STI-SPFA acts
on steel "dumping"
You may have heard of "Section 232" and its impact on steel in the United States. Section 232 is a provision of NAFTA and the subject of a current investigation into steel imports by the US Department of Commerce.
The investigation is "...the result of a campaign pledge by President Donald Trump to protect domestic steelmakers against foreign steel imports. Section 232 uses as its test whether imports have been (
sic) detrimentally harmed the U.S. ability to produce steel for its defense industry..." (
MetalMiner, June 21).
Dumping finished products
Among STI-SPFA members, anecdotal reports indicate that Far East nations, prohibited from exporting raw steel to the U.S., are now "dumping" steel via finished products.
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| Imported pressure vessels at a major U.S. port |
A pressure vessel fabricator member says that, "...according to reliable sources inside the EPC (Engineering, Procurement, & Construction) firms that purchase fabricated products for most domestic chemical and refining projects, they are buying those fabricated products (not just raw materials), from foreign sources for 40% less than domestic sources..."
Industry and job losses
One EPC firm offered commentary on Chinese dumping of fabricated products. In addition to pressure vessels, "
Fabricated process modules (which contain both vessels and piping) are an example of how Chinese fabricators (and EPC firms both foreign and domestic) are getting around the anti-dumping laws. Once piping is installed in the module, it becomes a 'part of the equipment' and undergoes the substantial transformation requirement and can bypass regulations.
"Major Gulf Coast projects and even some inland projects are using overseas vessel fabrication, process and pipe rack modules, and other fabricated products." This leads to substantial lost revenue dollars and even loss of jobs when US fabricators are unable to meet the deep price reductions resulting from the
labor and material differential.
STI-SPFA hires lobbyist
In response to the Section 232 investigation, STI-SPFA is engaged in several activities:
- A Washington lobbyist has been hired for this project. He is well-connected connected with a senior advisor in the US Department of Commerce.
- The lobbyist will also speak at our Fall Conference in Houston on September 27, with an update on the Section 262 issue and other federal government activities affecting our industry.
- STI-SPFA sent a letter to Commerce on the Section 232 security issue of cheap, imported steel. Specifically, we expressed our concern with considerably cheaper, significantly-sized pressure vessels being imported into the US. Our country becomes more vulnerable if the steel fabricated industry declines due to unfair trade practices.
- STI-SPFA is participating in an Industrial Metals Supply Chain Forum, focused on Section 232 and Buy America steel. Participants include AISI, SMDI, FMA, SMA, SSINA, PMA, and other metal associations.
- Future activities include a visit by STI-SPFA member pressure vessel fabricators to a high-level Department of Commerce official to express industry concerns.
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New edition of M11
AWWA's
M11 Steel Pipes: A Guide for Design and Installation is the "bible" for steel pipe fabricators.
 This long-awaited fifth edition "provides complete information for designing, installing, and maintaining steel pipe and fittings for potable water transmission and distribution. New and revised information has been incorporated into every chapter within the fifth edition."
A new chapter on thrust design has also been added.
M11 5th Edition is available at the
AWWA Store.
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Manufacturers project 4.8% production growth
The National Association of Manufacturers (NAM) publishes a quarterly Manufacturers' Outlook Survey. The results for first quarter of 2017 are largely positive: 
93.3% of respondents are positive for their own company's outlook, compared to 77.8% in December 2016.
Respondent companies project their production growth rate to be 4.8% over the next 12 months, compared to 3.0% in December 2016.
2.3% is the expected growth rate for full-time employees over the next year, compared to 1.0% last quarter of 2016.
See the entire
NAM Manufacturer's Outlook Survey first quarter 2017 report here.
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ICC eliminates
P-V vents
 The 2018 editions of the ICC Family of Codes (except the IgCC/189.1) will be published and for sale sometime in September 2017. They can be
pre-ordered here.
One change is of interest to shop fabricated fuel tank manufacturers, pertaining to pressure-vacuum (P-V) vents:
A deletion in Section 5704.2.9.7.3 results in flame arresters or pressure-vacuum breather valves no longer being required on all protected above-ground storage tanks. Only those containing Class I flammable liquids must have P-V valves.
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But what IS it???
A puzzled person emailed us recently, seeking identification for an item she found in a local museum in Kansas.
"It is very light (cast aluminum?) and the wear pattern suggests the lever (brass?) sat at zero most of the time. It is marked with 'C & B NO 01 KC MO', which I take to mean '
'
Clay & Bailey, Number One, Kansas City, Missouri'. The museum's guess was a 'cattle counter,' but somehow I don't think so..."
We contacted Brad Holmes of Clay & Bailey and he found a 1938 catalog where this item was displayed as an "Aluminum
Counter Dial for Bucket Boxes."
"That would have been my second guess," said our correspondent!
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Member News
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Got news about
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CB&I's Plainfield, Illinois, location won our 2016 Elevated Tank of the Year for its 1,500,000 gallon water tank for the City of St. Charles near Chicago. The tank was featured in an
article about the project in the
NACE Corrosion Press, June 22.
Modern Welding recently announced that
Stephen Fort is the newly-appointed VP of Sales. Steve has worked at Modern for 48 years in various capacities.
Murray HIller is the new Manager of the Modern Welding Company of Georgia in Augusta.
The Sherwin-Williams Co. and
Valspar Corp. completed their merger on June 1. The combined company has a value of $16 billion.
Peyton Ford Watson, daughter of
Rhonda Watson and granddaughter of
David Watson of
Watco Tanks, has received a Charles D. Kemp Scholarship from PEI for the 2017-18 academic year. Recipients are selected based on academic achievement, leadership, character, and the applicant's interest in the future of the fuel and fluid handling equipment industry.
Kevin Morris of
The Sherwin-Williams Co. authored an article in the April issue of
Environmental Science & Engineering, "Proper Coating is Essential to Extending Water Tank Life."
Richard Schnabel,
Tanknology EVP of Sales, announced his retirement May 9. Schnabel is a 40-year petroleum industry veteran, and has worked in senior sales management at Tanknology for the past 20 years.
Sonny Underwood of
Mid-South Steel Products was recently elected vice chairman of the Missouri Petroleum Storage Tank Insurance Fund (PSTIF) Advisory Committee.
Congrats to
Lincoln Electric as construction progresses on its new $30 million Welding Technology Center in Euclid, Ohio. 2017 is the 100th anniversary of Lincoln's welding school.
Kudos to
Midwest Materials'
Brian D. Robbins, CEO, and
Noreen Koppelman-Goldstein, President, who were both chosen in March as finalists for Platts Global Metals Awards for CEO of the Year and the Lifetime Achievement Award, respectively.
TF Warren Group knows how to get great PR! They sent a press release about receiving STI Safety Awards for 2016 and
got a full webpage--with pictures!--on the
Tank News International e-newsletter and webpage.
Congratulations to
Kloeckner Metals on the opening of its
new 106,000 sq. ft. facility in University Park, Illinois. They're flat-rolled division had been operating out of a 100-year-old building on Chicago's South Side for nearly 20 years.
Members
Chip Stein, Tank Industry Consultants;
Pete Young, Containment Solutions; and
Davies Hood, Induron Coatings, contributed to
"Storage Tank Maintenance: Preventative care keeps water safe", an article in
Water Efficiency magazine, March/April 2017. Special thanks to David for mentioning STI-SPFA's online Total Cost of Ownership tool.
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New directions in the energy market at
2017 Fall Conference
During "Energy Week" the last week in June, President
 Trump extolled the virtues of domestic energy dominance and the economic benefits of exporting U.S. liquefied natural gas (LNG).
If you want to learn about LNG exporting and the latest trends in the energy market, Houston is the place to be September 26-27. Don't miss these cutting-edge speakers at the Fall Conference:
Developing Changes in the Fuel Industry, with David Hackett, CEO of Stillwater Associates, a transportation fuels consulting firm specializing in downstream markets.
Current Energy Policy and Regulation, with Robert Wasinger, JD, McGuire Woods Consulting. Rob is a long-time Capitol Hill denizen. Having worked in the Trump for President campaign, he has the inside track on activity such as the Department of Commerce's Section 232 investigation into the effect of steel imports on U.S. national security.
Construction for LNG Exports: Impact on Our Industry, with Brad Veath, VP Sales, CB&I.
BIC Magazine says that the U.S. will be the world's largest exporter of LNG by 2035. Is this an opportunity for a new market in fabricating LNG facilities and transport?
And that's not all. The Fall Conference opens with committee meetings and a golf outing on Tuesday. On Wednesday, engage with these energy speakers, as well as safety and leadership presentations.
Focus on your opportunities in the changing energy market.
Register today for STI-SPFA's 2017 Fall Conference!
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Pre-Fall Conference Pressure Vessels: Technical Workshop
Get more from your Fall Conference registration dollar when you attend this workshop on Monday, September 25:
STI-SPFA members registered for the Fall Conference can attend the
Pressure Vessels: Technical Workshop FREE!
The workshop runs 10 am-4 pm (including lunch), and features:
| Metals Applications
with Andy Personnet,
VP-Technical,
New Castle Steel
Welding Techniques
with Mike Heinrich,
VP-Operations,
Boardman LLC |
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How to get your FREE workshop registration:
- Register here for the 2017 Fall Conference.
- Then register here for the Pressure Vessels: Technical Workshop
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Missouri makes "legal owner" responsible
Effective Jan. 1, 2018, Missouri will shift responsibility for leaking underground tanks. Under the new rule, the "current legal owner" of a site will be responsible for any corrective action required to address a release of petroleum from underground storage tanks (USTs) formerly operated on the site.
Currently, the party owning the tank when the release occurred is the responsible party.
Missouri's Petroleum Storage Tank Insurance Fund (PSTIF) estimates that the shift will affect 90 to 100 known sites on which no cleanup is underway.
Source: PEI's TulsaLetter, June 14, 2017
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Labor Department signals changes in overtime
Reuters, July 3, 2017: The U.S. Labor Department suggested last week (week of June 28--ed.) that it could lower the salary threshold for overtime eligibility set under the Obama administration, Reuters reports
The news source writes that the department asserted to the New Orleans-based 5th U.S Circuit Court of Appeals its authority to use salary levels to determine which workers are eligible for overtime pay, but distanced itself from an Obama administration rule that greatly expanded the number of qualifying workers.
The Labor Department is challenging a November 2016 decision from a federal judge in Texas that blocked the Obama administration's rule-a rule that the department said could prevent it from setting a new threshold.
Under President Obama, the Labor Department said the salary threshold for workers to receive overtime pay would increase from $23,000 per year to $47,500, which would make about 4 million more U.S. workers eligible to receive overtime. Several states sued to block the rule, before a federal judge in Texas issued an injunction, arguing that only Congress could increase the salary level so drastically, reports The Hill.
Labor Secretary Alex Acosta indicated earlier this year that the department could seek to set a new overtime pay threshold around $33,000.
Source: Reuters, reported by
NACSOnline
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California affirms higher fuel economy standards
On March 24, the California Air Resources Board (CARB) affirmed fuel efficiency standards of 54.5 mpg for model year 2025 vehicles in the state. The decision came less than two weeks after President Trump ordered a review of the federal Corporate Average Fuel Economy (CAFE) standards for model year 20-22-2025 vehicles.
Twelve states (CT, DE, ME, MD, MA, NJ, NY, OR, PA, RI, VT, WA) and the District of Columbia have pledged to following the California standards. These states account for about one-third of new car sales.
Source: PEI's Tulsa Letter, April 13, 2017
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Welcome
n
ew members!
We're glad you've joined us! You'll find your member benefits and the camaraderie of industry peers valuable assets. Be sure to explore www.steeltank.com.
FABRICATOR MEMBERS
AFFILIATE MEMBERS
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O'Day Tank & Steel Employee takes first-ever Herdman Cup
Jeremy Korczak, an engineer at O'Day Tank & Steel, LLC, Fargo, is the winner of the first-ever Herdman Cup presented by the Steel Tank Institute (STI).
The Herdman Cup is awarded for excellence in steel
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Jeremy Korczak, O_Day Tank & Eqpt., first recipient of the Herdman Cup. |
fabrication and welding.
Korczak scored 179 of a possible 200 points on a welding simulator at STI's Quality Control Meeting in Vancouver, British Columbia, on May 4th. The simulator scores welding criteria such as travel speed, angle, throat, and overall weld quality.
Korczak and 24 other contestants from STI member steel fabrication plants in the United States, Canada, Mexico, and the Caribbean tested their skills on the welding simulator provided by Lincoln Electric of Cleveland, Ohio.
The Herdman Cup honors Bill Herdman, STI's highly-respected industry consultant in steel fabrication and welding. Herdman started at Kennedy Tank in Indianapolis in 1958, retiring in 2009 as vice president. Bill was deeply involved in development of STI's sti-P3 underground storage tank technology, and served with distinction on STI's Technical Committee for many years.
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Representing your industry and
your interests
STI/SPFA staff travel often to speak at workshops, give presentations, and man our exhibit booth, representing the fabricated steel industry at federal agencies, regulatory groups, conferences and trade shows.
It's a major benefit to you as an STI-SPFA Member. Here is a sample of staff travels from the past few months:
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STI-SPFA's Wayne Geyer attended NAM's Manufacturing Day Luncheon in Washington, DC, on June 22. Pictured are NAM's Jay Timmons, President, and special guest US Vice President Mike Pence.
- Southeast Petro-Food Marketing Expo, March 7-9
- Upper Midwest C-Store & Energy Show, March 27-28
- NACE, March 29
- SP001 Revision Committee, April 6-7
- NISTM AST Conference, April 18-20
- M*Pact Expo, April 19-20
- ASTSWMO Annual Meeting, April 26-27
- NISTM-PIttsburgh, May 18
- NISTM-Minneapolis-St. Paul, May 13-14
- AISI Annual Meeting, May 22-23
- Fuels Institute Annual Meeting, May 23-25
- STI Workshop at ASTSWMO meeting, May 23-25
- SWMPTAC, June 8-12
- ASTM June 25-28
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About
The Insider
The Insider is STI-SPFA's Members-Only e-newsletter, reporting news and information about the association, its members, and its activities on their behalf.
To comment or submit copy, contact The Insider editor.
Disclaimer: Technical and other information published in The Insider is provided without representation or warranty, express or implied. In particular, STI-SPFA does not warrant the accuracy of information presented from external sources.
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