SSPC, NACE Members Vote in Favor of Merger

WEDNESDAY, APRIL 22, 2020


SSPC: The Society for Protective Coatings and NACE International each released statements on Tuesday (April 21) announcing that an “overwhelming” majority in each of the associations has voted for the two to merge.

The two-week voting period closed April 17 and came after more than a year of discussions between the leadership of both organizations.

Exploratory Talks History

In March 2019, the two organizations announced the beginning of merger talks. By August, the organizations announced the mutual decision to bring McKinley Advisors on board as a guiding entity for the two organizations’ merger discussions, in addition to advising the organizations through considerations related to strategic, financial and cultural barriers, among others.

At the beginning of this year, the organizations began releasing a series of updates, beginning Jan. 10, which gave a future overview of both update schedules and discussion-related milestones.

The following week (Jan. 17), the associations announced a second update regarding certificate considerations and answers to some of the bigger questions involving this particular aspect of the merger efforts.

According to that update, the SSPC-NACE Task Group was focusing on minimizing disturbance to the industry and wished to maintain overall program quality and continuity.

The week after, the organizations released part one of the membership considerations update, they released a fourth update regarding standards used by industry professionals worldwide.

At the beginning of February, during SSPC’s Coatings+ 2020 conference, SSPC’s Board of Governors unanimously voted to continue discussions and bring the creation of NewOrg and NewOrg Institute—both developments have yet to be named—to a member vote.

The NewOrg is slated to be a 501(c)(6) organization, while NewOrg Institute would meet 501(c)(3) requirements. Each organization will serve specific functions, but members will have access to both entities, and several functions will be conducted by both entities.

Prior to the end of the month, the organizations released their seventh update, which covered education, and an eighth update regarding the part two of the membership component of the agreement, along with a question-and-answer forum.

What Now

According to the organizations, 88.3% of SSPC members and 89% of NACE members voted in favor of the merger.

“This was a vote of historical importance to SSPC members and to the coatings and corrosion industries,” said SSPC President Joseph Walker.

“The level of engagement and interest throughout the process and the impressive showing for the vote demonstrates the enthusiasm the industry has for the potential of this combination. I look forward to working with my colleagues at NACE as we move forward on creating this new organization.”

NACE President Terry Greenfield added: “With what is clearly a resounding ‘yes,’ the NACE membership has spoken. As a member and as NACE’s president I could not be more excited with this result. This will bring more benefits and resources to the members of both organizations and it will have a strong and positive impact on the coatings and corrosion profession worldwide.”

Both organizations echoed what had been said in earlier updates: that most aspects of the merger will not be immediate.

In fact, several steps are required first, most notably effort on determining the new governance and membership structure.

According to the previous updates, the organizations had decided that members will become “NewOrg members,” having full access to both entities, including equal voting and volunteer rights and privileges in both organizations.

The hybrid structure is reported to include valued-based individual and corporate memberships where members can choose their level of benefit and corresponding dues. However, individual members will be able to choose between Core and Premium tiers with Premium being the higher of the two and includes select standard downloads, digital library products and publication subscriptions.

The updates also noted that all current NACE and SSPC individual members will become members of “NewOrg” Premium Individual Membership for the remainder of their current membership term starting on Jan. 1, 2021. Upon expiration, members will be able to choose to renew at either the Premium or Core level of membership.

As for corporate memberships, there is also slated to be a three-tiered, value-based structure. Benefits include free individual memberships, conference registrations and prominent marketing exposure at conferences, and training workshops, among others.

In Tuesday’s announcement, the organizations reiterated the Jan. 1, 2021, date as a target for the new structure and added that member volunteers will hold discussions and decision-making to ensure the final combined organization “represents the best interests of the membership.”

McKinley Advisors will also continue to serve as a third-party, independent advisor.

“From the time each of us began working for our organizations we have believed our members can be stronger together,” read a joint statement issued by SSPC Executive Director Bill Worms and NACE CEO Bob Chalker.

“We are devoted to providing our members with the best services, education, and products possible and we know this combined organization will accomplish that and more. We are pleased to see this come together and look forward to a bright future ahead for the members of SSPC and NACE.”

   

Tagged categories: Asia Pacific; Associations; EMEA (Europe, Middle East and Africa); Good Technical Practice; Latin America; Mergers; NACE; North America; SSPC; SSPC NACE Merger; Z-Continents

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