SSPC Annual Report

(January 1, 2010 to December 31, 2010)

PART I: INTRODUCTION
This annual report gives an overview of the
activities, plans, and status of SSPC: The
Society for Protective Coatings from
January 1, 2010 through December 1,
2010. The information enclosed gives the
most current figures for all programs.
SSPC had another successful year. The
sixth annual PACE conference (February
2010), the launching of many new training
programs, and continued progress on the
strategic marketing plan were the
highlights for SSPC in calendar year 2010.
We continue to look at foreign markets as
a way to expand SSPC and the message we
are trying to deliver which is that the use

of protective coatings is the best solution

to corrosion control. With that, we
continue to explore potential international
markets.
Marketing efforts continue to focus on
core SSPC member demographics that are
spread across a broad range of industries.
Key
member
demographics
include
painting contractors, facility owners,
consultants, inspectors, engineers, and
coatings,
materials
and
equipment
manufacturers and suppliers. Targeted
industries
include
water/wastewater,
transportation, power, marine, defense,
and chem/petrochem.

PART II: ACHIEVING SSPCS VISION

We continue to progress in implementing
our present marketing plan to achieve the
Societys vision. That vision is:
SSPC will be the worldwide acknowledged
resource and authority for protective
coatings technology and information.
A major accomplishment in 2010 was the
fact that the Florida Board of Engineers
approved the SSPC Conference education
program for CEUs. Professional engineers
with two Florida licenses who register for

the full conference can receive 15 CEUs

toward their license renewals.
As of October 2010, the Bureau of
Veteran
Affairs
approved
veterans
receiving a reimbursement of up to $550
for SSPC Training/Certification Exams.
Also, in the area of Public Policy Advocacy,
SSPC submitted comments to EPA on the
proposed Coal Combustion Residual Rule,
and the Information Collection Request
Requirements for Reporting Emissions Due
to Paint Stripping Rule.

SSPC Annual Report

January 1 to December 31, 2010

SSPC also posted headlines on our website

relating to government activities that may
affect the coatings industry.
In the area of providing information, we had
1,039 technical information inquiries in

2010. This is down from 1,102 in 2009,

or 5.7%. We remain a superb resource of
information for our members and the
industry and we invite you to make use of
the
staff
capability
we
have.

PART III: MEMBER PROGRAMS

SSPC is a member-based organization. We
are evaluated on how well our programs
and services meet the needs of our
members and the protective coatings
industry.
Standards and Publications
Our core product is our standards. The
standards completed in FY 2010 are listed
below in Table 1.

achieved certification, an increase of 6.6%

over 2009. The past year also saw an
increase in the total number of certified
coating and lining inspection entities.
Seven companies have achieved Coating
and
Lining
Inspection
Company
certification, an increase of 250% over
2009.
In the Protective Coatings
Specialists Certification (PCS) program, we
have 252 participants certified, an increase
of 7.7% from last year. A breakdown of the
certification programs is shown in Figure 1.

Certification
The past year saw an increase in the total
number of certified contractors.
Two
hundred ninety-one contractors, many
holding
multiple
certifications,
have

Table 1
Standards and Publications Completed in Year Ending December 2010
SSPC Paint 42, Epoxy Polyamide/Polyamidoamine Primer, Performance-Based
SSPC-PS 28.02, Three-Coat Moisture-Cure Polyurethane Coating System, PerformanceBased
AISC 420-10/SSPC-QP 3, Certification Standard for Shop Application of Complex
Protective Coating Systems
SSPC-SP 16, Brush-Off Blast Cleaning of Coated and Uncoated Galvanized Steel,
Stainless Steels, and Non-Ferrous Metals

Revision:
SSPC-TU 11, Inspection of Fluorescent Coating Systems was completed in 2010.

SSPC Annual Report

January 1 to December 31, 2010

Figure 1: Individual Certification Program

Training

*In brackets is the percentage increase or

decrease from last year.
The PCS program, along with other SSPC
programs that accept the SSPC C-1,
Fundamentals of Protective Coatings and
the C-2, Specifying and Managing
Coatings Projects as part of their prerequisites for education have continued
to spur an interest in these courses with
181 [-38%] students trained this year.
The
number
of
students
taking
advantage of the value of our online
course offerings has increased to 162
[+54%] this year. For Lead Supervisor
Competent Person Training, (C-3 and C5), 1,661 [+7.1%] students received
training.
Another
86
students
participated in our Lead Worker training
program.
The C-7 Abrasive Blasters
course had 445 [+33.7%] personnel
trained. Airless Spray, (C-12) had 193
[+212%] students trained, WaterJetting,

(C-13) had 34 [-29%], and Marine Plural

Component, (C-14) had 124 [-20%].
The Applicator Train-the Trainer course
had 28 [-6.6%] students. The Quality
Control Supervisor course (QCS) had 99
students trained with another 211
[+93%] taking the course on-line. We
held
our
first
Coating
Applicator
Specialist exam this year, which was
successfully completed by 8 individuals.
SSPCs Inspector Certification Programs
had 10 [-29%] students in the newly
revised Concrete Coating Inspector
Program, 415 [-12.7%] students in the
NAVSEA Basic Paint Inspector (NBPI)
program, 58 [-48%] in the Bridge
Coating Inspector Program, and 270
[-27%]
students
completed
the
Protective
Coating
Inspector
(PCI)
Program.

SSPC Annual Report

January 1 to December 31, 2010

Webinars

Website

SSPC began offering free webinars in

2010. The webinars are presented once
a month. This years offerings were very
successful with 1498 attendees. SSPC
also offers a short online webinar exam
that provides Recertification Units toward
the Protective Coating Specialist (PCS)
certification renewal.

SSPCs goal is to enhance and maintain

SSPC Online for the benefit of its
members. We continue to offer the
popular Tech Features (excerpts from
SSPC publications), Ask SSPC questions
and answers, downloadable standards on
SSPCs MarketPlace, regulatory news as it
happens, SSPC certification, PCCP and PCS
news, and up-to-date information on SSPC
training.

International Training
SSPC continues to expand its training and
certification offerings around the world.
We held the NAVSEA Basic Paint
Inspector (NBPI) course for the US Navy,
Command Logistics Group, Western
Pacific in Singapore and for the
detachment of Norfolk Ship Support
Activity (NSSA) in Bahrain.
Our China Chapter and licensee remain
active with the SSPC-C holding two C-2
classes in Shanghai and our licensee in
China, Moody International, holding the
Protective
Coating
Inspector
(PCI)
certification program four times.
The SSPC Philippines Chapter continues
to grow. The chapter held their second
seminar in June in the Makati City. The
Role of Protective Coatings in Corrosion
Control II, was held several weeks before
the chapter held their first Applicator
Train-the-Trainer (ATT) Program for 15
students. The chapter also held two PCI
classes this year.

We continue to offer Featured Links on the

homepage for the American Association of
State Highway and Transportation officials,
data mines where individuals from
transportation agencies can readily find
coatings information. We have enhanced
the system enabling members to set their
own password and user ID and fill out
individual profile information.
Many of the online forms offered by SSPC
have been revised to accommodate newer
Internet capabilities and several of the
forms are now offered in downloadable PDF
format.
We also added an Onsite Training request
form to enable individuals to bring SSPC
training courses to their own facilities. New
forms for PCS, NBPI and PCCP have been
added for member convenience. Weve also
updated the online Tools and Links section,
and email groups targeting specific market
interests.
The average number of unique visitors to
our site is 17,735 per month, an increase
from last year by 13.4%.

SSPC Annual Report

January 1 to December 31, 2010

PART IV: MEMBERSHIP AND ADMINISTRATION

Membership

Governance

During the reporting period, SSPC

organizational
membership
(OM)
increased to 792, or 5.2%. Individual
membership grew from 8437 in
December 2009 to 8,768 in December
2010, an increase of 3.9%.
A
breakdown of individual members
demographics is shown in Figure 2;
however, it remains nearly the same as
the previous year.

The Board of Governors changed in 2010.

The Board welcomed Mr. Gunnar Ackx
from SCICON Worldwide bvba, our
international representative, and Mr. L.
Skip Vernon from CLT, Inc. Both individuals
represent the Other Service Provider
demographic. The present Board is shown
in Table 2.

We are pleased with the progress in

increased organizational and individual
membership in these tough economic
times.
However, we cannot remain
satisfied with the status-quo.

Figure 2: Individual Membership Demographics

SSPC Annual Report

January 1 to December 31, 2010

Table 2
Board of Governors
NAME

COMPANY

REPRESENTING

Russ Brown
President

Polygon
Indianapolis, IN

Other Product
Suppliers

Robert McMurdy
President-Elect

Mohawk Garnet, Inc.

Houston, TX

Other Product
Suppliers

Stephen Collins
Vice President

Air Products and Chemicals, Inc. Coating Material

Suppliers
Thomaston, GA

Gunnar Ackx

SCICON Worldwide bvba

Belgium, Germany

Other Service Provider

Derrick Castle

Kentucky Transportation Cabinet

Frankfort, KY

Facility Owners

Benjamin S. Fultz

Bechtel Corporation
Houston, TX

Facility Owners

Steven Hagman

CanAm Minerals/Kleen Blast Abrasives

Other Product Suppliers
Danville, CA

J. Bruce Henley
James R. King, Jr.
Doni Riddle

The Brock Group

Beaumont, TX
John B. Conomos, Inc
Bridgeville, PA
The Sherwin-Williams Company
Cleveland, OH

Coating Contractor
Coating Contractors
Coating Material
Suppliers

L. Skip Vernon

CLT, Inc.
Tijeras, NM

Other Service Provider

Gail A. Warner

Northrop Grumman ShipbuildingNewport News, Newport News, VA

Facility Owners

Robert J. Ziegler

Ziegler Industries, Inc.

Nauvoo, IL

Coating Contractors

Carl Angeloff, P.E.

Ex-Officio
Officers in Bold

Bayer MaterialScience LLC

Pittsburgh, PA

Coating Material
Suppliers

Administration
Key staff members remained the same.
They are: Bill Shoup, Executive Director;
Michael Damiano, Director of Product

Development; Barbara Fisher, Controller;

Mike Kline, Director of Marketing and Terry
Sowers, Director of Member Services.

SSPC Annual Report

January 1 to December 31, 2010

PART V: FINANCES
We are pleased to report that SSPC, again,
met its financial goals for the FY, which
ended December 31, 2010. The reserve
fund now stands at $3,162,000, which
represents about 51% of the average
annual operating revenue. SSPC has met its
financial goals by increasing revenue by

$42,000 while decreasing expenses by 5%.

The financial details for the last fiscal year
and the prior fiscal year are presented in
Tables 3 through 5. Those charts
demonstrate that SSPC continues to be a
financially sound organization and all of our
financial indicators and ratios are healthy.

Table 3
Revenue Versus Expense (Unaudited and before final adjustments)
REVENUE

FY 10

FY 09

Memberships

$995,000

$978,000

Standards and publications

$575,000

$543,000

Conferences

$499,000

$541,000

$3,312,000

$3,357,000

$705,000

$625,000

Total Revenue

$6,086,000

$6,044,000

EXPENSE

FY 10

FY 09

Memberships

$738,000

$738,000

Standards and publications

$477,000

$497,000

Conferences

$422,000

$455,000

$2,339,000

$2,602,000

$823,000

$752,000

Total Expense

$4,799,000

5,044,000

Net Surplus (Loss)

$1,287,000

1,000,000

Certification & training

Other *

Certification & Training

Other **

* Includes revenue from royalties, interest and external projects.

**

Includes expenses for SSPC chapters, governance, regulatory advocacy,

knowledge center, external projects, general administration, and strategic plan
implementation.

SSPC Annual Report

January 1 to December 31, 2010

Table 4
Statement of Financial Position as of 12/31/10 (Unaudited)
Total all
Funds

General Operating
Fund

Cash

$1,087,000

$1,087,000

Investments

$6,271,000

$3,109,000

Accounts receivable

$169,000

$169,000

Inventory

$155,000

$155,000

$7,682,000

$4,520,000

Reserve Fund

Assets - Current Assets

Total

$3,162,000

$3,162,000

Furniture, Fixtures and Equipment

Equipment, Leasehold
improvements at cost less:
Accumulated Depreciation

$483,000
<$362,000>

$483,000
<$362,000>

$121,000

$121,000

-0-

$407,000

$407,000

-0-

$8,210,000

$5,048,000

$3,162,000

Accounts payable

$121,000

$121,000

Accrued expenses

$491,000

$491,000

Deferred revenue

$1,377,000

$1,377,000

$1,989,000

$1,989,000

-0-

Net Assets Unrestricted

$6,221,000

$3,059,000

$3,162,000

Total Liabilities and Net

Assets

$8,210,000

$5,048,000

$3,162,000

Total
Other Assets
Prepaid expenses
Total Assets
Current Liabilities

Total Liabilities

SSPC Annual Report

January 1 to December 31, 2010

Table 5
Changes in Net Assets (Unaudited)

Unrestricted net assets December 31, 2009

Change in net assets as a
result of current operation
Transfer from general
operating fund to reserve fund
Unrestricted net assets December 31, 2010

Total all
Funds

General Operating
Fund

Reserve Fund

$4,934,000

$2,553,000

$2,381,000

$1,287,000

$914,000

$373,000

<$408,000>

$408,000

$3,059,000

$3,162,000

$6,221,000

Respectfully Submitted:
William L. Shoup, Executive Director