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The Industry, Competition, and Market
The construction and building material industry has experienced increased growth over the past few years with interest rates at all time lows. Lately, however, the industry is experiencing a reverse trend and with an increase of residential foreclosures, the increasing interest rates and with a continuing growing population, CPC’s process is so diversified, that CPC can produce products that will also meet the needs of the commercial building industry. Another field considered is the landscaping industry. Therefore, CPC doesn’t foresee any major decrease in the demand of composite wood products.
The composite industry is still in its early development although many large corporations are realizing the advantage to an environmentally friendly manufacturing industry. Much of the composite wood products manufactured by our competitor use virgin plastic, which results in a higher priced product and/or a more vulnerable type of material, which makes the product more prone to damage due to moisture exposure and/or transportation.
Our product can be produced in many colors, therefore, eliminating the need to paint which saves valuable labor hours. Unlike wood, damaged products due to transportation, mishandling thereof, or improper use of our products can be retrieved to reproduce the similar product with the same quality as the original product.
Industry Definition
CPC’s core product is composite material made from post-consumer waste that meets or exceeds the characteristics of natural wood. Currently, composite material is used for outdoor decking, trim material, and indoor molding. CPC will explore the molding industry focusing on outdoor decor for the residential and commercial, the landscape and the state highway industry.
Primary Competitors
The composite material industry is in its infant stage and currently there are few corporations targeting the outdoor decking and patio market. Other smaller companies are participating in the outdoor patio market, trim and molding material.
However, unlike CPC’s process, our competitors are dependent upon producing their products by utilizing costly virgin plastic mixed with wood products, a wood fiber material, or a resin mixed with plastic material, therefore creating a more expensive product.
Market Size
CPC’s patented process gives our company the extra advantage of expanding its product line that will enable us to cover an extensive market base. Therefore, we are poised to infiltrate more markets – going beyond those companies who are currently limited to offering only decking and patio-related supplies. Our customer base can range from the local hardware store and lumberyards, to the larger home improvement centers and construction brokers, including city, county, state and federal highway transportation departments.
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