Russell Raad, president of “one-stop shop” Abrasives Inc., stopped by the CoatingsPro Interview Series of podcasts to share insight on his company’s unique specialties and market position.

Discussion topics on this sponsored episode include marketplace trends, changes, and regulatory impacts; unique challenges to the surface preparation of industrial coatings jobs; strategies to incorporate feedback from contractors and end users; an outlook for the future; and available resources from Abrasives Inc. to assist in these processes.

With assistance from transcription service Otter.ai, a summary of that episode is available here. The complete interview is embedded below.

History and Evolution of Abrasives Inc.

Raad provides a brief history of the company, which started as a silica sand plant in 1990 and evolved into a significant player in the Upper Midwest.

In 2010, the company created an ESOP (employee stock ownership plan) and later acquired a distributor in the Minneapolis-Saint Paul area, handling about 20,000 tons annually. In 2022, Abrasives Inc. purchased Haller-Phillips, a distributor in Texas and New Mexico, which added another 20,000 tons to their annual output.

Specialties and Market Position

Raad explains that Abrasives Inc.’s signature product is Black Magic coal slag, a material used for over 90 years in various industries. The company has 45 distributors across the United States, along with regional and railcar distribution options.

Raad notes that the company’s website offers demonstrations comparing Black Magic coal slag to other products such as sand, copper slag, and glass. The company also has YouTube videos showcasing their products and their performance in different applications.

Market Changes and Regulatory Impact

In response to a question about market changes in recent years, and particularly the demand for Black Magic coal slag, Raad notes the impact of power-plant shutdowns on coal slag availability.

He then discusses a potentially positive regulatory environment under the new U.S. presidential administration, which he believes could benefit the coal and oil and gas industries.

He highlights the beneficial reuse aspect of coal slag, which allows for flexibility in its use and disposal.

Challenges in Industrial Surface Preparation DuBose asks about the unique challenges of preparing surfaces in industrial environments, such as coal and oil and gas. In replying, Raad emphasizes that industrial blasting is a one-time use process, unlike flooring jobs that require continuous peening.

He describes the process of blasting and collecting dust and residue, often involving draping and vacuuming to control dust. The conversation touches on the importance of using the right combination of pressure, media, and size to achieve the desired surface profile.

Contractor Feedback and Product Adaptation

DuBose then asks about the challenges contractors face when using abrasives on jobsites. Russell notes the importance of product size and the need for different grades of abrasives to achieve the desired profiles.

He mentions that the company screens for different profiles and advises contractors on the best combinations of media and pressure. The discussion cites the technical sales aspect of understanding customer needs and providing solutions.

Impact of Administrative Changes on Market Dynamics

DuBose follows up on the impact of administration changes, and specifically as they relate to market demand and uncertainty. Raad notes that certain projects are put on hold during periods of uncertainty but tend to pick up after the new administration takes office.

He highlights the importance of domestic suppliers like Abrasives Inc., especially during supply chain crises. The conversation covers the potential increase in shipping costs and tariffs, which could benefit domestic suppliers.

Regional Market Dynamics and Expansion

The conversation goes on to explore the similarities and differences between the company’s traditional Upper Midwest market and its new West Texas distributor.

In response, Raad explains the strategic decision to fill a gap in the Permian Basin after the COVID-19 pandemic, as well as due to anticipated growth in oil and gas production. He mentions the company’s presence in various states like North Dakota, Wyoming, Colorado, and Utah, as well as urban regions like Seattle and New Orleans.

The conversation touches on the continued use of coal slag, despite some stigmas, and the importance of maintaining a strong supply.

Environmental Trends and Market Preparedness

DuBose asks about how the company stays prepared for environmental and climate change trends. To answer, Raad emphasizes the importance of attending industry conferences and staying active in various sectors.

He mentions the company's efforts to simplify its sales process, as well as to add inside sales positions to stay on top of market dynamics. The conversation highlights the need to balance opportunities with being ready for potential changes in market direction.

Future Technologies and Market Evolution

Regarding new technologies and trends that could shape the market in the future, Raad discusses the increasing use of remotely controlled equipment and the potential use of robotics in surface preparation.

He notes the cyclical nature of certain technologies, like vapor blasting, and the importance of staying current with market trends. The conversation covers the balance between new technologies and traditional abrasive blasting methods.

Robotics and Workforce Development

DuBose follows up on the potential implications of increased robotics use for surface preparation. In response, Raad highlights the benefits of robotics for the industry, including labor issues and safety improvements.

He acknowledges that certain projects may not be suitable for robotics, such as those under bridges and small pipe work.

Diversification and ‘One-Stop Shop’ Concept

DuBose asks about the importance of offering a wide range of products beyond just blast media. In answering that, Raad explains the company’s strategy to become a “one-stop shop,” in which Abrasives Inc. offers a wide variety of supplies and solutions.

He mentions partnerships with suppliers like Clemco and GVS-RBP to provide comprehensive solutions to customers. The conversation highlights the benefits of having a diverse product line and the importance of technical sales in understanding customer needs.

Rail Relationship and Supply Chain Security

Another topic of discussion is the importance of the company’s relationship with rail infrastructure, and specifically what it means for supply chain security.

Raad emphasizes the critical role of being on the BNSF rail and having control over their own rail cars. He explains that this relationship allows the company to deliver products to various parts of North America efficiently.

The conversation then covers the importance of having a secure supply plan and the benefits of being a domestic supplier.

Learn More About Abrasives Inc.

In closing, DuBose asks what makes Abrasives Inc. the right choice for clients. Raad highlights the competency of the company’s sales staff and its ability to help customers locally and abroad. He mentions the company’s website, which offers videos and a buyer’s guide to help customers choose the right products.

The conversation reiterates the importance of having a one-stop shop for all abrasive needs and the benefits of technical sales support.

To reach out directly or learn more information, Raad notes that phone numbers and email addresses to contact the company are available at the Abrasives Inc. website. He also mentions the company’s active social media presence on Facebook and YouTube.

Editor’s note: Raad spoke on the CoatingsPro Interview Series of podcasts. Listen to more episodes at www.coatingspromag.com/podcasts.