ABS FRICTION ENJOYS SMOOTH RIDE TO SUCCESS IN BRAKE PAD MARKET
Toronto, Ontario, January/February 2000

The Ontario Business Report

For more than three years, Guelph-based ABS Friction Inc. has been setting a standard for the manufacture of disc brake pads for the automotive replacement market.

In fact, there’s no putting the brakes on this company’s phenomenal growth as it furthers its success based on niche marketing that focuses on low-volume, high-margin products and fast delivery times.

Starting with just six workers in 1996, ABS has grown to 130 employees with exports of more than 92 per cent of its product to the U.S. and 24 other countries. The firm’s products are targeted to passenger cars and light trucks and currently fit upwards of 90 per cent of vehicles on the road.

The company’s success in penetrating foreign markets led to it being awarded a Global Traders Award last year. Economic Development and Trade Minister Al Palladini applauded the firm’s efforts during MEDT’s Salute To Small Business last October.

"Increasing exports is vital to our province’s success because they sustain 1.6 million jobs in Ontario, and generate 48 per cent of our Gross Domestic Product," said Palladini. "Small-to-medium-sized companies like ABS can claim credit for a lot of this success and we want to help them continue to expand into new markets and create more jobs."

Today, ABS Friction ships 125,000 sets of pads per month and its target for 2000 is $20 million in sales annually. A complete and diversified product line is one of the keys to the company’s growth, says President Rick Jamieson, a chartered accountant who started the firm with Joe Schmidt and Ralph Neil, both of whom had a long history in the brake business.

"We have added more than 700 new parts in the past three years. We believe that’s the greatest number of new friction products introduced by a friction manufacturer in the world."

ABS Friction’s export markets began with a shipment of 2,000 sets of brake pads to Puerto Rico. That grew as the company developed markets in other countries.

The firm has a strategic alliance with Concord-based Dolomite Tool Engineering Limited, under President Domenic Corso. Dolomite does the major tooling work for ABS and has been a strong part of the company’s growth plans, says Jamieson.

The result? A turnaround time of only eight weeks for a new product, and the firm can move so quickly that is has products ready even before vehicles are on the road. "Sales have doubled every year since we’ve been in business," says Jamieson.

"We’re pleased with our results. Our goal is 100 per cent reliability and on-time delivery every time."

The company plans include the introduction of a "severe duty" line of brake pads for a growing number of trailer-towing sport utility vehicles, trucks and vans.