Dear PEI Member:
Each year since 1992
the PEI Strategic Long Range Planning Committee (SLRPC) has submitted a
draft Strategic Long Range Plan (Plan) to the PEI Board of Directors for
review and approval. A portion of the Plan includes a SWOT (Strengths,
Weaknesses, Opportunities and Threats) Analysis for the petroleum equipment
industry and the association itself.
The 2016 Plan, including the SWOT Analysis, was finalized last week. To
my mind, it provides a useful summary of potential opportunities and threats
to the industry as seen by the six-member, distributor-oriented SLRPC. While
not secret, until now it has been used only as a tool to develop the
association’s strategic long range plan and not shared with members of the
industry, except upon request. This article changes that. What would you add
or subtract from these lists?
Opportunities for the Petroleum Equipment Industry
Enactment, enforcement, and compliance with new federal and state
Firms diversifying into non-petroleum retail lines such as car
washes, alternative energy, back office software, POS, fixtures,
security systems, liquid handling equipment, lifts, diesel exhaust fluid
systems and lube equipment.
Firms diversifying into non-petroleum services such as energy
conservation, LED lighting, and environmental remediation construction.
Emerging, new fuels including LNG, CNG, E15, E85, E25, electric,
hydrogen fuel cells and bio-fuels.
Federal and state fuel incentive programs.
Increasing demand from non-retail customers in the commercial,
industrial and governmental sectors (i.e., emergency generator tanks).
Continued expansion of regional high-volume retailers (HVRs), big-box
retailers and progressive C-stores.
EMV equipment rollout.
Decommissioning of vapor recovery systems.
Installation of loyalty program equipment.
At-dispenser media and gambling (e.g., Lotto).
Fuel quality testing.
Changing onerous state regulations to benefit PEI members.
Privatization of state-run oil companies in international markets.
The Co-Optimization of Fuels & Engines Initiative.
Opportunities/Threats to the Industry
Missouri Seeks Input on Proposed UST Regulations
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Threats to the Petroleum Equipment Industry
- Continued growth and predatory pricing by mega petroleum marketers,
forcing smaller independent retailers to close.
- Customers’ deteriorating financial condition and payment practices.
- Increased use of certain alternative fuels and related equipment with
no connection to PEI members.
- Additional regulations inhibiting the growth and expansion of
- Disruption in petroleum distribution due to unstable world economy,
war, terrorism, natural disasters, and refinery obsolescence.
- Work performed by non-licensed, non-certified installers and service
- Customers hiring members’ service technicians.
- More customers performing service and maintenance work with their own
- Increasing influx of knock-off products.
- Decline in the number of retail and municipal fueling stations.
- Direct sales by equipment manufacturers to end users.
- Increasing requirements for members to secure surety bonds and
liability insurance for construction projects.
- Growth of mega distributors and nontraditional online distributors.
- Increased enforcement of contract indemnification clauses.
- PEI members’ lack of business knowledge and business acumen.
- Customers’ unwillingness or inability to comply with regulations.
- Manufacturers dictating distribution price and margin by broadcasting
- Losing technicians to employers in other technical industries.
- An electric car charging industry that does not include PEI members.
MISSOURI’S PROPOSED REVISIONS TO ITS UST RULE
The state is seeking input to its proposed changes to Missouri’s UST
regulation. Many of the proposed changes that relate to state-specific
regulations are open to discussion. For details, click
Next week, PEI will roll out the “Business Bullet,” a monthly
e-newsletter for Distributor and Service & Construction division members.
Each edition will include business essentials worth sharing, so look for it
in your inbox, and then forward the “Business Bullet” to your colleagues.
The PEI Women Conference is right around the corner. Registration
deadline is April 22. We have a fantastic lineup of speakers that will
deliver useful takeaways all registrants can use when they return home.
The Acterra Group, Marion, Iowa, has moved Stacy Meyer from electrical
division manager to the newly created position of manager of construction
services. She has been with Acterra for five years.
Jarvis Corp., Chicago, Illinois, has recently appointed Mark Wickman
national sales manager of the company. Wickman has previously served as
sales manager for NOV/Fiber Glass Systems.
Mark VII Equipment Inc., the North American subsidiary of WashTec AG
of Germany, has announced that Rob Raskell has joined the company as
director of distribution. Raskell, an 18-year veteran of the cashwash
industry, will be based in the Spokane, Washington, area.
SloanLED, Ventura, California, has appointed Ervin L. Cash president,
chief executive officer and a member of its board of directors.
OIL COMPANY ACQUISITIONS
MFA Oil Co., Columbia, Missouri, has acquired Brownfield Oil Co. of
Moberly, Missouri. Brownfield will retain its transportation services
business and some staff as part of the deal. The remaining employees will
join the MFA Oil team.
Croton Holding Company, Pittsburgh, Pennsylvania, has acquired Par
Mar Oil Company, Marietta, Ohio. Par Mar owned 55 convenience stores and
Sunoco LP has acquired all 14 Rattlers convenience stores owned and
operated by Kolkhorst Petroleum Inc., Navasota, Texas.
John Dougherty, a veteran of the automotive equipment business for over
50 years, died March 18, 2016, at the age of 69. John and one of his
brothers, Joe, took over Lubricating Equipment Co. Inc. in the Philadelphia
area from their father after John returned from serving in Viet Nam. After
selling the business, Lohn joined Lincoln Lubrication Equipment as a
district manager covering the Philadelphia-New York City territory until his
failing health caused him to retire about five years ago. Survivors include
his wife, Susan; six children; and five grandchildren.
Lighting fixtures manufacturer. ConTech Lighting, 725 Landwehr Road,
Northbrook, Illinois 60062, has applied for manufacturer division
membership. Dan Hama is the national accounts manager for the firm, which
was established in 1980. The company manufactures high-performance lighting
fixtures which are sold through distribution. Sponsored for PEI membership
by Bobby Dutcher, AtlPtrEqp, Atlanta, GA.
Residential oil and gas burners. R. W. Beckett Corp., P. O. Box 1289,
Elyria, Ohio 44036, has applied for manufacturer division membership. Craig
Butler is the company’s product manager for tank accessories. R. W. Beckett
was established in 1937. The firm manufactures residential and light
commercial oil and gas burners, oil tank accessories, fill and vent
connectors, fill alarms, tank gauges, fire safety valves and underground
tank fills. The equipment is sold through distributors. Sponsored for PEI
membership by Jaimee Johnson, RothInd, Syracuse, NY.
Indiana service company. T&W Preferred Services LLP, 26705 US Highway
20, South Bend, Indiana 46628, has applied for service and construction
division membership. Tracy Thompson is managing partner for the firm, which
was established in 2014. The company services point of sale equipment, fuel
dispensers and lighting. Sponsored for PEI membership by Stacy Jacobs,
JacobsSer, Monon, IN.
Maryland environmental contractor. Ace Environmental Services, LLC, 3512
Fairfield Road, Baltimore, Maryland 21226, has applied for service and
construction division membership. Cari Finch is senior project manager for
the firm, which was established in 2004. The company specializes in services
related to aboveground and underground storage tanks, vacuum extraction,
emergency spill response, industrial cleaning, and hazardous/non-hazardous
waste disposal. Sponsored for PEI membership by Kevin McNeil, FairfldTnk,
Massachusetts compliance testing firm. Compliance Testing Services,
Inc., P. O. Box 715, North Dighton, Massachusetts 02715, has applied for
service and construction division membership. Shawn Conrad is president of
the firm, which was established in 2000. The company provides compliance
testing for the petroleum industry. Sponsored for PEI membership by Glen
Corkill, SourceIL, Addison, IL.
Ontario petroleum contractor. Northwest Petroleum Equipment, 400 Gore
Street W., Thunder Bay, Ontario P7E 6J2, has applied for service and
construction division membership. Andrea Heynen is operations assistant for
the firm, which was established in 1978. The company is a full-service
petroleum contractor in northern Ontario specializing in the installation
and maintenance of equipment at retail and aviation fueling facilities.
Sponsored for PEI membership by Koulis Kyriakou, Clemmer, Waterloo, Ontario.
Texas fuel polishing firm. Natural Resources, LLC, 590 North Kimball
Avenue, Suite 160, Southlake, Texas 76092, has applied for service and
construction division membership. Ashlee Jane Horton is an administrator for
the firm, which was established in 2014. The company provides bulk storage
tank cleaning, fuel polishing and dispenser maintenance. Sponsored for PEI
membership by Gabe Messerly, Vaporless, Prescott Valley, AZ.
ADMITTED TO PEI
- Petro-Serve LLC, Vernon, AL (dis)
- Tesco Equipment & Supply Co., Abilene, TX (dis)
- Adam Pumps SpA, Campogalliano, Italy (mfr)
- Certified Tank & Manufacturing, LLC, Springfield, IL (mfr)
- EZTech Tecnologia e Automacao Ltda., Rio de Janeiro, RJ, Brazil (mfr)
- Fleetmatics, Rolling Meadows, IL (aff)
- KPS Services, Winchester, KY (S&C)