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CoreTech Industries, Inc. has isolated three major target markets to apply its cellular concrete technology focus:
CoreTech Industries, Inc. does not intend to ignore other applicable market areas, but believes that the overall success of the company will be better served by concentrating on its primary market applications. Each of these markets is discussed in more detail below. Information gathered through the U.S. Census Bureau from its 2002 Economic Census has been used to quantify the US markets and address potential customer analyses. More recent analysis from potential project use to competitor project analyses has also provided additional detail to prove market acceptance of our exceptional product. Geotechnical Construction TOP Geotechnical construction includes new construction and reconstruction of highways, streets, roads, soil stabilization, fills, road stabilization, bridges, etc.
2002 figures for highway & street construction indicate an annual total, national market of $50 Billion in the US alone. The US industry has experienced a growth rate in excess of 10.6% over the five years surveyed. Approximately 11,161 geotechnical construction companies are currently operating in the industry within the United States and conversely represent potential CoreTech Industries, Inc. distributor prospects. California, Texas and Florida comprise the top three states in both number of contractors and value of business conducted annually.
The ranking of potential value of our product by geography may change if other factors are considered. For example, how would some of the underdeveloped arid western US States welcome our product for use in geotechnical applications where traditional concrete and asphalt materials will not hold up or are not economically feasible in the harsher environments? How would the use of our product change the ability of Alaska or northern Canada to develop road systems that would withstand the challenges of their climates? How would the use of our product, the definitive answer to roads over poor and “pumpy” soils, change the nature of road construction in south Florida and the Gulf Coast areas of the US? The answers to these questions are found in the use of our product in these challenging environments, and only need CoreTech’s marketing focus to make these products available in order to realize the success that can be achieved in these markets.
Looking beyond the US, the potential for geotechnical applications for our product is staggering. Considering the inadequate roads of many countries, largely because current available technology will not allow development within harsh environmental climates or due to the excessive cost in using traditional concrete or asphalt materials, our solution is one that is practical and cost-effective.
Structural Pre-cast Concrete TOP The secondary market identified by CoreTech Industries, Inc. for its cellular concrete product is structural pre-cast concrete. This category includes our CoreTech Affordable Housing Systems (CAHS), decking, flooring, wall sections and light-weight roofing for structural steel erection contractors. In fact, our cellular concrete products, used with a steel structure, will allow construction of large industrial and commercial facilities using largely only our product and the structural steel for total facility development.
Latest (2002) figures for the structural pre-cast concrete market place indicate an annual total, national US market of $8 Billion. The industry has experienced a growth rate in excess of 11.8% over the five years surveyed. Approximately 4,238 US-based contractors are currently operating in the industry and conversely represent potential CoreTech Industries, Inc. distributor prospects. California, Texas and Florida comprise the top three states in both number of contractors and value of business conducted annually. Note that these numbers do not constitute the market for residential construction, which is in the billions of dollars annually for the US market alone, an area where our CAHS product will obtain a large market share.
CoreTech Affordable Housing Systems TOP (CAHS) can totally change the residential housing development market. Consisting of a quality, factory-built home that can be constructed on-site in a fraction of the time with much less cost and labor, our CAHS product delivers a lower-cost, higher-quality, safer and more environmentally-friendly home at any price-point. Our CAHS Design Team can work with Architects, Builders, Developers, and Homeowners to deliver a product to meet any residential design parameter. Instead of a stick-built home, built on-site with weather and contractor variables and taking more time and labor cost, why not enjoy a factory-built home system that provides better quality, less time and less cost? Our Affordable Housing Systems include factory-built structural wall panel systems that have the exterior wall, structural studs, insulation and interior wallboard systems already in place for quick, simple on-site installation. Our CAHS product has similar technology for roof and ceiling systems. And, unlike stick-built or other conventional construction systems, our CAHS product delivers:
· superior wind resistance (can be engineered to exceed 140+ mph winds)
· fire-proofing (cellular concrete wall panel systems have fire resistance of 3 hours for a 4-inch panel at 2200 degrees F)
· better insulation properties (exceeding typical fiberglass or cellulose insulation)
· better soundproofing (cellular concrete has some of the best acoustic properties of any construction material)
· better water resistance (cellular concrete wall panels have been left in water for more than 12 months with only ½” penetration into the structure)
· mold, mildew, rot, termite, decay-resistant (cellular concrete will not rot, mold, decay, or be eaten by termites)
· and environmentally-friendly (CoreTech’s CAHS has no wood or aggregate, so no trees are cut down or gravel dug from the earth)
· resulting in a safer, quieter, more comfortable, easier to heat and cool, more environmentally-friendly and less-costly home
Why use 1940’s technology in the 2000’s? Our CAHS product is THE answer for the Gulf areas of the US, and other tropical areas of the globe. Resisting rot, decay, humidity, winds, water, fire and temperature variances better than other construction products, a home built of CAHS products will last longer, cost less and provide a more economical solution over time than conventional construction. Plus, should another devastating series of hurricanes hit the Gulf, homes built with CAHS products are more likely to weather the storm.
Additionally, the fire resistance of CAHS products provides more assurance for California and other western US markets that typically see wildfires. The better thermal properties of CAHS panels provides less utility cost in the cold Northeastern and Midwestern US states and provides much more comfort in arid desert areas of the world. The affordability of CAHS systems over typical on-site, quality stick-built construction provides more opportunities for more citizens to enjoy the benefits of home ownership. And, CAHS-built homes are NOT typical modular homes; they offer better quality than on-site built homes and modular homes of other materials. As a site-built home, they qualify for residential mortgages like any home and the insurance industry should soon recognize the benefit of CAHS construction, resulting in lower premiums.
CAHS saves CASH TOP Lower cost today-lower cost tomorrow. That’s the motto for CAHS residential construction products from CoreTech. Other Structural Pre-cast Products TOP We have been in conversations regarding the use of our structural pre-cast concrete products in applications ranging from power plants to levees to industrial factories to commercial office buildings to whole subdivisions of residential homes. Our product easily fills the product needs in each of these and many other application areas. Providing a product that allows more rapid construction timeframes, lighter-weight, less cost, greater structural integrity, an environmentally-friendly resource and ease of use gives us a marked advantage over competitive products now common in the industry. Following the devastation of hurricanes Katrina and Rita in the US of recent, as well as the tsunamis on foreign soil, we realize that CoreTech’s cellular concrete product is possibly the best solution to the problems faced with rebuilding in these regions of the globe. Using our pre-cast cellular concrete product with a structural steel skeleton, businesses, factories, schools, levees and homes can be constructed that will more greatly withstand the environmental pressures of hurricane-force winds and the powers of the sea. We are currently researching product applications within these regions and are becoming very impressed with the magnitude of the potential for our product in these markets. Looking into the housing needs within impoverished nations or low-income sections of US cities, we realize another tremendous benefit of our product. Building suitable housing in many third-world countries and impoverished regions has been extremely difficult based on many factors. Lack of availability of natural resources for construction, lack of modern construction technology, lack of products that could meet the environmental challenges and lack of financial resources for construction all forge together to prevent residential building in areas of the world where the need is the greatest. As CoreTech’s products are not dependent on available natural resources, are easy to learn to apply and use in development, are environmentally-friendly, can withstand harsh environments (cold, hot, windy, wet, etc.) and are lower cost than other quality solutions, we have within our hands a great solution to the housing challenges of these regions. See CAHS for more information on affordable housing solutions. Another use that falls into this pre-cast concrete category, but could easily deserve a category of its own, is the use of our cellular concrete product in railroad bed applications. Testing and analysis of cellular concrete has been conducted over the past twenty-four months in Germany regarding its use to replace traditional wood railroad ties with those made of cellular concrete. The results prove that using cellular concrete for railroad ties provides an alternative that is environmentally-friendly, stronger, safer, lighter-weight, much less expensive and one that provides a much more durable rail bed solution. Our marketing team is currently developing projects for use of our product in these rail bed applications and we are extremely excited about the future outcome of this application. Pre-cast technology has also developed applications with interior insulation boards, acoustic wall systems for Home Theatres and other related construction applications. As more and more challenges are realized from building in harsh environments, to providing environmentally-friendly “green” resources, to cost factors, to availability of raw materials, to building for greater structural integrity and longer durations, CoreTech realizes that within our product lies the solution to these challenges. Brick, Stone and Related Concrete Materials TOP Though not identified as a primary market by the Company, existing demand and inquiries from the product sector of CoreTech industries, Inc. increases as it enters the Global Market. Latest figures (2002) for the US concrete products marketplace indicate an annual total, national market of $10.7 Billion. The industry has experienced a growth rate in excess of 6.1% over the five years surveyed and this trend is anticipated to increase. Approximately 3,026 manufacturers are currently operating in the industry and conversely represent potential CoreTech Industries, Inc. distributor prospects. Again, California, Texas, and Florida comprise the top three states in number of manufacturers and value of business conducted annually. These products are in great use within the US market and are growing rapidly internationally. The growth trends for these products are rising at an alarming rate. In most US residential developments, the use of pre-fab artificial stone has all but replaced the use of real stone. This artificial stone is used for veneer on interior and exterior walls, as well as for stone pavers, driveways, and pathways. Concrete retaining walls made from pre-fabricated interlocking concrete blocks have replaced traditional masonry or railroad tie retaining walls, offering less cost and greater durability. The use of cellular concrete in the development of these modular pre-fabricated products provides improvements of lighter weight, greater temperature resistance, non-dependency on natural resources for production, easier installation and lower cost. CoreTech is also developing applications of our innovative rubbercrete (mixture of cellular concrete and rubber) technology for use in pre-fabricated products and we see great opportunities for development in this market area. From dimensional lumber, to trusses, to railroad tie systems, we see many applications for development in this exciting technology arena.
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