One of my favorite quotes is from poet T. S. Eliot (Four Quartets, Section V), “We shall not cease from exploration, and the end of all our exploring will be to arrive where we started and know the place for the first time.” At the start of every year, all operating and financial goals are completely reset with new challenges and higher bars to achieve for the new year. The American Welding Society (AWS) posted record-setting results in 2014 with even higher aspirations for 2015. Before getting into details of the 2015 financial results, I would first like to extend my gratitude to Robert Pali for his service as AWS treasurer and Finance Committee chair over two terms, from 2010 to 2015. Without further delay, I am pleased to announce another record-breaking year for AWS in 2015. Financial highlights include • Revenues for 2015 were $40.7 million, which represents an increase of 12.9% over 2014 results. The surplus for 2015 was $11.8 million, 20% greater than 2014. Both the revenues and surplus have established new financial records for AWS once more. • Strong performance in the revenues and surplus over the annual operating plan was due in large part to the acquisition of World Engineering Xchange (WEX) in 2015. WEX added $1.7 million in additional royalties and contributed $1.2 million to the surplus. Considering the purchase price for WEX of $1.9 million, we feel the acquisition was a solid investment. • The reserve fund on December 31, 2015, was $29 million, representing an increase of $4.9 million or 20.3% greater than the December 31, 2014, balance. The two largest drivers in this increase were a transfer from operations of $9 million and an outgoing transfer to the AWS Foundation of $4 million. The aforementioned results were realized through the steadfast efforts of all of the AWS operating teams and the amazing work of all of the volunteer committees. Several specific arenas of strategic activity drove growth and surplus in 2015, including • AWS Foundation. The AWS Foundation’s assets on December 31, 2015, grew to $49.3 million, up 6.6% over the December 31, 2014, balance. The major factor in the increase was the aforementioned transfer of $4 million from AWS Operations. As a new milestone, 2015 was the first year that the AWS Foundation independently funded its own operating expenses. • Certification. The Certification team signed a contract with Prometric, which will facilitate computer-based exams. In addition, capabilities and personnel in Asia (specifically China) were enhanced. Finally, questions for the Certified Welding Inspector exam have been greatly expanded and improved. • Information Technology. This team led several efforts to modernize AWS’s platforms, which involved implementing new software and collaborating effectively with other AWS teams. Examples of successful implementations include the following: Moodle (learning management system), Customer Relationship Management, Share- Point (collaboration tool), and Great Plains (accounting system). • Learning/Education. In April 2015, the learning/education team launched the first phase of WeldLink, an online career planning and management system specifically designed to bring together individuals, businesses, and schools in the welding industry. • Membership/Publications. New membership increased by 9.7% in 2015, with nondues revenue increasing by 6.6%. The team also signed an agreement with Higher Logic to provide a cloud-based platform for sharing digital content with members and Sections. Also, the Welding Journal en Español became the first publication in Latin America to publish peer-reviewed welding research. Last, professional customer service training was provided for all AWS staff members. • Sales/Marketing. Above-budget revenue growth was achieved both on a domestic and international basis. The team grew its internal resources through well-earned promotions and key strategic hires. An exclusive global sponsorship agreement was signed with WorldSkills International, and the 43rd WorldSkills Competition took place in São Paulo, Brazil. As the incoming treasurer for 2016 to 2018, the financial condition and future growth prospects appear quite robust for AWS. Congratulations to everyone in our industry for their part in making 2015 an outstanding year. Also, thanks in advance for your continued support for AWS in 2016 (where we reset the bars once again) and strive for even better results. EDITORIAL AWS Revenues, Surplus Establish New Financial Records Carey Chen AWS Treasurer “As the incoming treasurer for 2016 to 2018, the financial condition and future growth prospects appear quite robust for AWS.” 6 WELDING JOURNAL / JUNE 2016 WJ
Welding Journal | June 2016
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