Third-Generation Business WelchGas Thrives, Seizes Opportunities

Together with all the other responsibilities that come with operating a propane company, Wes Welch simultaneously maintained his commitment to the Army Reserve for 21 years. Today, the third-generation business owner and his wife and fellow veteran, April, continue to manage and operate WelchGas, the nearly 70-year-old company founded by his grandfather and later run by his father.

“I got out of the Army in 1987,” says Wes Welch. “I moved back home and went to work for my dad. He started me out painting tanks, driving a bobtail, doing service work, setting tanks, piping houses, etc. About six months into it, I had serious thoughts about going back into the Army.

“I decided to give another six months, then another six months. Thirty years later, I’m still here,” he adds. “I didn’t entirely leave the Army. I spent another 21 years in the Army Reserve, retiring in 2009. I was president of the Texas Propane Gas Association [TPGA] in 2001, taking that position just a month before 9/11. It was an interesting year, juggling the TPGA position, WelchGas, and my Army commitment.”

Wes and April Welch manage and operate the retail propane gas company from the home office in Mt. Pleasant, Texas. They provide propane service to residential, agricultural, and commercial customers in 10 counties in northeast Texas. The company has four locations, five bulk storage locations with 160,000 gallons of storage capacity, four full-time delivery trucks, and two part-time, standby delivery trucks. WelchGas employs two service tech/installers who cover the territory.

“I took over the operations side of WelchGas about 20 years ago,” Wes Welch says. “My wife, April, came to work with me about six years ago. She has a strong background in office management. She takes care of the daily office procedures, bookkeeping, and office systems.

“We actually work pretty well together,” he adds. “I remember reading somewhere that less than 12% of third-generation businesses survive past five years. I’ve always had that little bit of information in the back of my head.”

The Welch family’s business was named Welch Butane when it was started in 1949, and was renamed WelchGas in 1984. Each of the three generations of the Welch family who have operated the company have contributed something unique. They include Rube Welch, who founded Welch Butane in 1949; Rube’s son, Hershel Welch, who took over the company upon his father’s retirement on January 1, 1968; and Hershel’s son, Wes Welch, who joined the company in 1987 and acquired ownership in 2007.

“My grandfather, Rube Welch, started Welch Butane in November 1949,” Wes Welch says. “He only went to school through the third grade, but I’ve always thought he was one of the smartest men I have ever known. He had been a farmer, a commercial fisherman, and even operated a ‘distillery’ during Prohibition. He was also a weather observer for the National Weather Service for 50 years. He jumped at the opportunity to become a distributor of butane when it was introduced to our area in the late 1940s.

“My dad, Hershel, was the first in the family to graduate college,” Wes Welch explains. “Dad had good business sense and knew how to make good business decisions.

“I feel my background in the Army helped me to deal with people — whether it be employees or customers or just the general public,” he adds.

Over the company’s nearly 70 years and three generations, he says, “There were plenty of bumps along the way. I would advise anyone entering a family business to get everything in writing. Family dynamics can be great, but can change in an instant. Being involved in a family business can be very rewarding, but it can also be very challenging. Treat the ‘family’ side of the business as you do the rest of the business — in a businesslike manner. This will prevent heartache and disputes down the line and prevent a lot of grief.”

Other challenges for each generation of business owners includes getting up to speed on the industry in the first place, and keeping up with changes in the industry as the years go by.

“Every new generation is different, but I firmly believe that in this industry, you really need to learn everything from the ground up. In some cases, from under the ground up, as in underground tanks,” Welch says. “Managers, whether they are family members or not, need a broad knowledge of every aspect of their company and how all the aspects tie together.

“Bigger, faster, smarter sums up where this industry has come in the last 30 years,” he adds. “The first bobtail truck I drove had twin 750-gallon tanks. Now 3000 gallons or more is the standard. Technology in the form of handhelds and smartphones [is] improving so fast it is hard to keep up with.”

Among the other keys to success for WelchGas over the years have been customer service, visibility in the form of delivery trucks, participation in the state propane association, and good management.

“We try every day to provide the absolute best service possible,” Welch says. “We are constantly looking for ways to better serve our customers and adapt to the ever-changing demand of our customers. I’ve stopped worrying about whether our competitor is five or 10 cents per gallon cheaper. I emphasize to our employees that service and taking care of the customer will bring new customers our way and retain the ones we currently have.

“There are still a few family-owned propane companies in our area,” he adds. “Every one of them operate a very good business and provide good service. In a family-owned business, owners and family members realize the customer does not have to look very far to find them if there is an issue, so we are always making sure our customers are taken care of with exceptional service.

“I must also mention our outstanding employees. Without great employees, all of this would not be possible. When someone comes to work at WelchGas, they tend to stay around a while. Gene Brown, our Daingerfield, Texas, branch office manager, is beginning his 40th year with the company. I firmly believe in ensuring our employees have all the tools to do the job right. I’m not necessarily referring to hammers and wrenches. April and I try to ensure all our offices are up to date and presentable to customers, that we maintain good office equipment, and that our delivery drivers and service techs have the training and equipment to handle any job we take on. Our employees are a key factor in the success and longevity of WelchGas.”

Another factor that may bring new customers WelchGas’ way is the eye-catching look of the company’s delivery trucks. Among these trucks are one with images honoring the five branches of the military and one with the pink ribbon representing breast cancer awareness.

“Two years ago, we purchased a new Freightliner S2G delivery truck,” Wes Welch says. “Since April and I are both veterans, we decided to have the truck wrapped with a military scene with images from each branch of the military. It is a real eye-catcher and has attracted quite a bit of attention.

“We also have a pink truck for breast cancer awareness,” he adds. “We have had this truck for about 10 years. My mother is a two-time breast cancer survivor. April and I are involved in a local organization, Sally’s Hope, that gives assistance to breast cancer patients.”

Members of the WelchGas family have been active in the propane industry’s state association too. Over the past five decades, five members of the family have served as president of the state association that was known as the Texas Butane Dealers Association, then the Texas LP Gas Association, and now the Texas Propane Gas Association. Those family members and past presidents include George Welch Sr. (Wes’ uncle), Hershel Welch (father), George Welch Jr. (cousin), Tommy Granberry (cousin), and Wes Welch himself.

“What I’ve gained from being a member of the state association is the networking and longtime friendships that have developed,” Wes Welch says. “Some of my best friends are in the propane business all over Texas.

“What I would tell other propane marketers about their state association,” he adds, “is to never forget that it is your association, it’s your money that builds up over time. Ultimately, the board of directors must retain ownership and govern the association…not just follow an agenda. The association membership must hold the board of directors accountable.”

Another key to success, in a family-owned business as in any business, is good management.

“Good business starts with good management,” Welch says. “There are many, many good business managers that are not a family member in a family-owned business. Good management is key in the continued success of a business. In any business, there is the factor of supply and demand. You can take that a step further with the factor of supply, demand, and satisfaction. A good business will give serious attention to all three. A company can have supply and the customer has a demand, but unless the company ensures customer satisfaction, the company will not be successful.” —Steve Relyea