WATERFORD - Clean air regulations from the U.S. Environmental Protection Agency have generally resulted in steady business for Randy Townsend's Air Heater Seal Co., Inc. But the EPA's recent implementation of more stringent air pollution standards could be bad news for the small Waterford company.
"We've been in business since 1988," Townsend said. "My dad and I and one of my brothers started the business, basically specializing in steel fabrication. And our largest customers are in the power industry."
Air Heater Seal builds a variety of products, including pressure tanks, expansion joints, ductwork and other custom equipment that power plants install to help meet federal air quality standards.
"I have to say the EPA has helped my business but with these new higher regulations power plants are closing and companies like mine are losing business," Townsend told Ohio's 6th District Congressman Bill Johnson, R-Ohio, during a tour of Air Heater Seal Tuesday afternoon.
Johnson and other officials, including Ohio Rep. Andy Thompson, R-Marietta, Nick Gatz with Gov. John Kasich's economic development office, Kent Moore, district representative for U.S. Sen. Rob Portman, Washington State Community College President Brad Ebersole and members of the Southeastern Ohio Port Authority, visited three area businesses Tuesday.
In addition to Air Heater Seal, the group also toured Waterford Tank & Fabrication and Eramet Marietta on Ohio 7.
"We're trying to keep the EPA and regulations at bay but it is an uphill battle," Johnson told Townsend.
The congressman said more than 72,000 pages of new clean air regulations have been implemented in the latest round of standards set forth by the EPA last month.
"It would take 118 million man hours just to comply with those regulations," he said, adding that amount of required compliance provides no incentive for business growth.
Johnson emphasized he's not totally against environmental regulations.
"But we need common sense regulations based on real science-not based on some political gain or expediency," he said.
Thompson agreed.
"While companies are trying to comply with existing regulations, (the EPA) is already writing more, and they all seem designed to impact the coal and power industry," he said. "Someone recently told me the fastest-growing area in the software industry is compliance software that companies are using to try and keep up with new regulations."
In spite of tighter federal clean air standards, Townsend said his company continues to grow.
He said one way the company survives is through diversification into other markets where steel fabrication is needed, like at gas-fired power plants
"Right now we're also building baghouses that some industries need to meet clean air regulations," Townsend said. "And another side business we've had since 2003 is constructing tree stands for hunting."
He's also watching the growing gas and oil business due to hydraulic fracturing to extract fuels from Ohio's Marcellus and Utica shale deposits.
A few miles away, just north of Beverly off Ohio 83, is Waterford Tank & Fabrication, Ltd., a company that's grown rapidly over the last four to five years, thanks largely to the shale industry.
Owners Matt Brook and Larry Lang met Johnson and his entourage at the plant Tuesday evening.
"We build tanks for the Marcellus and Utica shale industry," Brook explained. "But we're running out of space and are constructing new facilities where we can build the large 400-barrel tanks the industry needs."
Lang said the newest expansion would be a 28,000-square-foot addition.
"We really need to double our capacity," he said. "And we could hire another 30 to 40 workers with additional space."
Brook said the company currently employs 70 workers who cut, weld and assemble the tanks and equipment for the oil and gas industry.
Tuesday's industrial tour began at Washington State Community College where the federal, state and local officials met with local business leaders.
Ebersole said such meetings and tours are key for WSCC.
"We're always looking for ideas to contribute to our workforce training," he said. "This is where we learn what kind of training is needed to provide workers for these industries."
Dave Haas, chairman of the Southeastern Ohio Port Authority board, said the Waterford industries were chosen for the tour because they are outgrowing their facilities.
"Both of these companies are growing," he said. "One of (Townsend's) concerns is space. He already has two locations in Waterford. And it's the same for Waterford Tank which is also expanding its facilities."
