“It is difficult to purchase steel now,” said Adam Gazapian, owner of WB Tank & Equipment (Portage, Wisconsin), which refurbishes tanks and cylinders for resale. “There is a great demand for propane cylinders; we need more tanks and more labor.”
At Worthington Industries (Worthington, Ohio), Sales Director Mark Komlosi said that the pandemic has severely affected the strong demand for propane cylinders. “Businesses and consumers have made further investments in extending the outdoor season,” Comlossi said. “In order to do this, they have more propane equipment than two or three years ago, thereby driving demand for products of all sizes. In cooperation with our customers, LPG marketers, distributors and retail When talking with the business, we believe that this trend will not slow down in the next 24 months.”
“Worthington continues to introduce innovative products to help consumers and the market have a better experience of our products and increase efficiency,” Komlosi said. “Based on the insights we have obtained for customers and consumers, we are developing a series of products.”
Komlosi said that both the price and supply of steel have had an impact on the market. “We expect this to be the case in the foreseeable future,” he said. “The best advice we can offer marketers is to plan their needs as much as possible. Companies that are planning… are winning prices and inventory.”
Gazapian stated that his company is making every effort to meet the demand for steel cylinders. Gazapian said in mid-March 2021: “Just this week, we have trucks of gas cylinders shipped from our Wisconsin factory to Texas, Maine, North Carolina and Washington.”
“Refurbished cylinders with new paint and American-made RegO valves cost $340. These are usually new for $550,” he said. “Our country is currently facing many economic challenges, and every bit of savings is helpful.”
He pointed out that many end users use 420-pound gas cylinders at home, which can hold approximately 120 gallons of propane. “This may be their best option right now because of the tight funding. These 420-pound cylinders can be placed by the house without the costs associated with digging and laying underground pipelines. If they run a large number of gallons through their cylinders, they end up Cost savings may be found in an ordinary 500-gallon fuel tank, because fewer deliveries to their homes are less frequent and may ultimately save costs,” he said.
The American Cylinder Exchange (West Palm Beach, Florida) operates cylinder delivery in 11 metropolitan areas in the United States. Partner Mike Gioffre said that COVID-19 only showed a short-term decline in volume that lasted throughout the summer.
“Since then, we have seen a return to a more normal level,” he said. “We have established a’paperless’ delivery process, which still exists today, and is now likely to become a permanent part of our delivery process. In addition, we have successfully established remote workstations for some of our administrative staff, which is very important for us It’s a seamless process for our customers, and it has restricted our presence in larger locations at the height of the pandemic.”
LP Cylinder Service Inc. (Shohola, Pennsylvania) is a cylinder refurbishment company that was acquired by Quality Steel in 2019 and has customers in the eastern half of the United States. Tennessee, Ohio and Michigan,” said Chris Ryman, vice president of operations. “We serve both the home retail business and large corporations. ”
Lehman said that with the pandemic, the refurbishment of the business has increased significantly. “As more people stay at home and work from home, we are definitely seeing a significant increase in demand for 20-pound cylinders and cylinders for fuel generators, which is very popular during power outages.”
Steel prices are also driving demand for refurbished steel cylinders. “The price of gas cylinders is getting higher and higher, and sometimes new gas cylinders are not available at all,” he said. Ryman said that the growth in demand for gas cylinders was not only driven by new outdoor living products in backyards across the country, but also by new people moving away from major cities. “This has triggered a large demand for additional cylinders to cope with various uses. Home heating, outdoor living applications and the demand for propane fuel generators are all factors driving the demand for cylinders of various sizes.”
He pointed out that the new technology in the remote monitor makes it easier to track the volume of propane in the cylinder. “Many gas cylinders weighing 200 pounds and above have meters. In addition, when the tank is below a certain level, many monitors can directly arrange for the customer to deliver the technology,” he said.
Even the cage has seen new technology. “At Home Depot, customers don’t have to find a staff member to replace the 20-pound cylinder. The cage is now equipped with a code, and customers can open the cage and replace it by themselves after payment.” Ryman continued. Throughout the pandemic, the restaurant’s demand for steel cylinders has been strong because the restaurant has added outdoor seating to accommodate a large number of customers they were once able to serve inside. In some cases, social distancing in most parts of the country reduces restaurant capacity to 50% or less.
“Demand for patio heaters has been growing rapidly, and manufacturers have been trying to keep up,” said Bryan Cordill, director of residential and commercial business development at the Propane Education and Research Council (PERC). “For many Americans, 20-pound steel cylinders are the steel cylinders they are most familiar with because they are very popular on barbecue grills and many outdoor living facilities.”
Cordill stated that PERC will not directly fund the development and manufacturing of new outdoor living products. “Our strategic plan calls for focusing on outdoor living without investing in new products,” he said. “We are investing in marketing and promoting the concept of home outdoor experience. Fire pits, outdoor tables with propane heating and more products enhance the concept of families being able to spend more time outdoors.”
PERC off-road business development director Matt McDonald (Matt McDonald) said: “Industrial areas across the United States are being debated around propane and electricity. “Due to the various benefits that propane brings, the demand for propane continues to increase. MacDonald said that material handling in busy warehouses does not need to stop for battery charging. “Workers can quickly replace empty propane cylinders with full cylinders,” he said. “This can eliminate the need for extra forklifts and expensive The need for electric replacement infrastructure to charge the battery when work must continue. ”
Of course, the environmental benefits of propane is another major factor that is beginning to resonate with warehouse managers. “Building codes are increasingly focusing on reducing the carbon footprint and protecting the health of workers,” McDonald said. “Using propane can make indoor industrial functions a cleaner and healthier environment.”
“The leasing industry adding more and more machines that run on propane will help us make great progress in propane,” McDonald continued. “The ports of shipping facilities also provide huge opportunities for propane. There is a large amount of cargo in coastal ports that needs to move quickly, and the port space is under pressure to clean up the environment.”
He listed several machines that have received attention for reducing carbon emissions and improving indoor air quality. “Concrete equipment, forklifts, electric vehicles, scissor lifts, concrete grinders, concrete polishers, floor strippers, concrete saws, and concrete vacuum cleaners are all machines that can run on propane and really improve the indoor environmental impact,” Mike Downer said.
Lighter composite gas cylinders are used more and more worldwide, but the development to composite gas cylinders has not been so fast. “Composite cylinders have many benefits,” said Sean Ellen, managing director of Viking Cylinders (Heath, Ohio). “Now the price difference between our composite cylinders and metal cylinders is shrinking, and the company is carefully studying our benefit. ”
Ellen emphasized that the lighter weight of the cylinder is a major advantage of ergonomics. “Our forklift cylinders-when fully loaded-are less than 50 pounds and fully comply with OSHA’s recommended lifting limits. Restaurants that must change cylinders quickly during busy dinner rush hours absolutely love how easy it is to handle our cylinders.”
He pointed out that steel cylinders usually weigh about 70 pounds when full steel and aluminum cylinders are about 60 pounds. “If you use aluminum or metal cylinders, when you swap out, you should have two people loading and unloading the propane tank.”
He also pointed out other characteristics. “The cylinders are designed and tested to be air-tight and rust-free, thereby reducing risk and maintenance costs.” “Globally, we have made more progress in replacing metal cylinders,” Allen said. “Globally, our parent company, Hexagon Ragasco, has close to 20 million in circulation. The company has been in existence for 20 years. In North America, adoption has been slower than we hoped. We have been in the United States for 15 years. We have found [that] Once we can get a cylinder in someone’s hands, we have a great opportunity to transform them.”
Obie Dixon, sales director of Win Propane in Weaver, Iowa, said that the new Viking Cylinders products are an important complement to their products. “Steel cylinders will still be the choice of some customers, while composite cylinders will be the choice of others,” Dixon said.
Due to the ergonomic advantages of lighter-weight cylinders, Dixon’s industrial customers are pleased that they switch to composite cylinders. “The cost of cylinders is still low,” Dixon said. “However, considering the benefits of rust prevention, Sea World has other benefits. This is another example where customers also believe that these benefits are worth any additional costs.”
Pat Thornton is a veteran in the propane industry for 25 years. He has worked for Propane Resources for 20 years and Butane-Propane News for 5 years. He has served on the PERC Safety and Training Advisory Committee and the Missouri PERC Board of Directors.
Post time: Sep-08-2021