Manufacturing and selling highpurity specialty gases requires complex resources and represents a significant investment for industrial gas distributors.
The profitability of specialty gases makes them a highly desirable product line, and many distributors today are considering entering this business, which has been largely dominated by the major gas companies.
With this feature, CryoGas International begins the first in a series of articles that is intended to provide a framework to assist distributors with a make-or-buy decision regarding specialty gases. This feature serves as a primer on specialty gases — what they are, the skills required in their production, and the commitment to quality and service that underpins a specialty gas business. Future articles will cover market analysis techniques, the analytical equipment that is required to manufacture specialty gases, training a staff to support a specialty gas product line, and evaluating the economics of the specialty gas market vis-a-vis your business.
ENTRY POINTS FOR THE SPECIALTY GAS BUSINESS
Many distributors enter the specialty gas business by responding to a customer’s needs. Distributors often begin by purchasing specialty gas requirements from another supplier, then servicing them to their customer. This often turns into a profitable venture with distributors discovering that you can make some of these gases, such as pre-purified nitrogen. Distributors can enter the specialty gas business by repackaging product into specialty gas cylinders and by following specialty gas protocols. From here, the distributor looks for more points of entry and greater vertical integration of his gas production process into specialty gas sectors.
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