Succession plan, investments build foundation for RubberForm's future

LOCKPORT, N.Y.—RubberForm Recycled Products L.L.C. has made a $2 million investment to fund the expansion of its recycling operations at its Buffalo-area headquarters, while at the same time preparing for its transition to second-generational management.

The company, which makes products from recycled rubber and plastics, was awarded a 410-kW hydropower allocation for an expansion that initially will create around 10 new jobs. Those jobs include positions in engineering, operations and sales to help support its growing needs. The decision to invest in the current facility means the company will be staying in Western New York, where it has been located since opening in 2006.

Construction on the facility began in May. It will be completed in phases, with the warehouse and dock completed by August 2002 and offices and other updates later in 2022 or 2023.

"We were looking at possibly moving (outside of New York) but COVID really changed things," President and Founder Bill Robbins said. "We thought: why buy a new building and spend money moving and rehabbing? I have known a few companies that went out of business making a decision like that.

"So, we figured why work for the building—let the building work for you."

RubberForm makes and markets innovative safety solutions for parking lots, construction sites, municipal traffic, industrial plants and road construction as well as products for site preparation risk mitigation.

The $2 million investment includes equipment, property purchases and construction/buildout at the Lockport site. It also includes funding for new offices, furniture and technology, according to Robbins. The main facility in New York includes 55,000 square feet, while the warehouse totals more than 10,000 square feet. A portion of that investment will go toward making warehouse conducive for storing raw materials, roof capital upgrades and more.

Robbins called Lockport a "safe and close community." That is one of many benefits of the current location. Much of the rubber that Robbins' company uses comes from HTI Recycling, a supplier of crumb rubber located less than one mile away.

In addition to the costs and logistics of moving, there were two other main factors that made the decision to stay in New York easier. One was a package of tax incentives provided by Niagara County that included a pilot program comprising payment in lieu of taxes, property taxes and sales taxes on material for the expansion.

Without those incentives, a move outside of New York state may have made the most financial sense. But Robbins said staying was always felt like the best option.

"We have found over the years, that if we take care of our employees, they take care of us, and we have a great team," Robbins said.

Bill Robbins' son, Jeff Robbins, agreed, saying that RubberForm aims to "empower" all employees with a culture of collaboration."

The company employs more than 30 individuals, and finding talented, qualified individuals has become particularly difficult the past two years. Some of the newer hires may need to be recruited from outside Western New York, according to Bill Robbins.

The other main factor in keeping RubberForm near Buffalo was that Bill Robbins' children are preparing to lead the company themselves. Jeff, Samantha and Jacob are serving as director of operations, director of customer service and director of public safety sales, respectively. With an emerging succession plan in place for the company, Bill Robbins is better able to phase into retirement over the next couple of years.

And he does so knowing the company is in capable hands.

Jeff Robbins moved back from California to join his siblings following a successful stint at Lockheed Martin. All three have taken entrepreneur leadership courses at the University of New York at Buffalo and the family is working with two different professional transition coaches.

"You could say the stars aligned," Jeff Robbins said of taking a more active role in the family company. "I wanted to move closer to family (after the pandemic) and we have been able to work through a plan."

Bill Robbins will work with his children and other management staff on a schedule to reduce his hours in the office in the coming months. He still plans to come into the office "one or two days a week" to serve as a consultant and resource for the team.

And $2 million in investments will go a long way in opening growth opportunities for the business when the leadership transitions. RubberForm plans to bring profile extrusion and some injection molding services in-house, given the significant marketplace demand for related products.

Bill Robbins also indicated that the family wants to start a new company for compounding its own raw material for use in RubberForm products. Controlling those costs and providing a sense of supply chain certainty are the two main reasons such an investment would be added, especially in the wake of the pandemic's effects on the industry.

"Recycled tire price per pound had not changed for 20 years, so there was no need to consider (compounding material in-house)," Bill Robbins said, estimating the company's supply of recycled plastic and rubber compound doubled in cost. "With the pandemic, there was such a strain on the supply chain that we had to adjust. I don't see the price coming down to where it was."

The winter storm that hit Texas in February 2021 had an sizable impact on prices, too.

Getting materials and parts from overseas became much more expensive when the price of containers rose exponentially as well. Steel and other raw materials have seen triple-digit percentage price gains.