There aren’t too many manufacturers that can say the government has given them sales leads. Those that manufacture pollution control and remediation products are one such market. With the passage of the Clean Air Act, all industrial manufacturers have had to step up and comply with legislation containing severe penalties for the failure to clean emissions. An investor that finds a company catering to these industrial manufacturer’s pollution control needs is one that will have found a lasting investment destined to post dividends year after year.
Turbosonic Technologies Inc. – an air pollution control equipment manufacturer, installer, and post-sales service company – works to provide air pollution control equipment and services to a wide range of industrial manufacturers. Some (but not all) of the industries that the company provides equipment and services to include: forest products, waste management, metals, minerals, mining and oil and gas.
The company has been having a remarkable middle of the year when it comes to winning contracts. March and April 2008 saw the company win over $4 million in gas cooling and scrubbing system contracts, while July 2008 (TD) has found $5.4 million in similar orders. As the world continues to work toward dealing with environmental issues, the company also received a $4.25 million line of credit in July from a Canadian charter bank to facilitate international orders of its products and services.
Past the revenue that the company’s products bring to the table, it also offers services and replacement parts on a variety of terms. In the world of air pollution control, this is a significant revenue consideration, as not remaining in compliance with regulations can mean severe penalties and expensive down-time. From this perspective, the company has developed a cradle-to-grave relationship with its customers and a solid form of continuing revenue.
Turbosonic Technologies has situated itself in a market where legislation provides a captive market dictating air pollution control compliance. Failure to comply is not an option. As the world continues to clean up its environmental act, the company appears to be in a position of power, and this power will likely generate profits for the foreseeable future.
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