What should I check about a welding shop’s gas cylinder and consumables storage?
Walk the shop and see whether cylinders are upright, secured and separated by gas type, and whether rods, wire and fluxes are kept dry and labelled. Then ask who owns the cylinders, how they are tracked and paid for, and how the shop handles empties.
Storage tells you about habits. Look at how cylinders are kept: secured against falling, capped when not in use, kept away from heat and from each other if gases differ. Ask the staff how they were trained to handle them and who is responsible for checking the area. Do not treat your visit as an inspection; instead note what you see and ask your own safety adviser or insurer what they would want to see.
Consumables are an inventory too. Check that electrodes and wire are stored dry, in their packaging, and that old stock is not mixed with new. Wire left open to damp air can cause poor welds. Ask how much stock the shop holds, how often it orders, and whether there are supplier agreements that may or may not carry over to you.
Finally, find out about ownership. Many cylinders belong to the gas supplier and carry rental charges. Ask for the supplier statements, the number of cylinders on site and any outstanding balances. Confirm what stays with the shop at closing and who pays for returned cylinders. Your lawyer can reflect that in the agreement. Ask also how often anyone walks the storage area, and whether the shop’s insurer has ever commented on it.
Key takeaways
- Note how cylinders are secured, separated and capped, then ask your insurer what it expects.
- Check that wire and rods are stored dry and rotated.
- Get the supplier’s statements to see who owns the cylinders and what rent is owed.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I assess a welding shop’s stock of steel, gas and consumables?
- Expert answerWhat should I check before buying a hydraulic cylinder repair shop?
- Expert answerHow do I assess a cheese shop’s ageing room and cold storage?
- Expert answerHow do I check a bait shop’s cold storage and aerated tank equipment?
- Expert answerWhat should I ask about a fabrication shop’s mobile welding trucks and field work?
- GuideBuying a welding shop in Canada
Due diligence
- Expert answerHow do I check a tire shop’s seasonal storage business before buying?
- Expert answerHow do I check a food co-packer’s cold storage and receiving dock capacity?
- GuideWelding shop due diligence
- Expert answerHow do I review a fabrication shop’s customer contracts and project invoices?
- GuideMetal fabrication shop due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.