eResearch | As various parts of the world lock down to reduce the spread of the COVID-19 virus, the need for janitorial services and protective medical equipment such as masks, gloves, and disinfectants has never been higher.
The unexpected demand spike for this equipment has caused a ramp up of production from manufacturers as supplies dwindle with growing purchase orders from consumers, governments, and hospitals. In addition, corporations have increased health standards across all departments, which include increased janitorial services and products.
Countries with limited domestic supplies of equipment have reached out to international supply chains, with some government bodies contracting out large shipments of equipment directly to manufacturers.
Canada recently ordered millions of protective face masks from China, but the Public Health Agency of Canada just announced that one million of the imported masks did not meet standards and will not be usable.
As a result, an opportunity emerges for large domestic manufacturers to provide reliable products to consumers in a time of need, with the demand for protective and preventative equipment expected to grow post COVID-19 as health standards increase.
Below are details on a few public companies focused on manufacturing protective medical equipment and offering janitorial services.
Prevention & Protective Equipment
AirBoss of America Corp.
AirBoss of America Corp. (TSX: BOS) is a technology conglomerate focused on manufacturing rubber-based products for various industries through its three main subsidiaries, AirBoss Rubber Solutions, AirBoss Engineered Products, and AirBoss Defense Group.
Recently, AirBoss Defense Group received a US$96 million contract from the U.S. Federal Emergency Management Agency (“FEMA”) to support the U.S. COVID-19 response with an initial order of 100,000 American-made FlexAir Powered Purifying Respirators (picture to the left) and 600,000 High Efficiency Filters.
This was AirBoss’ largest order in history, generating higher revenue in a single order than an average quarter in the past year.
iFabric Corp.
iFabric Corp. (TSX: IFA) is a fabric developer focused on developing innovative clothing, uniforms, and personal protective equipment for various industries including healthcare, sports, military, and hospitality.
iFabric Corp. has an existing product called the PROTX2, an anti-viral and anti-bacterial application used on fabrics to inhibit the growth of bacteria, fungus, and mold.
The PROTX2 formula has previously shown exceptional resilience to the Norovirus and the H1N1 virus, and is currently undergoing tests with the COVID-19 virus.
Ovation Science Inc.
Ovation Science Inc. (CNSX: OVAT) is a health technology company that focuses on the topical and transdermal market through its patented Inviscare skin delivery technology.
Through its proprietary technology, Ovation developed its popular skincare brand, DermSafe, an alcohol-free hand sanitizer that uses chlorohexidine gluconate, a hospital-grade ingredient used to kill bacteria on surfaces for up to four hours.
The COVID-19 pandemic has drastically increased the demand for preventative equipment such as hand sanitizers, which has forced Ovation to triple its current manufacturing capacity for DermSafe products.
Ovation currently has C$1.3 million of DermSafe inventory and has announced sales to China, the U.K., and Canada, but backlogs of orders are starting to grow from other countries such as Korea, Japan, Israel, Brazil, Columbia, Mexico, Kuwait, and Greece.
GDI Integrated Facility Services
GDI Integrated Facility Services Inc. (TSX:GDI) is an integrated janitorial services provider that offers cleaning, maintenance, and mechanical support for office buildings, hotels, shopping centres, hospitals, distribution centres, and various other facilities in the U.S. and Canada.
Since the onset of the COVID-19 pandemic, GDI saw several clients reduce operations or temporarily close facilities, but as the number of confirmed cases grow, various industries are increasing in demand for disinfection and janitorial services.
Once the COVID-19 pandemic abates, GDI expects increases in business from its Food Plant Sanitation Services, Healthcare Cleaning Services, and Janitorial Product Manufacturing and Distribution departments.
Several countries around the world are starting to see the number of new cases slow down, but as we enter a post COVID-19 world, health standards will be evaluated and restructured. As a result, demand for preventative and protective health products may continue to increase as various industries implement new standards.
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