INTRODUCTION AWS has developed a cohesive global strategy to improve the standard of living through better applications of welding and to grow revenues profitably, while continuing to support the overall vision and mission.

ENHANCED GLOBAL VISIONAWS will continually enhance its position worldwide as the premier global professional and technical society in welding and allied joining and cutting processes.

EXPANDED WORLDWIDE MISSIONThe mission of the American Welding Society is to advance the science, technology, and application of welding and allied joining and cutting processes worldwide, including brazing, soldering, and thermal spraying.

RESOURCES

Personnel 115+ Staff Employees 2,000 Volunteers

Facilities

New AWS World Headquarters in Miami, Florida

GLOBAL CHALLENGESIn order to position AWS as the premier global professional & technical society, three (3) major challenges must be faced:

1. Defend and grow the USA welding market. Penetrate priority developing nations and key industrial segments with the total product offering to advance their social economic standards.

2. Compete with the other global approaches to welding knowledge in the nations where standards and subsequent activities are being adopted.

3. Recognize that future demands will call for more global harmonization of welding standards, guidelines, and qualifications of personnel.

Financial - 2012 $79.4M Total Assets $30.6M Revenues, $8.8M earnings (28.7%)

GEOGRAPHIC PRIORITIES

Geographic Region

North America

South America

Asia Pacific

East Asia

Middle East

POISED TO MEET THE CHALLENGESWith the expanded global mission, AWS will meet these challenges by supporting welding as THE PROCESS OF CHOICE for global fabrication, while growing revenues profitably:

Create geographic and industry segment priorities for a disciplined approach to help key developed and developing regions with AWS current and future product offerings.

Based on the growth, success rate, and return on investment, five (5) geographic regions are a priority for global market penetration:

FOCUS OF 6 KEY INDUSTRIAL SEGMENTS Common segment patterns arose from the establishment of geographic regions. Common segment patterns are seen for: Structural: Infrastructure is important to the improvement of developing countries and includes buildings, bridges, stadiums, airports and all metal structures related to industrial and commercial construction.

Transportation-Automotive: Automobile and automobile parts manufacturing are prevalent in developing countries for both domestic use and exports. Automobile production is common in developing countries to increase mobility for standard of living improvement.

Energy/Natural Resources: Creating energy sources and extracting and exporting natural resources are primary initiatives to building wealth in an emerging market. This segment includes power generation (power plants: fossil fuels, wind, water, solar), steel production, oil and gas production (pipelines, platforms, pipe mills), petrochemical/hydrocarbon processing, and processes of extracting minerals found in the earth.

General Fabrication (manufacturing): As developing countries create wealth by adding value to their natural resources through manufacturing and exploitation of labor base, welding manufacturing increases demand for products such as material handling, valves, pipes, and tubing, light gauge building components and light manufacturing in general. Heavy Fabrication (manufacturing & repair): Heavy fabrication is found in both the manufacturing and repair of construction & mining equipment, farm machinery, shipbuilding, railroads, and large industrial machinery. This segment contains the equipment utilized for building infrastructure, supporting agriculture and extracting and transporting natural resources. Education/Training: As developing nations improve their overall economy, improvement in education and training of trade skills is a necessity. This is an essential segment and a focal point for AWS. Technical schools, Universities, Training Centers, are examples of this segment.

POISED TO MEET THE CHALLENGES

Protect, educate, and market the benefits of the AWS competency approach to welding activities over other global approaches:

AWS COMPETENCY APPROACH BENEFITS Welding Activities AWS Competency Approach Benefits

Standards/Guidelines

Time Tested / Adopted by Many Countries

Direct-Consensus Industry Input Engineered Service Driven Broad Applicability Complete & Concise Cost-Effective Updated by Industry Experts

Qualification Of Personnel

Performance-Based Certification Utilizes Industry Practices

Qualification Of Welders

Performance-Based Process Hierarchy Accepted & Defined Terminology Continuity Based on Use of

Process

POISED TO MEET THE CHALLENGES

Use the benefits of the AWS competency approach, along with enhanced marketing and sales efforts, to influence developing regions to adopt AWS standards. This will lead to extended use of AWS certification, education, and training methods. Increased AWS adoption will influence global harmonization. Sophistication of the fabricator plays a factor in the suitability of AWS offerings. In looking at the unique needs of different segments of fabricators, AWS can tailor its products and services appropriately.

GLOBAL OPPORTUNITIES

As a result of the strategic planning process, ten (10) transformational opportunities were developed to address the key issues and challenges of our business. There are key success factors listed for each of these opportunities which will be driven by time-lined tactical actions. The AWS staff function responsible for each tactic will provide status updates biannually and progress will be measured. The AWS Role and Missions Committee will have oversight of the global strategy.

Amplify Current AWS Flagship Products with Marketing and Sales Enhancements.

Broaden AWS Flagship Products to Match Emerging Market Segment Needs.

Enhance Educational Programs to Increase Knowledge Base of All Welding Industry Stakeholders.

Expand Training Programs to Encompass the Entire Welding Workforce (welders, educators, inspectors, supervisors, radiographic interpreters, etc.).

Strengthen Relationships with Key Allied Organizations to Drive Adoption and/or Reciprocity of AWS Offerings. Explore Joint Ventures with and/or Acquisition of Welding-Related Organizations.

Grow Core Competencies.

Protect IP

Promote/Advocate Welding Research

Solve Welder Shortage in USA

Leverage Human Capital

SUMMARY In the last decade, AWS has achieved good results with initiatives both inside the USA and outside its borders to grow revenues over expenses and advance welding and allied joining processes.

This strategic plan provides a roadmap to create additional direction and discipline to further penetrate the worldwide market while being fiducially responsible to all stakeholders.

The plan will serve as a living document to guide AWS through the next 5 year cycle as The Premier Global Welding and Allied Processes Society.

In summary, the Society’s 5-Year Vision (2012 ─ 2016): Continue as The Global Premier Professional and Technical Society Domestically – Enhance the Industry while Ensuring Financial Strength Internationally – Grow Revenues Profitably, while Supporting Global Mission

Prepared by: Richard J. Seif Senior Advisor Cassie R. Burrell Senior Associate Executive Director July 1, 2013 (Edited and revised for www.aws.org)

AWS’s entire Strategic Plan contains numerous tactical actions to reach the

global opportunities outlined. AWS Operating Departments and association

leaders have developed strategic priorities to successfully meet the opportunities.