Despite the challenges posed by the COVID-19 pandemic, Smithers continued to invest in future growth, with a primary focus on acquisitions. While the acquisition process had to adapt to pandemic-related restrictions, Smithers remained committed to its expansion strategy.
Cannabis Industry Expansion
The cannabis industry, which began to grow in the 1990s with California's legalization of medical cannabis, saw a significant boom by the early 2010s. By 2014, over ten U.S. states had legalized recreational cannabis. Testing in this emerging market became essential, including screening for contaminants, pesticides, heavy metals, and mycotoxins. Smithers recognized the industry's need for accurate, timely testing and began developing a strategy to enter the market.
In 2021, Smithers acquired Origo Labs in Chicago, which provided a strategic foothold in the cannabis sector. Ron Biever, Vice President of Environmental Risk Sciences for North America, postponed his retirement to oversee the creation of the Smithers Cannabis Testing Services Division. By the end of 2023, Smithers had expanded to six states, with facilities in Massachusetts, New York, Illinois, Arizona, New Jersey, and Ohio. This aggressive expansion positioned Smithers as a significant player in the cannabis testing industry.
Environmental Risk Sciences
In July 2022, Smithers announced the discontinuation of its avian testing service line and the decommissioning of the Snow Camp, North Carolina facility. This decision was made due to shrinking market demand and profitability challenges. In January 2023, Smithers acquired ResChem, a UK-based company specializing in residue studies. This acquisition expanded Smithers footprint and expertise in pesticide residue testing, further solidifying its position in the global environmental risk sciences market.
Commodity Testing and Inspection
Smithers also ventured into the commodities market with the acquisition of Stockpile Surveying and Protection (Ssp) in July 2021. Headquartered in the Netherlands, Ssp provided services in solid fuels, metals, and minerals. The company’s global network and expertise made it a natural fit for Smithers.
In late 2023, Smithers acquired MIL International, a testing and inspection company with a strong presence in Europe, the Middle East, and Southeast Asia. MIL International’s capabilities in scrap steel, hot briquetted iron, and direct reduced iron complemented Ssp’s services, forming the foundation of Smithers’ new Commodity Testing and Inspection Division.
Expansion in Asia and Other Services
Smithers also expanded its global presence with the opening of a new 7,200-square-meter facility in Suzhou, China, in March 2021. This state-of-the-art facility enabled significant growth in the company’s Materials Science and Engineering Division in Asia Pacific, with expanded testing capabilities, including durability testing for original equipment manufacturers (OEMs).
Additionally, in May 2021, Smithers launched Information Security Services under its Quality Assessments Division. These services assess companies against ISO 27001 and NIST SP 800-171 standards, helping Smithers stay ahead of cybersecurity issues while providing valuable expertise to clients.
Strategic Partnerships and Acquisitions in the Tire Industry
In 2021, Smithers formed a strategic partnership with Discount Tire when they purchased a warm weather testing facility in Pearsall, Texas. This 898-acre site became a key asset for testing tire performance in hot weather conditions, further strengthening Smithers’ position in the tire industry.
In October 2023, Smithers announced the acquisition of Standard Testing Labs’ (STL) Indoor Testing Division. This move made Smithers the number one independent indoor tire and wheel testing laboratory in North America, expanding its scientific expertise and geographic reach in the tire testing industry.
The Road Ahead: A Century of Smithers
As Smithers prepares to celebrate its centennial anniversary in 2025, the company reflects on its evolution from a pioneering service provider to a multinational corporation offering services across various industries, including transportation, life sciences, cannabis, agrochemical, and aerospace.
CEO Mike Hochschwender highlighted the company’s growth and the many opportunities ahead. With its global presence, diverse service offerings, and commitment to providing accurate, timely data to clients, Smithers is well-positioned to thrive in the next 100 years.
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- The First Thirty Years: 1925-1955
- Building Upon a Trusted Brand - Evolution: 1956-1975
- Resilience and Expansion: 1976-1985
- Beginning of a New Era: 1986-1990
- Diversification and a New Era: 1991-2005
- A Flurry of Growth Activity: 2006-2011
- Expansion in the Life Sciences: 2012
- Organic Growth Period: 2013-2017
- Unity, Growth, and Resilience: 2018-2020
- Pushing the Boundaries of What is Possible: 2021-2024