A sign of optimism: Airgas South constructing new facility; expects improvement in sluggish economy by April

Sep 27, 2009 (The Decatur Daily - McClatchy-Tribune Information Services via COMTEX) -- ARG | Quote | Chart | News | PowerRating -- Airgas South in Decatur has been hit hard by the recession, but its optimism for the future is translating into a new and expanded facility on Finley Island Road.

The company's struggles and plans are a reminder that production changes in Decatur's major industries quickly impact a host of smaller suppliers. Furloughs at 3M or General Electric make the headlines, but smaller companies feel much of the pain.

"Decatur's always been an excellent town for us business-wise," said Odean Long, district manager at Airgas South. "This is one of the first times we've been hurt by a slowdown. In years past Decatur has always been driving. This year is one of the few years we've been affected."

Airgas -- the world's largest distributor of cylinder gases -- believes an end to the economic woes is in sight.

"We're looking for the first quarter of 2010 or the second quarter of 2010 for us to really feel an impact," Long said.

Airgas bought six acres from Vernon Lane of Mid-South Testing Inc. The $1.3 million project will consolidate two facilities in Decatur, one on Central Parkway and the other, which it had purchased from Linde Gas Inc., on Alabama 20.

Long said construction of the 16,000-square-foot building should be complete by April -- about the time he expects to feel the impact of an economic recovery.

Airgas employs 16, a number which will not increase until the economy turns around.

"If plants are shut down, if their maintenance folks aren't working, they're not buying anything from us," Long said.

Gas sales

Airgas sells gases used for welding and fabrication, as well as medical and safety gases. The Decatur facility is the largest in North Alabama. It has a small pumping station that puts oxygen, argon and a few other industrial gases into cylinders after receiving the gases via tanker trucks.

Airgas has a large pumping station in Bessemer, which ships cylinders of other gases, including acetylene and carbon dioxide, to Decatur.

Airgas customers include most of the area's large industries, including Nucor, 3M and BP. Most customers buy the gas and rent the cylinders, which are about a foot in diameter and five feet tall.

Long groans when asked about his next-door neighbor on Finley Island Road.

"Don't remind me about Biological Processors," he said.

Biological Processors of Alabama closed last year with more than 1 million gallons of hazardous waste on its 10-acre site. Since January, the U.S. Environmental Protection Agency has been working on a $2 million cleanup of the property.

"We have met with the EPA people," Long said. "They have come down on our property and done soil testing and boring. Plus, in our contract, we've had soil testing and boring all over the property, so there is no concern about contamination."

Long said Airgas will be putting its Central Parkway facility up for sale.

Long's expectations of a recovery in early 2010 appear well-founded, according to recent Federal Reserve data.

Industrial output rose 0.8 percent in August, following a 1 percent increase in July. Production in manufacturing expanded 0.6 percent in August after a 1.4 percent increase in July.

The boom times of 2000 through 2006 are a long way off, most economists predict, but Airgas and other industrial suppliers have reason to hope for slow but consistent improvement.

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