A little introduction to the owner Joseph Sarlo. His career in the rubber industry started back in the mid 1980s held initial position in building maintenance, then hydraulic mechanic, production shift maintenance, around 1989 moved into maintenance manager of RaMar Labs, When RaMar Labs closed in 1992 Joseph took this opportunity to start molding for then displaced customers of RaMar. This was done by renting press time at another area molding company. Joseph began filling orders running weekends working as many available hours as he could. So his invest of $1500.00 into press time by 1993 produced 3 customers that would stay with him for years, he leased his first building March of 1993 in East Freetown Ma and continued on investing everything he made back into the company brining him to this phase of his career today. But these are not the same days they once were, Joseph understands his plan must be targeted, efficient with effective execution and critical financing needs must be addressed for growth.
GSR Industries has been formulating, molding, calendaring and preforming rubber and rubber products for many industries for almost 30 years. In that time we have seen NAFTA begin the manufacturing exodus from the USA, we have seen the 9/11 attacks on our financial sector, we have seen the near collapse of the US banking industry, We have seen the unprecedented shutdown of the world economy due to Covid 19 pandemic. I mention these situations not because we survived them but rather the knowledge and experience we gained navigating through those time periods, we learned better ways to do business and identified better business to be doing.
Most molding opportunities are commodity type items which are non-perishable goods mostly small in size and weight, which lends to them being manufactured oversea with reasonable shipping cost. The molding being done at GSR today is rather technical rubber to metal bonded molding of sonar boot assemblies for the DOD, Reactive armor, commercial sonar boots, hydrophones, and other underwater related items. During the pandemic the organization in its efforts to add new stronger revenue streams put together criteria that products must meet to be viable. There is a definite need for more mixing capacity in the USA more specifically in the Northeast sector of the country most rubber molders and cable manufactures in the Northeast were dependent on Standard Rubber Products in Hanover Massachusetts. A family run business since 1972 that ran out of interested family members to operate the factory and was permanently closed in 2020. This created a large void in the Northeast for custom mixing. This event pushed GSR into mixing its own material to avoid extremely long lead times and inflated material cost plus added trucking cost. This mixing is being performed on an open mill which is very labor intense and not very productive averaging one 125lb batch per hour makes it a costly venture but still a better situation than have no control over your production with lack of raw materials. The task of establishing vendor accounts, haz-com documentation, process parameters was completed early 2021.
Since mixing in house we have been approached by multiple old customers of Standard Rubber Products, we currently are mixing forABC with 115,000 lbs per year requirements. We are currently talking with companies like XYZ, 123s, XOXO cable, and all interested in the mixing capabilities of GSR.
Solutions come from different channels like, experienced knowable people, technology, processes, equipment, facilities and perseverance by key individuals. Below are our solutions to our problem. GSR has the facility infrastructure and experience to erase the below problems for low to medium volume sized customers, in doing so GSR will reduce its material cost by 41% with the addition of a small internal mixer.
- New state-of-the-art mixing equipment built for efficiency with a 50% less labor requirement for its operation.
- Tilting mixers will be used which are ergonomically designed to be easily unloaded and quickly cleaned for new batch, if required.
- Purchasing two internal mixers one 30 liter batch size the other a 40 liter batch size, capacity of these two machines combined is 1,560,160 lbs. annually running one shift 245 days 1960 hours each machine.
- They require 30% less maintenance and encounter less downtime than drop-door or slide-door mixers.
- Modern gear box designs will reduce motor size by 60% translating to large saving on energy.
- Efficient layout to move materials from warehouse through manufacturing process.
- Having an experienced competent team where all individuals involved have mastered their skills and built incredible knowledge of the industry. There are no surprises or learning curves.
- Libraries of formulations meeting specific specifications for targeted industries
- Standard delivery lead time is 2-4 weeks from receipt of purchase order.
- R&D will be at the forefront of eco-friendly compounds to replace existing compound with environmentally safe or safer than current options.
- Superior customer communication, all customer inquirers will be handled as they come in the customer will receive an answer.
- live order database order status updates
- Very competitive pricing and Real time quotes.
Our planned use of funds will allow GSR to enter the rubber industries compounding segment. Although GSR has been in the rubber molding industry for 30 years it has not ventured into the compounding industry for a couple of reasons the first was the cost of an internal mixer and its infrastructure installation would be in the millions. Secondly GSR had a close relationship with Standard Rubber Products a large custom compounding company in Hanover Massachusetts that supplied GSR with all the molding and processing compounds. So GSR did not feel or see the need for in house production compound mixing. GSR has come to realize that the rubber compounding business offers many more opportunities for growth and sustainability than does molding alone. Standard Rubber Products had an estimated 3M in sales at its closing in 2020, Prior to ownership change do to family death was estimated between 5M-10M in sales. They were basically the last custom mixer in the northeast mixing free black compounds.
This is the position in the northeast sector we wish to fill with GS Rubber Industries.
Business plan with financials upon request..
Market Size & Segments
Rubber Compound Market Analysis: The Global Rubber Compound market revenue was 1.4 Billion USD in 2019, and will reach 1.6 Billion USD in 2025, with a CAGR of 2.22% during 2020-2025.
Global Industrial rubber market was reported at 31.3 Billion in 2019 expected to rise to 44.6 billion in 2026
The global industrial rubber market is segmented into type and end-use industry. On the basis of type, the market is bifurcated into natural and synthetic rubber. By end-use industry, the market is classified into automotive, construction, manufacturing, electrical & electronics, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Compounding is the process of adding additives, fillers, polymers, or reinforcements to polymer materials in a homogeneous polymer mixture to optimize properties to meet a given set of performance requirements.
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