Global Traders Award - Market Expansion 2009

Market Expansion 2009

Silver - Better and faster, specialized, non-toxic coatings help double foreign sales for Liquid Rubber Industries

Offering the world products that are safer, easier to use, and cheaper has helped Liquid Rubber Industries to more than double its export sales over the past three years.

Liquid Rubber, a Hamilton-based company, manufactures specialized, spray-applied waterproofing products for concrete structures and foundations and roofs, for metal corrosion protection, for environmental hazard and agricultural waste containment. The company has won the Silver Ontario Global Trader Award for Market Expansion.

"The coatings industry is extremely competitive," says John Bilbija, founder and CEO of Liquid Rubber and a man with 40 years of experience in the protective coatings industry.

"Our advantage in these markets is that our products are non-toxic - they're water-based and contain no hazardous solvents - and they offer superior protection at substantially lower cost," says John.

Liquid Rubber's products are applied at ambient temperatures, eliminating the risk of burns that workers face when applying competitors' hot-liquid products.

"Because our products are spray applied, they greatly increase work-site productivity," says John. "For example, using our product in comparison with rolled roofing, workers can cover three times as much area in the same amount of time."

These advantages have been enthusiastically received by customers, especially in foreign markets, which now account for 58% of Liquid Rubber's total sales.

It was the cold Canadian winters that initially led Liquid Rubber into export sales.

"Protective coatings is a seasonal industry," says John. "The temperature has to be above 10C during application, so during the winter in Canada, there are no opportunities for sales."

In response, the company focused on export markets in warmer countries, including Australia, Japan, Malaysia, South Africa, Saudi Arabia and Jamaica, where winter temperatures weren't a factor.

"We worked with Ministry of Economic Development and Trade consultants to understand the market dynamics of our target countries," says John.

The company's strategy for entering foreign markets is to develop distributor relationships with coatings and services companies working in specific industry sectors in which Liquid Rubber's products give it a competitive advantage.

"In new regions, we approach firms working in market segments in which we have previous experience elsewhere, so we can provide these new targets with case histories and industry specific knowledge," says John.

"Establishing these relationships is critical to our success in foreign markets and the Ministry's help is invaluable in gaining access to qualified potential distributors."

Liquid Rubber now also sells into Great Britain, Ukraine, Belarus, Russia and several other eastern European countries. Expanding its foreign markets has fueled the company's growth and resulted in the addition of six new employees to handle the increased volume.

"Export markets are key to our success," says John, "especially with the recent economic downturn we have to constantly seek out new markets."

Among them is Saudi Arabia, where Liquid Rubber has recently established a distributor.

"The civil construction market in Saudi Arabia is booming and actually increasing our overall sales despite the downturn."

The Ontario Global Traders Awards recognize small- to medium-sized enterprises (SMEs) based in Ontario in the private and not-for-profit sectors. The two categories are Innovation and Market Expansion. The Innovation Award recognizes excellence in the application of existing or new technology in the development of new products or services, and improvements to existing products or services that lead to consistent growth in exports and job creation. The Market Expansion Award recognizes the pioneering spirit of Ontario SMEs that have successfully established themselves in one or more new export markets, in addition to existing markets. For nomination and eligibility criteria, visit the Ontario Chamber of Commerce website at http://occ.on.ca.