AirBoss of America (TSX:BOS) is a group of complementary businesses supplying custom compounded rubber, survivability solutions and anti-vibration components to a diverse group of customers globally. The company operates in three business segments, including rubber solutions, defense group and engineered products.
Diverse manufacturing segments
Through the company’s rubber solutions segment, AirBoss is engaged in the development and manufacturing of custom rubber compounds, calendered and extruded material and molded products for a broad range of applications and industries including mining, transportation, industrial rubber products, military, automotive, conveyor belting, and oil and gas, primarily in North America.
With a capacity to process over 500 million turn pounds of rubber annually, the rubber solutions segment is one of North America’s largest custom rubber compounding businesses. The division sources chemicals used in the rubber compounding business for both internal consumption and external sales.
Leading equipment provider
The defense group manufactures and supplies a growing array of chemical, biological, radioactive, nuclear and explosive protective solutions and is a leading provider of personal protective equipment to governments, militaries and frontline healthcare workers both in the United States and internationally.
The division is also a leading global supplier of route clearance vehicles, countermine capability and survivability products to U.S. and foreign military forces.
AirBoss’ defense group is also continuing in the development, manufacturing and sales of protective equipment alongside the clearance vehicles, countermine capability and survivability products, continuing the on-going reputation of being a leader in the defense and healthcare industries.
The company’s engineered products segment is a leading manufacturer and supplier of innovative and cost-effective anti-vibration and noise dampening solutions primarily to the North American automotive market. The business primarily designs bonded products that are used to eliminate or control undesired vibration and noise.
Multiple service markets
In addition to the company’s traditional sales to the automotive market, this business has also recently put in place a dedicated non-auto team with the goal of diversifying into adjacent sectors by crossselling to the company’s existing customer base and through extensive outreach to sector leaders, and launched Airboss’ first non-automotive product in 2020.
The main advantage that the rubber compounding business has over many of the company’s competitors is AirBoss’ customer-focused approach, large capacity, state-of-the-art equipment and the high level of automation of the company’s production processes, allowing it to maximize efficiency due to larger batch sizes and shorter production cycles.
High quality end products
Further, AirBoss provides customers with consistent quality products thorough quality control processes, continuous improvement initiatives, sourcing of high-quality raw materials and blending of production batches.
The company has identified that increased compound homogeneity is a key factor in improving the quality of end products and that custom compound research and development is crucial in both maintaining customer relationships and developing new business.
In addition to a quality control laboratory, Airboss has established an research and development (R&D) technical centre and laboratory at the company’s flagship manufacturing facility in Kitchener. The laboratory has been accredited to internationally recognized standards and is another key differentiator when comparing the company to other operations.
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Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.