Air Products benefits from operating in an industry with a very favorable structure. Despite selling industrial gases, which are essentially commodities, publicly traded industrial gas companies have consistently delivered lucrative returns due to their economic moats. Industrial gases typically account for a relatively small fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure their businesses run smoothly. Long-term contracts and high switching costs contribute to industrial gas producers’ moats, helping them generate a predictable cash flow stream and lucrative returns.