Converting the faithful
Distributors turn to converters because of improved quality, turnaround and pricing
By Staff -- Industrial Distribution, 1/1/1999
Coated abrasives converters are filling a growing niche with their fast service, highly competitive pricing and longer-lasting products. Firms that convert or fabricate abrasives rolls into products like sandpaper continue to gain market share against the top abrasives manufacturers such as 3M, Norton and Carborundum, industry executives say. Several factors are driving the trend, says John Sidebottom,president of the Coated Abrasives Fabricators Assn. and others. The quality of materials coming from suppliers in Asia and Europe has improved, and converters aggressively offer fast service, flexibility on volume and lower prices.
"I'd say the big guys have gotten slower," says Sidebottom, who is president of Duraline Abrasives, a manufacturer in Rockport N.Y. "They've opened the door for us, and we've niched away at it."
Distributors agree that converters have made strong inroads into a nearly $3 billion market for coated and bonded abrasives. Increasingly, distributors handle multiple lines and turn to converters to stay competitive with products for specialty applications. While their business with converters remains small compared to the largest suppliers, it is growing significantly.
"The converters are getting their hands on some decent product," says David Walrath, president of Newco Products Inc. in Scotia, NY. "They're more flexible. They don't have the overhead ... that's why we've picked up some converters."
Chuck Mattson, former president of Abrasive Systems, Inc. in Osseo, Minn., says distributorships like his benefit from having both types of suppliers -- converters and major manufacturers -- for different products. Mattson's company was acquired last summer by U.S. Filter Corp. and he is director of administration for U.S. Filter's surface preparation division.
Converters increasingly fill a void where other suppliers are not competitive or do not offer a desired product, says Mattson. "I think you need to have both ends," he says. "We don't use them to go against a major line; they fill a void. Sometimes they have a better quality product for less money."
"The only reason we have a converter line is to strengthen our abrasives business," he says. "If not we'd have competitors trying to take away that 10 to 20 percent."
David Yeager, president of Pacific Abrasive Supply Co. in Buena Park, Calif., says that during the past decade U.S. converters established themselves by buying jumbo rolls from foreign manufacturers, using new butt splice technology and less expensive belt-making equipment that was first produced in Italy. That allowed many converters to meet distributors' needs for faster deliveries, less inventory and more.
"It will cut just as fast, go just as long and leave just as much finish," says Yeager.
Another factor driving the trend is that during the past decade, end users and distributors have become more familiar and impressed with abrasives products made by firms in Korea and Germany, for example, and then fabricated by U.S.-based converters.
"It's a matter of getting it in front of the distributors," says Yeager.
Sidebottom agrees that foreign-made abrasives now enjoy an improved reputation."Just having that available now opens doors," he says. "Service has become very important and converters are available to service much faster, and product recognition has become more apparent with distributors," says Sidebottom. "It's becoming more and more prevalent out there."
U.S. Filter a consolidating force
An emerging player in the abrasives industry is gaining ground by acquiring both suppliers and distributors for its own supply chain.
U.S. Filter Corp.'s core business remains residential and industrial water and wastewater treatment systems. But during the past two years its USF Surface Preparation division has grown rapidly to include more than 40 sales, service and distribution centers and 28 manufacturing plants worldwide.
The division formed with the merger of companies such as Southwest Abrasives, Fusco, Buxton and Kraber Industries. Most recently USF acquired Abrasives Systems, Inc., a 3M distributor in Minnesota. In addition to ceramic and coated abrasives for grinding and sanding, some of the firms distribute a variety of materials for blast cleaning, peening and other uses.
"Over the last 22 months, the surface preparation group has grown at a rate that astounds most everyone," says Tom Warren, USF Surface Preparation president. "We've been able to create a worldwide network of surface preparation products and distribution services that offers a total solution to surface preparation needs."
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