.
Fair Price Analysis
The market for industrial gases is relatively opaque, meaning it can be difficult for buyers to know if they are receiving a fair price. As such, it’s a good practice to get at least two quotes when considering industrial gas requirements. Operations personnel should collaborate with procurement personnel to negotiate and manage the gas contract. Some industrial gas clients find it helpful to seek assistance from an industrial gas purchasing consultant. While legal counsel may be helpful in evaluating the terms and conditions portion of the contract, attorneys may not have expertise in the gas rider portion(s) of the contract, which is where most of the costs are driven.
About The Author:
David (Dave) Wolff Industrial Gas Professional Wolff Engineering
Dave Wolff has over 40 years of project engineering, industrial gas generation and application engineering, marketing, and sales experience. Dave holds a degree in engineering science from Dartmouth College. Currently, he consults in the areas of industrial gas and chemical new product development and commercial introduction, as well as market development and selling practices.
An advanced aluminum T6 heat treatment system has been selected to replace an existing line that no longer meets increasing production requirements and evolving quality expectations. The new system combines solution heat treatment, rapid water quenching, and artificial aging to improve thermal processing performance, metallurgical consistency, energy efficiency, and productivity for aluminum casting applications.
CAN-ENG Furnaces International, a furnace manufacturer based in Niagara Falls, Ontario, has been awarded a contract to design and manufacture the continuous roller hearth aluminum casting T6 heat treatment system. The system will incorporate continuous roller hearth solution heat treatment and artificial aging furnaces, along with the company’s rapid quench transfer system.
The integrated design is intended to provide precise thermal processing while minimizing transfer time to the water quench, helping to achieve consistent metallurgical performance and product quality. The client selected the new system to replace an existing heat treatment line that could no longer satisfy increasing production requirements and evolving quality expectations.
The replacement system is expected to provide improved furnace temperature uniformity, enhanced product handling and process reliability, automated rapid transfer water quenching for improved metallurgical consistency, reduced energy consumption, a lower risk of part damage and distortion, and increased equipment uptime and productivity compared with conventional conveyor-based systems.
The project expands CAN-ENG’s installed base of aluminum heat treatment systems in North America and international markets.
Press release is available in its original form here.
Like many industries, the heat treating industry is facing a significant labor shortage today — marked by tight hiring pools, high turnover, and growing demand for skilled workers. Unfortunately, the labor shortage isn’t ending any time soon.
In this climate, training solutions that are efficient, scalable, and accessible become crucial. The MTI Online Academy for Heat Treaters (run by the Metal Treating Institute, the largest network of commercial heat treaters worldwide) offers a robust solution tailored to these needs.
Top Benefits for Navigating Labor Challenges
Accelerated Onboarding & Skill Development
MTI’s new employee onboarding training course | Image Credit: MTI
MTI’s Academy offers eight certificate programs, from New Employee Onboarding to Qualified Furnace Operator, Technical Specialist, Quality Specialist, and Management Specialist, plus a safety and supervisory skills track. Companies can standardize onboarding processes and ramp up worker proficiency faster, reducing productivity lags typical in understaffed environments.
Enhanced Productivity, Revenue & Retention
Companies that invest in training see:
24% better profit margins
17% improved productivity
40% higher retention rates
Notably, 40% of new hires leave within the first year due to poor onboarding; robust training helps reverse that.
Compliance-Ready and Industry-Standard Training
Academy modules align with requirements for ARP 1962, Nadcap, CQI-9, and other certification benchmarks. This ensures personnel are trained to meet audit-ready standards, reducing compliance risk, which is particularly important when staffing is lean.
Flexible, Accessible, and Cost-Effective
MTI’s Heat Treat Management Specialist example of course offerings | Image Credit: MTI
Courses are available 24/7 worldwide, mobile-friendly, user-centric, and affordable for any budget. Employers gain flexibility to train employees across shifts and geographies without costly facility-based scheduling.
Modular, Structured Learning Paths
The Academy outlines credit hours for each certification (e.g., Furnace Operator: ~16 credit hours; Technical Specialist: ~25; Quality Specialist: ~63; Management Specialist: ~78). This transparent, tiered structure enables targeted training based on role demands and skill gaps, helping to optimize training time and resource allocation.
Support for Leadership Development
Beyond technical skills, the Academy offers leadership and supervisory programs, covering communication, team development, decision-making, DEI awareness, and more. Developing internal leaders helps build resilience, improves morale, and supports retention, especially when talent supply is thin.
Part of a Trusted Industry Network
MTI is a 501(c)(6) nonprofit established in 1933, offering the largest commercial heat treating network, breadth of resources, and credibility. Training through MTI not only builds skills but also connects learners to a broader professional community.
In a time when finding and retaining skilled heat treaters is tougher than ever, the MTI Online Academy for Heat Treaters provides a compelling solution: accessible, aligned with industry standards, modular, and designed to boost productivity, retention, compliance, and workforce development. By integrating MTI’s Academy into their workforce strategy, companies can effectively counter labor challenges while laying the foundation for sustained growth and operational excellence.
Peter Sherwin, Director of Strategic Marketing, Watlow
